BOFI PE for next year is less than 12

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Next year BOFI is expected to earn 8.09 next year, it’s forward P/E is only 11.68 with an incredible growth, plus next year’s estimate (8.09) doesn’t even include the H&R block deal numbers.

Once the accusations blow over, assuming that there is still not actual evidence. BOFI should be a huge winner from these levels.

Tomorrow is their shareholder meeting at 5:00EST and 10/29 they report earnings after the bell, I think we will get a better picture of what is going on.

I did buy a little more today to add to my holdings, I really would like to see a counter suit filed by BOFI and the CEO buy some stock after they announce earnings. (The CEO on a conference call last week said he would definitely buy stock, but is currently in the blackout period, which will end after their earnings announcement)

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Hello,

Actually, I think the $8+ eps projected for next year does include the increment from the H & R Block transaction. I think it also includes a kicker from the assumed increase in the Fed Funds rate, as the H & R block transaction will generate a lot of zero cost funds for BOFI that are so short term, their only earnings on them will be Fed Funds.

Best regards,

Mike

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H & R block transaction will generate a lot of zero cost funds for BOFI that are so short term, their only earnings on them will be Fed Funds

I think part of the profit from HRB will be from everyone that gets an “accelerated” refund for a “small” fee. Those can be good margins as they borrow at Fed rates and charge much more to the customer.