Watching Axos Financial; The Bear Cave Newsletter Issues Report On Co Titled "Problems At Axos Financial (AX)"
Portfolio Pulse from Benzinga Newsdesk
The Bear Cave Newsletter has issued a report on Axos Financial (NYSE:AX), raising concerns about the company's culture, loan portfolio, and crypto ventures. Axos, previously known as Bank of Internet, has been criticized by short-sellers for various risks. The report details Axos's history of 'exception-based lending', its ties to high-interest small business lenders, and its relationship with B. Riley (NASDAQ:RILY), whose CEO recently sold stock to meet a margin call. Axos's auditing history is also questioned, with its current and past auditors having limited experience with public companies. The report suggests that Axos's business model may carry risks similar to those that led to the failure of NetBank in 2007.
November 16, 2023 | 3:34 pm
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NEUTRAL IMPACT
BioNano Genomics is mentioned as another company audited by BDO USA with Kathryn Elizabeth Wynn as the engagement partner, in the context of concerns about Axos Financial's auditing practices.
BioNano Genomics is indirectly mentioned through its association with Axos's auditor. The report primarily targets Axos, so the immediate impact on BNGO's stock is expected to be limited.
CONFIDENCE 60
IMPORTANCE 40
RELEVANCE 30
NEUTRAL IMPACT
Inhibrx, audited by BDO USA with Kathryn Elizabeth Wynn as the engagement partner, is mentioned in the context of Axos Financial's auditing history, which has come under scrutiny in The Bear Cave Newsletter's report.
While Inhibrx is mentioned due to its connection with Axos's auditor, the report's focus is on Axos, and the direct impact on INBX's stock price is likely to be minimal in the short term.
CONFIDENCE 60
IMPORTANCE 40
RELEVANCE 30
NEUTRAL IMPACT
LadRx Corp is referenced in relation to Axos Financial's auditing history, as it was audited by the same BDO USA engagement partner responsible for Axos in previous years.
LadRx Corp's mention is tangential, related to its past auditor who also audited Axos. The report's main focus on Axos suggests a negligible short-term impact on LADX's stock.
CONFIDENCE 50
IMPORTANCE 30
RELEVANCE 20
NEGATIVE IMPACT
Axos Financial faces scrutiny from The Bear Cave Newsletter, highlighting potential risks in its business practices, including its loan portfolio and involvement in crypto banking. The report also discusses Axos's relationship with B. Riley and its auditing history.
The detailed report by The Bear Cave Newsletter could lead to increased investor skepticism, potentially affecting Axos's stock price negatively in the short term due to perceived higher risks in its business model and practices.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
B. Riley's stock has fallen recently, and its CEO disclosed sales of stock to satisfy a margin call. The company's ties with Axos Financial, as mentioned in The Bear Cave Newsletter's report, could raise concerns among investors.
The report's mention of B. Riley's recent stock performance and the CEO's stock sales to meet margin calls, in conjunction with its relationship with Axos, could lead to negative sentiment among investors, potentially impacting RILY's stock price in the short term.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 70