As I begin to research IBNK, I notice that the average volume is only about 16,000, and the trend is down since the April 27. I have never bought a company that traded so thinly. Is anyone else concerned about the volume issue?
Thanks,
Rodney
Rodney,
I believe Saul and Anirban made this clear about illiquidity issue with INBK. Thus you need to pay your own due diligence especially for this one.
Reasons for illiquidity are pretty obvious. Small cap, no institutional investors, very few analysis, etc. It seems like INBK may be a turnaround story in a next few quarters when their investments pay off and efficiency ratio improves as a result. When INBK receives deserved attention from analysts in light of rate hike, it may be a multi-beggar opportunity. However, I have impression that BOFI is more prepared for rate hike compared to INBK.
I’m a Long BOFI, but INBK has more value considering P/BV at this very moment. But as Anirban originally introduced INBK, I see this as a secular mega trend play and long-term holding. I still need to make up my mind whether I’m comfortable with the market cap and trading volume. Perhaps I should start a very small position and look more into it.
Hex
3 Likes
As I begin to research IBNK, I notice that the average volume is only about 16,000, and the trend is down since the April 27. I have never bought a company that traded so thinly. Is anyone else concerned about the volume issue?
Only if you want to get in or out. 
3 Likes
Thanks for the response Hex, I shall investigate further before establishing a small position.
Rodney
I have two things to say about this:
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Hexpert had this wonderfully special typo that I must remember and use at some point in the future: “When INBK receives deserved attention from analysts in light of rate hike, it may be a multi-beggar opportunity.” I absolutely had to rec his post.
-
INBK seems to be doing everything necessary to be very successful as a company. If an investor is patient…. and if INBK continues to execute…. any concerns about the investment will eventually be dealt with. Personally, I’m hoping for eventual stock splits to improve liquidity, but that’s probably a LONG way off.
Rob
who probably owns too much INBK given my typical lack of patience
5 Likes
Haha that’s what happens if you use auto correction and don’t proofread Actually beggar may be the right description given how I beg for investing ideas on Saul’s board. I believe everyone can relate to this to certain extent.
I decided to start a small position of INBK with very long term prospect. Thanks Anirban, Saul and Rob and others for this.
Hex
As I begin to research IBNK, I notice that the average volume is only about 16,000, and the trend is down since the April 27. I have never bought a company that traded so thinly. Is anyone else concerned about the volume issue?
Hi Rodney, It has worried me, and for a long time it made me keep my position small, but I have now gotten used to it and hope its volume will grow as it gets bigger. That does add to risk though. (When you talk about “the trend is down” I assume you are talking about the volume and not about the price , which is up.)
Saul
Hi Saul,
Yes, I was referring to the divergence of increasing price and decreasing volume. It is my understanding that technicians view this as a possible negative signal.
Thank you for responding,
Rodney
Rodney, Volume was up right after earnings due to excitement about earnings. You’ll see this with almost every company whether results are good or bad. Then volume drops back to normal usually.
I was referring to the divergence of increasing price and decreasing volume. It is my understanding that technicians view this as a possible negative signal.
Fyi, from Investopedia:
“In technical analysis, divergence is considered either positive or negative, both of which are signals of major shifts in the direction of the price. Positive divergence occurs when the price of a security makes a new low while the indicator starts to climb upward. Negative divergence happens when the price of the security makes a new high, but the indicator fails to do the same and instead closes lower than the previous high.”
You’ve done a great job explaining the company, Anirban! That made it easy to decide to get on board. It may seem that I may have bought too much in my enthusiasm, over 7% right now, but I may be making a major addition to the portfolio soon that would drop it under 5%. That would be about right for my purposes.
So, I’m just in “sit back and watch” mode for a few years, assuming the performance continues.
Rob
Hey Rob,
Cool, its sitting at 5% allocation for me, and its by far my largest holding. Just like you, I too believe that if they can just continue rolling the ball as they have been so far, then we will all be very happy few years down the road.
Cheers,
Anirban
IBNK? I can’t find the ticker? What am I missing?
2001
INBK.
(If the ticker in the Subject doesn’t work, click on Whole Thread and look for something similar.)
Hi Cobra,
The ticker is INBK, and its a BOFI-like online bank, just much smaller, and founder led.
Anirban
Weird, yahoo must have been on the fritz because I just found it…
I tried to use the search thread for discussions on it but came up empty…
Looks intereting. Difference between this and BOFI? Any solid threads I should read on this?
2001Cobra
INBK has been extensively discussed on this board. But I really don’t know how one would go about finding the threads on INBK. May be try sorting by recommendations as some of these threads attracted tons of debate …
Anirban
http://discussion.fool.com/inbk-q1-2015-earnings-analysis-317308…
Here’s one to get you started Cobra. There are more, just can’t find them right now.
Brian
1 Like
Cobra,
Go take a look at thread#7850 (Anirban’s 2015Q1 Analysis) and #7249.(BOFI VS INBK)I find Anirban and creelon’s input extremely useful.
Hex
2 Likes