I'm long on the 2010 5.00 calls. Best investment i think right now...take a look at them. What do you think of the short term direction?
I like that a lot...i think thats a very good long term investment 2010 $5 calls, i think im gonna pull the trigger, just waiting for a nice break into the 3s. I missed out when this thing was trading 2.25-2.50.
Book value $6.12/share? http://seekingalpha.com/article/67395-e-trade-financial-laying-the-foundation-for-success
The book value is about $3.75. I expect more losses. People will say Book equals $6.12 but they are looking at the past you need to look at market values. Since they most recently reported have market values of their book improved? The broker assets are valuable but to the shareholder or the debtholder. No current position.
ETFC shorts find box full of money... http://investment-blog.net/etrade-short-sellers-find-box-full-of-money-etfc/
I did no analysis of cashflows. What I am saying is you need to use the market value of the shares to determine the "real" book value in this case. Most of the securites/loans that are held as assets by e-trade have fallen more in value since the last report and some of them will have to be marked down futher. The brokerage unit is worth alot but if the writedowns force the co in to bankrupcy all the proceeeds will go the debtholders like Citidel Blackrock and others. It may in fact be in the best interest of the debtholder to force a bankrupcy in this case.
It's not very far off from trading with a 2-handle. ETFC maybe worth a few pennies if BSC is worth $2. Thoughts?