$SoFi Technologies Inc.(SOFI)$just read on Twitter someone who said he bought into SOFI just on Friday because he sees it as a bank.

A bank? Then we can bring in PB from banks. 

Bank of America - 1.63

Goldman Sachs is doing 1.44

DBS is doing 1.53

And mind you, these are good banks. Good margins, profitable and doing really well. 

And here we have a "Fintech darling", making losses. Not narrowing losses but growing losses. Yes revenue is growing. But so are losses. And going at PB 2.63. 

Not that I mind, as long as it can prove that at some point it stops that haemorrhage and starts being profitable. Now when the Fed was at a furious QE pace, its valuationcan be afforded at even PB 3 or 4 or 5. Meaning investors were willing to crazily pay 5x its book value. This is madness. 

I'd not even touch a proper bank if it is losing money. And I'd value it with less than PB 1 even if I want to buy into potential. So if you ask me how low should SOFI go before it becomes sufficiently attractive in this tapering environment and just before the indices implode? Well PB 0.5 and I might just bite. This would mean it needs to deflate USD 2.50. Yes - USD2.5. I know folks who would start snapping it up at USD5, USD6 or USD7. To put it alongside the current good banks. Well, this also means it needs to come down by at least 50% more....