CIT projections?

L

LyleDustin

Last week... While Faber was on CNBC preachin about how he's positive that CIT will file BK.. I decided to put about $400.00 on CIT @ .40 ... My question is where do you guys/gals see this thing goin in the ultra-near term.. I usually participate on the google boards but its rediculous how ignorant those people are. I know CIT is due to blow up here in a few hours, but just unsure as to where I should look to exit.. A key issue that I have is the fact that there is heavy short interest that is going to have to cover seeing as this thing will probably triple or better by EOD.... any coments?

Dustin Lyle
Rookie Trader
Account balance: $6,590
 
The proposal that is rumored right now is just a stop gap. CIT can not make moeny at libor +1000 so if they restucture outside of a BK equity should get diluted by a large multiple amount some of this is already priced in but it is hard to tell by how much. Sell a minimum your original investment (400 worth) and start taking profits on the rest on spikes.
 
Thanks for the insight! yep, first thing in the morning im gonna lock $600.00 worth, a 50% gain on my investment, and still ride 700 shares slowly dumpin them on the rise. CIT waited to announce the Deal as "official" til after hours, So im *hoping :eek: this thing still has some room to move..
 
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