E*Trade (ETFC) has lost $.40 cents in value in the past 4 days of trading. Most recently they announced the sale of 90 million shares on behalf of Citadel, the venture firm that bought a 20% stake in the company following the sub-prime mortgage meltdown.
The last time E*Trade swung to a new low, I bought it and within a couple days was able to book solid profits as it soared from around $3 to $6. I think a similar thing is happening now. The stock has been beat down and is beginning sideways trading. $4.00 looks like the breakout point here with upside of $1-$2 from there. I love these kinds of trades because E*Trade’s core business (brokerage accounts) is stable and is actually thriving which means this is just oversold market panic. I’d like to get this one at $3.50 before pulling the trigger and look for it to spike at $5 maybe $6 then I’d sell it.
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