Nobody said that an IPO is supposed to guarantee a quick profit for the investors. Obviously the IPO was a success at 21 for the company. This company was wise to take the highest price it could for it's IPO. In a few months no one will remember this anyway. Anyone who would whine about the fact that they didn't get the stock cheap enough is obviously not looking out for the long term good of the company and is a worthless opportunist who would have cashed in quickly. I'm glad that Mike et al left folks like that feeling hosed. That move was priceless and should leave anyone who owns the stock confident that a Capitalist is in charge.
Huh? Read the prospectus. Despite the tentative move into alternative loans, this firm is almost entirely in the guaranteed loan business -- loans 98%-guaranteed by the American taxpayer; loans guaranteeing a federally-provided interest rate to the loan holder of well above what the borrower is paying; loans where the government, not the loan holder, pays interest when the borrower is in school, deferral, etc.
These message boards are about discussing the investment aspects of securities, mutual funds, etc. All money is green. But let's not kid ourselves that this firm is in some kind of free-market capitalist environment. It is in a highly-regulated niche industry whose participants have built up significant barriers to entry, such as the idiosycratic loan servicing & collection rules, which make it quite difficult for loan servicers from the mortgage, auto loan or credit card servicing industries to jump in and compete without incurring significant start-up costs. In fact, the prospectus touts the future revenue opportunities of its proprietary software for servicing loans.
That said, no one should bet against these guys. They have shown an ability to successfully stare down controversy, including Consumers Union, state officials and others during the initial conversion from non-profit to private entity several years ago, and emerge almost unscathed.