SoFi's SoftBank Gift

 

  • SoftBank has started selling sizable amounts of SoFi to raise funds.
  • The investment fund still owns 83 million shares or 9% of the outstanding shares of SoFi.
  • The stock has a gap down to $6.63, providing the ideal point to purchase SoFi.
  • The business continues to improve with a shift away from lending products, while digital bank deposits provide the funding source unavailable at the likes of Upstart.
  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More » 
When a great company is sold for a reason outside of the performance of the valuation of the stock, an investor is provided a gift. The market finds SoFi Technologies (NASDAQ:SOFI) in this exact situation with SoftBank Group (OTCPK:SFTBYOTCPK:SFTBF) somewhat forced to sell shares. My investment thesis remains ultra Bullish on SoFi, especially if the stock closes the recent gap into the $6s.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Update - August 19 

Gap closed thanks to SoftBank. Sign up for Out Fox where one was notified to not chase the rally and wait for the gap to close. 

Finviz Chart

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