This Stock Has Transformed Into a Burgeoning Fintech Company

If you had looked at Live Oak Bancshares (NASDAQ: LOB) at the start of 2020 (before the pandemic), on the surface it would have looked like a lot of other bank stocks. Live Oak stock traded at less than $20 per share and was valued at about 150% to tangible book value (TBV), which is what a bank would be worth if it were liquidated and what banks tend to trade relative to.

Fast-forward to the present, and Live Oak trades at more than $93 per share and at nearly 600% to TBV. Banks don't normally get that high of a valuation -- at least not since the Great Recession. So how did this happen?

Well, investors stopped valuing Live Oak as a bank and started looking at it as the burgeoning fintech company that it really is. Let me explain.

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Source Fool.com