E-Trade Going Under?

Discussion in 'Trading' started by capmac, Nov 12, 2007.

  1. capmac


    12-Nov-07 09:08 ET

    In Play

    E*TRADE: Loweiring 4Q EPS on higher CDO losses - Lehman (8.59 ) -Update : Lehman notes that after the close, ETFC filed its 3Q07 10-Q with the SEC. As an event subsequent to the quarter, the co disclosed that it expects to incur losses on its CDO and 2nd lien invesment portfolio due to significant valuation declines in the marketplace. They lower their 4Q07 EPS from $0.18 to $0.01. This compares to the firm's previous guidance of $0.13 - $0.28. They now expect $135 mln of losses in the investment securities portfolio, based on a 30% haircut on the outstanding balance of CDO and second-lien securities of about $450 mln. While firm believes that the sharply declining valuation of the firm's CDO portfolio will certainly impact near-term earnings, they do not believe it poses a meaningful risk to ETFC maintaining its adequately capitalized status even when considering further expected losses in the co's HELOC portfolio.
  2. The writing has been on the wall for quite some time, those who still have money at E-Trade are really asking for trouble.
  3. S2007S


    said they can absorb a $1 billion dollar write down.

    Just bought a small position at $4.00
  4. S2007S


    Why would you be worried to have your money in etrade now?
  5. FAST.AM


    I'm in at 3.97 ... seems like overkill..
  6. If a lot of customers pull out their money because of a fear of bankruptcy it will make it more likely that they do go bankrupt..

    Run on the bank, so to speak..
  7. S2007S


    Im in at $4.00

    Bankrupt, I dont think so. Stock will be back at $6+ by end of 2007. Maybe even a buyout at $7 or $8 is possible.
  8. Schwab and TdAmeritrade adding around a dollar or so today. Is this a response to the bad news from E-trade? What's the likelihood of a run on E-Trade tomorrow?
  9. bgp


    i'm holding e-trade up.

  10. I am staking a position at $2.25 :D
    #10     Nov 12, 2007