Buyer Beware: More Odd Behavior From BOFI

Oct. 29, 2015 1:45 PM ETAxos Financial, Inc. (AX)39 Comments


  • BOFI submitted a transcript of its October 14th Business Update Call in an 8-K filing to the SEC.
  • I compared the company's version of the transcript to the Bloomberg transcript and to the actual call and the differences appear to be substantive.
  • In a digital era (when these things are easily verifiable), why did the company produce a transcript that was so different than transcripts from reliable 3rd party vendors?

I took the time to listen to the BofI Holding, Inc (BOFI) Business Update Call from 10/14/15, then compared it to the transcript that the company provided in Exhibit 99.1 of an 8-K provided to the SEC on 10/15/15 (this transcript exhibit will henceforth be referred to as the "BOFI Transcript").

Before BOFI's management tries to accuse me of wrongdoing, let me make perfectly clear that all of this information was sourced from publicly available information.

I was shocked to discover that the BOFI Transcript differs substantially from the actual events that transpired on the call (Link to Webcast). The BOFI Transcript includes additions/omissions that, in my opinion, would likely be material to anyone analyzing BOFI's public filings and public statements. I looked at the transcripts compiled by both Bloomberg and Standard & Poors (I have not provided the transcript due to copyright laws), which were consistent with the aforementioned Webcast but materially different than the BOFI Transcript.

The differences went beyond stylistic tweaks. I encourage all investors to look through the information that I have provided and go through their own process of fact checking, as the information below is based on my own analysis and review of the situation and the information contained herein incorporates my opinions.

In my opinion, the modifications to the language appear to be too substantial to be simply explained away as accidental errors of omission or "lost in translation" mistakes.

I have included just a few of the most substantive and obvious differences in language:

When asked to opine on whether the OCC's investigation into Erhart's claims are ongoing:

09:55 mark - "But, the fact is that all of these were investigated, there is nothing ongoing..."

10:08 mark - "...You can take as absolute confirmation by the fact that we got those deals done…

This article was written by

Offering the world some REAL TALK when expectations equate to irrational exuberance.

Disclosure: I am/we are short BOFI. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This letter represents the opinion of the author as of the date of this article. This letter is based upon public information available to the author. The author encourages all readers to do their own due diligence. This is not a recommendation to buy or sell a security.

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