Rising On Earning Expectations?

Q: What's interesting is they never got TARP and they started processing loans again for a third party (correct) .... JPM covers them .... This could either be a cinderalla story or a fiasco - if they are stabilizing without TARP - this could be a good part II story to all this mess. Any you folks use AMTD? Jaywalk has an improved "hold" rating of 2.95 for ETFC from something like 3.35 ..... tempting but need more info.

A: Anyone care to take a guess why this shot up 23% today? Is it because of Citi's better than expected report earnings? Just looking at the chart. There was an awful lot of trading in that range from late July through Sept, so you know there are a lot of people who bought there thinking it would hold and not go any lower. It then rallied to the high 3's, and came back down, so you know some people were trying to put the same trade on again expecting it go to bounce back up. We all know what happened, and the pain for anyone long until recently. The resistance was pretty clear to me, so add in to the selling the people who bought nearer the lows, who see the same resistance and are satisfied with a triple, and you two groups of motivated sellers. So, I expected to see a lot of selling there. We need to exhaust that selling to move past $3.00, but volume today was great. So barring any crappy news on the weekend, I'm looking for another test of $2.90 next week and will go even more long assuming we can close over $3 ahead of earnings. I would say it is still a good time to come on-board. I originally started my etrade stocks last year w/ the etfcp (corp unit) stock when it was at $5.95. Then was converted to etfc stock in november due to the mandatory conversion that took place this happened when etfcp was at $1.8 Then I almost saw my entire savings go bye-bye when it hit >$1. and i snatched up a lot more etfc stock at $0.69 Now that it is at $2.58 have more than broken-even, and $2.58 is a long cry from my original investments at $5.95 My logic for doing that is the following: i looked at their 52wk high and found out their highs had been in the high $20's; etfc is not going to crash, i hope some other bank will snatch them up before they crash; and based on their highest high i figured they would at least, at some point in time, regain half their value. So if you are a long-term investor i'd say jump in, the waters are bound to get hot. I would say the same about BofA (BAC) and Citi (C). I bought some BofA during the little upset in early march, bought at $5.6 and sold it at $11 (only sold because i didnt have enought stock to make a worth- while profit). look at BofA and Citi and their highest highs have been in the $30's - $40's so you know they will at least regain half their value in time. and before anyone gets mad at my logic: i am just a dumb 20 something yr old investor that just started last year, so no i dont think this is sound proof or perfect, just my thought, so dont crucify me, but i will accept constructive criticism

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