E*Trade - Final Thoughts
Ticker Symbol: ETFC
Final Thoughts
The growth prospects for online brokerage remains strong as investors increasingly turn to individual internet accounts as opposed to mutual funds, hedge funds, and other managed accounts.
The problem is not its growth and earnings drivers but assets held on its balance sheet. E-Trade is actively awaiting a decision from Treasury as to its application for receipt of funds from the TARP. High leverage ratios and exposure to the U.S. housing market will continue to spell trouble for the online discount broker.
Possibility of much maligned merger talks with Ameritrade that has been discussed numerous times over the years simply isn't enough to lure investors back into this stock. Although the stock is already beaten down and could seem attractive from a valuation standpoint, the risks are still too great. The case for a short position is much stronger at this point.
Article Index
FINANCIAL STOCK REVIEWS
E*Trade
2010 © Better Trades | Contact Us
