Run Away!

A week after buying into eTrade on news that they were liquidating an underperforming unit to address their solvency issues, I've dumped my shares on news that the company reported a significant loss, and issued a press release stating that "the current economic environment may impede our expectations to return to profitability from continuing operations this year."

I got out early, and preserved some of the gains I had made before the feeding frenzy began:


A 46.2% gain is probably nothing to be too upset about - but it is a 9% drop from yesterday's closing price, and I expect it will slide deeper as the day wears on.

This is the second time I've played eTrade this year. I bought in at $2.99 in January, then sold out at $4.21 in March when the company seemed resolved to let its subprime portfolio drag it down the tubes.

I tend to doubt I'll go back for a third helping ... but then, you never know.