TIMBER!!!!! Looks like we are heading back down to $8 a sh.
If the company can't post at least a penny profit in this market after slashing their interest rate on company debt, and the market runnup, there is no hope. Bears got this one for the next few weeks for sure.
To all you shorts without a hedge, oh well, it was a shot, but you didn't do your math . . . ETrade's real financial status is significantly better than the numbers would indicated unless you posit that God is going around created new real estate in habitable areas.
Save for the need they should have kept as much as possible, and not be in such a hurry to get rid of those mortgages that will either likely prove profitable or which are fully secured. Sure, it ties up the companies money, and yeah, the reserve is gaining almost nothing based on the current interbank rates, but with the bulk of the bad paper off the books, and more of that coming free all the time, things are looking more and more like ETrade might actually re-aquire a measurable fraction of their previous market cap.
Depends. In the past we've beat before, but because revenue dropped the forward looking that the market does punished the stock. This time around we lost money, but revenue is up so if the market looks forward (like it normally does) it'll see that there was a large 1 time charge (it's not like they can leave the market making business again a 2nd time) and excluding that there were 21 cents in earnings per share - the estimates were 12 cents. The market could ignore the one time charge and just care about what the future looks like - in which case they were expecting 12 and got 21 cents.