Jefferies Group, Inc. (NYSE:JEF.DL)

CAPS Rating: No stars

The Company and its subsidiaries operate as a full-service global investment bank and institutional securities firm focused on growth and middle-market companies and their investors.

Recs

2
Player Avatar ALPHADividend (90.45) Submitted: 4/16/2009 1:55:07 AM : Underperform Start Price: $14.42 JEF.DL Score: +30.52

This company was individually screened to verify that during the boom years ('04-'08), their Balance Sheet expansion appeared excessive. The company operates within the FIRE (Financial Insurance Real Estate) sector of the economy which has been hot the past few decades, yet will run out of steam this coming decade. At some point or another, something's gotta give with this company. Income will start collapsing due to debt levels, and/or dividends will be slashed or removed, and/or significant losses will be realized. The chances of this being a growth company or having significant growth is heavily muted due to its dividend paying obligations at the current levels of today.
This company was personally found after using a screener.

initial google screen:
Market cap over 400M
Dividend yield over 1%
1 Year price change better than -35%
price to book 0.9 or higher
total debt/equity (recent qtr) greater than 50%
13 week price change greater than 17%

After individually screening for companies appearing overvalued due to Balance sheet expansion, it yielded the following stocks to short:
EVR NTRS PRSP JEF LAZ FIS RJF

For the heavy shorting within the FIRE sector as part of the above picks, I will offset them with the following longs relating to FIRE companies:
LONG on BX CVBF UTR

This will be the primary focus of this profile, to seek & obtain alpha from long/short dividend opportunities across various industries.
- ALPHADividend

Member Avatar rlung1 (< 20) Submitted: 11/3/2011 5:23:39 PM
Recs: 0

Do you feel the same way Nov 2011 ?

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