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

To: Terrapin who wrote (32064)	9/18/2008 1:35:16 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78686

Terrapin, I give my opinion; others can weigh in with theirs. CIT would be okay to buy at its now low price if we weren't in the unusual situation where investors may rightly assume the business models for almost all financial companies are at great risk. Who can buy CIT with confidence now, unless they know the inner workings or the company - it's financial responsibilities, risks, commitments, customer base, etc. I've bought the company when it was beat down before - but that was when their business itself took a hit -- not like now when the financial world seems to be collapsing. For me, I'd avoid the stock, seek opportunities elsewhere. DSWL a buy. Worth, imo, at least stated book value as an on-going concern (stock at about .5 bv now). I own stock, my last buys in Aug. @ $4.88. (Yet another losing position for me. Sigh.)

To: Terrapin who wrote (32064)	9/18/2008 11:02:03 PM
From: rich evans	Read Replies (1) \| Respond to of 78686

CIT is a victim of the credit crunch. It loans are tied to LIBOR and when libor goes way up, it hurts. Also when the credit market freezes, CIT can not get the funding it needs. So the CIT model as well as investment banking model is suspect. That said, CIT has funding until 2010 for all it commitments. It is out of the mortgage and student loan business basically and has an experienced group to make money in corporate midlevel financing, factoring, transportation leases, and vendor financing. But its earning power has gone way done to about 50 cents a share based on its earning assets and loan loss provisions. Also it efficiency ratios are too high and geared for a larger company. I would expect CIT to eventually return to a level of its tangible value per share which is about 14 dollars if the credit crunch subsidies. But it is subject to all the problems , scares and rumors in the finance industry. Look at GE as another example. It is very volatile as todays price action indicates. Rick