Jeremy Richards

E*Trade: Potential Ameritrade Merger Makes Sense for Both Companies

kmk AMTD was in talks before and I believe are again. ETFC's current stock price doesn't reflect the expected return to growth. I am told CITADEL is done selling.ETFC bank is off life support and has value again. ETFC should see an analyst upgrade or bullish note very soon.


On Nov 12 04:04 PM kmkkmk wrote:

> JANA Partners were pressuring AMTD to merge when ETFC was at $25.
> If AMTD would have caved to the pressure and merged at that time,
> it would be AMTD stock in the dumper instead of ETFC. I'm not sure
> I would be using the "wisdom" of Jana Partners to support my thesis.

E*Trade: Potential Ameritrade Merger Makes Sense for Both Companies

Added note: ETFC board of directors scrapped a Stockholder Rights Plan that was essentially a "poison pill" set up in 2001 to prevent a hostile takeover of the company.

"The Rights Plan elimination improves corporate governance, while also increasing the likelihood of the company's eventual acquisition," said Matthew Albrecht, a financials analyst at Standard & Poor's Equity Research.

Also CEO is set to step down by years end. It all adds up.

I'm not paid to write articles. I am invested in ETFC and fully believe ETFC is the most undervalued financial stock on wallstreet.

E*Trade: Very Undervalued

Seems my rumor source was talking about old news: www.marketwatch.com/st...


SAN FRANCISCO (MarketWatch) -- Hedge funds SAC Capital and Jana Partners have taken an 8.4% stake in TD Ameritrade and have told the discount broker to pursue a merger with one of its rivals, according to a regulatory filing by the company on Tuesday.

TD Ameritrade /quotes/comstock/15*!amtd (AMTD 19.42, -0.46, -2.31%) said in the filing that industry consolidation is an important consideration of its board and noted that the board has formed a mergers and acquisitions committee that includes three outside, independent directors.

The company also said that it has expressed interest in the past in growth through mergers or acquisitions, but at the right time and if it can find the right "strategic fit."

TD Ameritrade shares jumped almost 10% to $21.87 during after-hours trading on Tuesday.

The discount brokerage business is dominated by Charles Schwab /quotes/comstock/15*!schw (SCHW 17.94, -0.16, -0.88%) , TD Ameritrade and E-Trade Financial /quotes/comstock/15*!etfc (ETFC 1.66, -0.01, -0.60%) . There has already been consolidation, but this year speculation about more deals has resurfaced. TD Ameritrade stock has jumped more than 30% during the past two months, while Schwab shares are up at more than 15% and E-Trade more than 10%.

E-Trade stock gained more than 3% in late trading on Tuesday, while Schwab shares rose 1.4%.

SAC, one of the largest hedge fund firms in the world run by Steven Cohen, and Jana, a big fund with an activist bent managed by Barry Rosenstein, have sought regulatory approval to buy more TD Ameritrade shares worth over $600 million, the company added in the Securities and Exchange Commission filing.

"TD Ameritrade can dramatically increase long-term shareholder value through a combination with E-Trade Financial or Charles Schwab," Cohen and Rosenstein wrote in a letter to the company's top executives and its board of directors.


I still believe AMTD will buy ETFC in the future as do many analysts.

Monday & Tuesday ETFC should see gains ahead of earnings.

E*Trade: Very Undervalued

FRESH RUMORListen UP ETFC investors. I just spoke with fellow trader who said he heard a rumor from Sandler O'Neill "TDAmeritrade mergers & acquisitions department is suddenly very busy. Company's top executives andits board of directors received a letter from AMTD hedge fund clients.

The letter suggests AMTD can dramatically increase long-term shareholder valuethrough a combination with ETFC.


NOTE: This is a rumor until its confirmed it is not!


Maybe next week a Takeover happens?


Long:ETFC