The 2010 Investment U Conference is underway! And even if you couldn't make it, now you can "bring home" more than 30 breakthrough presentations from the conference... Order the Deluxe MP3/Video Library for $99 to listen and view on your computer, or the Premier CD plus MP3/Video Library for $149 to listen to and view anywhere.
CIT Rescue Shows Credit Isn’t Dead
by The Investment U Research Team
We may not be out of the woods yet in terms of the global economic picture, but the news from CIT Group (NYSE: CIT) is a big indicator that things are getting (slightly) better.
CIT announced that it would take a $3 billion loan from their bondholders to save the company from bankruptcy. Shares had plummeted 80% in a crash last week that was eerily similar to Lehman Brothers and Bear Stearns.
Rescues like this are a part of normal market where at some point there are buyers for assets. When assets can fall well below their value without buyers stepping in – as we’ve seen over the past six months – its unusual and mean the markets aren’t operating efficiently.
CIT’s demise was almost certain, enough so that the S&P 500 had already replaced it with Red Hat (NYSE: RHT).
The fact that buyers had stepped in for the assets of CIT and that they were willing to risk that much in a last minute rescue shows that credit markets, while still shaky, are much more confident and stable.
It’s a far cry from the hot potato attitude we saw earlier this year with few player wanting to hold anything hot for long and, more often than not, dropping the “potato.”
Confidence is rising, and economic indicators like housing starts have booked some improvements. As traders and investors alike digest a more stable credit environment, these emotional up days will help us build a base for a new long leg up in the indices.
As an interesting aside, investors who bet that CIT wouldn’t go under and bought at .31 are looking at a 300% return in three days. Not a bad feat of contrarian investing.
Symbols mentioned in this article: CIT and RHT.
- Pull Back Continues Through Mixed News
- LNG Makes It A Really G’Day, Mate
- Money Markets With Negative Returns
|
The Company Set to Dominate a $60 Billion-a-Year Market
$60 billion is spent on cancer treatment in the U.S. - each year. And one company is poised to receive the lion's share of it.
The medical director at the Alta Bates Comprehensive Cancer Center says, "...possibly a third of our cancer patient population will soon be undergoing this [company's] treatment."
Another doctor at the University of Texas MD Anderson Cancer Center says he intends to treat over 1,000 patients a year with this technology.
Here's how you can claim your stake in the company before this cash infusion sends shares soaring.
Comments
**By submitting your comment you agree to adhere to our Comment Policy and Privacy Policy.Check out our selection of daily Investment Research:
![]() |
![]() |











Investment U RSS Feed