I am not in Moody's at this time, but I wouldn't be a buyer here... I am waiting for low teens, then add more if it hits single digits. Still, it amazes me to see this thing holding up in light of the bad news and potential liability.
Either way, Moody's business won't be the same going forward. They will be much more regulated and the "collaboration" with the issuers who have paid them in the past will be much more tightly controlled.
My belief is that Moody's is being propped up right now so the big boys can get out. Likely the institutional investor is being drawn in to fill the void. After the big players are out, this will drop like a rock. That's been my experience... and I have been burned by this in the past.
I am not a big believer in conspiracy theories, but I do feel like the big players control the stock market.
The whole system is rigged. BO is doing Buffett a solid here by delaying the meeting so he can offload that big position he's sitting on. Then the House committee beats on MCO for a few days while Buffett pens a folksy paragraph for his annual report about how he got out of the way of this one.
Oh, please, your post is complete nonsense.
despite the alluring headlines, MCO is a solid well respected company.
The real culprits are the Investment Banks and Congress and the Issuers and the dumb ass bond buyers themselves.
Moodys business is strong, earnings will plow this stock back into the high 20's as the shorts cover once the exciting hearings go away.
The banks are just supposed to be in business to make money, the raters were supposed to be the watchdogs... they failed. They can't screw the banks anyway without making things worse...
Hence Moody's will take the blame. Moody's business was strong, but its about to fall victim to the fact that the armies of the unemployed need to see blood.
GL Sold to You
Congress and banks ex..ex..relied on the raters to properly RATE the paper. Sure they may have wanted it at a higher grade, All were greedy, but the raters can be blamed in full, esp if congress needs someone to throw under the bus for their constituents.
Congress and insures contemplating taking away interfered treatment. Hearings
Already some lawsuits
Insiders---Former RATERS-- are saying that MCO committed fraud...one saying they do not know how they can recover---basically rating the company a ZERO
Senator Jack Reed has introduced a bill that would make it easier for investors to sue credit agencies that recklessly fail to review key information in developing a rating. (Reporting by Rachelle Younglai; Editing by Julie Vorman, Lisa Von Ahn and Tim Dobbyn)