Trade-Ideas LLC identified

BofI

(

BOFI

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified BofI as such a stock due to the following factors:

  • BOFI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.8 million.
  • BOFI has traded 130,159 shares today.
  • BOFI is trading at 2.27 times the normal volume for the stock at this time of day.
  • BOFI is trading at a new low 3.05% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on BOFI:

BofI Holding, Inc. operates as the holding company for BofI Federal Bank that provides consumer and business banking products through the Internet in the United States. The company's deposits products include consumer and business checking, demand, savings, and time deposit accounts. BOFI has a PE ratio of 11. Currently there are 5 analysts that rate BofI a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for BofI has been 1.3 million shares per day over the past 30 days. BofI has a market cap of $1.1 billion and is part of the financial sector and banking industry. The stock has a beta of -0.23 and a short float of 40.7% with 15.92 days to cover. Shares are down 12.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates BofI as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 15.2%. Since the same quarter one year prior, revenues rose by 40.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Thrifts & Mortgage Finance industry and the overall market, BOFI HOLDING INC's return on equity exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for BOFI HOLDING INC is currently very high, coming in at 82.46%. It has increased from the same quarter the previous year.
  • Net operating cash flow has significantly increased by 736.91% to $27.95 million when compared to the same quarter last year. In addition, BOFI HOLDING INC has also vastly surpassed the industry average cash flow growth rate of -25.37%.
  • BOFI HOLDING INC has improved earnings per share by 39.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BOFI HOLDING INC increased its bottom line by earning $1.34 versus $0.96 in the prior year. This year, the market expects an improvement in earnings ($1.86 versus $1.34).

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