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Etrade: "Bankruptcy risk cannot be ruled out" - Citi analysts

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Originally posted by: EKKC
i don't know whether to hate the citibank dude or love him.

i hate him for his irresponsible comments. but love the fact that he dragged ETFC so low that I got in at $4.
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It's scary that one sentence out of this guy's report could cause such an overreaction.

Anyway I was stressing about my expensive LA wedding...at least this will subsidize a lot of it. My fiancee is definitely loving that analyst.
 
Did some shifting:

I'm going away for about a week and can't check the market everyday. I sold $25,000 worth to lock in my original investment. I have 1,522 shares left valued at $8,828 still on the table (which represents my current profit anyway). I'm still bullish on ETFC long-term, so to put money where my mouth is, I bought 20 call options for $10 Jan 2010 for a few thousand dollars.

This is still undervalued begging for more action...
 
Originally posted by: EKKC
i don't know whether to hate the citibank dude or love him.

i hate him for his irresponsible comments. but love the fact that he dragged ETFC so low that I got in at $4.
Click to expand...

I'm not so sure they were irresponsible as much as forthright. The fact that Etrade didn't come out with stronger statements defending their financial health and rebuking any bankruptcy suggestions speaks volumes.

Citibank isn't exactly going out on a limb downgrading the stock. Others have followed suit as a result of Etrade's own statements telling investors to disregard previous guidance and that future writedowns are very likely, not to mention news coming out that their loan/securities portfolio is being investigate by the sec doesn't help.

That said, as a result of the low stock price, a buyout is probably more likely to happen long before etrade files for bankruptcy.
 
Originally posted by: jjsole
Originally posted by: EKKC
i don't know whether to hate the citibank dude or love him.

i hate him for his irresponsible comments. but love the fact that he dragged ETFC so low that I got in at $4.
Click to expand...

I'm not so sure they were irresponsible as much as forthright. The fact that Etrade didn't come out with stronger statements defending their financial health and rebuking any bankruptcy suggestions speaks volumes.

Citibank isn't exactly going out on a limb downgrading the stock. Others have followed suit as a result of Etrade's own statements telling investors to disregard previous guidance and that future writedowns are very likely, not to mention news coming out that their loan/securities portfolio is being investigate by the sec doesn't help.

That said, as a result of the low stock price, a buyout is probably more likely to happen long before etrade files for bankruptcy.
Click to expand...

You can't really blame etrade because they would have had to come out with an irresponsible statement to equally counter citi's statement. Their first response was very measured and within legal guidelines.

On a sidenote the CEO is going to be on CNBC after market close...
 
Originally posted by: jjsole
Originally posted by: EKKC
i don't know whether to hate the citibank dude or love him.

i hate him for his irresponsible comments. but love the fact that he dragged ETFC so low that I got in at $4.
Click to expand...

I'm not so sure they were irresponsible as much as forthright. The fact that Etrade didn't come out with stronger statements defending their financial health and rebuking any bankruptcy suggestions speaks volumes.

Citibank isn't exactly going out on a limb downgrading the stock. Others have followed suit as a result of Etrade's own statements telling investors to disregard previous guidance and that future writedowns are very likely, not to mention news coming out that their loan/securities portfolio is being investigate by the sec doesn't help.

That said, as a result of the low stock price, a buyout is probably more likely to happen long before etrade files for bankruptcy.
Click to expand...

I think what E-Trade could have done better was to be clearer in their statements and spelling out exactly what was going on. There's some shareholders who are a bit mad about their delayed response and seemingly lack of guidance.

All things being equal, it's still trading at a significant discount.
 
Originally posted by: jjsole
Originally posted by: JS80
Originally posted by: Azurik
Originally posted by: JS80
Originally posted by: tranceport
Originally posted by: JS80
Originally posted by: EKKC
OMG i just came back. my order of 700 shares executed at $4.00. and now its at 4.85?

/wets myself

now my regret is i wasn't gutsy enough and ordered only 700 shares since that matches my existing cash in account. should've taken it on margin
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5.25, hit 5.4 dude.

lol this is now nearly 1/3 of my portfolio.
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Are you still buying?
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I'm holding, might sell half at 6. But it's 1/3 of my portfolio now because it went up so much.
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I have a paper profit of $10,992 in one day. LOL, I need to go out and drink tonight!

In other news, the overall market is having a great bounce. DOW is up nearly +277, NASDAQ +76, S&P +34
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Bot some QQQQ puts to hedge...no way Qs can go up 4% in a day.
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How are qqqq puts a hedge against a stock cited to possibly go bankrupt/get bought out...don't correlation betas count for anything these days? 😛
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Man I had a feeling the QQQQs were going to collapse. Gains on my puts made up for paper loss on ETFC from it's peak.
 
Man, I watched this yesterday but couldn't do anything about it. Got some funds available today but saw the price near $6 this morning. I had to come to work so I wouldn't have much chance to follow it. I figured I was too late but went ahead and set a buy limit of $5.50.

I checked my account this afternoon, to my surprise the transaction went through. In fact, it dipped to the low 5s (yeah, I could have set my buy limit lower).

Lets hope I'm not taking a high mileage hooker for a spin and get screwed in the wrong way.
 
Originally posted by: ricochet
Man, I watched this yesterday but couldn't do anything about it. Got some funds available today but saw the price near $6 this morning. I had to come to work so I wouldn't have much chance to follow it. I figured I was too late but went ahead and set a buy limit of $5.50.

I checked my account this afternoon, to my surprise the transaction went through. In fact, it dipped to the low 5s (yeah, I could have set my buy limit lower).

Lets hope I'm not taking a high mileage hooker for a spin and get screwed in the wrong way.
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trading 5.70 in after hours after CEO went on CNBC and ruled out bankruptcy as a possibility. You are Gold.
 
Originally posted by: JS80
Originally posted by: ricochet
Man, I watched this yesterday but couldn't do anything about it. Got some funds available today but saw the price near $6 this morning. I had to come to work so I wouldn't have much chance to follow it. I figured I was too late but went ahead and set a buy limit of $5.50.

I checked my account this afternoon, to my surprise the transaction went through. In fact, it dipped to the low 5s (yeah, I could have set my buy limit lower).

Lets hope I'm not taking a high mileage hooker for a spin and get screwed in the wrong way.
Click to expand...

trading 5.70 in after hours after CEO went on CNBC and ruled out bankruptcy as a possibility. You are Gold.
Click to expand...

😀 Nice. Hopefully I can make enough to offset my Black Friday spending.
 
Originally posted by: Capt Caveman
I wished I had picked-up more when it dipped down to 5.16 for a brief moment.
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dude that was just pure and simple theft. I bet a bunch of people had stop loss orders at 5.25 and market makers just pounced on the opportunity and let it drop. I thought about doubling my position there but I chickened out.
 
Originally posted by: ricochet
Originally posted by: JS80
Originally posted by: ricochet
Man, I watched this yesterday but couldn't do anything about it. Got some funds available today but saw the price near $6 this morning. I had to come to work so I wouldn't have much chance to follow it. I figured I was too late but went ahead and set a buy limit of $5.50.

I checked my account this afternoon, to my surprise the transaction went through. In fact, it dipped to the low 5s (yeah, I could have set my buy limit lower).

Lets hope I'm not taking a high mileage hooker for a spin and get screwed in the wrong way.
Click to expand...

trading 5.70 in after hours after CEO went on CNBC and ruled out bankruptcy as a possibility. You are Gold.
Click to expand...

😀 Nice. Hopefully I can make enough to offset my Black Friday spending.
Click to expand...

i would watch out for a black friday this friday triple witching day...
 
I have $2000 sitting in my ETrade Savings account (~4.7 APY). Should I even attempt to buy stocks or just keep it in savings until I get more?
 
Originally posted by: txrandom
I have $2000 sitting in my ETrade Savings account (~4.7 APY). Should I even attempt to buy stocks or just keep it in savings until I get more?
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I personally feel we have one more round of selling before the stock market bottoms out, but if you're holding period is 1 year or greater, now is definitely a time to consider maybe entering half way. I don't think credit market is going to drag tech down with it.
 
Is even possible for me to diversify with $2000? It seems like all my gains would be nullified by commission costs if I made too many trades.
 
Originally posted by: txrandom
Is even possible for me to diversify with $2000? It seems like all my gains would be nullified by commission costs if I made too many trades.
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You cannot survive short term trading with $2k (you can't daytrade because brokers require $25k to day trade). Commission will eat you up. Last month I made 170 trades and realized about $2k gain and paid $2k in commission.

If I were you I would take on a bit more risk and buy a leveraged ETF such as SSO (2x S&P index) or QLD (2x Nasdaq-100). Now is a very attractive entry point.

Or go ballsy and buy ETFC.
 
Originally posted by: ricochet
Originally posted by: JS80

i would watch out for a black friday this friday triple witching day...
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Eh? Forgive me, I'm easily confused.
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Oops this Friday is only double witching. Nevermind.

But I still think there's going to be a sell off.
 
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