Thanks for sharing that so timely Saul! I think BOFI still has a long way to go in the long run (hopefully up) and seems to be driven by the kind of CEO that is going to make it happen (like him or not). Today’s drop hit the entire banking sector hard mainly due to the British Prime Minister’s speech “Brexit is Back” (in my opinion). It is also a trigger to cause people to take the quick post election gains the sector has enjoyed the last couple of months.
https://www.benzinga.com/analyst-ratings/analyst-color/17/01…
It is still a very small company and will probably be volatile which will cause me to protect my gains at some point, but I think there are a few catalysts coming up that is why I’m still holding for now. First, earnings are coming with BOFI reporting Afer Market Close on Jan 30th. Other banks have reported positive up side results this quarter (JPMorgan, Wells Fargo, Bank of America, and PNC Financial Services). Second, the court case decision announcement will come some day/month/year which I still see as an opportunity. Third, any earnings up surprise may get more of a bump from short covering. BOFI is still 36.1% of float shorted, but it is the lowest number of shares in the last year and trending down. Finally, the next administration is going to remove many sarbanes-oxley regulations which should further bump the sector up.
I also have significant gains on oil stocks that are allowing me to be ok with a drop in BOFI if all the above does not pan out. BOFI was my largest holding, but has dropped to second.