Added to my BOFI position today.

Hope I am right. :expressionless:


Another Seeking Alpha article from BOFI perma-short The Friendly Bear:…

A probable factor in today’s almost 6% drop, but no more substance than any previous short articles, IMO.

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My favorite part of the SA short piece was:

BOFI is not a regular bank. It is going to get smoked now that rates have risen. The violent increase in rates is particularly negative for BOFI.

“Smoked”? “Violent increase”? What violent increase of rates is anyone saying is coming?

I thought we were past the investors reacting to these rag articles. I’d expect some profit taking after a 37% increase in one week though.


I would have thought a branchless internet bank is better placed to face rising interest rates than those with branches. Anyhow increases in interest rates are supposed to increase banking profits not reduce them.


Small interview with Sorin Roibu, senior research analyst for Brandywine Global’s large-cap and global equity strategies,

Why big banks might have the edge as financials soar…

It basically says both small and large banks have risen dramatically, but the conclusion that big banks have another ~7% upside and that the small banks are done increasing seems very near term focused. This one analyst compares AVERAGES of P/B and P/E.

I don’t consider BOFI an AVERAGE bank, but was more concerned that BOFI’s P/B is 2.0 and the list in the table of AVERAGES is only 1.3 to 1.7. But when you look at P/E, BOFI is about 11.9 and the list in the table ranges from 15 to 20.

Seems like plenty of upside to me, but there is a divergence of the P/B being high and the P/E being low.


This bear’s short articles come up around option expiration dates. What a coincidence…

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