Monday, June 13, 2011

BofI Holding Inc. (NASDAQ: BOFI) Q3 2011 Price Target

Recent price: 13.93$
P/E Ratio: 7.70
3 Months Target Price: 17$

Company Description
According to data provided by Reuters, BofI Holding, Inc., incorporated on July 6, 1999, is the holding company for Bank of Internet USA, a nationwide savings bank operating through the Internet (the Bank). The Bank provides a range of consumer and wholesale banking services, focusing on gathering retail deposits over the Internet and originating and purchasing multifamily, single family and home equity mortgage loans and purchasing mortgage-backed securities. It services its customers through the Internet. It operates its Internet-based bank from a single location in San Diego, California, serving approximately 32,000 retail deposit and loan customers across 50 states in the United States.

Confidence Margins
Strong resistance $19.27 (+38%)
Light resistance $16.95 (+22%)
Light support $12.50 (-10%)
Strong support $10.80 (-22%)

BofI Holding Inc, operating mainly as an Internet Bank, has been able to be very cost efficient and profitable in the past. Investors could also consider holding this company for the long term. The company has very impressive fundamentals for a bank and has very little fixed costs.

Entry strategy
For the cautious investor:
Buy the stock for 14$ or less.

For the risk-taking trader:
As the company has no publicly traded options, the best way

Exit Strategy
For the cautious investor:
Sell when the stock reaches 17$, or keep it until 19$ if you are more bullish in your own analysis.

For the risk-taking trader:
The contracts should be kept until the underlying reaches 17$. This should provide a very interesting return if the underlying reaches the target price as the contracts will get in the money.

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