SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Paul Senior who wrote (29152)12/20/2007 12:51:25 PM
From: Paul Senior  Read Replies (2) of 72293
 
I'll up my CIT position a little.

Barron's has a Tueday article headlined "The CIT Value Trap"

"GFI analysts David Kelly and Chris Parkinson advised clients in a Monday advisory that CIT shares look cheap as they trade near the 52-week low, but that things are not what they seem.

The two analysts pointed out that Wall Street has lowered earnings estimates and thus the ongoing risks are not accurately reflected, which suggests a "high risk of a value trap."

"We would need to see a material tightening in CIT CDS spreads before turning positive on CIT shares," Kelly and Parkinson said.

Many options traders believe there is a strong correlation between CDS spreads and options volatility. Implied volatility is driven by put buying, and put prices would increase on credit concerns."

---
These guys can buy the stock when their spreads tighten materially. I'm buying a little more now on low p/bk.

finance.yahoo.com
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext