Extend Alert: Bank of the Ozarks (OZRK)

By Jim Pearce • August 21, 2017

TRADE INSTRUCTIONS
Date: August 21, 2017
Name: Bank of the Ozarks
Symbol: OZRK
Type: Extend
Extension Period: 2 months

TRADE RATIONALE:
Our original three-month holding period for OZRK expires today, which I am extending for two months to include its next quarterly earnings release. Our Rapid Profits Matrix still scores OZRK highly, and the only news on the company this month was the announcement that it had named the top-performing bank (in its asset size category) for the seventh straight year.

The stock appears to be trading primarily on technical weakness in the wake of the departure of the company’s Chief Lending Officer last month. But no new information explaining the reason for his hasty departure has surfaced since then, nor has the bank revised its guidance concerning the commercial loan portfolio he managed.

The truth will soon come out, and since a lot of presumed bad news is already priced into the stock any good news should propel higher. The current stop loss price (on the close) of $36 will remain in effect.

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Kurt D

08/21/17 ‐ 11:53am ET August 21, 2017 at 11:53am ET

Thats good to hear, because my put credit spread is in the money right now (not good).
I did this trade when the alert came out.
BTO NOV 17 40 put
STO NOV 17 45 put
Net credit $1.47
Hopefully it gets back above 45. Thanks For the update Jim.

Tap Tout

08/21/17 ‐ 2:27pm ET August 21, 2017 at 2:27pm ET

Why do your BUY alerts come out almost a week after the date that the stock is added to the portfolio? For example, OZRK BUY alert is dated June 5, but the stock was added to the portfolio on May 20. BOJA BUY alert is dated August 1, but the stock was added to the portfolio on July 26. Which do I monitor, the addition to the portfolio or the delayed alert? Do you issue your SELL alerts in this same fashion?

I assume that the most recent alert is actually not an alert for JCAP, as you typed in the first line of the alert, but is actually an alert for OZRK, as typed in line three.

Jim Pearce

08/21/17 ‐ 2:50pm ET August 21, 2017 at 2:50pm ET

The portfolio table automatically picks up the date of the previous alert, so I have to manually change it in our system for the portfolio table which I failed to do in the case of OZRK and BOJA. They are now correct. Sorry about the errors, and thanks for letting us know.

10/11/17 ‐ 10:15am ET October 11, 2017 at 10:15am ET

OZRK released a strong quarterly report this morning: https://finance.yahoo.com/news/bank-ozarks-announces-record-third-110000340.html. Oddly, the stock is down this morning even though loan quality improved (excluding purchased loans from other institutions) which would seem to refute the fears raised two months ago with the bank’s CLO resigned. We still have 3+ weeks left in our extended holding period, so there is still plenty of time for it to reach my target price of $52.

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