CIT - Opportunity?

[apcroskfo]

I'm still a noob, but have been watching this and have a question. This is NOT a recommendation to buy!

They're basically on the brink - debt swap or pre-packaged bankrupcy, decision made today. Does this mean they're toast, or is it a crazy huge risk with a possibly good upside?

[Arthurdelt]

This is what I would call a lottery play, and can best be played with options. I am not playing, as I think their days are numbered, but if I did think they had a chance, I would look at the options to play it.

[ArnulfoQui]

I am woundering the same thing as SWFLMike. I made a nice gain when I sold on tuesday, so to reinvest or not. Is this bank going away or will it pull through.

Anyone else rolling the dice on this one?

[Attaxargo]

Tempting but no for me :frown:

[Asuqytrau]

This one got me - my first real loss, though we're not talking huge amounts here. Thank goodness for me being rather conservative...

I'd been watching it early in the week, saw it run, and when it took a dive, I noticed that it looked like it got oversold pretty hard. Going off rough numbers, I think it was floating around 1.60 before the run, then Wednesday it was in the 1.40s. I thought for sure it would settle back at 1.60, so I picked up 1000 shares. The first story I saw that mentioned the bankruptcy was posted at 3:52 PM - that's when I realised I'd bought an anchor. I'd bought in at 1.41, sold at 1.20, and it closed at 1.06.