Unfortunately I hold some CIT stock, any idea what would happen, will it just go to 0? Is there still chance it goes back to $1 so that I can get rid of it?
Hope the restructuing works and sit on it? Might as well since you’re already underwater. On a side note I was reading the tombstone in the NYT this morning…
Irishgyy Wrote: ------------------------------------------------------- > Unfortunately I hold some CIT stock, any idea what > would happen, will it just go to 0? > Is there still chance it goes back to $1 so that I > can get rid of it? You will be better off by selling the stock at current mkt price. Though its not impossible for the stock to go back up to 1 but chances are minimal. I think the stock will hit 0.01 by the end of next week.
Yeah, you’re stock just turned into out-of-the-money call options. It’s up to you whether you want to hold or sell.
edgeraz Wrote: ------------------------------------------------------- > Irishgyy Wrote: > -------------------------------------------------- > ----- > > Unfortunately I hold some CIT stock, any idea > what > > would happen, will it just go to 0? > > Is there still chance it goes back to $1 so that > I > > can get rid of it? > > > You will be better off by selling the stock at > current mkt price. Though its not impossible for > the stock to go back up to 1 but chances are > minimal. I think the stock will hit 0.01 by the > end of next week. no chance. gm stock traded up over $1.50 while in bankruptcy. wamu and lehman have been in bankruptcy for over a year and both traded around $0.30 recently and both took months before hitting something as low as $0.02-$0.05. once in bankruptcy, there is no short selling so there is minimal downward pressure. but those who are short often buyback causing bankrupt stocks to trade-up naturally on speculation as well as short covering.
On a valutation basis, it is worhtless and when the plan is confirmed, it will actually be worthless. Unlike GM or Lehman, this process will be much quicker because it is a prepackaged bankruptcy. The GM and Lehman 363 sales were done quickly but there are other assets in the estate which have taken longer to liquidate so recovery to creditors is still being finalized. This won’t happen here. A prepackaged banruptcy can get done in as quick as 45 days. Not saying CIT will be 45 days but it can be done. I’m not a trader but I would get rid of this as soon as possible.
i’m not saying hold the stock, just that it won’t hit $0.01, or even $0.05, by friday