E*TRADE Financial Corporation (NASDAQ:ETFC)

LONG (mind if I re-emphasize?) LONG term play. Interest rates won't be friendly for a couple years, but as long as the MGT doesn't decide to participate in rampant mortgage-backed securities (again), they are positioned for strong positioning post 2013.

Cash is king for a while, then folks realize that investing in stocks, etfs, etc. actually has a reasonable chance of creating returns that beat inflation. E*Trades trading transactions revenue will grow as a result.

I like etrade an actually use them in real life. I might put a little something into them.

I think that deciding not to sell itself off was a fantastic and bold idea. Most of the ETFC's considerable problems are behind it, it's trudging through the muck and returning to the black, and it's been pummeled to a point that it's become undervalued. A long bet from here as the economy improves and they it continues to post write downs.

Despite having watched ETFC's share price fall over 50% in the last 2 years, I still see a few points of excitement that make it worth holding over the long term.

First, in a bit of old news, they are still refocusing their business back to being a strong discount broker. It has proven to be profitable in the past and has reaffirmed this fact in the few quarters as well.

Second, ETFC has continued and is continuously running off its bad loan book, with the possibility of running it off entirely by 2014 as Morningstar suggests.

Third, they are doubling their sales team as they look to add more retirement accounts which could prove to be a huge boost to their EPS if it can be accomplished effectively. This could bump up the $.7 EPS estimates in 2012 and 2013.

Finally, from a valuation standpoint their forward PE is at 13 and its Price to Book is only .5. With future account growth and the possibility of finishing off their loan book by 2014, I am optimistic that E*Trade could make a return to the high teens in the not so distant future and higher yet in the long term.

"When trade times are measured in microseconds, but business value is generated over years, there's a very real potential for a huge gap to open between a stock's price and a company's value. It's by looking for and exploiting those gaps -- and then waiting for the short-sighted computers to catch up with the long term reality -- that you have an edge over today's high tech traders.

One straightforward way to find such opportunities is to look for profitable companies that the market has discarded as being worth more dead than alive..."

(Excerpt from a draft CAPScall article with estimated publication date of 29-DEC-2011)

http://seekingalpha.com/article/311693-6-under-the-radar-stocks-with-20-upside-in-december?source=yahoo

They will continue to make money on trades while the bad loans wind down. Time is in their favor.

They want to sell, sell, sell this company. Online brokerages will
start to merge with others. There is just so many trades to be done online each day. by small investors.

Look for Ameritrade to pick up th pieces.

traders are back in business

E*Trade has much to offer. Comparing it to "similar" sites, its costs to customers are in the mid to low range. They are not the least expensive because they offer tools a true investor needs to evaluate a company they are considering buying. More and more people are going to turn to online trading. My son makes his first buy this week (although he is not as young as the little gent in the commercials!)

As the world market increases people will start purchasing more stocks.

Trading volumes have skyrocketed in conjunction with recent market volatility. Mortgage liabilities are being managed. Firm is a good buy out candidate in the near to medium term.

This company is actually making money now.

Hovering near it's bottom. Worth the risk.

Rumor of merger may just happen this time.

A decent online brokerage that is very likely making some good money on the market's volatility lately.

This recent jump will falter

Just a bad stock I bought in 2008 for $3 (before share price x10 stock divide by ten) just a bad stock with nowhere to go but down, also TONS of competition. I think the stock is bad but I like there services, (I use their account).