Pj568

E*Trade: A Solid, Deep Value Stock

The cash number has no meaning for any year so any change between years is also meaningless.

One possible approach - The FDIC report for June 30 shows E*Trade Bank with cash of 5.8B. They don't have unlimited access to this as E-Trade transactions with its Bank are restricted so how does their cash have any meaning except for banking operations.

One guess as to cash available would be to take total cash of 6.7B (10-Q) minus Bank cash 5.8 to arrive at 900M (although the parent would probably have some cash at the bank nor do we know what restricted cash is held at other banks). This answer may not even be close but I would think it more accurate than 6.7B

E-Trade could disclose if they wanted to be transparent as to the issue.

E*Trade: A Solid, Deep Value Stock

Customer deposits at 12/31/04 totaled 12B they're now 26B. Banks also borrow from the Fed so cash without debt and equity is meaningless.

Parent Co only cash at 12/31/08 was 183M.

E*Trade: A Solid, Deep Value Stock

Any discussion of cash is absurd since they're a bank. Citi has 535B of cash at June 30th but what does that mean.

E*Trade: A Solid, Deep Value Stock

A quick review - back in 06 (near peak) ETFC earned 1.50 with 400 mil shares outstanding sold for 25 , a pe of 17.

Today with the diluted 2.8B shares (greater by 7x) and keeping the same 17 pe earnings would be around 30cents if selling at 5 or 60cents if selling at 10. Therefore we're talking net income of 840M or 1.68B.

The most money TD Ameritrade (AMTD) ever made was 803M. So realistically how can ETFC get to even 5.