E*Trade (ETFC) lost 60% of its value Monday. Could their pain be your gain?
Karen Finerman explains E*Trade shed more than half of market value in large part because a Citi analyst warned of possible bankruptcy. (On Friday the online brokerage revealed it had seen a significant deterioration in the value of its holdings of securities backed by home mortgages, and will take a writedown in the fourth quarter.)
E*Trade’s troubles are fantastic for Ameritrade (AMTD) says Finerman and for a trade she recommends getting long Ameritrade (AMTD). Finerman also likes Charles Schwab (SCHW).
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Trader disclosure: On Nov. 12, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (INTC), (YHOO), (EMC); Najarian Owns (AMTD) Options, (BHP) Options, (C) Options, (CSCO) Options, (DISH) Options, (EMC) Options, (GOOG) Options, (GS) Options, (YHOO) Options; Finerman's Firm And Finerman Own (GS), (HD); Finerman's Firm Owns (AMTD), (PLCE), (KSS), (NMX), (NYX), (WMT), (YHOO), (LTD); Finerman's Firm Is Short (IWM),(IJR), (SPY), (MDY), (IYR), (LEH), (MER; Finerman's Firm Owns (MSFT) Options, (TGT) Options; Finerman's Firm Owns (HD) Puts; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Owns S&P 500 Puts; Charles Schwab Is A Sponsor Of Fast Money
CORRECTION: Wachovia bought Golden West, Not Washington Mutual as stated by guest trader Tim Seymour on Friday November 9th so that's not a reason to dislike WaMu's stock.