Washington Mutual (WM) and ETrade traded higher today. I have a feeling that Wamu hit its bottom at $4.80. I think its safe to say ETrade's at its bottom as well. I feel both these stocks are due for a rebound, more so ETrade. I think Wamu's more mired in the credit crisis than Etrade.
Im looking for a long term, financial-rebound play with both these stocks. 2nd quarter results should be interesting to say the least.
Wednesday, July 2, 2008
Tuesday, July 1, 2008
Corning (GLW)
Corning (GLW) hit a 6 month low of $22.60 today. The selloff seems to be for no apparent reason, as Corning has reiterated that the economic slowdown has NOT affected revenue. S&P has reiterated a "strong buy" on shares of GLW. I think GLW is an example of a selling frenzy. Look for a rebound.
GLW at Google Finance
GLW at Google Finance
Monday, June 30, 2008
ETrade Announces Debt Reduction
ETrade announced it reduced debt in the second quarter by 95.8 million $, brining its year-to-date total debt reduction to 155.8 million $. They expect risk based capital to be near 1 billion $ by years end (MarketWatch link here). I feel strongly about this stock for the following reasons:
1. Back to Basics (retail unit) and sale of retail mortgage unit
2. Strong insider buying
3. improving financials/reduction in losses
4. current price.
5. Victim of a selling frenzy
I feel Etrade is a good rebound play when the market recovers in the next year or so. I think it was caught in the selling frenzy of the subprime crisis and is undervalued. Insider buying is always a strong indicator of price momentum, as an insider only buys stock when he/she believes the price will INCREASE. Plus who better to value the company than the people on the inside.
1. Back to Basics (retail unit) and sale of retail mortgage unit
2. Strong insider buying
3. improving financials/reduction in losses
4. current price.
5. Victim of a selling frenzy
I feel Etrade is a good rebound play when the market recovers in the next year or so. I think it was caught in the selling frenzy of the subprime crisis and is undervalued. Insider buying is always a strong indicator of price momentum, as an insider only buys stock when he/she believes the price will INCREASE. Plus who better to value the company than the people on the inside.
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