Early CIT Shorts Enjoy Their Day

Nov. 3.09 | About: CIT Group (CIT)

After filing for bankruptcy this weekend, CIT (NYSE:CIT) stock started trading again on Monday with the shares opening 64% lower. As the large short position (15%) indicates, this has been a bonanza for some short sellers, but only those who managed to establish a position before the stock borrowing fees became prohibitively high. CIT group has a DCBS score of 10, the maximum possible. We highlighted CIT earlier this year when we identified short selling by bond holders well in advance of the equity price decline.

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