BOFI: The Future Costco of Banking?
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?