muguwmper12

E-Trade Financial Carries High Risk-Reward

I think it's undervalued. I'm basing that on the assets/liabilities. But to say that the management has screwed up so bad they can't possibly screw up anymore and, therefore, it's time to buy. Well, that's just about the dumbest thing I've ever heard. Seriously...

E-Trade Financial Carries High Risk-Reward

"Make no mistake, TD Ameritrade is a better run company, with good earnings, no mortgage or credit risk, and a lower amount of debt. But that is exactly the reason E-Trade is a more compelling stock. It has managed its business horribly by moving away from its core business of online trading and involving itself in mortgages and has been slow to react to the situation it has found itself in. With all the wrong moves, there is hardly anything else that it can do wrong."

Let's see if I get your logic. Because E*Trade has horrible management, bad debt, has abandoned its core business, and is generally poorly run...therefore, it is a good investment. I'm not sure if I'm missing something...but, that makes no sense at all. I'll stick with well run companies with low debt. Thanks.