It's been a long time since everyone went running for the hills. Those few brave souls who have hung in there or tried to pick the pivot points of the ocean that is the economy have been harried and beaten half out of their senses.
The old saying "All hard work brings a profit" comes to mind when I look at companies like E*Trade. Certainly these guys made some bad decisions, certainly they are in a time where people have run from the services they offer.
However, on the long-term scale they are one of the best brokerages out there. Easy to use interface, simple and straightforward. Most average people don't want to have to be computer geniuses just to buy and sell stocks. E*Trade does a remarkable job of making that point.
They have proved that they can certainly turn a profit in the past, and if they hang in there tenaciously (as I know they will), diligent investors will be rewarded with excellent returns. I have used their trading platform in the past and I find it very agreeable, their fee structure is excellent, and their marketing is - while not necessarily cutting-edge - noticeable enough when needed.
From a customer point of view I don't see them going anywhere but up in the long-term. But long-term is the key. They could very well dribble down to 2.25 a share before that happens.
I have had a position in E*Trade since December, at 3.60/share - I closed out most of it in mid-February just under $5.00 because it just could not seem to break through the support. I have since averaged out my position in my personal portfolio at 3.36/share. And now I wait. I can very well see E*Trade hitting anywhere from 8.00 - 12.00 in the next 18 months.
$3.0 (08/02/08)
