E*TRADE posts
FeedPosted Mar 19th 2008 4:46PM by Zac Bissonnette (RSS feed)
Filed under: Scandals,
As
Portfolio.com so eloquently stated, President Bush has "Lyndon Johnson's war and now Herbert Hoover's bank runs. Other than that, it's going well."
With the high-profile collapse of
The Bear Stearns Companies Inc. (NYSE:
BSC) and questions surrounding the liquidity of other banks, some,
like Jim Cramer, are urging people to relax and not rush to withdraw money from bank and brokerage accounts. This is reasonable: deposits that aren't unusually large are fully insured and there's really no reason to worry.
In today's Wall Street Journal, James B. Stewart
writes (subscription required) that "before anyone panics and starts another run on a big bank, let me say unequivocally that client assets in the big brokerage firms are safe from the danger of any Bear Stearns-type collapse."
Stewart's right. But here's the thing: if your account with
E Trade Financial Corporation (NASDAQ:
ETFC) or another scandal-plagued financial services firm is giving you sleepless nights, switch! There's just no reason not to -- the different banks are all reasonably competitive and moving money around is pretty easy.
I know: if everyone does that, it will cause a run on the bank. But not everyone will, and if moving money will ease your nerves, go for it.
Posted Mar 3rd 2008 1:50PM by Zac Bissonnette (RSS feed)
Filed under: Deals, Rumors, TD AmeriTrade Holding (AMTD)
E*Trade (NASDAQ:
ETFC) is naming its chairman, former JPMorgan (NYSE: JPM) vice-chairman Donald Layton, to be the company's new CEO.
The stock was trading up more than 5% on the news earlier, probably because of speculation of a possible sale.
The Wall Street Journal reported [subscription required] that "E*Trade and Citadel have discussed the possibility of trying to find a buyer for the home-equity portfolio, which would lift a tremendous burden off E*Trade and could pave the way for a sale of the entire company, according to people familiar with the matter."
But Mr. Layton told the
Journal that selling the home-equity portfolio is not an option right now.
I think investors should, as always, be extremely cautious about buying shares in the company on takeover speculation. E*Trade's woes -- and declining share price -- are hardly an unknown entity given its status as a poster child of subprime stupidity. The fact that
Ameritrade (NASDAQ:
AMTD) and other well-capitalized competitors, which had expressed interest in acquiring E*Trade before its precipitous decline in value aren't stepping up with an offer, tells me all I need to know: there's really no reason to think a deal is coming any time soon.
Continue reading A takeover at E*Trade? Don't bet on it.
Posted Mar 3rd 2008 4:45AM by Douglas McIntyre (RSS feed)
Filed under: Deals, Management, Private Equity
E*Trade (NASDAQ:ETFC) did something odd. It made a former vice chairman of JP Morgan (NYSE:JPM) its new CEO. It would be hard to imagine that he has much experience in the discount brokerage industry. Donald Layton has been non-executive chairman of the company since Citadel Investment Group put $1.75 billion into the brokerage firm last November.
According to The Wall Street Journal "Citadel has nearly a 20% stake, and tapping Mr. Layton is a sign Citadel is getting antsy for results." The brokerage firm still have $12 billion of home loans on its books. It is hard to assign them a value while real estate prices are still dropping and default rates are rising.
Citadel may want to sell the discount brokerage firm but that would cause potential problems with other E*Trade investors. What would be left over is a company with a large pool of mortgages which are still falling in value. Getting a return on the discount brokerage operation might be a good idea on paper but separating it from the balance of the company is no "slam dunk". Shareholders don't want to be left holding that mortgage bag.
Douglas A. McIntyre is an editor at 247wallst.com.
Posted Feb 14th 2008 2:00PM by Steven Mallas (RSS feed)
Filed under: Charles Schwab Corp (SCHW), TD AmeriTrade Holding (AMTD)
When E*Trade Financial Corp. (Nasdaq: ETFC) had its meltdown, I considered buying but I was too chicken. I mean, can you really blame me? When it got caught up in the financial crisis, the term "falling knife" never felt so accurate. A 52-week range between $2.08 and $25.79 is a pretty scary thing; to see what I mean in graphic format, feast your eyes on the chart.
Lately, though, I've been warming up to the idea ever so slightly of taking a shot on E*Trade. I can't say I possess strong conviction yet, but I'm not necessarily afraid of owning financial stocks. In fact, as an example, I own Newcastle Investment (NYSE: NCT), an idea that Sheldon Liber talked about recently, one that has a pretty frightening yield. E*Trade is a significant name in the online-brokerage industry, and its brand is valuable. When I saw the company falling off a cliff last year, my instinct to buy started to kick in, insisting that it isn't going to go the way of the dodo. Plus, takeover theories began, further fueling my fascination. In the end, I took no action.
Now, though, the stock has bounced nicely off its lows. And it reported January data yesterday that had a couple of good data points. Daily average revenue trades are up 18.8% for the month-to-month timeframe, and they increased 21.5% year-over-year. End-of-period retail accounts were flat month-to-month, and were up 6.2% year-over-year. Total retail client assets did decrease, however -- year-over-year, they declined over 12%. And, hey, for whatever this is worth, its Super Bowl "Talking Baby" ads apparently were a hit.
At any rate, I'm a bit more sanguine on E*Trade's stock potential. I may not buy just yet, but the closer it gets to $6 or $7 a stub, the better the chance it has, in my mind, of going to double digits again. Sure, Schwab (NASDAQ: SCHW) and TD Ameritrade (NASDAQ: AMTD) are the safer broker bets, but I can't help looking at E*Trade.
Posted Feb 11th 2008 5:03PM by Zac Bissonnette (RSS feed)
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.
Posted Jan 30th 2008 1:28PM by Zac Bissonnette (RSS feed)
Filed under: Insiders
Shares of
E*Trade (NASDAQ:
ETFC) are
up more than 8% on news that insiders and directors have acquired $1.9 million worth of stock in recent days. But investors should be cautious.
The buying was in all probability coordinated to send a message to investors -- and Wall Street is eating it up. But the reality is that $1.9 million is just not that much money in the context of the amount that the company top executives are paid.
The insider buying, in conjunction with the money E*Trade will spend on
Super Bowl ads, looks like a pretty desperate and transparent effort by the company to convince investors and customers that the company is OK.
But think about it: if everything is so rosy, why isn't
Ameritrade (NASDAQ:
AMTD) jumping in with an offer to acquire the company, something it had previously contemplated doing at a much higher price?
E*Trade executives appear to be hoping that if they can convince people everything is peachy, it will be. But that's not a game you want to be playing.
Posted Jan 30th 2008 1:04PM by Zack Miller (RSS feed)
Filed under: Products and Services, Marketing and Advertising
As investors from around the world gear up for some Super Bowl fun and excitement, one firm is hoping to score a touchdown from the hype surrounding the world's most watched football
E*Trade (NASDAQ:
ETFC), the beleaguered online broker, plans to spend as much as $4 million for two ads airing during this weekend's Super Bowl.
Is this just some more post-boom, sock puppet lunacy?
Maybe, but today's Wall Street Journal article doesn't think so. As the troubled broker tries to re-cement its image and reputation, the article claims that "the Super Bowl distraction couldn't come at a better time."
Continue reading E*Trade's goal line stand
Posted Jan 30th 2008 4:35AM by Zack Miller (RSS feed)
Filed under: Bad News, Employees
It's great when companies take a deep, hard look at themselves in the mirror. Frequently, though, this doesn't happen until some large, negative event takes place and the company needs to react.
Comverse Technology, Inc. (OTC:
CMVT) is one of these companies facing itself in the mirror. Essentially a holding company which includes one of the leading providers of value-added software and services to the telecom industry (read, voice mail and billing), a large stake in a leading surveillance technology firm, and a couple other stakes in related businesses, Comverse has had an ugly couple of years.
Its founder, Kobi Alexander, sits in Namibia avoiding extradition by US authorities.
In an ultimate act of chutzpah, Alexander sued the firm this week about his severance.The stock languishes. There is certainly a lot of value here -- the question is whether the company will be able to extract the value.
Continue reading Telecom firm closes internal investigation but what next?
Posted Jan 28th 2008 10:10AM by Douglas McIntyre (RSS feed)
Filed under: Comcast Cl'A' (CMCSA), TD AmeriTrade Holding (AMTD)
Short sellers trading stocks listed on Nasdaq made big bets against cable and financial shares, according to data from January 15. The numbers compare to short interest in the same companies on December 15, 2007.
The short interest in cable company Charter Communications (NASDAQ: CHTR) moved up 4 million to 99.3 million. Charter's stock has fallen close to $1. It carries $19 billion in debt and there is a growing concern that operating profits will not cover interest. Controlling shareholder Paul Allen may have to put more debt into the company.
Short interest in Comcast (NASDAQ: CMCSA) rose almost 600,000 shares to 45.1 million. After hitting a record high last year, shares of the nation's largest cable company have fallen one-third on concerns that large telephone companies will take its TV and broadband subscribers with their new fiber-to-the-home products.
Short interest in E*Trade (NASDAQ: ETFC) moved up 9.9 million shares to 91.2 million. The market is obviously willing to bet that there are more problems with the company's balance sheet. Short interest in healthier rival TD Ameritrade (NASDAQ: AMTD) fell 5.1 million to 8.6 million shares. The market is not shorting the discount brokerage industry, just the weakest company in the group.
Douglas A. McIntyre is an editor at 247wallst.com.
Posted Jan 26th 2008 3:10PM by Trey Thoelcke (RSS feed)
Filed under: Earnings Reports, eBay (EBAY), Pfizer (PFE), Ford Motor (F), Motorola (MOT), AT and T (T), Bank of America (BAC), Hershey Co (HSY), Lennar Corp'A' (LEN), duPont(E.I.)deNemours (DD), Kimberly-Clark (KMB), , UAL Corp (UAUA), Harley-Davidson (HOG), Honeywell Intl (HON), Delta Air Lines (DAL)
The earnings crunch is in full swing, and here are a few of the highlights of this past week's earnings coverage from BloggingStocks:
- AT&T Inc. (NYSE: T) only met earnings expectations despite strong holiday iPhone sales.
- Bank of America (NYSE: BAC) earnings plunged 95% due to mortgage-related write-downs.
- Delta Air Lines Inc. (NYSE: DAL) narrowed its fourth quarter loss and beat expectations.
- eBay Inc. (NADSAQ: EBAY) beat low expectations, but the CEO is to step down in March.
- EI DuPont de Nemours & Co. (NYSE: DD) beat earnings expectations even thought profits fell 37%.
- E*Trade Financial Corp. (NASDAQ: ETFC), posted a bigger-than-estimated fourth quarter loss.
- Fifth Third Bancorp. (NASDAQ: FITB) missed estimates on acquistion costs and a one-time charge.
- Ford Motor Co. (NYSE: F) missed low expectations, prompting further domestic cost reductions.
- Harley-Davidson Inc. (NYSE: HOG) profit declined on weak domestic sales.
- Hershey Co. (NYSE: HSY) profit sank due to rising costs, competition, and management shakeups.
- Honeywell Internationl Inc. (NYSE: HON) only met estimates, despite growth in all business segments.
- Kimberly-Clark Corp. (NYSE: KMB) profit slipped bet met expectations, due to increased paper costs.
- Lennar Corp. (NYSE: LEN) reported a record quarterly loss due to the housing slump.
- Motorola Inc. (NYSE: MOT) profit plunged due to loss of market share, and it forcasts a first quarter loss.
- National City Corp. (NYSE: NCC) posted a bigger-than-expected loss, but shares rose anyway.
- Pfizer Inc. (NYSE: PFE) profit plunged, but beat estimates, due to increased competition for generics.
- UAL Corp. (NASDAQ: UAUA) narrowed its loss despite rising fuel prices and holiday cancellations.
- Wachovia Corp. (NYSE: WB) earnings plunged 98% due to home loan write-downs.
- WellPoint Inc. (NYSE: WLP) met earnings expectations and reaffirmed its 2008 outlook.
Continue reading Earnings highlights: Bank of America, eBay, Ford, Motorola, Pfizer, and others
Posted Jan 24th 2008 6:40PM by Trey Thoelcke (RSS feed)
Filed under: Earnings Reports, Lennar Corp'A' (LEN), Kimberly-Clark (KMB)
Among Thursday's quarterly reports were those of Lennar Corp. (NYSE: LEN), Kimberly-Clark Corp. (NYSE: KMB), and E*Trade Financial Corp. (NASDAQ: ETFC), all of which had disappointing news for investors.
One of the nation's largest homebuilders, Lennar, reported a $1.25 billion loss in the fourth quarter -- its largest ever -- as the housing slump drove prices lower and the builder took hefty charges. Lennar also reported a $1.9 billion loss for all of 2007. The Miami-based company said it was aggressively trying generate cash and lower inventory.
Quarterly losses rose to $7.92 per share, from $195.6 million, or $1.24 per share, a year ago. Revenue fell 49% percent to $2.18 billion from $4.27 billion in the same period of 2006, as both home deliveries and new orders fell 50%. The results topped the consensus forcast of analysts surveyed by Thomson Financial, who had expected a loss of $1.65 per share on revenue of $2.06 billion (these estimates typically exclude one-time charges such as land write-downs).
For the year ending November 30, Lennar's losses come to $12.31 per share, compared with profits of $593.9 million, or $3.69 per share, in 2006. Shares closed up 8.5%, to $16.21.
Continue reading Thursday earnings recap: Lennar, Kimberly-Clark, E*Trade
Posted Jan 9th 2008 12:00PM by Brent Archer (RSS feed)
Filed under: Major Movement, Good news, Options, Technical Analysis
E*TRADE Financial Corporation (NASDAQ:
ETFC) shares are making an early jump today after the company announced
it has sold about $3 billion of mortgage-backed securities and municipal bonds. The sale was part of a restructuring plan to reduce risk and maintain higher capital levels. The sale will result in a loss of less than $5 million, according to the company.
ETFC also said it will exit its institutional trading business. Both moves are part of an attempt to give the company added ballast in the wake of write-downs related to the sub-prime crisis. If you think that the company may have finally found the bottom, then now could be a good time to look at a bullish hedged trade on ETFC.
After hitting a one-year high of $26.08 in last January, the stock hit a new one-year low of $2.08 yesterday. ETFC opened this morning at $2.60. So far today the stock has hit a low of $2.35 and a high of $2.60. As of 11:10, ETFC is trading at $2.42, up $0.17 (7.5%). The chart for ETFC looks bearish but improving, while S&P gives the stock a negative 2 STARS (out of 5) sell rating.
Continue reading E*Trade (ETFC) sells $3 billion in assets
Posted Jan 9th 2008 8:30AM by Douglas McIntyre (RSS feed)
Filed under: Before the Bell
E*Trade (NASDAQ: ETFC) trading up 15% on news that it has sold off some of its troubled debt.
Dendreon (NASDAQ: DNDN) is trading higher by over 8% on no apparent news.
MBIA (NYSE: MBI) if off 10% on news that it has cut its dividend.
Siemens (NYSE: SI) is selling off over 4% on rumors that the European conglomerate may cut its 2008 outlook.
Stocks may trade differently in the pre-market than they do in the regular session.
Douglas A. McIntyre is an editor at 247wallst.com.
Posted Dec 27th 2007 9:40AM by Douglas McIntyre (RSS feed)
Filed under: Industry, Short Stories, Charles Schwab Corp (SCHW), TD AmeriTrade Holding (AMTD)
A look at the Nasdaq short interest on December 14, compared to November 30, shows that bets against discount brokers rose sharply. Short interest in E*Trade (NASDAQ: ETFC): moved up 3.9 million shares to 53.7 million, according to data from the exchange. That might have been expected, given the financial company's problems with mortgage related securities.
But, shares short in TD Ameritrade (NASDAQ: AMTD) jumped 8.2 million shares to 17.8 million, and short interest in Schwab (NASDAQ: SCHW) moved up by 6.1 million shares to 28.7 million. Both figures are a fairly large percentage increase.
The simple explanation for the rise may be that both stocks have done better than financial shares as a whole and are ready for a pull-back. Schwab's stock is up over 30% this year. Ameritrade is up just under 25%.
But there are two other possible explanations, both a bit more unsettling. One is that a bear market would likely hurt earnings at discount brokers. A recession early next year could cause individual investors to pull in their horns. The other theory is that the two firms could have balance sheet problems of their own. This is less likely, since neither company has made any disclosures to that effect.
Whatever the reason, a fairly large amount of money is being gambled that the discount brokerage stocks have peaked.
Douglas A. McIntyre is an editor at 247wallst.com.
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