The PE at over 38 appears very high for this stage in the companies growth.
It is receiving regulatory ( FCA) pressure to reduce exit fees and speed up the transfer out process which is likely to reduce revenues significantly.
Additionally with its Neil Woodford recommendations in its Wealth 50 it has lost credibility with a number of clients and has fee exposure to the funds.
On a number of comparitive tables it is expensive although a number of its clients like its chatty in house investment magazine which serves as a marketting brochure for funds which is
by a long way its main revenue stream.
In the medium term competitive disruption will be a major source of downward revenue
pressure.
I would think it is a bit brave to short a stock like Hargreaves when markets are reasonably calm and generally going up. With a stock like Hargreaves it is very cyclical and you might be fighting against momentum until the markets next have a pull back.
Obviously your point on Woodford is very relevant and you can see what it did to the SP since the suspension started, but it is anyone's guess whether it has found a floor after this saga or has further to go.
