"E*Trade Takeover Is Imminent"

SSwan · Sep 27th, 2009, 23:28

Anyone cares about this?

http://seekingalpha.com/instablog/40...er-is-imminent

E*Trade Takeover Is Imminent
Sep 27, 2009 07:15 PM | about stocks: ETFC

E-Trade(ETFC) The Writing is on the Wall (Street, that is)

Recent developments indicate that an ETFC takeover is imminent. First of all, Citadel reduced it's share of common stock to just under 10%. This critical reduction avoids the possibility of increased federal scrutiny of Citadel's holdings. Additionally, it makes ETFC a more attractive target for Schwab(SCHW) or Ameritrade(AMTD), both of which have adequate capital to structure a takeover. Secondly, call options volumes have spiked recently. It is a well-known "phenomena" that occurs prior to a takeover bid. Finally, AMTD CEO, Tomcyzk, indicated he expects more industry consolidation.

As I have said in my recent articles, ETFC is selling at a sharp discount considering the stabilization of it's real estate assets and the growth in it's online brokerage business. Soon, I think the talk will be about the baby commercials of ETFC and whether or not their suitor will keep them....

Goldman Sachs(GS) has a 6 Month price target of $2.30 a share on valuation. Several of my broker friends decided to buy ETFC stock after getting word of the GS upgrade. They believe the takeover offer would be a minimum 50% premium on GS price target. This is why ETFC will likely see a $3 to $4 takeover offer.

ETFC has raised enough capital and Citadel is more than likely done selling. November 29, 2007 Citadel pumped $2.55 billion into ETFC for a 17 percent stake, and bought about $800 million of securities linked to residential and commercial mortgages for 27 cents on the dollar. ETFC stock price was then in the $5 range. I believe Citadel would want a profit so selling now wouldn't do Citadel justice.

2 Months ago David Trone, an analyst at Fox Pitt Kelton Cochran Caronia Waller, believes that a sale of the company's brokerage operations is becoming more likely. Between the unwinding of the bank subsidiary, a sale of the brokerage operations and the debt repayment, that would leave ETFC shareholders with $1.68 a share in cash proceeds for shareholders, Trone writes in a note in which he upgraded the stock to in line.

I believe ETFC offers investors more upside percentage reward than any other Financial stock over the next 3 months.

If your posting negative remarks on this article then do realize smart short sellers have covered; hence, the recent short percentage drop.

This could be a very exciting week for investors. I just heard a rumor AMTD Mergers and Acquisitions(M&A) department had a weekend meeting. AMTD maybe getting ready to make a cash + stock offer for ETFC.

Disclosure:Long ETFC,GS,AMTD and buying more ETFC.

Sep 27th, 2009, 23:28	#1
SSwan Senior Member 注册日期: Feb 2007 帖子: 138	*"ETrade Takeover Is Imminent"** Anyone cares about this? http://seekingalpha.com/instablog/40...er-is-imminent E*Trade Takeover Is Imminent Sep 27, 2009 07:15 PM \| about stocks: ETFC E-Trade(ETFC) The Writing is on the Wall (Street, that is) Recent developments indicate that an ETFC takeover is imminent. First of all, Citadel reduced it's share of common stock to just under 10%. This critical reduction avoids the possibility of increased federal scrutiny of Citadel's holdings. Additionally, it makes ETFC a more attractive target for Schwab(SCHW) or Ameritrade(AMTD), both of which have adequate capital to structure a takeover. Secondly, call options volumes have spiked recently. It is a well-known "phenomena" that occurs prior to a takeover bid. Finally, AMTD CEO, Tomcyzk, indicated he expects more industry consolidation. As I have said in my recent articles, ETFC is selling at a sharp discount considering the stabilization of it's real estate assets and the growth in it's online brokerage business. Soon, I think the talk will be about the baby commercials of ETFC and whether or not their suitor will keep them.... Goldman Sachs(GS) has a 6 Month price target of $2.30 a share on valuation. Several of my broker friends decided to buy ETFC stock after getting word of the GS upgrade. They believe the takeover offer would be a minimum 50% premium on GS price target. This is why ETFC will likely see a $3 to $4 takeover offer. ETFC has raised enough capital and Citadel is more than likely done selling. November 29, 2007 Citadel pumped $2.55 billion into ETFC for a 17 percent stake, and bought about $800 million of securities linked to residential and commercial mortgages for 27 cents on the dollar. ETFC stock price was then in the $5 range. I believe Citadel would want a profit so selling now wouldn't do Citadel justice. 2 Months ago David Trone, an analyst at Fox Pitt Kelton Cochran Caronia Waller, believes that a sale of the company's brokerage operations is becoming more likely. Between the unwinding of the bank subsidiary, a sale of the brokerage operations and the debt repayment, that would leave ETFC shareholders with $1.68 a share in cash proceeds for shareholders, Trone writes in a note in which he upgraded the stock to in line. I believe ETFC offers investors more upside percentage reward than any other Financial stock over the next 3 months. If your posting negative remarks on this article then do realize smart short sellers have covered; hence, the recent short percentage drop. This could be a very exciting week for investors. I just heard a rumor AMTD Mergers and Acquisitions(M&A) department had a weekend meeting. AMTD maybe getting ready to make a cash + stock offer for ETFC. Disclosure:Long ETFC,GS,AMTD and buying more ETFC.
SSwan Senior Member 注册日期: Feb 2007 帖子: 138	搜索好价钱，先看ECW. www.e-commerce-webs.com