Author Topic: MCO - Moody's  (Read 38659 times)

Phaceliacapital

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Re: MCO - Moody's
« Reply #80 on: May 17, 2017, 01:15:54 AM »
Do they have a history of overpaying for assets?
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fisch777

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Re: MCO - Moody's
« Reply #81 on: May 17, 2017, 03:50:31 PM »
Why do you think they are bad allocators?  They have consistently avoided doing blockbuster deals, and stuck with sure thing of buying back stock and paying modest dividend.  Compare this to SPGI.  I would say the hurdle is pretty high for this team to do a major deal.  Obviously we shall see how it turns out...

no_free_lunch

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Re: MCO - Moody's
« Reply #82 on: May 17, 2017, 08:35:06 PM »
Jurgin, what are you basing your capital allocator analysis on?  From what I researched there are not a lot of acquisitions at all and those that have occurred are of small value relative to the company's size.  If anything they seem to have focused heavily on organic growth.

Jurgis

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Re: MCO - Moody's
« Reply #83 on: May 17, 2017, 08:43:00 PM »
Majority of the share repurchases are at elevated prices. Just look at 10+ year results, stock prices and stock repurchases.

I guess that's par for the course.  ::)

Edit: I agree that so far their acquisitions have been minor, so I can't say how good they are with them.

Also I agree that it's not that easy to manage cash for such a company. In best case, they'd be a sub of BRK and just sent the cash to uncle Warren. They have great business, but they may not have great reinvestment opportunities. Perhaps overpaying for share buybacks is not the worst way to go.

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« Last Edit: May 17, 2017, 10:14:07 PM by Jurgis »
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Liberty

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Re: MCO - Moody's
« Reply #84 on: August 31, 2017, 09:44:51 AM »
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DooDiligence

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Re: MCO - Moody's
« Reply #85 on: August 31, 2017, 09:57:35 AM »
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Jurgis

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Schwab711

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Re: MCO - Moody's
« Reply #88 on: January 02, 2019, 12:59:48 PM »
It's a nice article since I could never find what MCO charged for ratings. The gap between MCO and SPGI seems to be just 1/2 of 1bp and a study has shown the market values MCO ratings at an 8bp premium to S&P, when there's a discrepancy.

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"Most haystacks don't even have a needle." |  I'm on Twitter  | The importance of saying 'oops'