fxtrader07

E*Trade Financial: Great Company, Great Bargain

This company is essentially worth zero. Why? Apart from guessing this or next quarter's earnings the company has a real problem that isn't going to disappear anytime soon: Any further bad news regarding their mortgage portfolio (btw, what business has an online brokerage company to invest there at all??) will make for very bad headlines again - and it is just a matter of time that etrade will have to report very high net-losses of customers. those leaving and those getting their accounts killed in the current bear market. the latter is completely overlooked by the author. if the stock markets were headed for a bull run and the mortgage issues to play out soon, etfc had a chance. with two very negatives hitting at the same time and the company lacking any reserves to go through an adverse business cycle, etfc is headed much lower. If i were an etrade customer and /or shareholder, I'd run for the hills.
Sad enough, but incompetent, greedy and ignorant mamgt have ruined this company. it's in a death spiral with very very little hope to escape from.