Message Font: Serif | Sans-Serif
 
No. of Recommendations: 2
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.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.