Message Font: Serif | Sans-Serif
No. of Recommendations: 2
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…

Full Article:

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.