TruffInsider Makes Classic Newbie Black Hat Blunder Promoting Predatory Lenders

Note to authors writing for the Screen Name “TruffInsider”

By mistake you used “TruffInsider” for three of your posts in August 2016 for the payday lender and pawn shop owner, Enova International (NYSE:ENVA).

That’s three securities-fraud-proving mistakes in just one month!!!

Out of these 65 comments, 60 are in MFIN threads, 2 are on the thread following the anti-Uber article: “Uber’s Surge Pricing: Bad For Business” published on Seeking Alpha on June 6, 2016 by Ian Bezek. My favorite: “This fine article and its comments deliver the uncomfortable truths about driving for Uber. I think those who disagree with these points should be called Ubers IN Denials!!!!”

Ian Bezek graduated from Colorado State University in 2010. Since then he worked as an Investment Analyst at Kerrisdale Capital from July 2012 to January 2014. Otherwise, he’s been writing on Seeking Alpha and other online investment sites. Ian currently lives in Querétaro, Mexico. As of December 2, 2016, his byline has appeared in Seeking Alpha on 450 articles, 112 premium research pieces and 59 stock talks. His screen name has been used for 6,564 comments.

Could Ian have written ALL of this stuff himself? I guess….what do you think, readers?

As you can see below TruffInsider LOVES to promote Predatory Lenders, whether Pawn, Payday or Medallion.

Vince, no offense, but if you’re going to write about a consumer lender, then you should know your stuff. This chart is a bit different than it was in the old days, but the average cost of a storefront payday loan was about $15 per hundred. These were capped by law.…
A few states had usury caps, like UT, NV, ID, and TX, where the charge was $25 per hundred, give or take. 
Default rates were about 4% of principal.
When online lending was at its peak, however, lenders were operating out of Utah or offshore, and had to charge $25-30 per hundred (usually $30) because default rates ran significantly higher — as much as 30-40% of principal.
Except for Enova (first known as CashNetUSA). They were the only state-licensed payday lender, charging $15 per hundred. Why? Superior underwriting.
As for how profitable they were, check out page 56 and hold on to your hat at the net income growth rate.…
As for the rolling forward of loans, that’s actually a well-entrenched myth. Take a look at the most expensive state, Texas, for payday loans back in 2012.…
Note that the average number of renewals was 1.62. That was about average for the nation, despite claims of consumer advocates.
As for the UK, rollovers are permitted at 0.8% per day, the same rate of 11.2% per two weeks until the total paid is 100% of the principal. That’s even more generous than the US. Enova has not fully ramped back up in the UK yet.
I hope you found this helpful. I am long ENVA.

Aug 23, 2016. 03:55 AM Link
If Enova International Is Right, A Lot Of Investors Are Wrong – Vince Martin

So, then a long position isn’t a stretch if you are willing to put $1,000 on it.

Aug 23, 2016. 03:33 AM Link
If Enova International Is Right, A Lot Of Investors Are Wrong – Vince Martin

Gotta disagree with the author. ENVA is totally different from ONDK, et al. ENVA has a long history of being extremely profitable pre-CFPB. ONDK and its ilk were never profitable, because the consumers they service are totally different. Not all borrowers are the same. There is a wide spectrum. The other lenders can’t get funding because they’ve shown their model doesn’t work and isn’t profitable.

Installment lending isn’t as profitable as payday, but it is profitable and ENVA was the only state-licensed online payday lender that managed not only to make money, but lots of it. They charged 50% of what other online lenders charged and controlled write offs because of their analytics. This is what you’re missing. All the other payday lenders have moved to installment. ENVA smoked them when they all did payday, ENVA will smoke them in installment.
Nor are they “rushing headlong” into new products. The process has been carefully designed, and they have grown the portfolios slowly. The UK product, take a close look at fees. The US average for state licensed payday was $15 per hundred borrowed. A two-week UK loan, in US Dollars, delivers the same (!$14.65). As ENVA takes market share, since they are one of but a few lenders still in business there, UK margins will approach what US margins were at their peak.

Aug 21, 2016. 02:55 PM Link
If Enova International Is Right, A Lot Of Investors Are Wrong – Vince Martin


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