Ben Williams

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

Must not be a whole lot of truth to this merger or you would think the shorts would be running for the aisles and based on volume today, that is no where near the case.

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

I recommend the buy as well and I am long ETFC for full disclosure. Not sure if I buy into this Merger and the price seems ridicuously low for ETFC shareholders as the company has now started to rebound and unloaded the majority of all of its problems. The buyout offer would have been more legit about 3 to 6 months ago when the company was beaten completely down in the market. $8 to $10 sounds more realistic in my humble opinion.

Countering the AP's 'E*Trade Financial Earnings Preview'

Earnings are out and ETC posted a -.19 loss per share this quarter. Not the great news I was hoping for, but much of this is due to the company's exposure to Fannie Mae & Freddie Mac. However, their loan exposure in terms of Home Equity and Mortgages has been reduced significantly and this bodes well for the future.

Bottom line, not great news, but not devastating either. The turnaround plan IS working and they are moving in the right direction. A lot depends on the overall economy in terms of how long it might take, but it looks as though they have turned the corner and will survive and hopefully thrive again in 2009. May not generate a profit in Q3 or Q4 this year, but capital raising is estimated to be around $800 million by year end, so that should be sufficient to cover their bad mortgage exposure. I am long ETFC and this report goes to my position. Be patient and this baby will turn around.

Countering the AP's 'E*Trade Financial Earnings Preview'

The earnings report should say it all this afternoon. Cindy is so correct about the shorter's who have driven this stock down ridicuously. If ETFC can report a loss of no more than -.16, I think there is no alarm to be worry about. Anything above that would cause me concern, but still believe in this company in the long run as they are doing all the right things and don't appear to be hiding from their mistakes, but instead disclosing them, selling off the bad debt and raising capital to cover the losses they know are ahead.


This should put them ahead in the entire financial recovery sector as many are still not being forthright about potential losses, while ETFC has admitted its mistake and is raising capital furiously to correct the err in their ways. Would love to see only a loss of -.14 or under as this would be bullish and could result in a profit generation by Q3 and would send the shorts scrambling even more. The Canadian deal only goes to reaffirm the capital raising efforts and gives ETFC the boost it needs for any future losses.

Keep the E-Trade baby rolling out the new customers, just stay away from the creepy clowns that I call the "shorts". Thanks for the nice counter Cindy.

Metrics, Mortgages and Analysts

Well, Jimmy46, apparently a number of people want E-Trade over Scottrade based on the numbers. I am not "pumping" any stock. Please read all my posts as they are all consistent; I make full disclosure of my positions and am FULLY aware of the risk in ETFC.

Having said that, I am not caugt up in the pinheads who want to rain on E-trades parade where they HAVE shown improvement, HAVE improved their capital position and have increased business. People presenting the numbers can lie, but the numbers don't. E-trade is moving in the right direction and you can post back here a year from now and see who is right and who is not. Hear me now, believe me later.

Metrics, Mortgages and Analysts

Wez, No one here is saying E-trade is immune to what is happening to the financials. In fact, we are actually supporting that cause. That is why the stock is down so much. However, CEO Layton and E-Trade have minimized their risk with the mortgages by getting rid of the majority of bad loans and have disclosed the bad loans they do have. He has done an awesome job of selling of what needed to be sold, going back to its core business, and raising capital to ensure they have the funds to cover any losses that still might occur. A look at ETFC's financials might be in store for you to see that have over a billion, thats right, BILLION dollars, sitting on the books. Obviously you are not here to add any insight, good or bad, but to make some moronic statement that serves no real purpose.

Metrics, Mortgages and Analysts

Excellent post Cindy. Thanks for your insight and just for summarizing the news about E-trade from other sources as well. I know the usual cast of characters will come in and try to debunk and trash this stock as usual, but the numbers continue to get better and the stock is poising itself for a run up when the market itself recovers somewhat. I believe E-Trade is the baby being thrown out with the bathwater in the financial sector as it is being driven down with the others who have much larger exposure to these bad loans and have not really owned up to their problems like E-Trade has done. Next month's numbers and the continued addition to the E-Trade accounts month after month should squash some of the fear and the market will begin to warm up to this stock once again. The shorts are starting to take notice and I would not be surprised to see some of those positons begin to dwindle somewhat in the coming months. For full disclosure, I am long ETFC both in equity and options. I have added more positions the past two days as the price has dropped with the market.