Replies to post #25414 on Hemi Energy Group Inc. (fka HMGP)

[Realperson]

For those who have trouble with E-Trade to buy Hemi



E-TRADE possibly Bankruptcy. just a heads up guys.

http://www.chron.com/disp/story.mpl/ap/fn/5294267.html

NEW YORK — Shares of E-Trade Financial Corp. plunged in early morning trading Monday as investors worried over a Friday announcement the company would take larger-than-expected writedowns on its holdings of securities backed by home loans.

Shares of E-Trade fell 4.33, or 50 percent, to $4.26 in morning trading. Shares had traded between $8.02 and $26.08 during the past year.

Citi Investment Research analyst Prashant Bhatia cut E-Trade's rating to "Sell" from "Hold." Bhatia said there is a 15 percent chance E-Trade will have to declare bankruptcy and the company may be forced to sell loans and securities at a significant discount.

Bhatia said clients could also close deposit accounts, reducing the company's funding. Half of deposit accounts, representing about $15 billion, are higher than the Federal Deposit Insurance Corp.'s $100,000 threshold. Those are the most likely accounts to be closed if customers are worried about the company's future, Bhatia said.

E-Trade holds about $3 billion in asset-backed securities in a portfolio. Much of the portfolio is invested in securities backed by mortgages, which have increasingly gone into default in recent months, reducing the value of the securities. E-Trade did not disclose how big a writedown it would take in the fourth quarter.

[1581]

Lazyeye, it is good you raise issues that should be addressed on this stock and every other board you post on.

It may help people not to make a bad decision on a pink sheet stock like hemi.

If this were not a pink sheet, they would be serious issues.

Everyone here knows hemi is a pink and therefore, not subject to certain requirements of board listed stocks.

At the same time, there is third party verification of proven reserves.

There is anecdotal and photographic evidence of Hemi's assets and daily workings. Maybe pink sheets are not for you if you are an investor.