I went ahead an started a position in Etrade (ETFC), at 1.58. They do report after the bell, and I don't normally like to buy before earnings, but I just feel its a pretty good price. It has sold off a bit as it seemed to hang in the 1.70's forever. I think it is mostly due to overall market weakness. I've read a lot of research and analysis on Etrade, and the case at these prices is pretty justified, in my opinion. They have one of the strongest discount brokerages out there, and a merger of some sort seems likely. Their loan portfolio, which is been its biggest problem, has stabilized.
Here's a some good reading regarding ETFC.
I basically wanted to have some kind of a position in case they report a strong number and the stock takes off. I still think a merger is where the price increase will come from, but they are improving and should be fine on a stand alone basis in the event a merger doesn't happen.
Disclosure: Long ETFC