E TRADE Financial Corp (ETFC)

[rambob]

Incredible stock. I think we get bought out soon, but not enough m&a's yet. The big money is still scared for the long haul. It is developing a profitable chart to trade though.

[eastunder]

Walk down Memory lane?

4-14-10 Proxy about the RS:

4-28-10 After market closes: Citadel registers to sell E-Trade shares 4-29-10 gaps down.

5-13-10 shareholders approved a reverse split

(ETFC closed at 1.60 that day)

1-for-10 Reverse Stock Split took Effect June 2, 2010

ETFC closed at 14.99 that day or a 1.499 pre reverse split equivilent.

The low since has been to 11.15 (one month later) with a rebound above the original RS number, a retraction, and Now ETFC faces the original RS adjusted number again.

Nice! But fill the gap please. (13.61) ;)

[eastunder]

ETFC

[ListenToMe]

Nice daily chart today for sure!!!

[Realperson]

E*TRADE'S STOCK MAY BE A long-term loser, but it's starting to show signs that the future could be much brighter.

A major E*Trade Financial (ticker: ETFC) investor appears positioned in the options market for future gains, even as shares have surged 32% in the past month.

However, despite the recent rally, E*Trade's stock is still down 14% in 2010, which is but a minor loss given that the shares are down 91% over the past five years.

An investor bought 17,000 October $18 calls for 31 cents on Wednesday when the stock was at $15.16. The investor most likely has a large position of E*Trade stock, and has decided to use options to enhance the return.

The options position will prove beneficial if the momentum evident in E*Trade's recent earnings report propels the shares modestly forward during the next few months. If the stock stalls, or fails to exceed the $18 strike price, the call seller will effectively have collected a dividend from the options market.

Analyst Fred Ruffy, in a note posted on Trade Alert, an online options trading volume analytics service, stated that E*Trade was up 14% since it reported its first profit in three years when the company announced earnings on July 22. If recent past is indeed prologue, the buyer of 17,000 October $18 calls will experience the rare phenomenon of making money off E*Trade.

As my colleague Tiernan Ray noted on his Stocks to Watch blog, E*Trade reported $534 million in revenue, down 14% from the prior year but still way ahead of the average $299 million estimate, which translated to earnings per share of 12 cents, compared to an expected loss of 11 cents per share.

Arguably even more impactful for investor sentiment is that E*Trade's loan losses – the company ran into some trouble with mortgages – declined 38% from the first quarter to $166 million.

While reporting lower loan losses is a trend among financial companies, it is preferable to logging an increase in loan losses, and it underscores the wisdom in carefully approaching E*Trade's apparent financial recovery.

Given the fluidity inherent in a business like E*Trade that has reported its first profit in three years, using options, which cost but a fraction of the price of the stock, to balance the potential reward with the risks is advisable as well-placed calls tend to take away the sting of rebuke, and add a little extra oomph to returns.

[Dale12]

Loving the earnings! Hopefully we reach new heights after this. Today's gains are a good start, but I'm hoping to go much higher.

Good luck and congrats to those brave enough to hold through earnings.

[famous]

dale you got to like those earnings!!!!!!!

[eastunder]

ETFC: Q2 EPS 12c vs ($2.16) Beats (11c) Est

Thursday , July 22, 2010 16:20ET

QUARTER RESULTS
E*TRADE Financial Corporation (ETFC) reported Q2 results ended June 2010. Q2 Revenues were $534.00M; -14.00% vs yr-ago; BEATING revenue consensus by +59.67%. Q2 EPS was 12c; +105.56% vs yr-ago; BEATING earnings consensus by +209.09%.

Q2 RESULTS      Reported      Year-Ago     Y/Y Chg      Estimate    SURPRISE 
 ----------  ------------  ------------  ----------  ------------  ---------- 
 Revenues:       $534.00M      $620.91M     -14.00%      $334.45M     +59.67% 
 ----------  ------------  ------------  ----------  ------------  ---------- 
 EPS:                 12c       ($2.16)    +105.56%         (11c)    +209.09% 
 ----------  ------------  ------------  ----------  ------------  ----------

ORIGINAL EARNINGS RELEASE
Consensus estimate data provided by Reuters.
Visit Knobias.com for more indepth earnings information.

[Realperson]

Moving up fast
Up .85 already after hours

[eastunder]

UPDATE 1-E*Trade posts profit after three years of losses
http://www.reuters.com/article/idCNN222741120100722?rpc=44

Thu Jul 22, 2010 4:05pm EDT

* EPS 12 cents in Q2; Street expected loss of 11 cents

* Net revenue fell 14 percent to $534 million

* Loan loss provisions far smaller than expected

NEW YORK, July 22 (Reuters) - E*Trade Financial Corp (ETFC.O) posted a surprise quarterly profit on Thursday, the online brokerage's first in three years, with the help of a far smaller loan loss provision than analysts expected.

A sharp trading spike in the second quarter also boosted the U.S. broker, whose shares were hammered in recent years as its mortgage-related loans soured. It set aside a $166 million provision in the quarter, well down from the previous $268 million.

E*Trade -- ending an 11 quarter string of losses -- earned $35.1 million, or 12 cents per share, compared with a $143.2 million loss, or a loss of $2.16 per share, a year ago.

Net revenue fell 14 percent to $534 million. Analysts on average expected the brokerage to post an 11 cent loss on $299.4 million in revenue, according to Thomson Reuters I/B/E/S.

E*Trade, a darling of the late 1990s tech boom, is recovering more quickly than the Street expected from its mortgage market problems. New chief Steven Freiberg took the reins in April and Citadel Investment Group remains its largest shareholder. (Reporting by Jonathan Spicer; editing by Andre Grenon)

[eastunder]

E*TRADE Financial Corporation Announces Second Quarter 2010 Results

Thursday , July 22, 2010 16:05ET

NEW YORK--(BUSINESS WIRE)-- E*TRADE Financial Corporation (NASDAQ: ETFC):

Second Quarter Results

-- Net income of $35 million, or $0.12 per share, improved from $0.25 loss
per share in prior quarter and $2.16 loss per share in second quarter
2009
-- Total net revenue of $534 million, down from $537 million in prior
quarter and $621 million in second quarter 2009
-- Provision for loan losses of $166 million, down from $268 million in
prior quarter and $405 million in second quarter 2009
-- Special mention delinquencies (30-89 days) down by 14 percent from prior
quarter; at-risk delinquencies (30-179 days) down by 13 percent from
prior quarter
-- Daily Average Revenue Trades (DARTs) of 170,000, up 10 percent from
prior quarter and down 16 percent from second quarter 2009
-- Net new brokerage assets of $2.1 billion, down from $2.2 billion in
prior quarter and $2.3 billion in second quarter 2009


Capital and Liquidity Metrics

-- Bank Tier 1 capital to total adjusted assets ratio increased 44 basis
points from prior quarter to 7.27%; Bank Tier 1 capital to risk-weighted
assets ratio increased 32 basis points from prior quarter to 13.39%
-- Excess risk-based total capital (excess to the regulatory
well-capitalized threshold) of $1.0 billion
-- Bank generated $142 million of Tier 1 capital and $61 million of
risk-based capital
-- Corporate cash of $481 million


E*TRADE Financial Corporation (NASDAQ: ETFC) today announced results for its second quarter ended June 30, 2010, reporting net income of $35 million, or $0.12 per share, compared with a net loss of $48 million, or $0.25 loss per share, in the prior quarter and a net loss of $143 million, or $2.16 loss per share, in the second quarter of 2009. The Company reported total net revenue of $534 million for the second quarter, compared with $537 million in the prior quarter and $621 million in the year ago period.

"The second quarter marked an important milestone for E*TRADE as we reported our first quarterly profit in three years," said Steven Freiberg, Chief Executive Officer of E*TRADE Financial Corporation. "Our results were supported by strength in our brokerage business, including growth in DARTs, new accounts, and margin receivables; continued improvement in loan performance trends; prudent expense management; and effective balance sheet strategies in an environment of declining interest rates." Freiberg continued, "We are proud of our second quarter performance and remain focused on positioning the Company for sustainable profitability and growth. At the same time, our significant progress increases our flexibility to invest in products, services, and technologies that should enhance our customer franchise and allow us to better realize growth opportunities to drive shareholder value."

E*TRADE reported DARTs of 170,000 during the quarter, a 10 percent increase from the prior quarter and a 16 percent decrease versus the same quarter a year ago. At quarter end, the Company reported 4.2 million customer accounts, which included 2.6 million brokerage accounts. Net new brokerage accounts were 18,000 during the quarter, compared with 2,000 in the prior quarter. Excluding 3,000 accounts closed in connection with the Company's international restructuring, the Company added 21,000 net new brokerage accounts during the quarter.

The Company ended the quarter with $144 billion in total customer assets, compared to $159 billion in the prior quarter and $128 billion in the prior year.

During the quarter, net new brokerage assets were positive $2.1 billion, totaling $4.3 billion year to date. Brokerage-related cash decreased by $1.1 billion to $20.7 billion during the period, while customers were net buyers of approximately $3.4 billion of securities. Customer security holdings decreased by eight percent, or $8.1 billion, as the markets declined between 10 and 12 percent during the quarter. Margin receivables increased 26 percent sequentially from $3.8 billion to $4.8 billion.

Net new customer assets were positive $0.8 billion, reflecting $2.1 billion in net new brokerage assets, offset by a $1.3 billion decline in savings and other bank-related customer deposits.

Total net revenue of $534 million declined $3 million from the prior quarter and $87 million versus the year ago period.

Net operating interest income for the second quarter was $302 million, reflecting a net interest spread of 2.89 percent on average interest-earning assets of $41.0 billion. The $18 million sequential decrease in net interest income resulted from a $1.4 billion decline in average interest-earning assets and a seven basis point decline in the net interest spread.

Commissions, fees and service charges, principal transactions, and other revenue in the second quarter were $195 million, compared with $196 million in the first quarter. This reflected the sequential increase in trading activity offset by a $0.33 decline in the average commission per trade, from $11.38 to $11.05.

Total net revenue this quarter also included $37 million of net gains on loans and securities, including a net impairment of $12 million.

Total operating expense decreased seven percent, or $20 million, to $276 million from the prior quarter, including lower compensation, advertising, and restructuring costs.

The Company continued to make progress during the second quarter in reducing balance sheet risk as its loan portfolio contracted by $1.2 billion from the prior quarter, including $0.2 billion in loan securitizations and $0.7 billion related to prepayments or scheduled principal reductions.

Second quarter provision for loan losses decreased $102 million from the prior quarter to $166 million. Net charge-offs in the quarter were $225 million, a decrease of $63 million from the prior quarter. These declines included a $15 million benefit of a legal settlement related to purchased loans. The allowance for loan losses declined by $59 million to $1.1 billion, or six percent of gross loans receivable, at quarter end.

"We are particularly pleased with the progress made during the quarter in reducing the balance sheet and mitigating risk," Freiberg commented. "In addition to the prepayments and scheduled principal reductions, we securitized or sold $232 million in loans, accelerating the decline of the loan portfolio. Furthermore, continued efforts to put back loans to sellers resulted in a $20 million legal settlement of loan claims which contributed $15 million to the reduction in the second quarter provision and net charge-offs."

For the Company's entire loan portfolio, special mention delinquencies (30-89 days) declined by 14 percent and at-risk delinquencies (30-179 days) declined by 13 percent in the quarter.

During the quarter, the Bank generated $142 million of Tier 1 capital and $61 million of risk-based capital. As of June 30, 2010, the Company reported Bank Tier 1 capital ratios of 7.27 percent to total adjusted assets and 13.39 percent to risk-weighted assets. The Bank had excess risk-based total capital (i.e., above the level regulators define as well-capitalized) of $1.0 billion at quarter end.


Financials continued at:
http://www.knobias.com/story.htm?eid=3.1.28fb0757e23da2fe4153db3fb8d79389251a6a9a902cd83d6b4b17cbbba50cf0

[LeGoose]

Wow - they crushed 'em!! Pull your limit sells - we're going higher.

[eastunder]

CONSENSUS ESTIMATES:

ETFC: To Release Q2 Results Jul 22 [AMC]

http://www.knobias.com/story.htm?eid=3.1.e986910e559d8b96cc902c46f200ae3a66c2020c894a547c07b52b972ab356b8


Wednesday, July 21, 2010 13:00ET

E*TRADE Financial Corporation (Nasdaq NM: ETFC) is scheduled to release its Q2 financial results on July 22, 2010, after the close of the market (AMC).

CONSENSUS ESTIMATES:

Q2 Revenue: $334.45 million
Q2 EPS: $-0.11 per share

PREVIOUS PERIOD:

Prev Q2 Revenue: $216.38 million
Prev Q2 EPS: $-2.20 per share

ADDITIONAL INFORMATION

Original Confirmation

The Company will also hold a related conference call to discuss these results.

[Med.rare]

whats up with etrade.....very strong the last few days. I took off my 13.00 limti order....buy out rumors again?

[3percent]

This cant be good news. The average Joe is not in the market right now. And those who were, have now gotten on the sidelines!

[eastunder]

2Q earnings 7-22-10 AMC

E*TRADE Financial Corporation Announces Second Quarter 2010 Earnings Conference Call

Tuesday , July 06, 2010 16:23ET

NEW YORK--(BUSINESS WIRE)-- E*TRADE Financial Corporation (NASDAQ: ETFC) today announced that it will report its second quarter 2010 financial results after the close of the U.S. financial markets on Thursday, July 22, 2010. The Company will host a conference call to discuss the results at 5:00 p.m. (EDT). This conference call will be available to domestic participants by dialing 800-683-1525 and 973-872-3197 for international participants. The conference ID number is 85724635. A live audio webcast and replay of this conference call will also be available at https://investor.etrade.com.

About E*TRADE Financial

The E*TRADE Financial family of companies provides financial services including online brokerage and related banking products and services to retail investors. Specific business segments include Trading and Investing and Balance Sheet Management. Securities products and services are offered by E*TRADE Securities LLC (Member FINRA/SIPC). Bank products and services are offered by E*TRADE Bank, a Federal savings bank, Member FDIC, or its subsidiaries. ETFC-G

Important Notices

E*TRADE Financial, E*TRADE and the E*TRADE logo are trademarks or registered trademarks of E*TRADE Financial Corporation.

(C) 2010 E*TRADE Financial Corporation. All rights reserved.



Source: E*TRADE Financial Corporation

[3percent]

Long hill upwards

[eastunder]

ETFC Finviz chart

[Arnold25764]

Yes, will probably fill those lower gaps before filling the upper gaps.

[eastunder]

Me too -

What price were you thinking?

My initial thoughts are we have had some heavy selling days in a row and we dropped out of that bollie, so perhaps it's time to go up for a wee bit, but then I feel we might just come right back down?

Because I follow gaps, if I had to pick a price to buy for myself (mind you - I go long and typically longterm)the 9.10 stands out to me, as it's a gap up that needs to fill (split adjusted of course) from 3-17-09 and I would typically buy at that.

And then below that there is the 3-13-09 gap up that would take 7.50 to fill and if filled I would probably add to my position.
That's what I tend to do.



but notice we have some gaps down that the pps needs to move up and fill as well?

I'm conflicted on my thoughts. ;) And the Market doesn't care what I think.

[Arnold25764]

Doesn't look too good with the Market as sour as it is. Still watching.

[eastunder]

Good question. I tend to follow certain things and the last thing I am good at is calling a bottom. (Hey, at least I am honest! ;) If we weren't in such a crappy market I would have said today has accomplished what we needed to do pull back wise.

Aggravating isn't it? I would like to get back in but I'm not seeing anything I like enough to encourage me to do that. She dropped outta the bollie and could pull back in but I tend to go LT and there is nada that speaks to me on holding ETFC right now.

Jen

[Arnold25764]

Question is how far down before it settles?

[eastunder]

Of course it does. That's pretty normal in my book. I have had only one go up after an RS, most retracted, settled and then moved forward. Hopefully ETFC is one of those?

Good luck!

[Arnold25764]

they do a a R/S and this still goes down.

[eastunder]

ETFC:

Looks like we have dropped the d this morning and are now back to trading as ETFC:

[famous]

no dry powder but this is a good price even post r/s

[Dale12]

Hopefully you got some then, famous. I grabbed 800 at 12.59. Wish I would have grabbed some more, but I kept some dry powder just in case.

[famous]

this is looking like a good entry to me

[NYPharmer1]

Reverse Split - 1 to 10 - NEW SYMBOL ETFCD (20 days)

up 6% today :)

[eastunder]

ETFC: Gap down on open at 1.46

[eastunder]

E*TRADE Financial Corporation 1-for-10 Reverse Stock Split to Take Effect June 2, 2010

Tuesday , May 25, 2010 08:05ET

NEW YORK--(BUSINESS WIRE)-- E*TRADE Financial Corporation (NASDAQ: ETFC) today announced that a previously approved 1-for-10 reverse split of its common stock will take effect on Wednesday, June 2, 2010 at the open of U.S. markets. E*TRADE shares will continue to trade on the NASDAQ Stock Exchange under the symbol ETFC with the new CUSIP number 269246401.

The reverse stock split, which was approved by E*TRADE stockholders on May 13, 2010, will automatically combine each 10 shares of issued and outstanding common stock into one share of common stock. All outstanding and authorized securities that are exercisable or exchangeable for common stock will be adjusted proportionally based on the reverse split ratio of 1-for-10. The Company will not issue fractional shares in connection with the reverse stock split and stockholders otherwise entitled will receive cash in lieu of fractional shares.

Stockholders with shares held in book-entry form or through a bank, broker, or other nominee are not required to take any action and will see the impact of the reverse stock split reflected in their accounts after June 2, 2010. Beneficial holders may contact their bank, broker, or nominee for more information.

Stockholders with shares held in certificate form are required to exchange their stock certificates for a book-entry statement of holdings or a new certificate representing the shares of common stock resulting from the reverse split. Shortly after June 2, 2010, registered holders who hold stock in certificate form will receive a Letter of Transmittal and instructions for exchanging their certificates from American Stock Transfer, E*TRADE's transfer agent. Registered holders may contact American Stock Transfer for more information commencing June 2, 2010 at [phone].

For more information, see the Reverse Stock Split FAQs at investor.etrade.com.

About E*TRADE Financial

The E*TRADE Financial family of companies provides financial services including online brokerage and related banking products and services to retail investors. Specific business segments include Trading and Investing and Balance Sheet Management. Securities products and services are offered by E*TRADE Securities LLC (Member FINRA/SIPC). Bank products and services are offered by E*TRADE Bank, a Federal savings bank, Member FDIC, or its subsidiaries. ETFC-G

Important Notices

E*TRADE Financial, E*TRADE and the E*TRADE logo are trademarks or registered trademarks of E*TRADE Financial Corporation.

(C) 2010 E*TRADE Financial Corporation. All rights reserved.




Source: E*TRADE Financial Corporation

[eastunder]

ETFC

[eastunder]

E-Trade sees 17 pct increase in trades for April
E-Trade posts 17-percent gain in average US trades for April, down 14 percent year-over-year

http://finance.yahoo.com/news/ETrade-sees-17-pct-increase-apf-1461414682.html?x=0&.v=1


On Wednesday May 19, 2010, 11:14 am EDT
NEW YORK (AP) -- Online broker E-Trade Financial Corp. on Wednesday posted a 17 percent gain in average U.S. trades for April from the prior month.

The company said its daily average revenue trades, or DARTS, rose to 181,556 in April from March. Compared to the same month in 2009, the number of trades fell by 14 percent. DARTs represents the number of trades from which brokers can expect commissions or fees. It is a key metric of broker performance.

E-Trade also said it added 17,627 net brokerage accounts to end April with 2.6 million. That reverses a 3,471 decline in accounts in March, but far lower than the 31,524 net new accounts E-Trade added in April 2009.

Net new brokerage assets fell by about $300 million in April from the month before. E-Trade said clients bought net new securities worth about $1.3 billion during the month. However, bank cash and deposits fell by $400 million.

Shares of E-Trade rose a penny to $1.50 in morning trading.

[eastunder]

E*Trade's Strong April Draws Yawn
Michael Baron
05/19/10 - 10:36 AM EDT

NEW YORK (TheStreet) -- E*Trade Financial(ETFC) reported a healthy sequential increase in trading volumes for April on Wednesday, although the year-over-year comparison was less favorable.

Daily average revenue trades, or DARTs, totaled 181,556 for the 21 trading days last month, up 17.2% from March levels, but down 14% from the same period a year earlier.

The online broker, which has seen a marked decline in its stock since late April when hedge fund Citadel Investment Group announced plans to lighten its substantial stake in the company, said it ended April with 4.27 million total accounts, a decline of 3.8% from last year. Total customer assets, however, stood at $162.4 billion at month's end, a rise of 2.3% on a sequential basis and 36% year-over-year.

Shares were tacking on a penny to $1.50 in morning trades on comparatively light volume of 4.8 million.

E*Trade customers added to their equity positions in April, increasing their security holdings by 4%, or roughly $4 billion, between new assets and purchase. On a net basis, customers bought $1.3 billion worth of securities during the month.

BMO Capital analyst Michael Vinciquerra was cautiously optimistic about second-quarter trading volumes for E*Trade based on these numbers, noting that, while the performance puts the company ahead of the firm's estimate of 156,300, it's still early.

"[W]e are leaving estimates unchanged at this time as we are only one month into the quarter and retail activity has been softening a bit the last few days," he told clients in a research note. BMO Capital has a market perform rating on E*Trade with a $2 target price. The firm doesn't expect the company to be profitable again until the fourth quarter of this year.

From an E*Trade shareholder standpoint, May has proven a much crueler month than April. The stock closed at $1.84 on April 28 before the announcement of Citadel's plans to shed 170 million common shares. The offering, boosted to 172 million shares, priced the next day at $1.75 each, and the stock has been in steady decline since. It finished Tuesday's session at $1.49, off 19% since Citadel's announcement. The move wiped out the stock's slight gain in 2010, and put it down 15% year-to-date.

And while it's purely a cosmetic move, shareholders are about to see the amount of stock they hold come down. The company held its annual meeting on May 13 and shareholders approved a 1-for-10 reverse stock split that the board anticipates will become effective in early June. According to an investor presentation on April 30, the company has about 1.96 billion common shares, along with outstanding debt convertible into another 930 million shares, so the reverse split will bring potential common share count down to around 290 million.

According to data from Thomson Reuters, other big institutional investors in E*Trade include TIAA-CREF with 113.4 million shares, or a 5.2% stake; Vanguard Group with 94 million shares, or a 4.3% stake; BlackRock Institutional Investors with 90.5 million shares, or a 4.1% stake; and State Street Global Advisors with 66.4 million shares, or a 3% stake.

Both TIAA-CREF and Vanguard had added to their positions as of their latest quarterly filings dated March 31, with Vanguard boosting it by nearly 40%. BlackRock and State Street both lessened their holdings.

--Written by Michael Baron in New York.

[eastunder]

E*TRADE Financial Corporation Reports Monthly Activity for April 2010

http://finance.yahoo.com/news/ETRADE-Financial-Corporation-bw-2441293825.html?x=0&.v=1

[smartone]

darn I voted no

[eastunder]

E*Trade shareholders approve reverse stock split
Thu May 13, 2010 7:12pm

* 1-for-10 reverse split effective in early June

* Online broker stung by mortgage-related loan losses

* Shares worth more than $25 in 2007; now $1.60

NEW YORK, May 13 (Reuters) - Shareholders of E*Trade Financial Corp (ETFC.O) voted on Thursday to authorize a 1-for-10 reverse stock split, the U.S. online brokerage said, deciding to boost the price of shares that were pummeled when the mortgage market cratered.

The company, just now beginning to recover from its painful loan losses, said it expected the reverse split of common stock to become effective early next month.

E*Trade shares closed unchanged at $1.60 on the Nasdaq Thursday. They were worth more than $25 apiece in 2007, before losses in E*Trade Bank's mortgage portfolio set in.

The company proposed the reverse stock split in March. Analysts have said the move could help E*Trade's optics and make its shares appropriate for use by more fund managers. [ID:nN22154578] (Reporting by Jonathan Spicer; Editing by Gary Hill)

[eastunder]

E*TRADE Financial Corporation Announces Results of Annual Meeting of Stockholders

Thursday , May 13, 2010 11:45ET

NEW YORK--(BUSINESS WIRE)-- E*TRADE Financial Corporation (NASDAQ: ETFC) announced the results of its Annual Meeting of Stockholders held today, May 13, 2010, in Arlington, VA. Over 79 percent of all outstanding shares as of the record date were voted.

Stockholders authorized the Company's Board of Directors to effect a 1-for-10 reverse stock split of the outstanding shares of the Company's common stock. The Company expects the reverse stock split to become effective in early June.

Stockholders also voted in favor of the election of the five directors standing for election; a proposal to increase the shares authorized under the Company's 2005 Equity Incentive Plan and to make certain other changes to the plan; and the selection of Deloitte & Touche LLP as the Company's independent public accounting firm.

Ronald D. Fisher, President, SoftBank Holdings, Inc.; Steven J. Freiberg, Chief Executive Officer, E*TRADE Financial Corporation; Kenneth C. Griffin, Founder and Chief Executive Officer of Citadel Investment Group, L.L.C.; and Donna L. Weaver, Chairman of MxSecure, Inc.; were each re-elected to Class II of the Company's Board of Directors for a term that will end at the Company's Annual Meeting of Stockholders in 2013. Joseph M. Velli, Chairman and Chief Executive Officer of BNY ConvergEx Group, LLC, was re-elected to Class I of the Company's Board of Directors for a term that will end at the Company's Annual Meeting of Stockholders in 2011.

About E*TRADE Financial

The E*TRADE Financial family of companies provides financial services including online brokerage and related banking products and services to retail investors. Specific business segments include Trading and Investing and Balance Sheet Management. Securities products and services are offered by E*TRADE Securities LLC (Member FINRA/SIPC). Bank products and services are offered by E*TRADE Bank, a Federal savings bank, Member FDIC, or its subsidiaries. ETFC-G

Important Notices

E*TRADE Financial, E*TRADE and the E*TRADE logo are trademarks or registered trademarks of E*TRADE Financial Corporation.

(C) 2010 E*TRADE Financial Corporation. All rights reserved.



Source: E*TRADE Financial Corporation

[eastunder]

The Annual Meeting of Stockholders is on May 13, 2010 at 10:00 a.m.

[eastunder]

E*Trade: one baby step forward, several steps back

The struggling online trader may tumble off the most actively traded stocks list, thanks to a planned reverse stock split.

Shareholders of E*Trade (ETFC) will get a chance tomorrow to send their stock price higher for the first time in years – with the caveat that doing so won't make them richer.
Investors are due to vote at Thursday's annual meeting on a proposal for a 1-for-10 reverse stock split. If the measure wins approval, the split will take effect next month.

The good news is the move will have the effect of increasing E*Trade's stock price, which hasn't been above $2 since last September and hasn't seen double digits since the credit meltdown started in 2007. The company, which in March named former Citi exec Steven Freiberg CEO, calls the reverse split proposal "a logical next step for the company as we complete our financial and managerial restructuring."

The bad news for holders E*Trade stock, of course, is that a reverse split brings about higher prices by canceling most outstanding shares. Despite the higher prices, "the value of your total economic investment … should remain unchanged," E*Trade notes.

Reverse splits were once unheard of for well known companies, but that has changed over the past decade, with its two stock market crashes and the implosion of big companies from Canadian telecom equipment maker Nortel to insurance giant AIG (AIG).

And E*Trade is hardly the only household name trading in the netherworld below $5 a share: So are the government-controlled mortgage giants Fannie Mae (FNM) and Freddie Mac (FRE), though the terms of the firms' federal conservatorship and their deepening losses mean those companies' shares are effectively worthless.

So who else might join E*Trade on this road to sort of redemption? Shareholders of Citigroup (C), the giant bank whose share count has ballooned to 27 billion thanks to the bailouts of the past two years, have twice approved a reverse split, but there are no signs as yet that Citi plans to join E*Trade in taking action.

"A reverse split is a very, very bad thing," one shareholder said at Citi's annual meeting last month. Obviously, Freiberg doesn't agree

[eastunder]

UPDATE 1-Subprime lawsuit v E*Trade may proceed - US judge
Tue May 11, 2010 5:26pm EDTStocks
E TRADE Financial Corporation

* Judge orders online broker to defend suit

* Investors sued over subprime mortgages in 2007

NEW YORK, May 11 (Reuters) - Investors may proceed with a class action lawsuit against online broker E*Trade Financial Corp (ETFC.O) over allegations of securities fraud in the collapsed subprime mortgage market, a U.S. judge ruled on Tuesday.

E*Trade, which was sued in 2007 in U.S. District Court in New York, had sought dismissal of the complaint on the grounds that losses incurred were caused by a "worldwide economic catastrophe" and that the corporation did not break the law.

The complaint said that E*Trade Chief Executive Officer Mitchell Caplan, Chief Financial Officer Robert Simmons and President Dennis Webb misrepresented the company's financial condition.

Class action suitors also said the defendants "knowingly and/or recklessly purchased high-risk loan pools and asset-backed securities with inadequate due diligence" while assuring investors they were safe.

"Plaintiffs have sufficiently pled that defendants had present knowledge of the risk, and have not merely pled fraud-by-hindsight," Judge Robert Sweet said in a written ruling. "Because plaintiffs allege that defendants intentionally misled the public, rather than simply making bad business decisions, plaintiffs have pled more than mere mismanagement."

A spokeswoman for E*Trade could not immediately be reached for comment.

According to court documents, E*Trade admitted that its exposure to risky asset-backed securities, pools of mortgages known as collateralized debt obligations and second-lien securities was about $450 million.

The judge's ruling also said the investors had shown in their lawsuit that E*Trade's share price fell significantly -- 58.67 percent in one day -- after the company's risky investments and losses were revealed.

The case is Larry Freudenberg v E*Trade Financial Corporation et al, U.S. District Court for the Southern District of New York, No. 07-8538. (Reporting by Grant McCool; Editing by Richard Chang)

[help me]

Great buying opportunity today.

help me

[eastunder]

ETFC (noi)

Numbers of interest to me:

Currently (will change)

50 @ 1.67
200 and Bot bollie are shadowed at $1.62
Five turning down
New gap at 1.80 (takes move up to fill)
Fin/T line at apx: 1.55

[eastunder]

UPDATE 2-E*Trade shares tumble after Citadel narrows stake
Thu Apr 29, 2010 12:38pm


* Secondary sells 172 mln shares vs 170 mln expected

* Sells shares for $1.75 each, raising about $301 million

* Citadel remains E*Trade's largest debt holder

* E*Trade shares down 7.1 percent

NEW YORK, April 29 (Reuters) - Shares of E*Trade Financial Corp (ETFC.O) fell 7.1 percent after the online broker sold stock in the secondary market at the request of Citadel Investment Group, which remains its largest stakeholder despite the big sale.

E*Trade on Thursday sold 172 million shares of common stock for $1.75 each, raising about $301 million. It had planned to sell 170 million shares, and will not receive proceeds from the offering.

Analysts said Citadel's move was reasonable given its big stake in E*Trade, although the sale may have spooked some smaller investors banking on E*Trade's gradual recovery from mortgage lending losses.

A "slow unwind of such a significant position over the course of E*Trade's turnaround seems to be a prudent move," FBR Capital Markets analysts wrote in a note, adding some investors may fear additional sales by Citadel.

Citadel Equity Fund Ltd and Wingate Capital, both affiliated with Citadel, are selling the shares. The giant hedge fund remains E*Trade's largest debt holder, and its CEO, Kenneth Griffin, sits on the broker's board.

Citadel stepped in to bail out E*Trade when bad loans in the company's mortgage banking unit began to weigh some three years ago. It helped the broker raise capital last year, as it began to recover, and in the autumn sold a block of shares.

E*Trade is expected to return to profitability later this year after a dozen straight quarterly losses.

"While not out of the question, we do not believe that Citadel's decision to sell out was a result of a poor financial outlook on E*Trade," Raymond James analyst Patrick O'Shaughnessy wrote in a note to clients.

"We think it is perfectly reasonable that Citadel would begin to exit its investment in E*Trade and are hesitant to draw any further conclusions," the analyst said.

Bank of America Merrill Lynch, Sandler O'Neill and Citadel Securities LLC served as the joint book-running managers on the offering. They have the option to buy an additional 25.8 million shares.

E*Trade shares fell 7.1 percent to $1.71 at midday on the Nasdaq. (Reporting by Clare Baldwin and Jonathan Spicer. Editing by Robert MacMillan and Gunna Dickson)

[eastunder]

E*Trade Shares Take Hit on Offer Pricing
By Laurie Kulikowski 04/29/10 - 11:32 AM EDT

(TheStreet) -- Shares of E*Trade Financial (ETFC) tumbled on huge volume Thursday after Citadel Investments, its largest investor, priced a massive secondary offering with a 5% discount.
The stock was down 6% to $1.74 in recent trades. Volume was already nearly 118 million less than two hours into the session, more than double the three-month trailing daily average of 41.7 million.

E*Trade, which isn't selling any stock in the offering, disclosed the plans for the sale after Wednesday's closing bell. At that time, it said two affiliates of Citadel would be selling a total of 170 million shares.

This morning, the scope of the deal widened somewhat, and the affiliates are now selling 172 million shares at $1.75 each. The stock closed Wednesday at $1.84. The overallotment option provides for the sale of up to an additional 25.8 million shares. Citadel would see gross proceeds of roughly $350 million if the over-allotment is fully exercised.

In an interesting aside, new CEO Steven Freiberg intends to purchase $1 million worth of common stock as part of the offering. Freiberg, a former Citigroup(C) executive, was named to the CEO post on March 22.

Citadel is E*Trade's largest equity and debt holder. The two affiliates involved in this sale -- Citadel Equity Fund and Wingate Capital -- own 7.6% and 2.3%, respectively, of E*Trade's common stock. E*Trade has approximately 1.98 billion shares outstanding, according to the prospectus.

Citadel itself owns $821.6 million worth of E*Trade convertible debt, obtained mainly when E*Trade underwent its second recapitalization plan last summer. If the overallotment option is exercised, Citadel will then exercise its convertible debentures to satisfy the overallotment, the filing said.

Under terms of the convertible debt exchange, Citadel is not allowed to own more than 10% of E*Trade common shares for 60 days following the conversion, meaning that the hedge fund will only be allowed to convert debt that equals a maximum of 9.9% of common stock.

If Citadel's debt were fully converted, it would own roughly 34% of E*Trade's common stock.

[eastunder]

I don't know. I don't know enough about it but I can't imagine that a fund is any different then you or I - at some point in time they shift their focus. That means selling and moving on. When a quantity is owned like that, It requires a filing, does it not?

Maybe there is more to it and I apologize for not really having an answer. The last thing I want to do is read the whole filing. LOL

I'm winging it here. Don't make me work at it. :) LOL

I'll look around and see if someone out there has done our work for us? ;) An article, commentary, etc.

Jen

[smartone]

I guess it is good that new CEO is buying

but why is major shareholder dumping?

[eastunder]

smartone - I think it's getting interesting. ;)


http://www.sec.gov/Archives/edgar/data/1015780/000119312510097160/d424b4.htm

Of course the proceeds don't go to the company - it's a secondary.

So - A shareholder is selling their shares. That would be the Citadel Equity Fund Ltd. and Wingate Capital Ltd.

But top line on the filing intrigues me...

Lets look at that...

"The selling stockholders named in this prospectus are selling 170,000,000 shares of common stock. We will not receive any of the proceeds from the shares of common stock sold in this offering. Steven J. Freiberg, our Chief Executive Officer, has informed us of his intention to purchase an aggregate of $1 million of the shares being offered in this offering for investment purposes. Such purchase will be made at the public offering price."

Our common stock is listed on the NASDAQ Global Select Market under the symbol “ETFC.” The last reported sale price of our common stock on April 27, 2010 was $1.83 per share.

***********************************************************
Interesting, right? :)

[smartone]

I don't get this --??

why do a secondary that dilutes the stock

and none of proceeds are going to the company

right before a RS??