Brian Finn, CIO of Findell Capital Management, discusses the letter he sent to Oportun Financial's board (NASDAQ: OPRT). Since Oportun's September 2019 IPO, shares have fallen -85%, falling well behind competitor, OneMain Holdings (OMF). In addition, costs have exploded higher and acquisitions have proved disastrous.
Findell Capital Management Letter to the Oportun (Nasdaq: OPRT) Board of Directors (3/29/2023): https://static1.squarespace.com/static/5e17f2a118561f6339437f24/t/64240b4f0cf8705352d472b7/1680083791192/Findell+letter+to+OPRT.pdf
Chapters:
[0:00] Introduction + Episode sponsor: Stream by Alphasense
[1:50] Oportun Financial overview and why Findell Capital sent a letter to OPRT's board of directors
[9:20] What is the $OPRT Board of Directors doing? What is the incentive structure?
[11:45] Understanding $OPRT's subprime lending business for underbanked folks
[15:32] Comparing $OPRT to competitors like OneMain
[24:20] Unpacking $OPRT valuation
[28:29] How Oportun's corporate strategy is wrong
[30:38] $OPRT valuation cont'd - what is the fair value of the loans + cost of financing
[34:29] $OPRT Q4 2022 earnings call
[38:54] Next steps following Findell's sending of the letter
[43:01] Why $OPRT should be private or run by PE
[44:51] Closing thoughts on $OPRT
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