Taking a little off the table for a very speculative home run attempt. That is what this purchase is about. Today, I bought E*Trade (ETFC) on its implosion over the last few months as the online broker has moved from a high of $25.79 in June to a low of $3.46 this week.This is all because the company has a large number of mortgage losses due to marking to the current market. They are marking assets that basically have no market and taking huge losses as a result. I am betting that the market comes back and those assets get "re-marked" to a more liquid market once some sense is made of the credit crunch.
This is a poor man's "Buffett Play" on distressed assets and is very speculative. Every dollar that I have on this trade, I am prepared to lose. This is not for the feint of heart and not for IRA accounts.
Here is the chart that shows a multi-year look at the stock:
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