these boys are in serious crap: "As of Sept. 30, the company's mortgage portfolio, including home loans and home-equity lines, was valued at $29.3 billion, and the company owns mortgage-backed securities valued at $12.4 billion. To date, it has announced $197 million in pretax write-downs on its securities portfolio, and it has set aside $237.8 million in loan-loss provisions." ummm, mark-to-delusional is it?
How long are you guys milking this ETFC bounce? I personally would have gotten out above $5, not risking my profits to quickly evaporate. I can't bring myself to buy above $5 and just watching her from the sidelines for now. Only thing holding her up is takeover BS but if that fails, see ya back at 3.70.
Why do you play this stock? Dozens of people have suggested to stopped gambling after you asked for advice. Now you're back at the roulette table.
If you look at their last quarterly report, there is almost NO subprime holdings. I think 99% of their mortgages are for people with credit ratings at 720+, and getting the best interest rate (if you pay 1/8% more than the best current rate at the time of financing, that is "sub-prime"). Their writeoffs are not from mortgages, but home equity (a majority) and CDO devaluation. I will be surprised if there is a buyout or bankruptcy. The core company (trading fees) still generates $480m/year. Once the fear ends and buyout talks stop, this will stabilize at $7 in January or February.
For how long? Does the tape look like it will support retail trading for very long? How many happy feet danced out the door. I saw an email to an old customer they treated like crap offering $5 trades. Let's see arrogant. Being investigated for front running, stock de vasted, and rumors galore. I don't thing that's a very good platform to grow with. I'd just put an add in a the papaer. Acat an Etrade account, get 500 free trades. Then, of course, you short the shit out of the common when you see the transfers happening.
news here. Thoughts. http://www.businessweek.com/investo...p+news_top+news+index_businessweek+exclusives
Though E*Trade reportedly talked with rivals about being acquired, Chicago-based Citadel Investment Group dared to tread where others wouldn't go, buying up E*Trade's most troubled assets for 27 cents on the dollar. Citadel will inject $2.5 billion in cash onto E*Trade's balance sheet, including the purchase of $3 billion in toxic, asset-backed securities for just $800 million. Ok I was a little low, .27 cents it is.