C.I.T. - Buy on bad news

[songcon]

I'll try to put a little money within the first hour of trading tomorrow.
When GM file for chapter 11, I brought the check to my broker early
in the morning but back office did not post it to my account until late
noon, and I missed the chance.

Now is another one, I hope

This is the chart of GM from May 29, the day before chapter 11 filing through Aug 28, 2009. Closing price on the day of chapter 11 filing was the same with that on May 29.

CIT Group files for US bankruptcy

The US lender, CIT Group, has filed for bankruptcy protection, after a debt-exchange offer to bondholders failed.

However, the majority of bondholders have agreed a reorganisation plan that will reduce CIT's debt by $10bn (£6bn) while allowing it to go on operating.

The group's operating subsidiaries, including CIT Bank, were not included in the bankruptcy filing in New York. 
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http://news.bbc.co.uk/2/hi/business/8337136.stm

 

[songcon]

11

 

[Hercules88]

did you get in for a quick trade? it did have a slight bounce the day after it declared bankruptcy.

company still has a long ways to go

 

[songcon]

did you get in for a quick trade? it did have a slight bounce the day after it declared bankruptcy.

company still has a long ways to go

I'm wounded right now. It has to be after the first hour since the premarket trades took out a lot of weak-hands, the market recover at the opening and go down again.

It's my new lesson