CIT Group, Inc. New Common (CIT)

[marayatano]

CIT-A, CIT-C, CIT-D (US Treasury) and CIT-Z.

The divy has been suspended. I sold all my preferreds that same morning with a nice multi-bagger.

The play I am looking at is CIT-A for max payout. If it follows the foot steps of Citibank/Citi Group, Citizens Republic, etc., I am looking at a minimum 8 or 9 bagger or max of a 10 bagger.


CIT Group has already stated that it will ask Bond holders to extend their maturity or have a conversion of debt to common.

If bond holders agree, I am speculating that CIT Group will ask holders of Preferred shares to tender for common stock. WHY? because why would bondholders agree to a debt exchange to common and leave a "junior" security in tact???? <---- IN MY OPINION, bond holders will put a condition that in order for bond holders to convert debt, then preferreds must also agree to conversion.

So, since we are at the same level as US Treasury preferreds, we will get the same treatment or similar.

NOTE: This a risky play. Do your own DD. Also, note, CIT may still file BK as a prepackaged BK.

This is strictly my opinion.