Re: Etrade Potential Bankruptcy?
[ QUOTE ]
from what I understand they made 650 million in trading commissions last year. They have 427 million shares outstanding. If they are really cutting back on their mortgage spending, costs are either zero or that analysts earning projections are wrong. Maybe they will continue in consumer loans and banking though. The point is its very unclear from their current statements what their business will entail next year. I still think it may end the year at 10 a share but its just too risky and unclear to take a position in for me.
[/ QUOTE ]
They announced in September they were pulling out of the mortgage bidness. It can't be done overnight. They said it would take 18-24 months. I wouldn't think the mortgage business would add any further problems though, they just have to deal with their held portfolio.
|