BOFI Holding operates Bankofinternet.com - an internet only bank, ala ingdirect.  BOFI is growing leaps and bounds and trades at an amazing P/E of 6.  I have never seen a company with this type of earnings/revenue growth trade at such a paltry valuation.  Did I mention it is now trading at $1 below book value?  Earnings will be released on Wednesday and the CEO mentioned at a banking conference that about 50 cents was added to book value.  He basically let the world know they will be doing a nice 50 cent for the quarter.  Not bad for a stock now trading at $12.35 -


We are currently long BOFI...

I started shorting SPLM after the volume spikes in March.  The price ran near $3.70 and the stock (due to an apparent old fashioned snail mail promotion) began to look ready to roll over.  Shares were sometimes available (you actually had to short pre-market to get any).  Since then the stock has rebounded several times and I was able to get shares on some of those occasions.  The stock pulled back and then bounced four different times.  The possible return on each drop was +40% +30% +50% +50%. On a side note, although I never went long this stock, tremendous profits could have been made by covering shorts and going long for the rebound each time.  The trading strategy is called "playing the bounce" and with a good eye for level II you can be a success at it (I seem to have more patience on the short side).

While I like shorting the overinflated promotion stocks - usually otcbb and pink - this week you could have pretty much shot the fish in the barrel.  I was short LOGL - Legend oil and gas -  and covered for a small gain.  I will be looking for shares of VXX if it stays in the 30 plus range.  VXX decays badly and the Vix does not stay high forever.  It could be an interesting week since the US has been downgraded.