Yes, back when it was $2.90 it made me some real money. The buy and hold isn't where the money is at right now. Need to be a TRADER (Buy / Sell) and my newest and latest victim is LEA and DAN. Picking up 10,000 shares at a time when it's low and putting a .10 sell on it makes for some nice days.
CIT, eh? The whole financing industry is going to come roaring back one of these days as nothing is going to stop The Capitalist Machine forever.
The trick with such stocks is that the companies are going to have to survive the short term "crisis" long enough for the turnaround to take place. Many of them will, though, and the payoffs will be sweet for a buy and hold approach but it will take many months for the payoff to materialize. Perhaps buy, hold, and wait, wait, and wait some more is a better way to describe this.
I think a 500% payoff in 12 to 18 months is probably time well spent, though. The Market is going to love such stocks in the comming months. I do not know about CIT specifically, but there will be many bargains to find in this sector in the next several months. Some will pay off a bit and others will pay off BIG.
I like it. :)
I forgot to address one point your previous post. You mentioned the "nay-sayers hide out wishing they had and admit they were wrong."
At the end of the market day today, pull up a list of stocks that got clobbered (this will probably be a long list) and pull up a list of stocks that made a 50%, 100%, or higher profit. The stocks that got clobbered will represent stocks that one could have shorted and made a killing. The stocks that did great are stocks that you could have bought and sold and in doing so made a killing.
Hindsight is always 20/20, or so they say, and The Market has so many opportunities in so many places that you can not afford to dwell on The One that Got Away, because the emotions of this can cloud your judgement in the next trade where you may find yourself needing it more than ever. Missed an opportunity? Fine. Get past it, there will be others.
The "nay-sayers" would suggest that the risk of a loss is far greater here than the risk of missing an opporutnity for a profit. A missed opportunity does not take money out of one's pocket, after all :)
Wait a minute. You have been buying since before Chapter 11, continue to buy now, and you are not yet sure if you were right or wrong?
Here is a bit of news . . . you were wrong.
Wrong does not have to equall "doomed" though. If you play this right, you could be wrong about everything that you have done to this point and still avoid loosing everything.
If you smell a rally, try to get some of your money back by selling into the strength. The price will almost certainly pull back, and fast. If you still think that Ricardo is going to make an offer, then you will have more cash and you can buy back your shares and still have cash remaing to add to your position. If you reach the end of the rally and instead decide that you have taken as big a bite out of your losses as possible and the remaing losses are better made up for in other deals, then you will have this option too.
Do not make the mistake of locking into a single plan. Flexibility and adaptability will prevent the Darwinian Market Beast from eating you and your lunch. Do not stick with a plan just because it seemed like a great idea four weeks ago if this no longer seems to be the case.
Good luck, though, with whatever you decide to do. I saw some trades go through at $0.12 were some of these your orders getting filled?
I went to the following url, http://tinyurl.com/7cf9qr , and the short interest in CCTYQ continues to be reported at aproximately 15,000,000 shares.
I have to admit that this seems like way too many shares short under the current circumstances, but certianly nowhere near enough to wipe out the company. 9% is simply not enough for that. How accurate is this data? I will admit ignorance on this point, as I have never bothered to even check the short interest in Chapter 11 stocks on the OTCBB. It is a pointless excercise, regardless, but now that my curiosity is aroused I absolutely have to know.
The reason that 15,000,000 shares seems like too many to me is the motivation for selling short. Short sellers like to make money as much as the next guy, but like everyone else they do not like to take unnecessary risks.
Taking CCTYQ shares short right now presents a proposition that involves a huge risk and a corresponding potential for reward that does not justify such risk. CCTYQ shares will go to zero, eventually, by process in the court or by dilution with new shares and new financing. In the mean time, CCTYQ could rise to $0.30 or even $0.50 (however briefly) on the slightest hint of good news. This good news could be a statement that applies to the "new" company that emerges from bankruptcy, and would have little or any real effect on the value of current shares but could have a huge effect on the PRICE of those shares. Value and Price are two very different animals. Value is fundamental and is unnafected by psychology. Price is based on fundementals, but is highly influenced by fear and greed.
Greed and a smirky sense of "I'm so clever" could drive legions of the witless to pounce on CCTYQ shares at the slightest hint of good news. I am not speaking of or insulting people on this board who are long and have a strategy and understand the potential risks, I am speaking of people who know that CCTYQ filed bankruptcy and took a beating but have not looked beyond that fact. More casual observers will see good news as an opportunity to "load up the truck" and buy, creating a feeding frenzy. The price increase will bring in more speculators, driving the price even higher. It then becomes a game of musical chairs as the Ask suddenly gets larger than the Bid and the price spirals downward until it is even lower than it had been before the news. You do not want to be without a chair when the music stops on this one, because The End is going to be ugly.
With this in mind, if you are someone who has a large block of shares and have seen the error of this do not be afraid to sell into strength and recoup some losses. If such a rally materializes, there is real money to be made. If you still think that Ricardo is going to offer $2.00 per share in the next couple of weeks then keep some of your position but sell some of it into the rally as a hedge against the possibility that you are wrong about this.
Hitting a Home Run is a great feeling, we have all been there, but a walk, a bunt, and a single can also score a run so you have to take it where you can get it. Making a little here and a little there adds up to much more over time than the single Big Score no matter how tantalizing the Big Score can be.
Then you have the personal ethics of a three toed tree sloth.
This company adds no value at any level, they try to cheat everyone that walks in the door and they also repeatedly $hit all over their most productive employees. What's more CC hasn't made money across all four quarters of the fiscal year since 1998 either.
DIVX certainly didn't come from a vacuum, the whole CC corporate culture has always been about Snake Oil.
I was short this non-profit garbage from $24, before that I was short from $62 to $8 and in my opinion you are lower than whale$hit for promoting this soon-to-be erased turd stock to anyone at all.
I hope that your former friends piss all over you when the doors get chained shut here next year.
Pathetic idiots like you and broken scam stocks like this one always tend to end up in the same corner sooner or later.
What is really the issue here? Some other merchant Walmart, Costco, new Best Buy stores, etc will pick up the demand for electronics. The people losing their seasonal and part time jobs can apply working at the stores that will benefit by Circuit City's closings.
There is no problem here. We all keep getting paid. Corporate is great. Pay checks are hefty. My personal retirement account and social security credits acrued each and every month rocks. So the shareholders make crap, we will just fire some more store lackies to keep our pay coming in. You fired retail runts that worked at the store level should have kept quiet and not put a spotlight on yourselfs. Especially if you are not some part time teenager.