The recent (last two weeks) dip might be related to the Erhart case. Shorting happening before the decisions and then recovery right after they became public on Sept 11th. Don't get excited - its still early days. The decision was deciding whether to throw it entirely out of court again (as happened this time last year). And it was not totally thrown out again. I suggested this outcome last year. The judge specifically dropped lots of hints in last years ruling about how Erhart should plead his case - so as not to get it thrown out.
So Erhart has finally passed the lowest hurdle (after two years) of having a case even possibly worth trying in court. Some aspects of his case (mostly those related to CA law) were dropped as not worth the courts time. But the primary complaint remains.
Here is the summary: "Specifically, the Court denies BofI's request to dismiss Erhart's claims for whistleblower retaliation under Sarbanes-Oxley, whistleblower retaliation under Dodd-Frank, and defamation. The Court, however, grants BofI's motion to dismiss Erhart's claims for violation of California's Confidentiality of Medical Information Act, breach of the implied covenant of good faith and fair dealing, and intentional infliction of emotional distress."
Now we go to the next stage. Depositions, etc. This will take more than a year. When completed the final conclusion will be that Erhart was overzealous and wildly unfounded in his accusations of misconduct (none will be proven), but that BOFI was equally overzealous in shutting him down. Dodd-Frank does not require and wrongdoing on the company's part for the company to be guilty (stupid but true), so they will probably get nicked by the Judge for that. Erhart will get nicked for being a short mole (though that will not be proven either).
The worst case outcome for BOFI will not materially affect the business. The shorts know this as well. Their hope for the court case is that it will allow the opportunity for a fishing expedition that will actually find something material. I think that search is fruitless (but that is why I am long, obviously they still believe otherwise). The longer the case goes, the less likely it is they will find some nefarious illegal scheme and the more they will bugger off. Remember, the outcome of the currently stated Erhart case is not really of interest to them. They wanted the shareholder derivative suits (which they got already) and the fishing expedition.
When the lower court ruling is announced on Erhart in roughly 2 years time BOFI will have a earnings of at least $3.40 per share and a price of roughly $51 per share (PE = 15). Assuming the shorts do not give up before then - in which case the PE will be roughly 20.
BOFI will appeal if it is anything but a hand slap.
Seems like the more that positive articles come out on this, the more the #$%$ pound it. Amazing!!!
X axis : Stocks Price Correlation Coefficient Y axis : Quantity of stocks 1,000 Day Parameter 2,926 NASDAQ Stocks Price Correlation Histogram Type Description 1. Zero Correlation Histogram - The stock pair is concentrated in the correlation coefficie
Will BOFI officers be indicted Monday? Are you guys getting this over the AP?
Short interest decreased to a level last seen in April. Roughly 23m shares held short as of the latest.
Bofi never give me any money They only give me stock funny paper And in the middle of fraud negotiations they break down
They never give you their number They only give you their situation And in the middle of investigation they break down
Out of college, investment money spent See no future, pay no rent All Bofi’s money's gone, nowhere to go Any jobber got the sack Monday morning, turning back Yellow lorry slow, nowhere to go But oh, that magic feeling, nowhere to go
This stock hasn't moved. A complete and utter disaster.
Feds talking about raising rates this December. This could bold well for BOFi.
Is it just me or do the financials of this look outstanding? The growth rate + fair value= huge winner
Wonder why the drop recently
There has been no insider sales of stock, except option exercise, for 2 or more years. If this is such scam, then why arn't the insiders selling their shares? The shorts have piled on without cause and are now trapped with 25 million shares short. They can never cover so they have to keep pounding on the stock with bogus stories. Eventually they will have to cover and it will be at $50 or sooner if BOFI sells the bank. The bank will be for sale soon at 3.4x BV or $44/shr.