Stock price when the opinion was issued
(Top Pick Feb 6/14, Up 13.23%) They offer a higher savings rate and lower mortgage rates. They are growing 30-40% and it is starting to show in the share price. It is banking on the Internet. It was the laggard of his Past Picks so he expects it to do that well in the next year. There is a transition from brick and mortar banks to on-line rates where they get better savings and mortgage rates.
They are enjoying tremendous growth. It fluctuates over time and is a bumpy ride. He is happy as long as the growth rate is 20-30%. The stock has fallen off because a junior compliance employee tried to whistle blow. The regulator saw no issue with it. The employee was fired and sued the company. It will soon be a buy.
(Top Pick Mar 9/15, Down 8.29%) It pulled back, but it had a huge run up into the 30’s. A junior compliance officer tried to whistle blow, was let go and now is suing for wrongful dismissal. He is still comfortable with it. They did a 4 for 1 stock split last year. He still believes in the story. There is a secular trend from brick and mortar to Internet. They can make a lot of money in the current environment.
(A Top Pick Oct 6/16. Up 23%.) Also known as the Bank of the Internet. They take high interest deposits online, make niche loans and jumbo mortgages to really wealthy foreign nationals. Something that caused him some consternation is that there are a whole bunch of extraneous lawsuits and some regulatory examinations, and it is hard to say what was really going on. They got cleared on all of them.
Growing at 20% plus. Operating efficiency is 40% because they are an Internet bank. They offer higher interest on savings and lower costs on your mortgage. Affinity with Costco. Has been a triply digit performer.