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Anyone know why BOFI dropped so much today. Down $10+ Yikes!
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Terrible report out today from Seeking Alpha.

http://seekingalpha.com/article/2097623-bofi-holding-a-bank-...
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That article doesn't seem to take into account future growth. While the assessment that the current stock price overvalues Price / Book, this only looks at the current price value of the bank vs. current value on the books.

What about the forecasts?

MajorBob
Not a customer, but Long BOFI
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Interesting to me from the article...is the paragraph that talks about the amount of influence TMF has on stock price. Is TMF that large that it can move the market? Wow! Annieho
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I am in since it was $66 in August for a 26% beat of S&P. So I am still quite happy. If it was losing, i would still view it worth holding for 5 years - which is a main criteria for me.

If you have a short time outlook then you will feel differently. If your time horizon is long, then your best gainers will have times like this. Essentially, nothing has changed. Some folks are fickle. It is a good time to buy.

The Seeking Alpha article is just an opinion and one that is more about metrics than potential. The author claims to be a value investor, but is not very long in outlook which is an odd stance.
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BOFI at 5X book is not very meaningful for a bank with no bricks & mortar investment in branches. The stock price has risen to a very high multiple P/E yet the momentum and PEG seem to warrant a very bullish perspective. A 10% pullback may be providing more opportunity than cause for panic.
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TMF is pretty much the largest collection of impartial analysts in the world, and T & D are the most consistently successful as far as I know.

This is a good place to be, and it makes sense that the market follows TMF, when it is not being irrational.

Irrational, or not caring about more than the past fraction of a second (as much as 75% of daily trading volume is run by algorithms and perpetrated by computers). That is why a 10% drop on little or nothing happens. You have to ignore it and decide for yourself.
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Good to have your thoughts. Thanks to all.
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I've read through the Seeking Alpha article now and I thought it was an unprofessional hatchet job. They do admit they are shorting.

A couple of my main beefs with it;

The discussions about how BOFI are mismanaging their interest rates, and so on, never mention that BOFI has nothing like the infrastructure and overhead of a brick and mortar bank. This is one of the main points in favor of BOFI- they can act differently and push farther, because they don't have to cover a lot of cost that the conventional backs cannot avoid. The B&M banks can't compete, but this guy is spinning it.

There is a whole lot of unsubstantiated commentary (the bulk of the article) such as recounting customer complaints that the BOFI CEO replied to personally they say, but the author never presented any of the answers he provided. As customer service is a prime push for BOFI it is a very good thing that the CEO covered these complaints. You certainly won't find the CEOs of BAC, Wells, and so on answering customer complaints directly.

The crack on TMF is that writing a series of articles on what is propitious about BOFI is trying to drive the stock up. That the stock rises does happen, but the motivation is to encourage TMF participants to consider a company with potential, a lot of potential. The TMF time horizon is long, the reasoning is not about short term stock inflation, but the potential to be a ground breaking new business.

Hatchet job. I bet the 10% comes back soon enough.

My disclaimer, I will dollar cost average later. It is not yet time for me, so while I talk about buying now maybe being a good idea, I am not doing it.
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I really appreciate your thoughts BentMike. I'm looking to buy a little more but need to free up some cash. Annieho
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Followup, today BofI is leveled off at the same price it sold for on 2/19/2014. Less than six weeks.

This is why you want to invest in a company, rather then try to play stock trader.

Back off an look at the stock price on a longer time scale...If you look back a year the stock has doubled after a fairly steady rise, where the recent blip up and then down was an anomaly.

Who knows what the market will do? I don't, but I think I can wait and see with BofI, I see no reason not to buy some more soon. I bet they can continue as they have and grow 50% in the next 12 months. They are still the small and smart company they were a year ago. I won't buy so much I can't afford to be wrong.
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