Having lurked (you guys are geniuses) and riffled through the 1YPEG screen incessant times and watched these two stocks, BANC and INBK, I don’t see much difference between them as far as the screen discerns candidates. I would like to buy one from this sector and can’t decide. I guess my real question is why does INBK perform so poorly and is there hope that the market will change its mind?
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I guess my real question is why does INBK perform so poorly and is there hope that the market will change its mind?
To be honest I believe that Saul reducing his position has made a big impact on the share price. The market cap of INBK is a little over $100M. Saul in his monthly report stated that he reduced his once sizeable position because he already had a bank stock and that Airban who covered INBK so closely no longer could due to his new job (see Saul’s end of March 2016 review).
Due to valuation and insider ownership I like INBK a lot. Being such a small stock with low volume it is hard to be too overweight on it despite the great fundamentals.
Don’t know too much about BANC, but it is much larger than INBK, almost 8 times as much.
Sincerely,
Charlie
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If you are looking to be in a solid growing bank there are a lot to potentially choose. Another followed here which also seems to be very solid is Signature Bank (SBNY). A New York based bank with its own little well run niche.
Another I would recommend looking into even though it has been pretty much ousted from this board over the last 6 months is BOFI. It went through a recent short attack which killed much of its once great following. Though in the end it seemed so far at least that nothing actually materialized from all the accusations. It is a fast growing internet bank that in my opinion seems to be very well run.
I don’t know anything about BANC so I will refrain from commenting on it.
INBK is also a well run internet based bank similar in many ways to BOFI. It has good CEO buy in and he is a serial entrepreneur with a history of building solid businesses. This company is growing nicely though yet still very small as stated above. I used to be a shareholder, but I decided to sell out of my position in the 30’s due to the lack of translation from EPS growth to BV growth and lack of liquidity. The lack of liquidity is a major consideration on this stock. If you want to get in or out it can be difficult to do with any substantial position. Just selling or buying a few hundred shares of this company can have the effect of moving the share price. If you ever needed to get out quickly you might have to sacrifice a little on price. This in my opinion is a good reason alone to keep your allocation lower.
As always I encourage your own research.
Best of luck!
Soth
Long BOFI
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I agree with Soth12 that BOFI is worth looking into.
I am long BOFI, and have been for some time now. When the stock price fell many months ago, I bought more shares. The price is not yet back up to what it was, but it does seem to be moving up slowly, but surely.
az5Speedy
long BOFI and INBK
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If you are looking to be in a solid growing bank there are a lot to potentially choose. Another followed here which also seems to be very solid is Signature Bank (SBNY). A New York based bank with its own little well run niche.
I agree with Soth about SBNY, and have been investing in it myself. I did a Mid-Quarter Review on it in February if you want more information.
Saul
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By the way, SBNY was rated #6 in the Top Ten Banks in the US by Forbes. It’s been in the Top Ten for six years in a row. Not bad for a bank you’ve never heard of.
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Sorry, I misquoted that. I should have said that Signature Bank (SBNY) was rated #6 in Forbes List of America’s BEST Banks, and has been in the top ten for six years running. (It obviously isn’t one of the top largest banks.)
Saul