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Subject:  Why ETFC's Takeover Prospects Keep Improving... Date:  10/29/2009  10:23 PM
Author:  AlejandroOrtiz Number:  10661 of 10679

E*Trade Financial (Nasdaq: ETFC): Why This Company’s Takeover Prospects Keep Improving
By: Investment U Thursday, October 29, 2009 10:59 AM

(by Louis Basenese) Just over a month ago, I pegged E*Trade Financial (Nasdaq: ETFC: 1.74, -0.05) as a takeover target.
However, after reviewing the company's most recent results, you might consider my prediction laughable…

On Tuesday, E*Trade reported its ninth straight quarterly loss. And this one was a doozie. Over $830 million in red ink flooded the bottom line. Keep in mind that E*Trade's market cap checks in at a mere $1.75 billion.

Again, I get that it's not obvious why anyone would want to buy a company chalking up quarterly losses equivalent to roughly half its market value. But we can't rely exclusively on headline numbers to guide our investment decisions – because they never tell the whole story.

And ironically, in this case, the whopping loss actually underscores E*Trade's takeover appeal. Here's why…

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