Wisr (WZR) +35.48%: A small cap fintech we like out with an update this morning and they delivered $23.1m in new loans in the 1st 2 months of 4Q20, comprising $9.3m in April and $13.8m in May (+48% growth), while they also tightened credit standards. There are a number of ways we can look at a business like this, however the simplest is looking at loan origination growth (below) whilst also maintaining credit quality i.e. ensuring discipline in lending standards while maintaining growth. Underpinning this is their cost of funding and if they can show good loan growth, low bad debts (and good credit scores for customers across their book) along with a good source of current and future funding, then they should do well. This is what WZR delivered today and the stock rallied as a consequence. We like it as a speculative play.
Wisr (WZR) Chart