Some of you might remember that I bought ETrade stock right before it went drastically lower. It was a great learning experience because I’ve never made such a big (and wrong) bet on a stock before. From roughly $15 a share, it went down to around $11 at the time of the article.
Days later, a Citigroup analyst came out and talked about a possibility of ETrade going bankrupt. This sent shares down to $3.59 which triggered another post on what I have learned and planned to do.
ETrade Stocks
It’s been 6 months since those events and I’m happy to say that I still own ETrade stock! In fact, I have added to my position through the last couple months, doubling the shares that I own. I feel that ETrade still has a very compelling story and eventually the mortgage related issues will be worked out.
ETrade Customer
I still love being a client of ETrade. The website is very intuitive and everything is easily accessible unlike my wife’s TD Ameritrade account. As a client, I couldn’t be happier and thus I continue to put money into my brokerage account. Did I worry about my money when all the media was reporting about the possible bankruptcy? Sure. Do I worry anymore? Not really because ETrade has taken steps like selling their corporate jets and a stake to Citadel Investments to make sure it is well capitalized.
Thoughts of the Future of ETrade
Many people are betting that ETrade can return to profitibility in Q3 of 2008. Although I’m not as optimistic, I believe that ETrade will definitely be profitable once again in the future (I’m thinking 2009). Therefore, I plan to continue buying more shares as time goes on because demand for the stock will eventually pick back up, sending the stock price higher.
I’m long ETrade.
- E*Trade Financial – Official Site
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{ 6 comments… read them below or add one }
sounds risky~but Chinese got one saying : got risk only can earn big money!! lolz
buying more when the share price is lower and once it returns to profitability…fooo~the world is yours :p
though i know nothing about share and investment…wishing you all the best~
Yeah at this point, Id say you are better off holding on to it, and just being patient with it. I think once the economy picks back up, this stock will rise again.
I agree. Hang on!!!!!!!! There are many stocks that I hung on and finally made money on
I was wondering what was going on with your Etrade stocks in light of recent events. They do have a good business model, just got into trouble in some other areas.
At least, if you been adding on shares, you must be lowering your average share price?
I too have E-Trade. I bought it low, below 4, and I think they will come back one way or another. Well hoping they will. Right now it’s doing well for me.
Mark: Yup I’m lowering my share price. It’s still at $5.60 or so which means I’m still way underwater but my basis is lowering and the share price of ETrade is slowly increasing.
FFB: You obviously has done much better than me on this stock but now we are on the same boat! I wouldn’t be surprised if it’s $9 – $10 by end of 2009 so I’m definitely hanging on.