1) GS and Citi rated ETFC Strong Buy and GS said takeover is very likely. Support from GS is very important in this market
2) Economy and housing is improving. Retail investors are back and increasing trading profit
3) ETFC passed the Federal Regulators tests even without the recent $150M from ATM.
4) ETFC has 29% short ratio that needs desperately to cover soon before the takeover
5) ETFC has $8.1B available cash and 2.9M loyal customers. Its trading website and service are much better than other discount brokers.
6) Market cap is a tiny $2B compared to AMTD and SCHW . The tiny cap makes it easy for hedge funds and GS to manipulate the pps up.
7) Citadel holds 120M shares and said it wont sell its shares
8) Less foreclosure, better housing ABX index and "Mark To Market " accounting will lead to profit in Q3 .
9) CEO was very optimistic and said in the last CC that ETFC is negotiating with large brokers for takeover. ETFC also canceled the poison pill.
10) ETFC is trading at only 6% of its $30 price in 2006 . There are very few companies trading at 6% of their peak in 2006/2007.
5. relatively correct
6. Bzzt, could also be manipulated down
7. I believe it's more than that
9. saying and doing are 2 different things
10. not really, adjusted for dilution, there are or will be 3x as many shares as there were in 2006 after the debt exchange so it's actually about 20% of 2006 $30 share price.
I understand you want ETFC to go up, but you lose all credibility in your very first reason. GS said there is a 10% chance of a takeover. That really doesn't fit with your statement that "GS said takeover is very likely". Thanks for the misinformation.