With shares of Jeffries Group (NYSE:JEF) trading at around $17.81 is JEF an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
C = Catalyst for the Stock’s Movement
It has been a great year for Jeffries Group. This company was part of the bailout package for Knight Capital (NYSE:KCG), which has paid off handsomely thus far (and there is even more potential,) Leucadia (NYSE:LUK) will finalize its purchase of the company in early 2013 where shareholders will receive .81 of a share of Leucadia for every share they own, and the stock is up over 45%.
Jeffries Group is not a stock you want to bet against right now. If Knight Capital is acquired, then Jeffries Group will benefit. In regards to the Leucadia deal, this will lead to a $9 billion company. They will be involved in everything you can think of, from energy production facilities to medical product developers to hotels and casinos.
Catalysts are critical to discovering winning stocks. Check out our newest CHEAT SHEET stock picks now.
There are still fears of exposure to the European Debt Crisis, but that’s the case for any company with exposure in Europe right now, and you can’t live in complete fear all the time. In the long run, the best companies with the most strategic positions will excel. Now let’s take a look at some numbers.