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.


1 Like

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.



Hi Saul, Chris,

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.


1 Like

There was some large volume yesterday, over 6x the daily average. Perhaps some funds are starting to take notice …


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.

1 Like

I chipped in some yesterday as well. Based on Anirban and Saul’s wonderful analysis. This company is truly hidden gem.


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?