Small Cap Stock Picks – CIT Takes us for a Wild Ride! RODM Keeps on Truckin
Sep 29, 2009 Small Cap Stock Picks
It was somewhat of a hectic and stressful day as a trader which started out solid, ended up gettin worse, but as always i usually come through in the end on top. Our position in RODM which i bought for the Black Service portfolio yesterday @ 5.90 continued its run up today to close the session @ 6.38 after yesterdays breakout. This chart is looking primed for continuation as the lack luster market hasn’t seemed to phase the inner bull in this lad.
Small Cap Stock Pick – RODM
Small Cap Stock Pick – CIT
John Paulson mulls CIT and IndyMac merger: report
- On Tuesday September 29, 2009, 5:59 am
(Reuters) – Hedge fund manager John Paulson is considering merging troubled U.S. finance company CIT Group (NYSE:CIT – News) with failed mortgage lender IndyMac Federal Bank (Other OTC:IDMCQ.PK – News), the New York Post said, citing people familiar with the matter.
According to the paper, the merger, a plan floated by a number of CIT’s creditors including Paulson, is not part of any formal discussions between CIT and IndyMac.
The New York Post also said the plan of merger was one of several being discussed.
Paulson was part of the consortium that purchased IndyMac from the Federal Deposit Insurance Corp earlier in the year.
A merger between the two banks would diversify IndyMac’s portfolio from mortgages to commercial loans, since the CIT Group is one of the largest lenders to small and mid-sized businesses in the U.S, the paper added.
Representatives of CIT Group and John Paulson could not immediately be reached for comment outside regular U.S. business hours………………………………………………..
CIT really was a gut rencher today. This stock was hot on the move this morning after rumors of a possible merger with indymac were released and this was breaking out above an absolutely stunning ascending triangle pattern where i alerted the Black Service crew that i took a long position @ 1.87. Things were looking awesome as this was raging on volume headed towards 2 and continuing the breakout.
Then we got hit with this news and the stock rapidly sold off where i ended up selling for a loss as this looked like a complete fasle rumor thus a false breakout:
“CIT Group: Source: Paulson NOT In Talks To Merge CIT And Indymac — The Business Insider (1.81 +0.14) Joun Paulson is in no talks whatsoever to orchestrate a merger between CIT and IndyMac, a source close to the situation tells The Business Insider…”
But the rumors are still in play and the chart rallied once again to breakout of an intraday chart pattern where i initiated a day trade @ 1.88. Then as CIT began breaking above $2/share i knew it was on and i alerted the Black Service crew that i bought another position for the portfolio @ 2.05. CIT exploded into the close ending the day @ 2.20 where i’m holding this position over night. I took some big profits with my day trade and sold @ 2.18 from 1.88.
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