E*Trade Financial (NYSE:ETFC) shares dropped marginally today after reports surfaced that the company may be looking to accept a cash infusion or sell itself to a competitor after a 60% cut in its market capitalization. The drop was fueled by analyst reports that there could be a run on deposits at E*Trade's bank, which reported a drop in the value of its mortgage holdings last week.

So, is E*Trade a value play at this point? Well, a cash infusion would likely increase investor confidence after the company's market cap fell to just $2.28 billion from $10.9 billion just a few weeks earlier. However, diluting the equity base might cause some issues with shareholders who have already seen a steep decline in the value of their holdings.

Meanwhile, a buyout may be the better option. The most likely suitor would be TD Ameritrade (NYSE:AMTD) and there would be plenty of benefits for the two firms as customer accounts could be transferred at almost no cost. Additionally, the long-term savings of such a combination would be over $600 million annually. In effect, this would make the deal pay for itself after five years or so.

In the end, this deal is great news for shareholders who stand to benefit from any such transaction. The brokerage also noted yesterday that it was not in any danger of default and would not face a cash crunch. Combined, these factors could mean a potential value play in the future.

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Cisco Systems (NDAQ:CSCO) shares rallied today after the company announced that its board authorized up to $10 billion in additional share repurchases of its common stock with an indefinite time period. This brings the total authorized amount under the program to $62 billion if it is fully completed.

Cisco's current market cap stands at just $178 billion, meaning that if all the shares are repurchased the company will nearly be taken private. The news comes after the company's stock slumped nearly 10 percent when chief executive John Chambers said that declining orders from automobile and financial companies are curbing growth.

Results ended up being in line with expectations but failed to impress investors  who had been expecting faster growth. After all, Cisco has exceeded sales predictions for the last seven out of eight quarters! To help increase growth, the company has looked to invest in emerging markets, making acquisitions and pushing into new products such as television set-top boxes.

Int the end, this share repurchase is good news for investors. While the unlimited timeframe is of some concern, it is good to know that the company is interested in unlocking shareholder value during tough times. Cisco remains a solid stock with solid growth numbers, and should recover along with the general economy. Combined, these factors make CSCO a stock worth watching!

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Warren Buffet's Berkshire Hathaway (NYSE:BRK) revealed its portfolio today in a mandatory Schedule 13F filing with the SEC. The regulatory filing showed the billionaire investor increasing his holdings in banks, including Bancorp, which he was rumored to be considering for acquisition. Investors are carefully watching the investors actions as it could mean an opportunity for them to piggyback on his famous market knowledge.

Buffet added to his stakes in three large U.S. banks, including Wells Fargo, U.S. Bancorp, and Bank of America. He also disclosed a new stake CarMax Inc. (NYSE:KMX), which surprised many investors since the auto industry is not expected to turn for some time now. The timing is also questionable as the company appears to be headed towards a recession and car loans are becoming more scarce.

Wells Fargo made the news in another way today after its CEO said that its exposure to CDO's and asset-backed commercial paper is minimal. He also noted that the U.S. housing market is now the worst since the Great Depression and is far from over. This dropped many bank stocks while Wells Fargo traded higher on news that its own exposure was limited.

The banking market is still being hit hard from subprime and credit market concerns that have caused deep losses in many investment banks like Merrill Lynch and even brokerages like E*Trade. Whether or not we have hit a bottom remains to be seen, but it appears that Warren Buffet may be predicting a bottom coming relatively soon given his large move.

In the end, this is good news for the banking industry and very interesting news for investors who are sitting on the sidelines. Buffet has been involved with the banking world through several crisises like this one (read: LTCM) and has experience in the industry. Combined, these factors make the banking industry worth watching closely!

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