The old commons are not what you think they are that is to say the commons that were traded under CITGQ.PK that was an enity used to raise cash now the old commons traded under the old commons that were traded on the New York I believe can be traded but I'm only speculating, I don't own any.
Now the commons traded under CITGQ.PK that were cancelled well we know that the company never went into chapter 11 cause I never found the fillings in the sec files only on there web site untill after the new CIT shares came out, but had you called your broker and asked him for the information on form 211 you would of found out they were not the same company, or if you had bought the certs had you purchased the shares, I never did and she is a little late now, so for me it is all speculation and I can't see why anyone would share the information or that you would belive it from this board.
The thing is the information is needed to figure out if CIT Group traded under CITGQ.PK or CIT Group traded under the New York exchange owns the capital under the retained earnings and the capital in the capital surplus and the shares held in the treasury stock.
The other thing is whether treasury stock is stock that an entity owns and whether capital surplus is the total capital the company ever made or whether it is capital that is surplus raised and not yet used and retained earnings is the total profit the company ever made or it is what it is earnings that have been retained. I will say that the internet is not always a reliable source of information from my experiance to find these things out.
If the CIT Group owns it all and those shares were cancelled and treasury stock did belong to the new CIT shares along with the retained earnings and capital surplus then you can say that the company could not of been in chapter 11 but then I have seen and been involved in a bankrubtsy that I losed every thing and they had a billion in cash the assets that were in the billions along with the liability that was even more and couldn't support the debt and this is very much what we had with CIT Group except like the Canadian banks the American federal goverment picks up the loss on the loans.
Now it is mentioned on the internet that they don't pick up the first 25% well then that is a big risk if not all the risk of carring a morgage for what a 3% spread there making there money on. I find that hard to believe but like Warren Buffet says in his books know the business your buying and how it works.
I don't know if this helped. I can go on as to why I think the CITGQ.PK was an entity to create capital and there is many risks in buying such a stock if other investors don't know what there doing and are too gready cause they will dilute them selfs and everyone down the food chain. Share holders in the dilution safty zone love that when that happens cause the capital will belong to them then it is to much to explain here but to say that is the position Warren Buffet seeked to get into with his investments and if it is a capital hungry company like Coke was well it made him and his investors very rich with no risk once your there.
Those are the charactors wanting you to buy more CITGQ.PK and we had lots of them on this board and that is why I didn't buy the stock. I didn't know were the dilution would end up but before the internet it was worth the risk not anymore.
