David Dierking

Bam! Called this back in December. https://on.mktw.net/32arqJe

If you followed my "7 Trades For 2020" piece that I originally wrote in December, you'll remember that one of the trade recommendations was to buy E*Trade.

My justification was that it was a prime M&A candidate following the buyout of TD Ameritrade by Schwab. With most brokerages now adopting zero commission structures, discount brokers were likely to be snapped as their primary business models had essentially become obsolete.

I argued that ETrade was one of the better positioned to be an attractive M&A candidate and that's indeed what happened. It looks like ETrade will trade at a 25-30% premium to yesterday's closing based on the merger agreement.


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