Wealth Strategies: Go long Moody's - Investor Ubben
Wednesday, October 03, 2012 - 03:08
Oct 3 - Moody's is a good value buy with potential for much higher company earnings next year, says ValueAct Capital founder Jeffrey Ubben from the Value Investing Congress in New York.
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Go along Moody's so says Jeff club and CEO value act capital -- one point owns shares of Thomson Reuters. Jeff. Moody's in the ratings agency has been harshly criticized for missing the boat during the bubble all -- collect the stuff of movies. We've been invested for a year and a half or so. We viewed it always this kind of a plumbing in the capital markets that couldn't be ripped out. And we viewed as a very unique -- in the sense that it it's a currency. -- Moody's ratings and Moody's ratings will change across the capital. There's not many currencies out there if your currency. You earn excess returns. With companies like -- in the situation horses got do you litigation risk. Right. You know that's what we're now for five years removed from the from the event the bubble -- securitization. Bubble. I'm Moody's has been just for a couple years they were. Heavily investigated by the SEC. And Moody's inherently protected by the first and then because they're opinion -- their opinions mixes. And that's effective. And so the law requires you to prove fraud. And our position has been that the SEC span. Few years looking at every you know they could look and there is no fraud. And so. The standard protects them and they have a greater records so far. And they're really getting that down Nazi attack ends with regard for the litigation. And Jeff. What they see just not going how much it'd be -- and what will be channels that'll drive it. The company is gonna make. You know three bucks plus next year. What you haven't yet seen it flow through there and -- statement is. An -- cycle. And increase that's securitizations. CMBS market is starting to come around. We just don't know what's gonna happen when the residential securitization market. But they're gonna make three bucks basically. -- -- with big pieces of their. Of their revenue potential. Not yet kicking them. And so you know when you look at others should currencies. I think Gartner group as a currency days -- -- the the magic quadrant it allows software companies. To sell. And the studios because Gartner calls puts it in the right now as a quadrant. Turner has a twenty year when he TP. Moody's is thirteen so you know I think the further away you get from the event. Your intermittent and generated by improving cattle markets in transactions. Together with --
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