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Recs
Valuation - its trading below TBV. The new leadership is solid, John Thain is a winner. Core business of middle market industrial lending is a strong franchise.
Recs
On 6-20-2011, CIT Closed with a 10 point gain and immediately re-started @ below $40. Although a value stock based on fundamentals, CIT is a highly risky investment due to: the company's recent "re-emergence" from Bankruptcy and is in a low margin, credit industry lending to small businesses; CEO is same ex-Merril Lynch CEO that although was a high spender, did manage to sell ML to BoA just before the collapse of the entire financial industry and thus saved ML shareholders from total loss; CIT's near term survival ability is highly correlated to the economy's continued improvement. If there ae any hiccups, CIT will suffer and it could prove irreversible for its fortunes. @ $42.80, MC =$8.6B; P/E =19.50; P/B =0.95; P/E*P/B= 18.525 (VALUE!); DIV=0 ; Current = N/A ; LTD/EQ = 3.87 (TOO LEVERAGED); Stars = 2; S&P = ??
Recs
Naughty... but profitable
Recs
It shows no signs of slowing down right now
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Barclays Pick
Recs
Greenlight Capital
Recs
Crackpot company lead by a new and improved crackhead. Any more downward pressure in the market will send this one spiraling.
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Building an experimental portfolio based exclusively on the criteria of insider buys. There has also been considerable guru buying of CIT as well.
Recs
Only a few days out of bankruptcy. They have 10 billion less in debt but still have the largest small business consumer base in America. Warren Buffet and Leucadia wanted to purchase but they declined and went bankrupt instead and now they are back from the dead!
This is a vote that America's small business will be coming back in the next 5 years. Kmart rose tripple digits after bankruptcy and Kmart is dated and out of style. Money never goes out of style. CIT will be back!
Recs
Came out of bankruptcy today.
I got out with profit before common shares went dud!
Bought at market open with 12% gain at close.
Looks like they're going to get it right this time.
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