MC: Adding Moelis to Investing Ideas (Short Side)

01/11/18 11:34AM EST

Below is a brief note from CEO Keith McCullough on why we're adding Moelis (MC) to the short side of Investing Ideas today:

No we didn't issue SELL signals at yesterday's US stock market lows. That's when we sent you buy/cover signals. The #process is designed to fade the direction of the market and help you make better decisions than chasing price emotionally.

Just because I wasn't sending out sell signals doesn't mean I don't have SELL Ideas!

One of our newest SELL ideas in a sector that has been ripping higher with rates this week (Financials) is Moelis (MC). Moelis himself has been selling stock and the short interest here is low.

Here's an excerpt from Jonathan Casteleyn's latest Institutional Research note on MC:

"Moelis stands most at risk from an activity decline in its upcoming 4th quarter report. The firm was involved in just 36 assignments worth $38.7 billion this past quarter, essentially flat compared to the 39 deals worth $38.8 billion completed in 3Q17. Most importantly, having completed 52 deals totaling $68.5 billion in 4Q16, MC is set to record the largest year-over-year decline in the M&A subgroup."

Sell on green,

© 2020 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.