E*TRADE the Penny Stock? (ETFC)

E TRADE Financial Corporation (NASDAQ:ETFC) shares have found their way back to the $1.60 range, since April 27th the stock is down 15% and the question remains will they ever trade above $2 again?

ADD MORE TO THE FIRE
Last month E*TRADE (ETFC) priced a secondary offering of 172 million shares of its common stock at $1.75 per share to the masses.  Traders are noting that E*TRADE shares are now just -2% from its 200-day moving average and -5.6% from its 50-day moving average.  Speaking of fire, Lindsay Lohan is suing the company for $100 million after ad ad they ran used her first name, the entire fiasco is ludicrous and won't hold up in court - the end.

Last month E*TRADE reported a Q1 2010 net loss of $48 million, or $0.02 per share, which compares with a net loss of $67 million or $0.04 per share in the prior quarter, and a loss of $233 million, or $0.41 per share in the first quarter of 2009. During Q1 E*TRADE generated $537 million of net revenue, an increase of $13 million from the prior quarter, and an increase of $39 million or 8% from the same quarter a year ago.

Daily Average Revenue Trades (DARTs) from U.S. operations declined 2% to 155,000 from the prior quarter, and 11% from first quarter 2009. Total customer assets increased to $162 billion, from $153 billion in the prior quarter.

Net new brokerage assets during the quarter was $2.2 billion, up from $1.5 billion in prior quarter and down from $2.3 billion in first quarter 2009. During the quarter, the bank generated $45 million of Tier 1 capital and $48 million of risk-based capital

Total operating expenses for the quarter was $295.34 million, compared to $293.98 million in the year-earlier quarter. Total other expense was down at $39.12 million, compared to $93.45 million in the same quarter last year.

E*TRADE has a roller coaster chart over the past year, the stock trades like a penny stock and since its daily volume is nearly 65 million shares -- its easy to get in and get out.  The bottom line is improving at E*TRADE Financial Corp. and we suspect the stock will move more as its price closes in on its 50-day and 200-day moving average.  Time will tell if ETFC can break above $2, until that time this stock belongs to the grips of the day traders.

Disclaimer: No positions in any of the securities mentioned in this publication.