Has anyone else noticed that even after the run-up after earnings last week, INBK, another of anirban’s favorites, was still at only 16 times earnings at Friday’s close, because of the great earnings they posted. Their price was $20.50 at Friday’s close.
Here’s what their earnings looked like the last five quarters:
2014: 13 22 28 32 = 95
2015: 46
They are hitting on all cylinders. It’s difficult to see 2015 any lower than $2.00 (barring banking catastrophe). The lowest sequential rise they’ve had in this sequence is 4 cents. Their 1YPEG at Friday’s close was 0.33 (by the way), which is actually what got me thinking about adding more.
Anirban posted great information on them on post #7653.
While I didn’t want my position to get large because of lack of liquidity, I added after the earnings report last week, and again today. (It’s still one of my “small” positions, but a larger one than it was).
I wouldn’t recommend anyone going all in, because this is a very small company that could run into who-knows-what speed bumps. Anirban says it’s currently his largest position, but he has lots of positions, so his “largest” is in the range of 2.5-3.0%, about the same percentage as a “small” position for me…so again, don’t get carried away.
Coincidentally, I had a open limit order to buy INBK. After seeing your post, I had to raise my limit price to have a chance to get shares because you’ll probably drive the price up a bit.
Hi Chris, The way I figure it, by the end of the year they will have made at least $2.00 (at least!), will be up over 100% year over year (last year was 95 cents), and, at today’s price, will be at roughly 10 times earnings. And have a 1YPEG the lowest I’ve ever seen, at say PE of 10 divided by a growth of earnings rate of 100 = 0.10. People are blind sometimes. By the way, if you want it don’t fiddle with limits. Buy at least a third of what you want at market, and then more as it goes up.
I have added some more to this position as well. It’s still under appreciated, under followed, and management is executing nicely. Low PE, improving efficiency ratios, I really like this a lot. This is now my largest position at 4% allocation.
There was some large volume yesterday, over 6x the daily average. Perhaps some funds are starting to take notice …
The total transactions amounted to less than $2M. The whole company s only worth $100M so this will prevent most funds from buying. Perhaps some of us bought shares yesterday. I certainly was one of them.
Good point Chris! Even at 70k shares the dollar volume is still so low. Still that is a lot more liquidity for us individuals, hopefully the average volume grows to more than 10k shares per day. What was BOFI’s market cap/volume when it got onto the institutional radar?