ETFC - Really Good News

http://biz.yahoo.com/bw/080630/20080630005521.html?.v=1

Announcing their conference call to review earnings, ETrade also slipped some good news under the door
1. Debt was reduced $95M
2. Retail business was strongerthan expected
3. Earnings are ahead of expectations: "generate earnings....to absorb credit losses in excess of management’s current three-year forecast"
4. They are well capitalized - they expect to have $1B in capital above the requirements

The message boils down to 2 things
1. Core business is strong & stronger than expected
2. There should be no concern over solvency.

Now, the real meat is this
1. Earnings should beat - At the moment, analyst expectations are for a negative quarter (~-$0.13 EPS). It seems like they have good news. Can you imagine what the stock will do if it is positive?
2. They have $1B in cash AFTER covering any wierd debt. That puts a floor value under them of ~$2.3 per share in cash alone.

Meanwhile, the market hasn't opened yet and already 1M shares are trading. In pre-market, the stock is up to $3.21.

Lets hope for a steady march back above $4.