CIT whats your gamble?

[Rat Fink]

Masive volume Friday. Anything prior to Friday is just history, unless you own this pig. But for the rest of us, A constant rise on the price all day. An opening price and a new 52 week low of $1.13. The stock climed all day to close at $1.53. Not bad if you have a hair trigger.
Now the gamble, will Obama give these guys money or call Citi's bluff and let them file banruptcy?
Its all pending and not sure when the Gov will give Citi a nod or thumbs down. Word any day or miniute. Makes for a fun ride either way. Can't go much lower till word is given on stimulus $$$$. There is enough buyers to keep the price above Fridays low.
What a great time to play this one. If Obama doesn't give any word Monday got any guess as to where it will go. No one would take profits of just .25 cents. My gut is this is folks loading the boat waiting for bailout word. This is way more fun that Vegas!
I'll be in with 500 shares. Looking for sub $1.50.
The Volume is the tell tell sighn. These are buyers not sellers.
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=cit&sid=0&o_symb=cit&freq=7&time=3
These turds have my mortgage and been pretty cool. I'd love to see them make it!


Oh yea yall can welcome me to the forum any time you want.

[Rat Fink]

Well they pulled off an opening bottom and must have created intrest.
$1.5 close Friday with an opening Monday of $1.20...WOW! Volume is insane and recovering from the opening nicely. Enough buyers to push it back up interday.
Are these despiration sells or day traders? I wouldn't hold this long term.
What a gamble! Even if Obama gives em more TARP its still a pig.
If no news, Buy in the am with a low limit buy order and sell on an interday limit sell order. Yes money can be made here. Once news is made the play is over.
Question? Its too early to say but if it closes higher than the opening, what will the opening be tomorrow? Its going down! Wish I had the nerve to be a bottom feeder, but just don't know.

[Florida]

Welcome Rat Fink, must be slow in "Bama" right now as you sure have been doing a bunch of babbling on the forum over the past 2 days.

Now for CIT vs. C, don't get the 2 mixed up, CIT is not citi, and it is very unlikely that CIT has your mortgage, more likely that C has your mortgage.

As for the trade, there is not one, it is, as you said, a gamble at best, but at these levels, it almost like a non-expiring option. Or you could play it with a call option spread and limit your potential, (and most likely probable), loss.

Good luck playing with these sub $2 stocks, you will need it.

[Albert0373]

Let's see how the financials hold up tomorrow, with JPM's earnings BMO.

CIT Talks Fall Apart, Bankruptcy Filing Likely Friday
| 15 Jul 2009 | 10:40 PM ET

CIT Group, is likely to file for bankruptcy Friday, a source close to the company tells CNBC. The major lender to small-and mid-sized U.S. businesses had been surprised at the failure of bailout talks.

CIT is now pursuing a plan that is likely to include a chapter 11 filing on Friday.

"Discussions with government agencies have ceased," CIT said in a statement. "There is no appreciable likelihood of additional government support being provided over the near term."

The announcement followed last-ditch talks in which the Treasury Department had expressed concern about a worsening liquidity crunch at New York-based CIT, and indications that government aid would not put the lender on a path to recovery.

Treasury, in a later statement, said the government needed to keep the threshold high for exceptional aid to individual companies, adding that the United States had a powerful set of financing mechanisms to help restart overall credit markets.

Founded more than a century ago, CIT's problems mushroomed in recent years in the wake of Chief Executive Jeffrey Peek's decision to expand into potentially highly profitable but riskier areas such as subprime mortgages and student loans.

...

http://www.cnbc.com/id/31926789