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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (28636)	10/20/2007 8:22:50 PM
From: rich evans	of 78717

Paul, time to buy more CIT. They took another charge on their Mortgage portfolio and now have charge off about 10% or 1 bill. But this has to be the end unlike Wash Mut. since they have now sold it for the most part thru securitization of a non-recourse nature. They said they had fenced it.The rest of their business is doing well including Factoring-tradefinance, vendor finance, plane leasing, train car leasing, and corporate finance loans. These businesses generated 1.30 per share in the last two quarters and should do 1.40 IMO going forward. Since charges are over , street should move stock up. They sold converts with a mandatory conversion at $42- 14 mill shares for 600mill in proceeds. Their book value is about 35 and tangible book at 28. Wash mutual has a book closer to 18 with more charges to come. I think CIT is the play if you have the courage. Do YOU? Rich

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