The emergence of financial technology companies, or commonly referred to as FinTech, has taken the financial industry by the storm. FinTech utilizes technology and innovations to improve financial activities up to the point where traditional financial services will walk the way of the dinosaurs. GreenSky Credit was established in 2006 and has become one of the largest FinTech companies in the United States. Co-founder and CEO David Zalik has turned his tech-based lending firm into a multi-billion dollar company. Based in Atlanta, Georgia, GreenSky Credit offers its services to help fund a wide variety of home improvement projects and healthcare related issues that are not covered by the customer’s insurance. GreenSky Credit has provided reliable payment solutions to over a million consumers and had funded well over 12 billion loans since its inception.
CEO David Zalik has worked in the banking industry for years. His savvy idea for GreenSky Credit was brought into existence after the realization that home remodeling contractors were the key to one of the nation’s most lucrative markets, homeowners. Mr. Zalik, a high school dropout turned self-made billionaire, remarkably started his company in his own basement. The company’s straightforward mobile app and its overall services had become a go-to for many contractors across the nation. GreenSky soon shot up in the ranks as one of America’s most valuable FinTech operations.
The company has partnered with 14 large financial institutions including Regions, Fifth Third and SunTrust. The entire operation works by transferring a chunk of the risk and work to affiliated parties, all the while profiting from both sides involved in the deal. Basically, every time a home improvement contractor successfully markets a loan to a homeowner, GreenSky will receive roughly 6 percent of that loan amount. The company is recognized for its ability to service customers who desire smaller amounts than what atraditional bank would typically lend. David Zalik believes that his scalable business will continue to increase its loan volume by the end of the year.
Even though the stock market has been following bullish trends for several years, Sahm Adrangi and his team at Kerrisdale Capital believe that fundamental investing is still a good way to go with proper research and analysis. Sahm Adrangi states that they have not had a lot of difficulties while picking good stocks for long-term investing while also shorting stocksthat he sees as headed towards a downward trend. Despite some rather mechanical approaches that many investors have been following as of late, Kerrisdale is still sticking with the methods that have worked for them in the past.
Currently, Kerrisdale and Sahm Adrangi have shown an interest in shorting the stocks of the pharmaceutical research company Proteostasis. The Phase 2 data for one of their drugs that are still in the research and testing phases does not appear to be everything that the company is promising according to the investment firm. This is why they have chosen to take a short position on the stock as they believe that the4 gains that the company has experienced lately will surely reverse themselves quickly once the truth of the drug comes out to the public.
Additionally, the company has presented research and evidence that indicates that the land development company St. Joe’s is not going to be able to deliver on the promises that they have made to their investors concerning a large area of land in Florida. While St. Joe’s may have seen a decent amount of success while developing beachfront land, the land that is in question is almost entirely swampland and is not in a convenient location to the many attractions that draw people to the state of Florida. Their shareholders have been waiting patiently for years according to Sahm Adrangi, but he doesn’t believe that any amount of waiting will allow them to see a significant return on their investments as they had been promised by the company. When releasing their short stances on companies, Sahm Adrangi and Kerrisdale Capital have extensive research to back up their claims. They have absolutely no problem releasing it to the public as they have in the past.