Just last month, I talked about why I was taking a pass on BofI stock; In a nutshell, there was just too much potential for hidden risk to wipe out the stock’s gains. Though last week’s price moves don’t conclusively prove my thesis correct, they do highlight the types of risks investors take when they invest with this management team.
… On the most recent conference call, he boasted loudly about the results for the upcoming quarter, and said he’d "absolutely " be buying shares if allowed to. Remember that BofI was selling at around $100 per share just this June, and Garrabrants showed no open market purchases during this time. Nor has he had any in the past two years… I find all of these statements to be very unbecoming of a CEO of a publicly traded company, with the last one being a particularly odd attempt at visual humor. If the bank truly is an “earnings juggernaut”, then let the results speak for themselves, instead of hyping up investors interest and then stating that they’ll have to wait until the end of the month before getting actual numbers to review.
Let the dust settle on this one. There are so many wonderful companies that don’t have a black cloud lingering over. When there is resolution to the above issues, it won’t be too late to get back in.
There is no point in worrying and stressing over things you have no control over. There is no point in “holding and hoping”. While the Motley Fool Mantra is to buy and hold with a time frame of 3-5 years plus, there is no shame in taking action.
I exited the stock a few days ago and have no regrets. Sure, a 30% drop hurt, but I was still able to exit the position with A. a profit and B. my returns outpaced the S&P over that same period I held it…Sure I could have been stubborn and held, but why?
Your assessment of stocks should be ongoing. Don’t be too hard on yourself if you need to take a different direction.
Let the dust settle on this one. There are so many wonderful companies that don’t have a black cloud lingering over. When there is resolution to the above issues, it won’t be too late to get back in… Your assessment of stocks should be ongoing. Don’t be too hard on yourself if you need to take a different direction.
Great Darrel, I couldn’t have expressed it better.
Saul
Shorts are definitely winning today, snowball is getting bigger. I did exit my tiny position this AM as well. Maybe a call spread around earnings since they are “clearly” going to be a blow out
Let the dust settle on this one. There are so many wonderful companies that don’t have a black cloud lingering over. When there is resolution to the above issues, it won’t be too late to get back in.
The exact reaction shorts panning the stock are hoping for. Touts and pans work on greed and fear.
