prescient11

An Ameritrade-E*Trade Merger? Not as Crazy as It Sounds

Why hasn't the author addressed the fact that the TARP plan means the losses are a wash for any potential acquirer.

I mean, would you rather pay taxes or use that money to acquire a competitor and offset losses.

How can any fool think that $4-5 would be reasonable. Aside from all the conspiracy theorists that post here and elsewhere, ANSWER THAT QUESTION OR JUST SHUT UP.

If I can hear one reasonable answer to that point, then they would have a point. If not, they are just liars.

The TARP program gives a potential acquirer a loss-free (due to tax credits), debt-free (Etrade has free cash to pay down all debts just about) brokerage.

So, what is a debt-free, loss-free, perfectly healthy Etrade worth? $4-5/share. I think not.

An Ameritrade-E*Trade Merger? Not as Crazy as It Sounds

One other point, due to the TARP program, an acquiring company would be able to pull Etrade's losses out and use them as a tax credit for the next couple of years. Thus, Etrade's expected future mortgage losses ARE A WASH because the acquirer would just be paying that in taxes anyway.

So they can acquire Etrade without worrying about mortgage losses. Further, Etrade has enough cash on hand at the bank $1.8B and at the parent $700M to pay off almost ALL OF THEIR DEBT.

So do the analysis, what is a debt free, no loss Etrade worth? It's got to be near $15 at a minimum. If AMTD could pull it off near $10 it would be a tremendous steal.

Then they might have a platform that runs without crashing all the damn time.

An Ameritrade-E*Trade Merger? Not as Crazy as It Sounds

AMTD had better raise their offer if they expect to seriously be able to buy ETFC. ETFC has $1.4B in free cash on hand. A $4 offer would represent $2B roughly and would be a joke.

No, about $8-10 might do it, but $4-5 would not get it done. You are aware that Etrade's CEO, Donald Layton, spent $1M of his own money to buy Etrade shares at $4.07.

The merger makes sense, but at $4-5 it makes no sense.

E-Trade Financial Carries High Risk-Reward

Jegan, welcome back, this liar always pops up. Luckily he has nothing to say, ever.

E-Trade Financial Carries High Risk-Reward

mikeylikesit, you are dead on, about most of that, especially being worth more than $6.

I like your inflation idea as well, have been thinking about that for some time. They don't want to let the genie out of the bottle, they just want the bottle to float up a bit.

E-Trade Financial Carries High Risk-Reward

I'm not sure where the high risk is. If you look closely at the books, you'll see that they could potentially take a total loss of 40-50% of their entire HELOC portfolio and still make it through without raising further equity.

If you can hold through the storm I believe you will be richly rewarded. They are currently trading below a bankruptcy price. By the way, you can get a free blackberry and mobile trading, features that blow away the other jokes of the OLBs.

We all know the score here, the price of this stock is being artificially depressed by the powers that be until the time is right. By 1Q of '09 this should make people very happy. This stock is worth at a minimum $10/share, imho.

Metrics, Mortgages and Analysts

The real expert,

Explain what you mean by risk factors and I'll let you know if I agree or disagree. I vehemently disagree about the "massive dilution" you reference, by the way.

Metrics, Mortgages and Analysts

The real expert,

We'll see won't we. I'll remember this come 1Q of '09 and we can see whose call was right.

So rather than listen to your blathering Monday morning quarterbacking about oil, etc. How about you enlighten us as to your calls that will take you to 1Q of '09 and we compare then, shall we?? I believe ETFC will yield a 200% gain by then.

We await your genius.

Metrics, Mortgages and Analysts

Wez, nice retort, as informative as your first.

Metrics, Mortgages and Analysts

Wez, really, how stupid can you be? Do you actually engage in analysis or spout off random thoughts only? Etrade has an extra $1B in cash just sitting around, in case they haven't provisioned enough. That is a HUGE cushion that can absorb any further blows.

Who said Etrade is immune? Stop constructing straw men. Etrade's stock price has been destroyed because everyone assumes they will get hit very hard. So think before the next time you write, for all of us.

Speculator, your analysis is about as good as Wez's. Thanks for your self-promoting non-analysis.

S&P Upgrades E*Trade Despite Struggling Financial Sector Peers

JBMaria will hate this, and that makes me smile.

First upgrade for Etrade in a year, let's get this party started. Pay attention to the wording of the upgrade, management has taken their medicine and now they are moving forward. If only all the other banks would do the same.

By the way - they are way off on their price target and loss estimates. 46 cents this year? We took 20 cents in the 1Q.
By the 3Q we will be profitable again, in my humble opinion.

E*Trade's 'First In, First Out' Position: Yes, 111M Shorts Can Be Wrong

"First Prescident11 a self appointed Etrade pumper president of the message board who once said "I will not post here for a month". Guess what happened before that month? Yup you guessed it he starts posting again."

Great criticism. Lighten up francis. Are you an adult? Tell you what, why don't you point out any inaccuracy in the facts detailed above? Of course, you cannot.

This is America, and Seeking Alpha is a wonderful forum that accepts all entries, so why don't you submit your own "concerned" "skeptical" view of Etrade. Otherwise, just take your ball and go home junior. No one wants to listen to your whining and crying.

E*Trade's 'First In, First Out' Position: Yes, 111M Shorts Can Be Wrong

Great article Cindy, thanks for putting the facts on the table. A great service to all retail investors.

Citadel Infuses E*Trade with Strong, Experienced Management

Just a point of order here, all of Etrade's MBS portfolio is backed by either FRE or FNM, except for $1.1B and that portfolio is made up of AAA or AA holdings. Further, Etrade has already taken a charge against that assuming a recession that covers the rest of the year.

That MBS portfolio is quite solid and should be valued at 100% if not higher.

E*Trade: What the Analysts and News Haven't Told You

JBMaria,

Not to beat a dead horse, but, you know... Here's a Shinnick piece where he says that he is long the SKF and short XLF in January 2008. The article disclosure is confusing but he clears it up in the comments below. Sorry, but you didn't convince him of anything. He should have disclosed his short positions on overall financials in his ETFC article, plain and simple.

seekingalpha.com/artic...

I'll wait for your apology. Still waiting for any rebuttal on the facts I stated in the body of the article. Oh yeah, there is none.