E*Trade Forecast Surprises Investors
Jan 24th, 2008 by Shaun Carter
I recommended looking into Countrywide Financial and E*Trade in a post back on January 9th and since then Countrywide made a 70% profit on the day their sale to Bank of America was announced and now E*Trade is up more than 60% since then.
Smart plays in the mortgage and financial sector can be very rewarding right now and these two companies are a prime example of that opportunity present in the market.
E*Trade actually reported earnings much below analyst expectations, but the surprise was in the statement regarding the company’s expectation of returning to profitability this year.
” The company announced details of a widely anticipated “turnaround plan” and acting Chief Executive Jarrett Lilien said he was confident of achieving profitability this year despite some dark clouds on the U.S. economic horizon. ‘We have factored in a pretty dim economic year ahead but we think customers will remain active, and that is what we have baked into (our) plan,’ he said in an interview.”
Shares of E*Trade popped over 9% in after hours trading and should continue to rise in trading on Friday. This could be a very attractive accumulation point for long term investors. I doubt we will see prices under $4 per share much, if at all, in the near future.
Technorati Tags: etrade, countrywide, financial, mortgage, shaun carter, investing, stock market, subprime, earnings
[...] from several Wall Street Journal Online stories relating to E*Trade. It turns out the Journal picked up two of my posts and linked to them from these two articles in the blogs section at the end of the [...]