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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: rllee who wrote (30397)	3/20/2008 11:09:06 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78653

CIT - Would long CIT-PA but short CIT common be a good play here? That's certainly one way to play it. There is also another prefered (mandatory convertible) CIT-PZ which will convert at 0.71X per preferred or less if the stock is above a certain threshold) which may be better suited. Also I think a straight buy of CIT-XX is reasonable, considering that those would recover some value even in case of a bankruptcy. Both are better risk reward than the common stock, IMO. I am glad i dodged this bullet and sell my stock a while ago. I never thought it would get this far in August 2007, but here we are CIT diverse funding sources are down to 1 -drawing down the entire credit lines. that said, I don't think they are likely to default but they are now shut out of commercial paper (nobody with a sane mind would buy it_, and securitization will be much more difficult. They will have to sell assets down to stay afloat and/or raise new capital.