I'm long ETrade, and don't worry about the solvency. HOWEVER, shares below $5 that sustain it for any lengthy period rarely recover. This is due to a number of reasons, but one reason in particular is that mutual funds tend to stop investing in a stock once it crosses below a threshold. I would like to see some analysis on big fund outflows on ETrade before I grow my position.
The Online Brokerage Wars: E*Trade Offers Compelling Risk/Reward [View article]
SteveJ, while you may disagree with jbmaria, there is absolutely no evidence that the rebate checks are going to help ETFC. If someone can't afford their payments, I don't see how a one-time bonus of 600 bucks is going to make a lick of difference in the long run.
Just because you are long ETFC doesn't mean you have to make irrational arguments to make you feel better about your position. If you don't understand the risk (and are certain that it's a "sure thing"), assume you are missing something.
Did the E*Trade Baby Pay Off? [View article]
The Online Brokerage Wars: E*Trade Offers Compelling Risk/Reward [View article]
Just because you are long ETFC doesn't mean you have to make irrational arguments to make you feel better about your position. If you don't understand the risk (and are certain that it's a "sure thing"), assume you are missing something.
Disclosure: Long ETFC