I know this stock used to be a favorite here back in the long long ago. Previously known as Bank of Internet, AX financial has ditched the 1999-esque name and is making moves to expand in the next decade, expanding their portfolio. They are looking at double digit growth for the forseeable future and trading at low low multiples. PE is only 9.43.
This stock is definitely not part of the current zeitgeist on this board, but it seems like a solid opportunity to diversify outside of the hypergrowth space. What do y’all think?
Speaking of old favorites, another name I’ve been looking at is LGI Homes. They are trading at a PE of 12.04.
These are both more conventional stocks, but they are also conventionally cheap. They are both “growth stocks” albeit not “hyper-growth stocks”.
My portfolio currently has Alteryx, DataDog, Crowdstrike, The Trade Desk, MercadoLibre, and Roku. But I’m thinking of diversification across sectors.
Anyways, sorry I don’t have much more to offer. Just looking to keep an open mind about where other opportunities may exist.
I was a holder of AX (formerly BOFI)off and on until a few months ago. I’m sorry but I think the ship has sailed on this being any kind of hyper-growth stock. Its assets have surpassed $10 Billion and it has entered a much more expensive regulatory regime. The big money center banks have assets of trillions and have gone down the path of embracing online banking, reducing branches right and left, and narrowing the cost advantage that AX enjoyed. In addition, AX has gone on an acquisition march and, so far, the results have been less than stellar. They lost millions on a fraudulent scheme with a brokerage service acquired. I believe that management is strong and that they will outperform most financial institutions, but they are simply not going to provide the hyper-growth looked for here.
For the past couple of years, I would use AX as a cash proxy when they were selling for less than 1.7 times book. That worked out well but I was always out when one of the SAAS companies met my criteria.