Mike the PhD

Greenhill And Co: Expect Continued Weakness

Greenhill and Company (NYSE:GHL) is an independent investment bank which is mainly in the business of providing advisory services on M&A transactions, restructurings and capital structure changes. The firm has a market cap of $1.3B, pays a dividend of 4.0% and reports earnings in about two weeks (July 17th). Despite the hefty dividend and the firm's prospects from benefiting from an improved economy over time, I think long GHL investors need to be looking for an opportunity to exit while short investors should consider taking a position.

Greenhill's basic problem right now is that global macro headwinds are so severe that despite public companies sitting on record amounts of cash, there just isn't much appetite for mergers or...

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