P L profile image phlabrasca

P L

$14.76
UNITED STATES
1/11/08
$1,610,112.85

2
10/27/08
11%
61%
Send Message

Stock Pick by P L

ETFC: Thank you Prashant Bhatia

Start trading ETFC with real money!

Rate Analysis
star star star star star
2 ratings
Posted 2507 days ago on 1/12/08

ETFC will go UP
$6.50 on 7/12/08
$23.03 (597.88% from time of market call)
$5.09 (54.24%)
on 2/13/08

E*Trade has taken a severe beating thanks to analyst Prashant Bhatia claiming that E* had a 15% chance of bankruptcy. Since then, E*T has sold off their risky investments at a discount, removed their CEO, staged a turnaround plan, and are searching for a new CEO. Although the exact value of this stock is uncertain because we will not see the earnings report until January 24th, we can take an estimate. E*Trade is well known for having a superior trading platform. Their brokerage business would take on a fair value price of around $7-10/share alone. Their bank business brings he value of the stock down due to a poor home equity loan portfolio. In the worst case scenario, this stock should be trading at lo $4 high $10. E*T reported that they had not lost as many customers as many perceived after the large panic Prashant Bhatia invoked when mentioning a possibility of the company going bankrupt. Pick this stock up in the low 3s while you can, because the fair value of this company alone is worth at least double. 100% gain within six months is almost certain as long as the MMs and hedge funds do not force it down.

Add a Comment

Comments

Posted 1/28/2008, 8:23 pm

Here comes the short squeeze. Shame my ratings were lowered by shorts.

There are not enough shares to cover for the amount of shorts on this stock.

Posted 1/12/2008, 9:25 pm

Well not many institutions sold off after it dipped under $3 so I'm not concerned about it hiking back up.

My only concern is that they did not announce exactly which investments they sold off for cheap. I think they may have sold their good investments for book value because I doubt anybody would take their risky portfolio for only a 5m discount.

However, I'm confident in their turnaround plan.

Posted 1/12/2008, 8:39 pm

You might be right - but I see $2.00 lol. VERY RARE for any stock that loses 90% and gets under $4.00 to ever do anything but get cheaper. Best of luck to you if you're long this pos.

Displaying 1 - 3 of 3
Subscribe to Stock Analyses Comments feed:



Make a suggestion for this page