Moody's Slide Continues; Day 2 (MCO)

Posted in General 
May 22nd, 2008

Moody’s Corp. (NYSE: MCO) are getting slammed again for a second day.  This is a day after the Financial Times alleged that the ratings agency didn’t fix problems that led to it giving Triple-A ratings to many debt securities.  Investors understand the ramifications here.

The realm of lawsuits and the additional credibility gap could further hit the company, and its reputation for ratings is not exactly the highest right now.

Shares fell over 15% on Wednesday to $36.91 on about 9-times normal trading volume.  The stock is down another 6% today on more than 4-times normal volume to $34.65.

Its 52-week trading range is $31.14 to $73.69.

A word of advice to those under question: Don’t buy your computers or use the same financial models that the Labor Department resells……

Jon Ogg

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