E*Trade parts with RAA Wealth Management

Posted Feb 11th 2008 5:03PM by Zac Bissonnette
Filed under: Deals

E*Trade (NASDAQ: ETFC) put out a pretty blustering press release this morning with its headline proclaiming that "E*TRADE FINANCIAL Marks Progress on Turnaround Plan."

The news? This company that has watched its stock lose billions in market value as a result of horrible subprime investments is selling RAA Wealth Management, LLC to PHH Investments, Ltd for about $80 million.

The fact that E*Trade is PR'ing this minor sale of a company it acquired in August of 2006 with such a hyped-up headline is pretty indicative of how hard the company is working to try to generate some good buzz -- It's a little bit like the company's Super Bowl ads.

The company stated that "As outlined last month in the details of its Turnaround Plan, the Company is actively working to improve capital and liquidity. Management has identified non-core assets with high market demand that will create value for the franchise through the orderly sale of such assets."

So maybe this is a baby step. But the fact is that $80 million is not going to make or break this company's turnaround -- and investors shouldn't pay much attention to promotional PR like this from E*Trade or any other company.

Tags: E*Trade, ETFC, inthenews

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Reader Comments (Page 1 of 1)

2-11-2008 @ 9:21PM

daniel.cooper53 said...

Their are some major player buying and holding shares and one must recognize that these shares are $6-$8 undervalued.
February 11, 2008 6:05 PM ET
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E TRADE FINANCIAL CORP COM (ETFC: NASDAQ)
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Extended Hours: Last 4.96 Change -0.01 (-0.20%) Bid 4.95 x7,200 Ask 4.97 x2,400 Extended Hours
Real Time Extended Hours Quote
Last Trade as of 6:00 PM ET 2/11/08
Last Price Today's Change Bid (Size) Ask (Size) Volume Trade
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Last Trade as of 4:00 PM ET 2/11/08
Institutional Holdings SummaryTotal Number of Shares Held 406,115,247
Large Block Owners 359
Percent Shares Owned 87.00%
Percent Change in Ownership 5.96%
Regional Holdings
North America 80.60%
Europe 5.70%
Unknown 0.40%
Brokerage Firms
2.50% Holdings
Investment Managers
83.70% Holdings
Strategic Entities
0.80% Holdings
Non-Institutional
13.00% Holdings

Monthly Share Rotation Number of Shares Value of Change Percent of Shares Outstanding
Buyers 2/9/08 22,831,898 $113,474,532 10.10%
Sellers 2/9/08 0 $0 0.00%

Top Institutional OwnersConcentration of Shares Held 87.00% All Institutions 13.00% Other Owners
74.50% Top 50
61.20% Top 20
47.60% Top 10
Average Turnover Rating

Name Shares Held Position Value % of Total Holdings % Owned of Outstanding Shares Turnover Rating
Barclays Global Investors, N.A. 12,216,466 $159,424,881 3.01% 7.57% Low
Citadel Investment Group, L.L.C. 44,438,735 $220,860,513 10.94% 10.49% High
Davis Selected Advisers, L.P. 19,731,005 $257,489,615 4.86% 12.23% Low
Janus Capital Management LLC 12,646,753 $165,040,127 3.11% 7.84% Low
Legg Mason Capital Management, Inc. 20,840,668 $271,970,717 5.13% 12.91% Low
Maverick Capital, Ltd. 11,299,000 $147,451,950 2.78% 7.00% High
OppenheimerFunds, Inc. 28,852,427 $376,524,172 7.10% 17.88% Low
State Street Global Advisors (US) 11,740,808 $153,217,544 2.89% 7.28% Low
Vanguard Group, Inc. 15,913,004 $207,664,702 3.92% 9.86% Low
Wellington Management Company, LLP 40,925,562 $534,078,584 10.08% 25.36% Low

Top Mutual Fund OwnersPercentage of Outstanding Shares per Holdings Style
9.20% GARP
6.72% Deep Value
8.03% Index
5.58% Core Growth
4.35% Core Value
3.30% Aggres. Gr.
3.09% Income Value
1.91% Growth
1.19% Yield
0.25% International
Average Turnover Rating

Name Shares Held Position Value % of Total Holdings % Owned of Outstanding Shares Investment Style
DWS Vermogensbildungsfonds I 6,250,000 $81,562,500 1.54% 3.87% Income Value
Davis New York Venture Fund 9,404,000 $104,760,560 2.32% 4.97% GARP
Franklin Small-Mid Cap Growth Fund 4,935,100 $54,977,014 1.22% 2.61% Growth
Janus Growth & Income Fund 8,582,890 $95,613,395 2.11% 4.54% Aggres. Gr.
Legg Mason Special Investment Trust... 7,300,000 $95,265,000 1.80% 4.52% GARP
Oppenheimer Equity Fund, Inc. 3,947,378 $51,513,283 0.97% 2.45% Core Growth
Oppenheimer Small & Mid Cap Value F... 6,670,000 $74,303,800 1.64% 3.53% GARP
Oppenheimer Value Fund 9,093,477 $101,301,334 2.24% 4.81% Deep Value
Vanguard 500 Index Fund 4,023,554 $52,507,380 0.99% 2.49% Index
Vanguard Windsor Fund 14,439,700 $160,858,258 3.56% 7.64% Deep Value
Brokerage Firms
Research Firm
30 holders Investment Managers
Bank and Trust
19 holders
Endowment Fund
2 holders
Foundation
1 holders
Hedge Fund
47 holders
Insurance Company
6 holders
Investment Advisor
251 holders
Investment Advisor/Hedge Fund
53 holders
Pension Fund
29 holders Strategic Entities
Corporation
1 holders
Individual Investor
13 holders
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