BUY CIT @ 1.12. 2009-Oct-01 07:19:48: Add to position on valuation. - SPM+Game Theory 67 LONG — Projected target price $1.55 (new) – – CIT Group Inc.  (CIT) operates as the holding company for CIT bank that provides commercial financing and leasing products, and management advisory services to the small and middle market companies worldwide. Its products principally include asset based loans; secured lines of credit; operating, capital, and leveraged leases; vendor finance programs; import and export financing; debtor-in-possession/turnaround financing; acquisition and expansion financing; letters of credit/trade acceptances structuring; and small business loans. CIT  services primarily comprise financial risk management; asset management and servicing; merger and acquisition advisory services; debt restructuring; credit protection; accounts receivable collection; debt underwriting and syndication; capital markets; and insurance services for small businesses and middle market customers. It serves clients in various industries, including transportation, particularly aerospace and rail, manufacturing, wholesaling, retailing, healthcare, communications, media and entertainment, and various service-related industries.  If struggling  CIT were to collapse it would be a “drastic mistake” as the small businesses that rely on it would have few alternate sources of funding. CIT is planning to offer its unsecured debt holders an option to either exchange their debt voluntarily or face a pre-packaged bankruptcy, sources close to the situation said on Wednesday. … CIT is negotiating in the shadow of bankruptcy. However, the probability appears remote and CIT represents a “special situation” play  with a +67  SPM rating.