BofI Holding (BOFI-Q)

(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.

(A Top Pick March 14/16. Up 49.18%.) This is an Internet bank. He no longer owns this and considers it as a Sell. It had a nice move, but mostly because of the rally in financial stocks.

This is going through a bit of controversy right now. There were some Short selling reports and a lot of negative Twitter headlines. They have $7.5 billion under management and has been around for 15 years. There are no branches. A very high growth rate that you can buy right now at about 11X.

(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.

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 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.

(Top Pick Feb 6/14, Down 0.88%) He continues to own it and looks forward to what it will do in the next year.

(Top Feb 06/13, Down 1.80%) They just announced their latest quarterly results and net income was up 40%. Loan portfolio up over 40%. They expect 30% going forward on a 15 PE.

(A Top Pick Feb 6/14. Down 0.24%.) This ran up to $100 within a month of his recommendation, and then it came off with the selloff of growth stocks. Recently announced EPS growth of 35% year-over-year and are expected to grow this at 30% this year and another 30% next year. Still likes.

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.