Etrade: Deep value long term play?

i am holding about 20k shares in my long term account at avg of $2.8 as a result of 6 month accumulation. The trade range for this stock is pretty predictable at 2.5 (low) to 5 (high), it will stay that way until the books are cleaned or a buyout.

Many will disagree but I think it's a pretty low risk play due to the current price and the fact it will take significant blackswan events to cause the company to go bankrupt at this stage of the game with etrade's current reserve and management's defensive style.

Etrade is a unique company in that its core business is very strong but with a broken book. Once the book is repaired in a few years as the mortgage crisis work itself out the company will reemerge. Anyway that's my take. Tomorrow could be an ugly day though for this stock.
 
An 80 percent drop in shares over the last year, negative cash flow, negative price per share, a serious consideration made public of exiting institutional trading just this passed January, a sell off of 65% of their own holdings at a loss, and just posted a net loss of $94.6 million and a loan loss of $319.1 million this quarter.

A value play? If praying counts.
 
Quote from Xuanxue:

An 80 percent drop in shares over the last year, negative cash flow, negative price per share, a serious consideration made public of exiting institutional trading just this passed January, a sell off of 65% of their own holdings at a loss, and just posted a net loss of $94.6 million and a loan loss of $319.1 million this quarter.

A value play? If praying counts.
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Yes exactly a long term play, and no praying required. Everything is in respect to the current price and the business model. Unlike those other financial firms that has a broken model now, etrade's future profitability is not broken at all.

You really dont know what you are talking about regarding some of the points made, but there is no point discussing this further.
 
Quote from newguy05:

Yes exactly a long term play, and no praying required. Everything is in respect to the current price and the business model. Unlike those other financial firms that has a broken model now, etrade's future profitability is not broken at all.

You really dont know what you are talking about regarding some of the points made, but there is no point discussing this further.
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How original a tactic. Value buys are done in strong companies who've been rolled over by moody market makers and specialists paying only good mind to even moodier investors and clueless daytraders. Case in point: Intel Corporation’s 3 session, 30% decrease in September 2000.

Analysts are waiting for a coffin nail and you're all in huh? I'd pay good money and offer more than just a few genuine chuckles to see your DCF figures and your wrangling to justify current sentiment and fundamentals that clearly indicate a company about to be delisted.

But you're all in. Hilarious.
 
Oh man. It looks like they reported a loss much larger then expected, issued a warning and its tanking down during the afterhours session. During the conference call an analyst questioned how they can possibly compete with IB which has a superior platform.

I think Cramer is going to come out with another negative article about Etrade again.
 
Quote from Xuanxue:



A value play? If praying counts.
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The preferred pays about 25% right now:cool:

They can sell all the non-core assets they want as long as they continue to pay that sweet dividend :D My only concern is the poorly worded information regarding the equity unit's purchase agreement this november. Investor's relations never returned an email
 
Quote from matgallis:

The preferred pays about 25% right now:cool:

They can sell all the non-core assets they want as long as they continue to pay that sweet dividend :D My only concern is the poorly worded information regarding the equity unit's purchase agreement this november. Investor's relations never returned an email
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Tell me: in your opinion is the selling off of E-Trade's Canadian operations considered "non-core" asset liquidation?

Too, I'll call your bluff per the 25% payout. They haven't been paying dividends now for two quarters and admission was delared today that for the next fiscal year, E-Trade expects not to turn a profit. Ergo: no dividend payouts.

Some of the people here may have just fell off the back of a coyote caravan that you can bullshit, but I'm not one of them.
 
I must say etrade is the 1st in the industry to bring about the mobile streaming quote feature to cell phones. I'm hoping other competitors to follow their lead.
 
The brokerage side of the house is nice. The software is good stuff for the nonprofessional trader (markettrader,etradepro), the seem to have good software and strong branding. Can't they spinoff the brokerage business since the real poison is the lame banking side?
 
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