Way to go. It was a fun stock for me too. That scenario playing out caused me to became even more of a fan of FMR after their nearly single handed (institution wise) pull of that company's pps back up from the depths. After they bought and held to stabilize the price, they slowly started to hand it off to the other Fidelity funds when it got above 5 dollars (prospectuses needed it above 5 to acquire, required to dump if below 4 dollars). That was the most volatile stock I had ever seen for a company with 40,000 plus employees until FMR bought huge and held. FMR is into the common of CIT to the tune of 38 million shares plus and they also have preferred so they are a bit of my security blanket here through these troubled times. They would have bailed if it was a joke of an investment/trade. FMR is not bound by those well known mutual fund limits. They can invest in pink sheet and pretty much what ever they want to and when they've rescued an investment they hand it off to the regular dudes. I hope this is par for the course with CIT Group for FMR here. They also need to help big with the rescue because of other Fidelity funds that were caught in this CIT pps free fall.
2009-07-30 2009-05-31 N-Q Fidelity Advisor Series I-Balanced Fund Mixed-Asset Target Allocation Moderate Sold All -912,500 -100 % - %
2009-07-30 2009-05-31 N-Q Fidelity Concord Street Trust-Spartan International Index Fund Global Flex Port 893,049 New Holding 893,049 100 % - %
2009-07-30 2009-05-31 N-Q Fidelity Puritan Trust-Fidelity Balanced Fund Flexible Portfolio Sold All -7,750,009 -100 % - %
2009-07-30 2009-05-31 N-Q Fidelity Select Portfolios-Financial Services Portfolio Specialty & Misc 4,466,561 Added More 4,164,261 1377.52 % - %
2009-07-30 2009-05-31 N-Q Fidelity Select Portfolios-Home Finance Portfolio Financial Services Sold All -6,600 -100 % - %
2009-07-30 2009-05-31 N-Q Fidelity Select Portfolios-Industrials Portfolio Specialty & Misc 767,300 New Holding 767,300 100 %
2009-08-14 2009-06-30 13F-HR FMR Corp Institution 38,850,721 Added More 8,658,921 28.67 % - % <-------The part of Fidelity company that can be put into action in a risky and rescue type player mode if needed, if you ask me.
FMR also has some of these CIT-C preferred shares which did guarantee a 4 to 1 conversion of preferred into common. With respect to CIT-A, just because something was not convertible to common before does not mean it can't be made convertible to common in crisis situations with negotiations, see Citigroup's latest conversion of nonconvertible to common. Hoping for the same in CIT Group to justify paying half the price of CIT-C for CIT-A shares and getting a bigger bang for the buck. But it's a risk because there is absolutely no guarantee of conversion yet but they are a stick in the mud for the negotiations with the bond holders and can easily be used to help with the Fed's dictate for CIT Group to increase their capital ratio tangible common equity situation.
FMR ownership of CIT Group preferred shares:
CIT GROUP INC 8.75%PFD SER C 125581603 48652 2820850 SH DEFINED 1 5 0 0 2820850
CIT GROUP INC 8.75%PFD SER C 125581603 931 54000 SH DEFINED 7 54000 0 0
When you add up this 4 for 1 conversion of FMR's preferred with their recent increase of common to 38 million shares, you get about 50 million common shares. What a coincidence, they bought up to own 50 million common shares of Healthsouth when it was sub dollar range. A pattern? Who knows outside of FMR? I hope they hit a homerun here too, and not strike out.
I am hoping the discount of CIT-A of being half the price right now of CIT-C is simply because the original prospectus liquidation value for CIT-A shares was 25 dollars and CIT-C shares was 50 dollars per share. Hence, half the price.
Good luck.
JMHO DYODD
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