Linda is biotch...! LOLz JayKay
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Holy crap! What a close! Who would of thunk? Did not see that coming.
Someone is trying to keep this hovering at $4.00 for some reason...
Options?
Come to Poppa ... lol It is about to come down...
I am thinking of putting my limits lower than $3.90. Anyone have any input as to where we might fall?
I see one support at $3.80/$3.81. I am probably going to try and place my limit at $3.84.
Crap, my $3.90 never filled!!!! Maybe tomorrow or I will just have to buy at $4.00.
Henry, could PM me your case no. ?
Or post your e-mail address so that I may obtain your case no?
Thanks!
Combination of private company and pubic shell comes out as private needs a way to acquire funding in the form of selling shares.
Symbol change?
Masked R/S?
Pump to funding?
Just an opinion.
Let the pump and dump begin!
NEW YORK, May 9 (Reuters) - Short interest on the Nasdaq was effectively
unchanged in late April, the exchange said on Friday, suggesting little change
in bearish sentiment in the stock market.(For story please see
[ID:nN09507109].)
Below are the five Nasdaq stocks that experienced the largest increases and
decreases in their short positions from mid-April to late April, according to
information released by the exchange.
The five companies with the largest overall short positions are also
listed.
The latest data is as of April 30, while the previous period's data is as
of April 15.
Company April 30 April 15 Net Change Pct Change
---------------------------------------------------------------------------
FIVE BIGGEST INCREASES:
Sirius Satellite (SIRI.O: Quote, Profile, Research) 188,876,005 157,942,837 30,933,168 19.6
CA Inc (CA.O: Quote, Profile, Research) 16,412,331 0 16,412,331 *
Huntington (HBAN.O: Quote, Profile, Research) 47,156,652 37,569,252 9,587,400 25.5
E*Trade Financial (ETFC.O: Quote, Profile, Research) 104,521,843 95,343,454 9,178,389 9.6
Oracle Corp (ORCL.O: Quote, Profile, Research) 51,360,389 42,655,256 8,705,133 20.4
FIVE BIGGEST DECREASES:
Globalstar (GSAT.O: Quote, Profile, Research) 5,272,893 27,612,381 -22,339,488 -80.9
BEA Systems (BEAS.O: Quote, Profile, Research) 0 21,719,430 -21,719,430 **
Intel Corp (INTC.O: Quote, Profile, Research) 44,929,724 55,864,847 -10,935,123 -19.6
Microsoft Corp (MSFT.O: Quote, Profile, Research) 98,392,116 109,056,265 -10,664,149 -9.8
Comcast Corp (CMCSA.O: Quote, Profile, Research) 60,717,045 69,570,714 -8,853,669 -12.7
FIVE BIGGEST POSITIONS:
Level 3 Comm (LVLT.O: Quote, Profile, Research) 243,488,957 237,198,861 6,290,096 2.7
Sirius Satellite (SIRI.O: Quote, Profile, Research) 188,876,005 157,942,837 30,933,168 19.6
E*Trade Financial (ETFC.O: Quote, Profile, Research) 104,521,843 95,343,454 9,178,389 9.6
Microsoft Corp (MSFT.O: Quote, Profile, Research) 98,392,116 109,056,265 -10,664,149 -9.8
Charter Comm (CHTR.O: Quote, Profile, Research) 81,889,807 84,787,662 -2,897,855 -3.4
*Note: CA Inc began trading on Nasdaq April 28 after transferring from the NYSE
** Note: Oracle completed its acquisition of BEA Systems April 29
Source: Nasdaq data as of April 30, Reuters Estimates
(Reporting by Emily Chasan)
http://www.reuters.com/article/marketsNews/idINN0916927620080509?rpc=44
E*Trade's Annual Shareholder Meeting Should Pressure the Shorts
by: Cindy Reed posted on: May 09, 2008 | about stocks: ETFC
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On April 25, Dean Laster wrote an intriguing article regarding the fact that E*Trade’s (ETFC) stock has short interest sitting at 20% of the stock’s float (see “Why the E*Trade Shorts Have It Wrong”). Mr. Laster pointed out that E*Trade has no “downside catalyst” and that all the the bad news is priced into the $4 existing stock price. In fact E*Trade’s April 17th Earnings Conference Call presented many positive upside trends for both the brokerage business and the mortgage portfolio performance, so “shorts are in effect digging their own graves.”
This week, on Wednesday May 7, Nick Perry from Schaeffer’s Investment Research wrote an article entitled “Is E-Trade Financial Corp. Poised to Make Another Run?” In this article Mr. Perry affirms the unusual circumstances that the 20% short interest position sets up. He also indicates that the current “contraction in volatility can be a sign that ‘pressure’ is building.” He points out that “a contraction doesn’t suggest which way a stock will break.” However, the “stage” is set for a “pop above the front-month calls but we still need a catalyst to spark the buying.”
What Mr. Perry doesn’t realize is that the catalyst is now here. This coming week, the Annual Shareholder’s Meeting will be held by E*Trade. Will this meeting provide the “Short Interest” holders with their negative price effect? The pressure is there, which way will E*Trade break this coming week, up or down?
Other points of interest are as follows:
1) A concern in April was that stock market and brokerage trading volume would decline because of recessionary trends, which would hamper E*Trade’s brokerage recovery. Since that time the DOW Jones Industrial Average surpassed 13,100 and many economic employment and production indicators have provided signs of positive economic trends.
2) On April 22, 2008, Kanner Frederick Wilkinson, a Director at E*Trade purchased 50,000 shares of stock. Also, Donald H. Layton, CEO, has his compensation/bonus package directly linked to stock value.
3) On January 29, 2008, nine E*Trade directors directly purchased significant blocks of E*Trade stock totaling close to $2 million.
Disclosure: Long
http://seekingalpha.com/article/76521-e-trade-s-annual-shareholder-meeting-should-pressure-the-shorts?source=yahoo
Where are you located? Camarillo (sp) or Ventura/Oxnard?
Please refer to Post #1797
"Hellzhub: My error.
HFBV has a new CEO who is Ex HANS. Tango has nothing/nobody.
Thank you for bring it to my attention."
http://investorshub.advfn.com/boards/read_msg.asp?message_id=29023333
NOTE: HFBV not HKBV
Hellzhub: My error.
HFBV has a new CEO who is Ex HANS. Tango has nothing/nobody.
Thank you for bring it to my attention.
I could be wrong, but I am looking for a retest of support to reaffirm support at the 50 day area (my flipping shares). I have my core as long.
Combination of private company and pubic shell comes out as private needs a way to acquire funding in the form of selling shares.
Symbol change?
Masked R/S?
Pump to funding?
Just an opinion.
Two (2) is see is if Henry Ridge prevails in his suit, then Tango is also liable by aquiring HAt's liabilities.
The second, the new CEO is ex HANS.
Can be good or bad?
I have mine set at 4.05.
E*TRADE FINANCIAL Announces Executive Changes
Friday April 25, 5:30 pm ET
NEW YORK--(BUSINESS WIRE)--E*TRADE FINANCIAL Corporation (NASDAQ: ETFC - News) today announced the departures of two executive officers. Chief Financial Officer Robert J. Simmons will resign from his position effective on or before May 9, 2008, and General Counsel and Corporate Secretary Arlen W. Gelbard resigned from his position effective April 22, 2008.
ADVERTISEMENT
Matthew J. Audette, the Company’s controller and an executive vice president since July 2005, will be appointed acting Chief Financial Officer immediately upon Mr. Simmons’ resignation from the position. Mr. Audette will manage the finance, tax and accounting functions while the Company searches for a permanent replacement for Mr. Simmons. As controller, Mr. Audette has been an integral part of E*TRADE’s finance staff, managing all accounting functions and SEC reporting.
Russell S. Elmer will act as General Counsel on an extended interim basis. Mr. Elmer served as E*TRADE’s General Counsel and Corporate Secretary for six years prior to his departure in June 2007. During his tenure, Mr. Elmer’s responsibilities encompassed legal affairs, human resources and compliance. As General Counsel and Corporate Secretary, Mr. Elmer will manage the legal and compliance functions for the Company.
About E*TRADE FINANCIAL
The E*TRADE FINANCIAL family of companies provides financial services including trading, investing, banking and lending for retail and institutional customers. Securities products and services are offered by E*TRADE Securities LLC (Member FINRA/SIPC). Bank and lending products and services are offered by E*TRADE Bank, a Federal savings bank, Member FDIC, or its subsidiaries.
Important Notice
E*TRADE FINANCIAL, E*TRADE and the E*TRADE logo are trademarks or registered trademarks of E*TRADE FINANCIAL Corporation. The statements contained in this news release that are forward-looking are based on current expectations that are subject to a number of uncertainties and risks, and actual results may differ materially. The uncertainties and risks include, but are not limited to, changes in market activity, anticipated increases in the rate of new customer acquisition, the conversion of new visitors to the site to customers, the activity of customers and assets held at the institution, seasonality, macro trends of the economy in general and the residential real estate market, instability in the consumer credit markets and credit trends, rising mortgage interest rates, tighter mortgage lending guidelines across the industry, increased mortgage loan delinquency and default rates, portfolio growth, portfolio seasoning and resolution through collections, sales or charge-offs, the development and enhancement of products and services, competitive pressures (including price competition), system failures, economic and political conditions, changes in consumer behavior and the introduction of competing products having technological and/or other advantages. Further information about these risks and uncertainties can be found in the information included in the annual reports previously filed by E*TRADE FINANCIAL Corporation with the SEC on Form 10-K (including information under the caption "Risk Factors") and quarterly reports on Form 10-Q.
© 2008 E*TRADE FINANCIAL Corporation. All rights reserved.
http://biz.yahoo.com/bw/080425/20080425005805.html?.v=1
Why the E*Trade Shorts Have It Wrong
E*Trade's (ETFC) management is doing everything right to turn the company around, and their efforts will reap benefits for shareholders sooner rather than later. The stock has obviously taken a serious hit due to its careless investments in commercial mortgage-backed securities and other derivative products. The company has also done a great job disclosing the magnitude of future writedowns, namely $3 billion over the next two years, which in turn has painted a clearer picture of future performance. Joe Moglia, the CEO of TD Ameritrade (AMTD), recently mentioned on CNBC's Fast Money that the defection of customers from E*trade has already taken place.
Despite the financial turmoil, management has shrewdly decided to focus on investing in its core competence. The company is continually investing in its trading platform; after having had an account with TD Ameritrade and Schwab (SCHW) I can attest to E*Trade having a superior trading platform. Another great initiative has been the firm's global trading platform, namely the ability of a U.S investor to invest in stocks traded on a variety of global stock exchanges in local currencies. That strategy should become highly accretive to earnings once it gets more widely adopted. The company's marketing strategies have been highly effective and have allowed the company to at least regain some of the customers who had switched to other brokerages.
I find it quite perplexing what downside catalyst the shorts are looking for in this name, now that all the bad news is more than priced in. The company recently beat estimates by announcing a much smaller than expected loss and I expect E*Trade to turn in a profitable quarter by year end. Citadel's $2.5B cash infusion (at $4.78 per share), while being a bit dilutive, provides for a strong floor as the hedge would rather buy out the entire company than let its lose it principal.
By betting against a company with rapidly improving fundamentals, the shorts are in effect digging their own graves. Analysts have been known to be late to the party, whether it be to the downside or the upside. 21 of 23 analysts who currently cover E*Trade have a negative or neutral rating on the stock; that is actually a positive rather than a negative as I expect a wave of recommendation upgrades in this name that will send the shorts panicking for the exits.
The 20% of investors shorting this stock are going up against a management team that is taking all the right steps to turn things around. I expect a wave of analyst upgrades and short covering panic that should propel ETFC to $10 by year end.
Disclosure: Long
http://seekingalpha.com/article/74098-why-the-e-trade-shorts-have-it-wrong?source=yahoo
Is that a serious question? Do you know the history of Corr/RushNet?
Went to :
Pavilions
1110 W. Alameda Ave.
Burbank, CA
91506
Phone: 818-567-0257
They do not have any Rush products nor Apple Rush products. Spoke to a lady Supervisor. She said no, but she could directed me to where it would be if they had it. I told her that is where I got this bottle of Metromint Water (It was in my hand).
http://www.bevnet.com/reviews/metromint/
http://www.metromint.com/get/
Short Interest Up 5.54% To 95,343,454 from 90,336,136.
http://www.nasdaqtrader.com/Trader.aspx?id=ShortInterest
OT: SEC sues shorty
SEC sues short seller
False rumors spread about Alliance Data LBO, complaint alleges
By Alistair Barr, MarketWatch
Last update: 2:41 p.m. EDT April 24, 2008
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SAN FRANCISCO (MarketWatch) -- The Securities and Exchange Commission on Thursday said that it sued a short seller for allegedly spreading false rumors about Blackstone Group LP's doomed leveraged buyout of Alliance Data Systems last year.
Paul Berliner, a Wall Street trader formerly associated with Schottenfeld Group LLC, was charged with securities fraud and market manipulation, the SEC said on its Web site.
Schottenfeld Chairman Rick Schottenfeld said the firm conducted its own investigation after being told about the allegations and then suspended Berliner in December.
"Compliance is a top priority. There is no place at our firm for individuals who violate the securities laws," he added in a statement that was emailed to MarketWatch. "We have cooperated with the SEC every step of the way."
Berliner agreed to settle the SEC's charges without admitting or denying the allegations in the suit, the SEC said. He also agreed to disgorge $26,129 in profits and interest and pay a penalty of $130,000. The SEC has also barred him from association with any broker or dealer.
MarketWatch wasn't able to contact Berliner or an attorney representing him immediately on Thursday.
"The story disseminated by Mr. Berliner was a figment of his imagination," said Scott Friestad, associate director of the SEC's Division of Enforcement. "Conduct like this is particularly insidious because it harms investors by distorting the information they use to make investment decisions."
Blackstone (BX:
blackstone group l p com unit ltd
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Last: 18.65+0.30+1.64%
3:44pm 04/24/2008
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BX 18.65, +0.30, +1.6%) agreed to acquire Alliance Data Systems (ADS:
alliance data systems corp com
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Last: 55.56+2.79+5.29%
3:45pm 04/24/2008
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ADS 55.56, +2.79, +5.3%) for $81.75 a share during the peak of the LBO boom in early 2007. The $6.4 billion deal ended up collapsing and now the two companies are locked in a legal battle. See full story.
In late November, the SEC alleges, Berliner made up a rumor that the LBO was being re-negotiated at $70 a share because of problems in Alliance Data's consumer-banking division.
He also said the Alliance Data board was meeting to discuss the revised proposal and began spreading the rumors through instant messages to traders at brokerage firms and hedge funds, the SEC claimed, noting that the rumors were picked up by the media.
At around the same time, the SEC said Berliner started shorting Alliance Data shares.
Shorting involves selling borrowed stock in the hopes that when it falls you can buy it back at a cheaper price and return it to the lender. The difference is kept as profit. The strategy is an important tool in a hedge fund manager's repertoire, but it's also controversial. See special MarketWatch report on short sellers.
Alliance Data shares slumped as much as 17% on the day Berliner spread the rumors, making his short positions profitable, the SEC said.
While Berliner's alleged rumors may have been false, Blackstone's LBO of Alliance Data ended up collapsing roughly two months later. See full story.
Alliance Data shares now trade at roughly $57, 30% below Blackstone's original offer price. End of Story
Alistair Barr is a reporter for MarketWatch in San Francisco.
http://www.marketwatch.com/news/story/sec-sues-short-seller-alleges/story.aspx?guid=%7B74D270A5-5485-4742-9853-14D2200A7570%7D
A little late but:
E-Trade director buys 50,000 shares
Wednesday April 23, 3:44 pm ET
E-Trade Financial director Frederick W. Kanner buys 50,000 shares
NEW YORK (AP) -- A director of online brokerage E-Trade Financial Corp. bought 50,000 shares of common stock, according to a Securities and Exchange Commission filing Tuesday.
In a Form 4 filed with the SEC, Frederick W. Kanner reported he bought the shares Tuesday for $3.70 to $3.75 apiece.
Insiders file Form 4s with the SEC to report transactions in their companies' shares. Open market purchases and sales must be reported within two business days of the transaction.
E-Trade is based in New York.
http://biz.yahoo.com/ap/080423/e_trade_kanner_insider_transactions.html?.v=1
Question: Who buying from the "inside?"
Answer: http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001181431%2D08%2D026031%2Etxt&FilePath=%5C2008%5C04%5C22%5C&CoName=E+TRADE+FINANCIAL+CORP&FormType=4&RcvdDate=4%2F22%2F2008&pdf=
Anyone else...
Comparative Price Shopping: Selected Banking, Mortgage and Brokerage Stocks
The variety of comments on my Friday, April 18 article (see “E*Trade: Primed To Turn Around?”) have prompted me to provide additional stock price analysis and share trading volume analysis.
Stock Price Analysis
The chart below shows a selection of well-known banking, mortgage, and brokerage stocks. Predictably, Bear Stearns (BSC) has experienced the worst price decline (-91%) since October 2007. With subprime mortgage exposure, one would think that the major mortgage companies like Countrywide Financial (CFC) and Washington Mutual (WM) would be next in line under Bear Stearns.
That is how it should be, except at this point in time E*Trade Financial (ETFC) is in that second row position. E*Trade is still suffering from the impact of negative analyst comments. The worst impact being when Citigroup Analyst Prashat Bhatia irresponsibly used phrases like “Bankruptcy risk cannot be ruled out” and “If customers rush to withdraw their money” in his November 12, 2007 downgrade of E*Trade’s stock price to $7.50. Within days, E*Trade customers had “rushed and withdrawn their money” as $30 billion of client deposits were removed and deposited at brokerages like Charles Schwab (SCHW) and TD Ameritrade (AMTD).
What row should E*Trade be on? What is a fair E*Trade stock price in the lineup of Banking, Mortgage, and Brokerage Companies? E*Trade’s primary business is brokerage of global online trading. E*Trade’s mortgage involvement is much less in magnitude than Countrywide and Washington Mutual. Also, my understanding is that the loan portfolio at E*Trade has average FICO scores above 700. Countrywide and Washington Mutual would not have that same caliber of borrower FICO scores in their portfolios. Therefore, a market price above Countrywide’s (CFC) $5.68 is justifiable. A market price above Washington Mutual’s (WM) $11.98 does not seem unreasonable, especially if you look into the future earnings projections for Washington Mutual and see that future quarterly EPS is red … red … red … and more red! A market price above Bear Stearns (BSC) $10.56 is also reasonable since E*Trade has a valuable customer base and trading platform.
One thing is certain: E*Trade’s $4 price is not justifiable nor reasonable. Also, a word of caution to Ameritrade and Schwab investors. Those brokerages will quite likely suffer earnings setbacks in future quarters as E*Trade regains a portion of it’s customers back. The offset of ETFC’s upside potential is definitely a downside to AMTD and SCHW.
Trading Volume Analysis
What happened with trading volume on Friday, April 18? Bear Stearn’s volume was flat and Washington Mutual’s volume was down 11% from the 10-day average. Countrywide’s volume was up 25%. E*Trade’s volume was up 142% with 58 million shares traded when the 10-day average was 24 million shares per day (initial Friday startup volume accounted for only 5 million shares). Double “trading volume” with an opening price Friday of $4.05 and Closing Price of $3.97. A lot of shares changed hands. Who sold? Who bought? Institutions? Small investors? Large investors?
My feeling is that small investors sold out, especially in the middle of the day when the price “finally” went back above $4; after all, the company missed the “Analyst’s” earnings projections and Prashat Bhatia was again making irrational negative predictions and inaccurate comments--and Marketwatch was putting them in print. With that level of share volume and such a small daily fluctuation in share price, you can bet the buyers were not small guys.
As Friday trading went on, the institutions and large investors just kept accumulating quantities at a price they know will soon be very historical. For example, some comments regarding last November indicate that Citigroup increased their position in E*Trade stock over 600% in the 4th Quarter of 2007; “even though” their own analyst had downgraded the stock with the word “bankruptcy” attached; others feel that Citigroup increased their position “because” their own analyst downgraded it with the word “bankruptcy” attached.
Summary
The bottom line is that E*Trade’s April 17, 2008 conference call presented factual data documenting survival, recovery, and a positive future. They do have a mortgage portfolio to manage through the current economic recession and the current subprime crisis; but it is being wisely managed. E*Trade did not have to announce a layoff program. The management that caused E*Trade’s problems in 2007 is gone, and new management is executing a successful “turn around” plan. Most importantly, the “bankruptcy” word no longer applies to E*Trade; Citadel infused $2.5 billion of cash and is a 20% common stock shareholder. I reiterate bankruptcy will not happen.
I have always loved a good story. E*Trade’s stock will become the “Cinderella ‘Stock’ Story” for 2008. From the “Ashes” that remained after Bhatia’s November comments caused a destructive inferno to a position of high respect and honor in the “Grand Ballroom of Brokerage Firms” as one of the top “electronic global trading platforms” in the world. Time will tell . . . may we all live “happily ever after.”
Disclosure: I hold a long position in ETFC.
http://seekingalpha.com/article/73116-comparative-price-shopping-selected-banking-mortgage-and-brokerage-stocks?source=yahoo
Rumor - Rumor
Whisper says Bob Corr is interviewing more employees!!! Corr is specifically looking for body guards.
Anyone want to fill the position?
Marketwatch and Dow Jones Newswire point out today the stark contrast between E-Trade’s (ETFC) first-quarter loss and profits at Charles Schwab (SCHW) and Ameritrade (AMTD). So why did E-Trade’s shares jump a total of 20.7% by the end of after hours trading on April 17, 2008? The details in E-Trade’s conference call earlier that afternoon presented a successful “Turn Around Program.” A “Turn Around” from what?
The date was Monday, November 12, 2007. That was the day Prashant Bhatia, a Citigroup Analyst, released an analysis report on E-Trade with the headline, “Bankruptcy risk cannot be ruled out.” The inflammatory title of Mr. Bhatia’s report spawned several nationally televised [CNBC] and written [Marketwatch, Wall Street Journal] commentaries, each repeating the “B” word without sufficient disclosure of facts. The national exposure fueled Mr. Bhatia’s report into an inferno of disaster for E-Trade.
E-Trade’s stock price declined more than 59% from the previous trading day to a low of $3.46 per share; much lower than Mr. Bhatia’s $7.50 target price. Brokerage clients fled from E*Trade to other brokerages as Mr. Bhatia’s words, “If customers rush to withdraw their money,” became a reality. In the months that followed E-Trade’s stock price has been as low as $2.08 on January 8, 2008 and achieved a high point of only $6.04 on November 29, 2007. Yesterday, April 17, 2008, E-Trade’s stock price closed at $3.62, only 16 cents higher than the November 12, 2007 price. So it is not surprising that a E-Trade’s call presenting their successes in the “Turn Around Program” should result in a 20.7% share price increase.
Successful client and trading metrics reveal “growth in new customer relationships, even during a difficult environment, [and demonstrate] the continued strength and appeal of the E*TRADE brand.” (quoted from Donald H. Layton, Chairman and CEO, E-Trade Financial Corporation). E-Trade’s survival is no longer in question, even though mortgage exposure continues to weigh on the company. The damage from November 12, 2007 is now showing a turn around through E-Trade’s “creativity,” “frugality,” and “stability.”
Creativity—The S&P lowered their opinion on shares of TD Ameritrade (AMTD) to Hold from Buy on March 28. Why? The S&P stated in part that they “see [AMTD] margins being pressure by the high level of advertising spending and by increased customer incentives from primary competitor E-Trade.” E-Trade is competing aggressively through customer mail solicitations, platform trading upgrades, customer incentives (for example, Free ATM Services), and advertisements. The most famous E-Trade advertisement is their Superbowl 2008 Baby Ad. USA Today and TiVo ranked the E-Trade Baby Ad Number One and pointed out that even though celebrity appearances in Super Bowl advertisements included Justin Timberlake, Shaquille O’Neal, and Carmen Electra, “yet, for all the star power they generated, the E-Trade talking baby may have upstaged them all, taking the coveted top spot.” (see it on youtube.com)
Frugality—Reuters recently released news that E-Trade “sold its corporate jets.” Yesterday’s financial report discloses that this frugal action provided a “$24 million gain on the sale of corporate aviation-related assets.” Also, E-Trade CEO Donald H. Layton has “requested that all of his 2008 and 2009 incentive compensation be in the form of equity. His employment agreement states that in those years nearly 90 percent of his total compensation will be composed of restricted stock and stock options, with no cash bonus. This conservative spending and top-level stock incentive program will positively affect stock value.
Stability—In November E-Trade negotiated a $2.5 billion cash infusion from Citadel and added additional private insurance coverage for customer deposits; activities that stabilized the balance sheet and enhanced customer security. E-Trade continues to move forward with actions that will reduce mortgage portfolio risk and increase capital and reserves. Since the 1990s E-Trade built up a loyal online trading clientele, developed an innovative trading platform, and established a reputation as one of the most secure (hacker safe) online brokerages. E-Trade’s involvement in the “subprime mortgage crisis,” as with all mortgage lenders; will require a period of watchfulness and adjustment. Yesterday’s financial report shows that the problem has stabilized and is being properly managed.
E-Trade CEO Donald H. Layton stated,
Our expectation is that we will return to quarterly profitability later this year. As you all know the company has twin priorities right now; to return the core business to full competitive growth and to strengthen our balance sheet. I am happy to report that the first quarter was strong on both fronts.
I have used E-Trade for online trading for over three years. I did not flee to another brokerage firm when Mr. Bhatia caused such panic back in November. Since my money is held in E-Trade accounts, I considered moving it somewhere else, so during that process I read many articles and blog comments regarding E-Trade. I have not moved because the comments I have read say that E-Trade has a superior trading platform and superior US andglobal product offering. As E-Trade’s “Turn Around” is established, many previous customers will return to so that they can have the advantage of the superior trading platform.
I think that E-Trade’s price will move quickly up to at least $5 to $6 per share like it was back in February 2008. No reason exists for it to stay in at such a “depressed” $4 value.
Disclosure: I hold a long position in ETFC and STX.
http://seekingalpha.com/article/72931-e-trade-primed-to-turn-around?source=yahoo
Message from Don Layton:
https://us.etrade.com/e/t/jumppage/viewjumppage?PageName=letter
FYI: Wow, another new E*Trade commercial during primetime on Fox. Advertising trades globally.
Delete.
http://money.cnn.com/news/newsfeeds/articles/apwire/5f35835551d3aa8726bd7420a7777caf.htm
Earnings Preview: E-Trade expected to report 1Q loss
E-Trade expected to swing to 1st-quarter loss on higher loan-loss provisions
April 15, 2008: 03:17 PM EST
NEW YORK (Associated Press) - E-Trade Financial Corp. reports first-quarter earnings Thursday. The following is a summary of key developments and analyst opinion related to the period.
OVERVIEW: E-Trade, the discount brokerage and investment firm, has faltered badly in the past six months as wrong-way bets on the mortgage market have left it listing.
The brokerage ousted its chief executive last fall, and in March named JPMorgan Chase veteran Donald Layton to head the company. Also in March, the company appointed Robert Druskin, former chief operating officer at Citigroup Inc., to the brokerage firm's board to run its newly created finance and risk oversight committee.
E-Trade has sold about $6 billion in mortgage-backed and municipal bonds since November as it looks to shed riskier assets and increase its cash holdings. The company is refocusing almost wholly on its retail banking and brokerage operations.
Those operations should get a short-term boost from volatility in the capital markets as investors increase trading volumes. But the company is still expected to report a quarterly loss, after taking losses on some of the mortgage assets it sold and boosting its reserves to cover bad loans still on its books.
BY THE NUMBERS: Analysts expect the company to report a loss of 9 cents per share, according to Thomson Financial. The comparable year-ago figure is a profit of 39 cents per share.
ANALYST TAKE: Lehman Brothers analyst Roger Freeman expects the company to increase reserves for loan losses to $225 million, pushing it to a loss of 15 cents per share in the quarter.
He expects the retail business to meet expectations for a solid performance because of market volatility.
STOCK PERFORMANCE: The stock rose 18 percent to finish March at $4.20. E-Trade shares have traded in a narrow dollar range since falling sharply in early November. They have been as high as $25.79 in the past year. Top of page
CMF more than 3 times normal. Volume up. Price per share down. What do you think? Anyone.... Dilution? Someone trying to unload position without tanking the PPS?
Previous PPS was .03.
Volume at 1,000 and PPS is at .08.
1,000 @ .08 = $80.00
A lot of painting going on, but why? Hmmm... March 27th?
"Maybe someone should be kind enough and/or concientious enough to hire a lawyer and go after that information since it is not being volunteer'd."
Larry,
By now you have been served with the legal papers demanding production of documents.
It appears that it has been done. In order to initiate discovery, there has to be a summons/complaint filed. I assume it is civilly.
I believe he means to e-mail him and inquire. Seems that he will release some limited info to you.
Is ETFC going to short squeeze?
"Ok lets answer this question, we all agree you cant own over 100% of something, so lets work backwards foward, ok?
20% of the company is owned by insiders
50% of the company is owned by institutions.
20% is owned by Citadel
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that leaves only 10% of the shares outstanding on the float, or 50 million tops that can be short.
The short interest is 100 mill plus or 20%
That means the float available is -10%
in addition, Citadel filled a schedule 13D this week to buy more from the already negative float available
And they have the ability through options to buy more
as a result, its not a question of whether ETFC is going to be a short Squeeze, but the question is do you take a profit at $10 or $20 may be a difference of 2 to 3 weeks apart from one another.... As far as when is this going to happen?
I would say after earnings this quarter, the institutions will buy ETFC up to $6, once at $6 the fund managers will be able to commit more money, and cause the stock to go to $8 to $10 filling the gap, then the shorts will take it from their.
With over 100 million shares short and only 500 million shares available, that means 20% of the company is borrowed. In addition, you have another 20%, Citadel; of which, they own as a long position. That leaves 60% unaccounted."
Stolen Quote.
Just someone increasing their share count of ETFC. That is all.
http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001144204%2D08%2D019928%2Etxt&FilePath=%5C2008%5C04%5C01%5C&CoName=E+TRADE+FINANCIAL+CORP&FormType=SC+13D%2FA&RcvdDate=4%2F1%2F2008&pdf=
closed at the high or near the high of day. Nice close! Lets see what happens tomorrow.
Never said Hat would buy RSHN or APRU. You got me confused with someone else.
The only thing I have done was correct someone as to the location of APRU's incorporation. I have always stated that I do not see that Hat buying APRU/RushNet happening. (At one point, I did say that APRU was looking for a shell (a worthless or near BK) to spin off Garden, the distributor).
Cheers!
H,
Thank you for the post and clarification. It is much apprecaited to know the full story.