This morning BOFI beat by .02. Loan portfolio up 15.6% and loan originations up 22.2% yoy. It’s trading up $4.00 as I write. I am taking this opportunity to lighten my heavy overweight on her but remaining in the name. It has blown through the last 2 targets I’ve seen of $32 and $34. Likely some higher targets will be coming. I added a little to my AYX on the GS downgrade.


a short squeeze happening?

I’m going to watch as I also wish to lighten for better opportunities

Very well could be 26 days to cover short interest.


I believe BOFI is worth $45 today, which is about 15x forward earnings. On top of that, the excess capital they are yet to deploy should improve the return, either by divs/buybacks or more capital to lend against. I also believe NIM will improve with rising rates, and BOFI’s internal margins will improve as they taper off the large investments they have been making in preparation for becoming a $10B bank. Rising rates can also increase deliquencies, which may dampen the potential gain there.

Largest position and holding.