Berk Sure Has A Way

Putting my mouth where my money is.

Archive for August 2011

BOFI: The Future Costco of Banking?

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I posted an article at Seeking Alpha about my take on Bank of the Internet (BOFI) – a very undervalued bank.

Below is a quick summary and a couple of charts omitted by Seeking Alpha’s editors.

I had meant to post this prior to their earnings.  While you may have missed out on the pop post-earnings, the stock is still a good buy in the 14s and 15s.  It may come down rapidly if the market continues to decline – that would be another buying opportunity.

The reasons to buy BOFI:

1) A Growing Bank – a rare thing in this environment

2) Low Cost / High Yield Leader

3) Prudent Risk Management

4) Competitive Environment Favors Internet Banks

5) Inexpensive Valuation

6) Recent Product Innovations

One reason not to buy: This is a small cap, illiquid, and risky stock. If the market drops a lot more, BOFI will likely tank even further.

Here are two charts that were intended for the first section about growth:

Read more at Seeking Alpha: BOFI: The Future Costco of Banking?


Written by Kevin Berk

August 12, 2011 at 7:38 AM

Posted in Picks and Pans

Tagged with , ,