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Thursday, November 15, 2007

Etrade Financial: Little Risk Of Bankruptcy

Cash Register

When you do a search for Etrade news on Google, all you get are older negative stories.

The news has taken a positive turn. Frederic Ruffy writes Sector Watch: Banking on the Brokers - Optionetics Commentary:
"a rebound in shares of Etrade Financial (ETFC) also helped. Earlier in the week, on Monday, shares of the online broker plunged $5.04, or 58.7%, to $3.55 after warning of write-downs tied to subprime mortgage securities. However, Tuesday, analysts at BMO Capital came to Etrade’s defense. According to an article on Bloomberg (ETrade Bankruptcy is “Highly Unlikely” by Jeff Kearns, November 13), the analyst believes the online broker can absorb $1 billion in write downs and there is little risk of bankruptcy. In addition, given the recent decline in the share price, there is a better chance of a takeover. TD Ameritrade (AMTD) is reportedly in talks to acquire ETFC, according to the Wall Street Journal. Shares of Etrade Financial stabilized and then rose $1.45, or 40.9%, on Tuesday."
MarketWatch also has better results with more current and positive news about Etrade.

E-Trade scores double-digit gains on big volume

You got to be an intelligent consumer of news on the web if you want to make smart decisions.

3 comments:

  1. Regardless of the stock price, you might enjoy this ad with the chimp from the Super Bowl commercials: http://youtube.com/watch?v=6uSL1rilsWg

    ReplyDelete
  2. Anonymous3:18 PM

    What do you think of Etrade now!!!

    ReplyDelete
  3. Not sure... Your comment prompted me to take a look and I found this:

    "Etrade Financial (ETFC) is set to rebound after the company said progress was being made in its turnaround plan and also announced plans to exit the institutional business."

    http://www.optionetics.com/market/articles/18798

    So it sounds good.

    ReplyDelete