Thursday, January 28, 2010

More Earnings...ETFC, MOT

Etrade reported after the bell yesterday, and results were pretty much in-line with expectations, with a solid revenue number.  Even in a difficult year for investors, they performed well as trading volumes were up and net new accounts and assets were up for the year.

I purchased shares yesterday in anticipation of a good result, but am holding the shares for longer than just a trade.  As I said yesterday, I believe they will pull off a merger, but even if that does not happen, we should be okay.  As a stand alone entity, Etrade's operations are improving, and they are cleaning up their mortgage portfolio as well.

Motorola also reported this morning.  Things weren't so solid there.  I was keeping an eye on them due to the success they've had with resurgent sales of smart phones now that they added Google's Android platform.  That transition will likely take some time, and but they are definitely behind the likes of Apple, RIM, and Nokia.  Activist Carl Icahn has a large stake in Motorola, and he's in for the long haul.  He usually manages to unlock some value for shareholders, so this may be worth a look as shares plunged this morning.

The market is continuing to sell-off, and many stocks are starting to look attractive again.  Most investors I follow aren't doing much buying yet.  We're still likely to see that rally in the dollar, which has carried a negative correlation to stocks for quite some time.

Disclosure: Long ETFC

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