$Sofi Bank DD — Charter And Growth
Whenever I read about $Sofi, everyone is in such a tizzy about the Bank Charter—about when and even if it will come. It will come. But you shouldn’t be investing in this company just because of the Bank Charter. And when I say investing, I mean buying and holding for a year or more because the price you see at close today—$13.20–will be a low compared to a year or more in time. Whether it drops down to its SPAC price of $10 in the interim is irrelevant.
This company is growing revenue massively quarter over quarter (20% growth every three months). They will become profitable this year, so all the hype over growth stocks and their valuation being minimized because there’s no earnings won’t apply to Sofi once interest rates begin increasing.
And when interest rates begin to increase, Sofi will benefit because they are a loan based company and will be a bank very soon.
As research, I looked up when Lending Club announced their merger with Radius bank and it was February 2020. Ten months later they received their charter at the end of December. If this same rational plays out with Sofi then ten months after they announced their merger with Golden Pacific in March of 2021 would be right now, January 2022. So I would expect a charter to be announced shortly.
Even if it is not announced right away, it will eventually.Sofi already stated that the lawsuit with the former Golden Pacific director is irrelevant as it pertained to a previous lawsuit filed against the bank prior to the acquisition.
And then of course, there’s the student loans. Come the end of May they will be back on the table.
You combine month over month massive revenue and earnings growth with the inevitable bank charter, along with student loans, profitability, increased revenue due to higher rates, and the fact that Sofi is currently at 52 week lows, the only outcome will be an increase in shareholder wealth.
This company is a hold for the long term and if there is any time to get into it is right now when we are at a 52 week lo, after being brought down with all fintech, and all the catalysts ahead.
Happy investing. And yes, I own this sucker.
Submitted January 15, 2022 at 12:12AM by rockwiththeroll
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