Surprise: 33% Moody's Rally Gives Short-Sellers Whiplash

Wha happened?

Moody’s (MCO), a stock that everyone and their mother was selling short, is up 33% in just the last few weeks, with about 4% coming just today.

Of course, everybody knows why guys like Bill Ackman and David Einhorn hate Moody’s: the business model is discredited, they face legal risks, and the government might reform the whole thing. But guess what: you can’t make money shosting a stock when everybody knows everything, and it may turn out that the business model changes very little.

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