ATLBob

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

Nice article. Although I admire your passionate support for all things related to ETFC, one wonders if that admiration equates to applauding the performance of the orchestra on the Titanic.

Yes, ETFC has a great trading platform and some very loyal clients who love the product and management has worked hard to right the ship; however, these factors don't appear to be enough to mitigate the reality of a continued disturbing weak financial condition. A recent commentary from Credit Suisse noted:

"....adjusting for discontinued operations, net revenues were $213 million, down 28% from first quarter levels. Net interest income was up 5% as net interest spread expansion more than offset a further decline in interest earning assets. Retail commissions held steady as engagement remains relatively healthy. Losses on securities amounted to $16 million but will trend higher in coming quarters. Other revenues were down 7%. Credit quality deteriorated; non-performing assets and delinquent loans trended higher. Operating expenses of $319 mil included myriad charges related to the company's restructuring efforts. Ex. these one-time charges/discontinued ops, expenses declined 11%-mgmt is speaking to having achieved its goal of $50 million of annual run-rate cost savings. Share count continues to rise as the company continues to reduce financial leverage through debt-for equity-swaps-we expect further share count dilution here."

Notwithstanding the 'hope' that things will turnaround, what substance is there upon which to make a sound investment decision with ETFC?
IMHO, the ship has taken on substantial water and is still in danger of foundering.