WAMU, ETrade Move Higher

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.

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

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.