now that cit file for bankrupcy does it go straight to the otc tomorrow?

songcon answered 2 weeks ago …

It would take sometime for the NYSE to review and issue the delisting notification, a quick move only creates more damage for a compny that is in trouble time.

Regarding the common stock: The saying on Wall Street is buy on bad news, sell on good news. There is no reason for you to sell tomorrow, try to buy a few hundred shares (or at least on paper) in the first one hour of the market if you want to try the fun.

GM closd at $.75 on May 29, the Friday before GM file for bankruptcy, after the bell there was news that GM might file for bankruptcy either Sunday or Monday. On Monday the premarket sale of GM shares hit as low as $.27, and at the end of the day it closed at $.75, no change.

1-Jun-09 0.99 1.01 0.27 0.75 340,696,700 0.75
29-May-09 1.09 1.10 0.74 0.75 275,391,200 0.75
http://finance.yahoo.com/q/hp?s=MTLQQ.PK&a=0&b=2&c=1962&d= 10&e=2&f=2009&g=d&z=66&y=66
Here is the chart of GM from may 29 through Aug 28, 2009
[IMG]http://i36.tinypic.com/358dhkp.gif

Bad news on CIT is also bad news on other financial stocks such as Citicorp. In adddition to that there is a headline on the NY Times which says:
Can Citigroup Carry Its Own Weight?
This should an opportunity to look into Citicorp

If you want to study the price pattern of a big company that files for chapter 11, use Google to read the article related to the June 1, 2009 filing for GM, it should be very much the same for CIR, phrse such as: Bonholders will receicexx cents on the dollar, equity holders will receive nothing. But you see the price of GM still moving up and down in the trading market.

So, don't sell the shares on bad news, if you see the prices move up because people chase after the upticks, but the chapter 11 stock will have a zero value at the end.

Again, I just try to share some of my learnings about chapter 11 stock, I might be right and I might be wrong.

Take care,