Moelis & Co- The Return to the 90’s

Recommendation: Buy Moelis & Co when it IPO’s

Analysis: Two recent stories of interest out of today’s papers. Centerview Partners with ex Morgan Stanley alumnus and the expansion of Ken Moelis company Moelis & Co signals the return to the small and prestige investment banks of the 1990’s; think Hambrecht & Quist, Montgomery Securities, and Robertson Stephens etc. Now in addition to Centerview and Moelis, add Perella Weinberg, Greenhill, and the return of Lazard. I predict several of these smaller players will be bought out as was the case in the 1990’s. Although I do predict some may become public as in the case of Moelis & Co. Their return heralds the return of the broader market even as the Dow dropped over 300 points today. They rose with the dotcom era and now the era of social networking and other new technologies promises a new boom.

Prediction: Moelis & Co if public is any easy 30% to 50%  return in a year since IPO.

JDA

ArcSight

IPO ArcSight closed down at a discount today after IPOing at 9. It is a buy. Awards, solid product, growing security information.

AIG:BUY BUY BUY

AIG is a buy

AIG: BUY BUY BUY

AIG


AIG hit the lowest stock price in the last twenty years last week in a stroy that ran on Bloomberg.com attributing it to the fall out in the credit markets. It is currently at 46.30. At 8 times earnings the stock is a steal. 53 by end of 2008. 65 by end of 2009 or higher.-JDA

JDA

IPO:Initiate Systems

This one is a winner. Filed S-1 in November 2007. Waiting for the credit market to settle. Hopefully, it will IPO soon. Keys as to why it is a solid play are 1) main line of business is the complex and lucrative world of algorithms.  Also, given Goldman Sachs is the underwriter it has the approval of the best.-JDA