Trade-Ideas LLC identified

BofI

(

BOFI

) as a "dead cat bounce" (down big yesterday but up big today) 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 $19.2 million.
  • BOFI has traded 343,383 shares today.
  • BOFI is up 3% today.
  • BOFI was down 7.6% yesterday.

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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 1. Currently there are 6 analysts that rate BofI a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for BofI has been 1.1 million shares per day over the past 30 days. BofI has a market cap of $1.2 billion and is part of the financial sector and banking industry. The stock has a beta of -0.17 and a short float of 39% with 21.20 days to cover. Shares are down 18.9% year-to-date as of the close of trading on Wednesday.

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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, impressive record of earnings per share growth and compelling growth in net income. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • BOFI's very impressive revenue growth greatly exceeded the industry average of 9.1%. Since the same quarter one year prior, revenues leaped by 51.0%. 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 84.46%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 33.37% significantly outperformed against the industry average.
  • BOFI HOLDING INC reported significant earnings per share improvement 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).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Thrifts & Mortgage Finance industry. The net income increased by 70.4% when compared to the same quarter one year prior, rising from $21.07 million to $35.91 million.

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