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BofI Holding, Inc. Message Board

  • mr.schnider mr.schnider Sep 1, 2011 10:55 PM Flag

    issued preferred shares

    Perhaps we will see something different on this quarters balance sheet pop up that can explain why they did this.

    Why would they need $8M?? They are going to keep some of it as cash and the rest into short term treasuries?

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    • 6% non-deductible dividend is the coupon. AND this CONVERTIBLE preferred at $16.15. Redeemable by BOFI at a premium to the issue price. Probably would have been a rate of 8% or so without the conversion feature.

      Obviously, they're running into capital adequacy issues, or foresee this is in the future.

      They're having to pay a high price for this growth. This should be negative to EPS for the common shareholders.

      Sorry, privately placed with a non-deductible underwriter's fee of $225,000.

      Unfortunately, I think that this is a real negative for the common shareholders.

      • 1 Reply to secrtztn
      • Hello:

        I'm just so tempted by BOFI's low, low P/E.

        BUT ON THE OTHER HAND, I'm scared about the dilution going on. This isn't the first dilutive capital raise that BOFI has made. Does management know something that they are not letting on about?

        The other thing that holds me back is the amount of mortgages that they've underwritten in California. I don't care that they're "only" at 70% of appraised value, or whatever.

        Most property in CA is still in a bubble type valuation. The housing situation in CA is no where near solved. I suspect it will get worse before it gets better.

        BOFI has been trading for a really, really low P/E for several years now.

        I just can't get over the these few issues and pull the trigger on BOFI.

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