I don't know who the buyers are but I can say it is definitely not retail. The ASK were H U G E in the last two days. Like more than 500 K shares. No retail can absorb that.
My theory was that these shares on the ASK was put there to scare retail into selling. Some did, but the the ASK (PPS wise) kept on going higher rather than selling off when these huge ASK popped up.
Anyhow, with those huge ASKs, we are now about 50% up. Today, CIT-A is up 10% plus.
As you know, retail is always the last to know, but if history repeats itself, CIT Group will convert some debt and preferreds to common. Institutions/Hedge Funds may have already taken their position or in the process.
As for BAC taking a position in common, depending on their strategy, they may be long term holders. In the end, CIT Group common will appreciate. For people like us, we want the quick money from the conversion from preferreds to common. Wait a couple of months and find the progress to stability on CIT Group then come back and invest in common for the long term after the dip/sell off in commons.
BTW, I do no claim to know what will happen, but only speculating here based on history of others that have taken the same route in this financially distressed environment. Citi Group, Citizens Republic, etc.
Good luck to all and may we all make $$$.
IMO
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