Replies to post #120340 on Savvy Trades and Investments

[SSKILLZ1]

INBK

I brought some INBK today at $33.95, obviously not the best entry point so far today, with it being lower now, but I do feel $32.50-33 should be support, and it is oversold so here is what I like.

Book Value: INBK trades at a steep discount to tangible book, with Tangible book value about $10 higher than where the stock currently trades.

Asset Health: INBK has very high quality Asset health as NPA are only 0.39%, which is very low. So right now the asset health looks pretty good.

Deposit and Loan Growth: Deposits continue to increase at the bank which is a plus (Almost 5% sequentially last quarter). One thing that worries me with a bank is when you keep seeing declines in deposits but these guys keep growing deposits. Loan Growth was also up this past quarter although I expect that to pick up more in future quarters as there sometimes is a lag between deposits and loan growth, but I expect loan growth to pick up even more in future quarters.

NIMS I believed troughed several quarter back, and will start to expand possibly signifcantly in fy 2025, as thankfully the spreads between short-term and long term rates have stopped being inverted hence better for banks. I fully expect these guys to see that benefit with future imporvements in NIMS which will lead to future improvements to the bottom line as I see FY 25 to be a significant year of growth aided by improvement in NIMS.

Interest earning Assets: Nims is part of the formula of how we improve top line and inevitable bottom line results, the other way is growth of interest earning assets, which is up 7-8% Y/y, and up a little under 4% sequentially, I believe this will be a signifcant help to growing earnings as well.

Stock doesn't appear as cheap with .80 up from .67 the last quarter, but I fully expect to see earnings getting close to say a $0.90- $1.00 run rate this up coming quarter, and I fully expect with NIMS to improve further in fy 25, that earnings could be in the $4.50-$4.75 range next year. Given that a 12 PE at least, I could make a case for the mid 50's over the next 6-12 months if and it is a big one always with earnings where I think earnings are going in fy 2025. Hence why I find INBK very attractive here as I like there growth prospects.

Conclusion: I like INBK and purchased some at $33.95, and is my favorite bank right now. Time will tell. But I think it has significant potential, and it is oversold near support, so that is a plus too. All is just my opinion, and I could always be wrong though.

[wadegarret]

SS- GEN

I like everything you said, but you left out what sent the stock down from $32 to $26. That is one month ago, they bought a Fintech company called Money Lion. Investors don't like when a company veers outside their expertise to delve into a new industry. Fintech is a highly debated idea in general also, with many investors feeling that the large banks & other huge financial companies will eventually overtake the fintech industry. SS, doesn't a company that has been solely cybersecurity for years, that decides to get into fintech all of a sudden, bother you ?

[SSKILLZ1]

GEN

Reported last week, I thought the raising of the bottom end of guidance was a plus. And I really continue to like how they continue to add customers as well. About a 12-15% EPS grower consistently, and I think earnings will probably be close to $2.50 next fy which lets face it isn't that far away considering they are a march 31rst year ender. I continue to believe this company should be worth in the high 30's at the very least over the next 6-12 months, hence why I continue to find it attractive in the mid to upper 20's. The consistentcy of this growth can't be overlooked very few companies are this consistent. I truely believe the acquisition wll be turn out to be fantastic for them, as I think management is fanatsic here. And are great executers to say the least. Time will tell. But I continue to really like GEN as a cyber security play for the portfolio at a reasonable valuation given it's consistent and solid growth. All is just my opinion, and I could always be wrong though.