LendingClub Corporation (LC)

Company has $4.86 cash per share. Stock is trading at $11.98.
Subtract cash from $11.98 stock's Good Will $7.12.
Now is a great time to own this unique gem.
Ark invest has highest position in $LC

Note to self, lending money to people who can't afford it is always a terrible business model. People who are financial disasters don't become good little borrowers overnight. They are too emotional, and can't delay gratification. They are largely obese, unable to control impulses to eat, and they are unable to hold off from buying the new phone either. The market always mis-prices the risk in lending to the these people. The rate should be more like 30% to cover losses, but then the payments are so high you get more defaults, and it is a downward spiral. It's best just to avoid lending them money in the first place.

So...CEO of LC gets caught fudging paperwork on some loans, gets fired, and the stock gets a hammering of epic proportions. LC alerts the affected parties and buys the loans back. Financial media --- especially WSJ --- piles on and questions the viability of the entire FinTech segment.

Wells Fargo creates millions of fake accounts and charges customers bogus fees just to inflate their stock. They get caught and pay the feds over $150 million in fines to settle the matter. They blame the entire affair on renegade employees and fire 5300 people. We are told that no executives were aware of the problem --- even though several whistle blowers had been fired. We don't hear a word from the Wells Fargo board of directors and the CEO has no intention of resigning.

Does the financial press --- including WSJ --- question whether conventional banks have learned anything about ethics since the financial meltdown of 2008? Um...no. Do they call for the resignation Wells Fargo CEO John Stumpf? Again, no. Do they question the viability of conventional banking in the face of leaner, more nimble, and arguably more ethical Fintech rivals? Of course not. It's just another day on Wall Street.