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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (30258)	3/6/2008 3:11:50 PM
From: rich evans	of 78742

I can't figure it out but the street definitely knows something we do not. The student loan goodwill was entirely written off last quarter. The actual student loans are 95% guaranteed by the US government. Transportation leases on airplanes and rail cars are doing well. Corporate finance should be OK as is their trade finance(factoring). They lost Dell in the Vendor finance but have picked up others according to releases. They just priced and sold unsecured notes to get/replace funding. Their adjusted risk spreads have been about 2.6%. So what is out their. They keep announcing more fee income with their M%A unit-Edgeview. I think it must be something else. A douwngrade in their credit rating by Moodys. For each .1% in increased credit provisions or .1% in lower spreads, this costs CIT with 75 bill of managed assets about 75 mill. So the leverage can create big swings in income. I called the company but got a mailbox message. I think it is a downgrade by Moodys who had them on negative watch. I bought at 28 so I am way down. They keep taking more writedowns on their mortgage business . I thought they were through but evidently not. Their bonds are not being sold for a B/R condition. Nothing to do but hold on. Rich

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