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E*TRADE Financial Corporation Message Board

  • onedge953 onedge953 Mar 14, 2013 1:59 PM Flag

    This was a big vote of

    no confidence and does nothing to solve the forever looming portfolio of bad loans.

    Sentiment: Hold

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    • best thing that could happen. getting rid of citadel at any cost. has always been the real drag on the company with manipulation. just hope they stay away for good!!!!IMHO

    • You're assuming you know the reason for the sale. There's myriad reasons and not all of them are 'it's going down from here!' Let's say he got overzealous on shorting the stock, yesterday's huge spike might have forced his hand on short positions (we don't know how leveraged he is) so he announces he's selling the last of his stock and before it even goes on sale the stock drops 7% allowing him to close his short positions. Then, after the 19th, Citigroup has the shares, and they'll pull a rabbit out of their hat to try to make it go back up because after the 19th they make more money the higher it goes.

    • The loan portfolio isn't that big of a problem anymore. The bigger issue is their revenue tanking. It'll be in the 420-430 range next quarter, a huge drop off that was masked by 2 quarters of deleveraging activity that resulted in gains on securities flowing down to the revenue line.

      • 2 Replies to briguy260
      • "The loan portfolio isn't that big of a problem anymore. The bigger issue is their revenue tanking."

        Declining DARTs is an industry wide problem but AMTD, Fido and SCHW have spent the last few years building up their asset mgt. biz.
        I'd bring up the term competitive disadvantage but that would be too easy.

      • See, here's the problem with revenue. Let's say a company decided to sell $100 bills for $50. They could claim HUGE revenue, but have HUGE losses. Now, if they changed their price to $105 for a $100 bill, their revenue would tank, they wouldn't have losses anymore, and according to the stock market's philosophy on revenue that would be a terrible terrible business move because look what it did to revenue. (Whereas the common sense way of looking at it is 'who's the moron paying $105 for a $100 bill? I don't know, but it's sure a lot better to have that $5 profit and a fraction of the revenue than it was to have a huge amount of revenue and huge losses.')

        Etrade revenue is down because the loans (you know, the thing that was causing huge losses) are running off. That's not a surprise, it's not like it's unexpected. As the losses decrease so does the revenue that was coming from the loans. You're still making more PROFIT than you were before (which is what should count, no?).

 
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