RE:RE:RE:RE:RE:RE:RE:RE:Mogo in TechVibesI guess you have your thoughts on it -- high risk unsecured segment at high rates (as you have stated 3x now).
I see things differently. Love the company's business plan and what they are trying to achieve.
- One of the big differentiators of mogo is that they are the only company in Canada that lends across the entire credit spectrum so that they can offer all consumers an opportunity to lower their rates and get out of debt faster.
- almost 10 million of Canadians carrying credit card debt with rates that are typically in the 20-30% range. Mogo is giving them an opportunity to pay off their credit cards and have a more manageble financial situation.
- Regarding their cost of capital, the company has done a great job lowering it over the last 18mths including their new facility which goes down to 7.9%.
- If you take a look at the company’s financials and you will clearly see their average yield is well above their cost of capital.
- The company has also publicly said that for loans below their cost of capital they will lend from cash on their balance sheet and they plan to launch a marketplace (similar to Lending Club) to fund these lower rate loans in the future.
- It’s also clear that Mogo is investing heavily in technology (again in their recent financials) with a very experienced silicon valley leadership team (see bios in Mogo’s prospectus).
I've done my due diligence. Think it will be a great investment. Am willing to hold and give them a few years to execute.
Financial services is ABSOLUTELY going to be disrupted by companies that leverage the latest technology and Mogo is clearly leading this disruption in Canada.