E*TRADE (ETFC) Bucks Online Broker Downdraft On Renewed Merger Speculation
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E*TRADE Financial Corporation (Nasdaq: ETFC) is bucking the downtrend in the the online broker sector today as speculation heats up the company could soon find itself the target of a takeover bid.
E*TRADE has long been a rumored takeover target, but now with trading volume drying up, the online brokers may look to consolidate, which could easily create massive cost savings and maximize profits.
Yesterday, in a note to investors, Sandler O'Neil analyst Richard Repetto said E*TRADE could be acquired for more than $6 billion, although rivals likely won't bid until they get more comfortable with the company's troubled loan portfolio. He said this could take a year or so.
Suitors for E*TRADE would likly be Charles Schwab (Nasdaq: SCHW) or TD Ameritrade (Nasdaq: AMTD).
Shares of E*Trade are up 2.1 percent today. Charles Schwab is down 2 percent and TD Ameritrade is down 1 percent.
E*TRADE has long been a rumored takeover target, but now with trading volume drying up, the online brokers may look to consolidate, which could easily create massive cost savings and maximize profits.
Yesterday, in a note to investors, Sandler O'Neil analyst Richard Repetto said E*TRADE could be acquired for more than $6 billion, although rivals likely won't bid until they get more comfortable with the company's troubled loan portfolio. He said this could take a year or so.
Suitors for E*TRADE would likly be Charles Schwab (Nasdaq: SCHW) or TD Ameritrade (Nasdaq: AMTD).
Shares of E*Trade are up 2.1 percent today. Charles Schwab is down 2 percent and TD Ameritrade is down 1 percent.
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