E*Trade’s Stock Continues To Slide
A lot of people will be taking a few days off around Christmas, and in most cases, a casual "see you later" will do. We want to say "goodbye" to E*Trade, though, because the company’s stock is approaching $3 per share, and, well, that’s just not healthy.
We’re not predicting that the company won’t exist at the end of December – the farewell is just a precaution. Still, a six-month view of E*Trade’s stock looks like the sort of ramp onto which you can drive your car for an oil change – a few bumps for traction, but otherwise just a steady incline (or in this case, decline).
Henry Blodget has even written an article titled "E*Trade’s Long, Quiet March Toward Zero," and today he listed various measures that haven’t put on the brakes. "The cries of ‘irresponsible analyst!’ weren’t enough. The assurances of financial solidity weren’t enough. The ads promising that most deposits are insured weren’t enough. The dumping of CEO Mitch Caplan wasn’t enough. A $2+ billion bailout by Citadel wasn’t enough."
Look for E*Trade’s employees to start writing Santa, clapping their hands for fairies, and trying whatever else comes to mind, at this rate. To its credit, the company survived some bankruptcy rumors early last month, yet it hasn’t exactly come roaring back.