At what point does BOFI start becoming attractive again? It’s down 23.6% in the last three months, even as the financials get stronger and the short attacks more distant.
Why the crickets regarding BOFI? Or should we have another serious conversation about the pros and cons of getting back in?
The world is moving away from brick and mortar everything, and BOFI is a leader of branchless banking. The audits have found nothing for the last forever, as far as malfeasance goes, so the risk is starting to diminish. Isn’t the reward pretty high on this? Thoughts?
Having just discovered this board last week, and holding some BOFI in my porfolio, I had considered asking about Bank of Internet.
From the bit I have managed to scroll back through this board, it appears that Saul held BOFI at the end of the year, but apparently exited sometime before mid-April. I scrolled back to about April 8th last night, and plan to go further back in time in the near-ish future.
I found this board in late 2015. Since then, something strange has happened: by mid-Feb 2016, my Roth IRA caught up to the S/P, and I have been modestly beating it ever since. I am now starting to catch up on missed returns from past years where I left my account in the hands of my broker to “aggressively grow” my money.
Many on this board share their portfolio results and I’m tempted to join in and discuss how I used the knowledgebase here to return my portfolio to growth. There is still much work to be done.
I don’t really post, but I’m a voracious reader and am still amazed that this content is free for all to read.
At what point does BOFI start becoming attractive again? It’s down 23.6% in the last three months
The book value is $12.44 and the current price is 1.8x of book value. I don’t see it as cheap. I would say if it gets closer to 1x of Book value it will be attractive given their growth. Of course, you can argue the bank deserves higher multiple, but that’s what makes the market.
The world is moving away from brick and mortar everything, and BOFI is a leader of branchless banking. The audits have found nothing for the last forever, as far as malfeasance goes, so the risk is starting to diminish. Isn’t the reward pretty high on this? Thoughts?
Monkey,
There is an awful lot of people motivated to see this stock go down. You have the owners of 43.6% of the float. That is 23.7 Million shares shorted and this has been growing the last couple of months. You also have the multitude of “law firms” that are currently soliciting for shareholders who have lost money to call them. These firms all state this must be done by June 2nd. I doubt they were getting many calls if the stock price is doing well and growing like the company. This leads me to believe there will be negative pressure thru June 2nd and probably until the court cases are held in September (last I heard). Volatility will be high thru these milestones.
The reward if they prevail at court will certainly be high given the high short interest.