Comments on: Glen Polls the Audience $CIT $TMI $EAR $CT

By: PSP Go

PSP Go — Mon, 30 Nov 2009 19:26:22 +0000

Hey more updates please

By: Ogden Lafaye

Ogden Lafaye — Fri, 06 Nov 2009 16:32:31 +0000

ONE quality hearing aid costs $5000…most people need TWO. My SO paid $10,000 recently for “state of the art” Prospects for EAR seem even greater than your outlook. A quality hearing aid(s) offered through AARP at a reasonable price would entice even me, a (hard of hearing) non-consumer.

By: House Hold Testing

House Hold Testing — Mon, 02 Nov 2009 03:37:36 +0000

She will be overly criticized for displaying emotions because she is a woman. She’s not supposed to show any kind of weakness or indicate that a woman has feelings.

By: House Hold Testing

House Hold Testing — Mon, 02 Nov 2009 03:36:47 +0000

Tina Fey pretty well set the gold standard for who Sarah Palin is because Palin didn’t even come out to GREET the public and take interviews until after her confidence inspiring SNL appearance.

By: Fernando Moraes

Fernando Moraes — Sun, 11 Oct 2009 03:17:56 +0000

Jason, you can calculate it based on the following facts (if exchange works):
1) 398M outstanding common shares right now.
2) Those shares will equal 2.5% of total share-count.
3) Current-preferred is worth 3.4B par value and will equal 3.5%.
4) 3.5/2.5 * 398 = shares-going-to-preferred
5) 3.4B / 25 = 136M 25-par segments
6) #4 / #5 = shares per 25-par (like CIT-A).

This is the worst case scenario if 100% of bondholders tender. Preferred gets 5% of company if the minimum tender. Redo math for that and you have your range.

With all this said, I no longer advocate buying the preferred. Look at the 6.1% junior subordinate debt instead. This debt series gets common, if the exchange works, at like $0.15-$0.18 per share compared to CIT-A getting it for like $0.28 per share…All at current market prices of course. The bond series will also be worth a heck of a lot more in the prepackaged BK since the preferred would be cancelled…

My current position are bonds and Nov/Jan puts (and calls I sold).

-Fernando

By: advalorem

advalorem — Wed, 07 Oct 2009 21:52:57 +0000

Great posts, ideas. Pimco, Baupost are out on the CIT bond resturcturing. Goldman gets $1b if CIT goes bust.

That’s tough love on CIT.

By: Jason

Jason — Tue, 06 Oct 2009 00:33:43 +0000

Where do you get the idea of preferred A share converting to 4.4 shares of common in the case of exchange? I can’t find it anywhere on the filing.

By: Fernando Moraes

Fernando Moraes — Mon, 05 Oct 2009 18:26:11 +0000

Thats correct, in the pre-packaged reorganization or BK scenario, the preferred will go to a value of 0. Thats why you also sell calls and buy puts, so although the PRF position goes to 0 your hedge goes way up.

If the exchange happens, the PRF becomes common and you use those shares to cover the puts/calls.

-Fernando

By: Glen Bradford

Glen Bradford — Sun, 04 Oct 2009 21:46:04 +0000

Preferred Stock, Series A, B, C and D
Not Solicited in the Offers (4) No Recovery

so, i’m questioning the validity of the CIT deal. it looks like with the plan of reorganization, the preferreds may get shafted.

http://www.pinksheets.com/edgar/GetFilingHtml?FilingID=6824127
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