CIT Finds Rough Current Above the Waterline

A year after re-emerging as a public company, CIT(CIT Quote) might've just stuck its head above water long enough to be picked off.

The stock ended trading Tuesday at $24.23, up 5% from its $23 a share initial offering price last July 3. The gain caps a three-month streak in which the New Jersey-based commercial lender has rallied more than 43%, ending a tumultuous year during which its $4.9 billion IPO looked like one of Wall Street's biggest duds.

Yet it may be too soon for investors to declare smooth sailing. For one thing, CIT still faces a potential big headache with its large aircraft leasing business, a profitable operation whose counterparts have recently caused trouble for other firms. Others, meanwhile, wonder how much longer the relatively small company can expect to compete with much larger lenders.

CIAin't Kidding

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