Etrade: Deep value long term play?

Quote from Xuanxue:

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.
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I meant non-core as in their US brokerage business. maybe their Canadian unit is under performing their expectations?

Also, for the 5th time or so i've stated I'm long the preferred shares, not the common. There's little upside to sit on their common shares when their preferred pay $0.38 a quarter. I also don't mind them selling their Canadian unit because it makes it more likely they'll have the cash to pay this dividend.

https://investor.etrade.com/equityUnits.cfm
 
Quote from KINGOFSHORTS:

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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I wish they would spin off the brokerage and even the bank and make them one entity. The real bad part of etfc is the parent company who is holding a basket of loans with unknown amounts of risk and future expectations. I do not know why their management waited so long to sell the preferred of the gse's. Whoever bought those got a much better deal
 
The title should state "preferred". Makes things a bit clearer. ETFC has zero value at these levels as long as they continue to lose money. With a company like this, it's simply a gamble. There's no real way to interpret this as a "solid" investment/play.

HOWEVER,
Intangible value? The market is always willing to discover this.

Value is a very vague word.
:D

Your thinkin too hard on this one.
 
Quote from Xuanxue:

Tell me: in your opinion is the selling off of E-Trade's Canadian operations considered "non-core" asset liquidation?
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Again you are completely clueless.

Nail in the coffin? that phase was done after citadel came to the rescue, no analyst is expecting a bankruptcy without some major blackswan event taking place right now.

The canadian sell was a big win for etrade, and confirmed by the market price action that followed. It was not a desparate liquidation but part of the turnaround plan to meet the cash reserve # by year end. I completely agree with what layton said that the amount of cash offered for the canada business is too good a deal not to take any way you look at. If the cash reserve proves to be not needed in the future, etrade can alway use it to buy back its debt. It was a good deal and not dilutive.

I dont really give a sht how you define value investing. Long term investment does not always = holding a low risk large cap. This is a moderate risk/high reward play, but in my opinion the potential reward(probably in 1-2 years) is much higher than the risk right now.

It's pretty obvious you just looked at a few news article but have no idea what the major problem(it's static) is with etrade or its fundamentals.

Etrade may be hammered tomorrow due to the fennie/freddy writedown, that was a negative surprise not already priced in, compounded by the fact of a almost 40% upmove in the last few days.

ps: when did i said i went all in? 20k share in my long term account is hardly all in and i still plan to add a bit more to the position before year end, i never take a large enough position in anything i will lose sleep over if it goes to $0.
 
Quote from newguy05:

Again you are completely clueless.

Nail in the coffin? that phase was done after citadel came to the rescue, no analyst is expecting a bankruptcy without some major blackswan event taking place right now.

The canadian sell was a big win for etrade, and confirmed by the market price action that followed. It was not a desparate liquidation but part of the turnaround plan to meet the cash reserve # by year end. I completely agree with what layton said that the amount of cash offered for the canada business is too good a deal not to take any way you look at. If the cash reserve proves to be not needed in the future, etrade can alway use it to buy back its debt. It was a good deal and not dilutive.

I dont really give a sht how you define value investing. Long term investment does not always = holding a low risk large cap. This is a moderate risk/high reward play, but in my opinion the potential reward(probably in 1-2 years) is much higher than the risk right now.

It's pretty obvious you just looked at a few news article but have no idea what the major problem(it's static) is with etrade or its fundamentals.

Etrade may be hammered tomorrow due to the fennie/freddy writedown, that was a negative surprise not already priced in, compounded by the fact of a almost 40% upmove in the last few days.

ps: when did i said i went all in? 20k share in my long term account is hardly all in and i still plan to add a bit more to the position before year end, i never take a large enough position in anything i will lose sleep over if it goes to $0.
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There ya go, keep averaging down.

This stock is a DOG guys. Plain and simple. Please, learn from this trade.

I do hope it goes up for your sake, but in all honesty, please understand that the market is more complicated than throwing darts at cheap stocks (I used to do this myself).
 
There are going to be two types of financial institutions from this point forward. Your going to have large established ones like BAC that are going to rally and hold their price. BAC and WFC are TRUE deep value plays with a very good dividend to boot.

Then there will be the rest like DSL, WM and ETFC that will continue to trade to the downside until their price goes to zero or until their price is listed in the pinks.

As the DSLs, the WMs, and the ETFCs go out of business and the customers withdraw their money the BACs and WFCs will only get stronger.

Why? People have to put their money somewhere and who would open an account at Downey right now or get a mortgage from them?

My cash is in the Bank of America and thats where I will bank. If the Bank of America goes out of business then I truly believe that the next step will be the Communists taking over. Thats how confident I am in BAC and WFC.
 
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