E*TRADE Wins the Largest Short Interest Increase

E*TRADE Financial Corporation (NASDAQ:ETFC) was the winner on the NASDAQ Exchange that experienced the largest increase in its short position from mid-to-late August.  In the last 30 days E*TRADE shares are up 23% and still trade under $2 -- could this be the calm before the storm?

The timing couldn't be more perfect, E*TRADE (ETFC) Chairman and CEO Donald Layton, will relinquish command of the firm at the end of the year, the company said Wednesday morning. Mr. Layton will retain all his current responsibilities until a successor is found, and will help the company's Board of Directors in their search for a successor. The company said it expects to appoint a successor by year's end. Mr. Layton said:
"It was an exciting but very challenging time as E*TRADE dealt successfully with the severe financial distress of the last two years. Now that our major recapitalization is complete and the online brokerage business is growing again, I have accomplished what was needed for me to end my time as CEO on schedule. I wish to thank everyone involved -- it was a great team effort."

Feel like buying E*TRADE shares or calls after reviewing this data?

According to FACTBOX via Reuters E*TRADE shares are tipping the scale for the largest increase and position:

The latest date is as of Aug. 31, while the previous period's data is as of Aug. 14.

COMPANY                      AUG 31         AUG 14     NET CHANGE  PCT CHANGE
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FIVE BIGGEST INCREASES:
E*TRADE Financial (ETFC.O) 343,802,919    323,948,983   19,853,936     6.13
Cell Therapeutics (CTIC.O)  41,059,835     31,006,117   10,053,718    32.42
DIRECTV Group Inc (DTV.O)   81,398,956     73,298,910    8,100,046    11.05
Sun Microsystems (JAVA.O)   21,607,596     14,217,951    7,389,645    51.97
Microsoft Corp (MSFT.O)     72,214,160     65,093,567    7,120,593    10.94
FIVE BIGGEST POSITIONS:
E*TRADE Financial (ETFC.O) 343,802,919    323,948,983   19,853,936     6.13
Sirius XM Radio (SIRI.O)   124,769,729    119,653,289    5,116,440     4.28
Level 3 Comms Inc (LVLT.O)  91,609,772     93,816,330   -2,206,558    -2.35
DIRECTV Group Inc (DTV.O)   81,398,956     73,298,910    8,100,046    11.05
Microsoft Corp (MSFT.O)     72,214,160     65,093,567    7,120,593    10.94

Data via shortsqueeze.com:

Chart from Finviz.com:

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