Why BofI Holding Inc. Shares Popped Today

Is this meaningful? Or just another movement?

Apr 14, 2014 at 8:28PM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of bank-holding company BofI Holding (NASDAQ:BOFI) popped 10% today after agreeing to acquire the banking unit of tax preparer H&R Block (NYSE:HRB).

So what: BofI shares had pulled back sharply in recent weeks on concerns over slowing growth, but today's deal is quickly easing some of those worries. While financial terms weren't disclosed, BofI said that its expects ongoing annual revenue from H&R Block Bank of roughly $26 million to $28 million starting in fiscal 2015, giving analysts plenty of good vibes over its top-line trajectory.

Now what: The agreement remains subject to regulatory approvals and other customary closing conditions, but BofI seems confident that it'll get done. "We believe our nationwide low-cost branchless Bank is well aligned with H&R Block's desire to provide their clients with affordable banking products and services," said BofI President and CEO Greg Garrabrants. "Once approved and consummated, these H&R Block agreements should add to the strength and diversity of our deposit, lending and fee income businesses." More important, with BofI shares still off about 25% from its 52-week highs and trading at a reasonable price-to-book 3.5, there's plenty of room left to buy into that improvement. 

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Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends and owns shares of BofI Holding. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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