Monitor the Rating Agency Lawsuit
Over the past five days, shares in McGraw-Hill (MHP) have declined 22% and shares in Moody's (MCO) have slipped 13%. If you have missed the headlines, the U.S government has decided to sue Standard & Poor's (S&P), the rating agency that is wholly owned by McGraw Hill. As expected, the shares immediately dropped on the news.
Right now, it's far too early to gauge or even properly handicap what the possible outcomes are going to be. S&P has already prepared itself for a long, costly battle by hiring one of the top white-collar defense lawyers in the country. But we all know Mr. Market hates uncertainty, and I suspect that over the coming weeks -- and, perhaps, months -- the continued uncertainty will continue to anchor the shares. Such uncertainty often leads to equities being mispriced, which can lead to investment opportunities....356 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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