Pearson Share Discussion Threads

[redips2] 18/8/2016 12:06

X divi today .

[mike24] 18/8/2016 10:44

joe public being bombarded with advertising
on the box and the press, seems to be heading for a turn off,
what is genuine anymore?
chart says lower,
edit, share price should'nt fall for two consecutive days before going x-d, ???

what we need is Olympic type messages from financial editors
to take this country back to financial wealth, and not just for those in the city

Health education first, ignore EU rules, start process of a BAN on Microbeads

watch the Pharma's
nai

[garycook] 30/6/2016 04:08

Sold out of PSON,and put the proceeds into ITV

[garycook] 15/6/2016 10:16

Thanks Jambo

[garycook] 01/6/2016 03:47

PSON,Now moving North toward £9.

[garycook] 06/5/2016 07:19

Many thanks on your evaluation.

[bdroop] 06/5/2016 06:22

Hi, not a holder but been watching a long time as it drifted down ( and back up a bit ). I hold BMY, because of publishing mainly, rather than education. I watch Houghton Mifflin Harcourt a US stock too ( possibly got better catalysts ). I think PSON will sell the rest of Penguin at some point, but not sure what that will mean, still evaluating. I'm not convinced there's a catalyst here for a good while. Bmy feels much more nimble to gain from education copyright and changes in learning and the market. Not much help I realise. GL.

[garycook] 06/5/2016 02:43

Have any shareholders in PSON,got any comments or where they think PSON is going ?

[garycook] 27/2/2016 06:50

Things looking up then.Decent figures,which the Market liked.Dividend 52p.Yield 6.2% and the Company is looking good in the longer term.Looking to simplify the business and reduce cost.

[redips2] 26/2/2016 14:45

Group hug then !

[jackdon] 26/2/2016 14:06

I'm here too

[giammy85] 26/2/2016 13:54

hello hello

[redips2] 26/2/2016 09:19

I'm here .

[garycook] 26/2/2016 02:26

Are there any PSON Investors using ADVFN now ?

[market sniper3] 21/1/2016 16:30

PSON Pearson.......... media



Strong update today with cost cuttings, the market likes it. Chart shows positive divergence between the share price and the Momentum indicator, a bullish sign. (marked in red) channel developed and share price broken through it.

Broker Cazenove

The mid-point of the new guidance is c-9% below Bloomberg consensus operating profit and c-13% below consensus adj EPS, though we acknowledge that consensus was factoring in some elevated restructuring charges being included in EPS, and therefore ex restructuring charges guidance is further below consensus, in large part due to higher disposals.

We make the following changes to our estimates:

 2016E: We reduce our organic revenue growth across all divisions (to -3.7% for
the group), especially in North America (JPMe -5.2%) given the continued tough
trading environment and known testing contract losses. Our revenues are broadly
stable given recent US$ strength (we now assume £:$ 1.43). Our operating profit
falls from £681m to £586m with c-£20m the lower 2015 starting base, c-£40m
due to college book disposals, +£250m extra cost savings benefit, -£110m of
incentive compensation, and remainder due to underlying market conditions
(higher ed enrolment pressure, smaller K-12 adoption year etc) and other
operational factors (including cost base inflation net of FX, cost of back office
simplification and extra product amortisation). Our adj EPS falls -18% to 51.7p
as a result of the reduction in our EBITA, together with an increase in our
assumed tax rate (from 17.5% to 19%). We estimate 1.0x dividend cover
(assuming a flat 52p dividend) and 1.3x end 2016E Net Debt/EBITDA.

 2017E: The lower starting base of operating profit is broadly offset by the
additional £100m of cost savings expected. Again, our EPS reduces by slightly
more than the reduction in our operating profit due to a higher assumed tax rate.
We estimate 1.2x dividend coverage and 1.2x end 17E ND/EBITDA.

Last, we note that in 2018 we look for £800m of operating profit, which is slightly
higher than our previous estimate, and assumes that the company’s new products
have good operating leverage and that education market conditions have normalised.

[little beaker] 21/1/2016 09:18

The only thing increasing in that report is the dividend, meaning more money exiting the business and balance sheet weakness. Their game is to sell off the stake in Random House when the lock-in period expires, shore up the balance sheet with the cash and then hope the business recovers.

The 2016 forecast represents a 10-15% haircut to current consensus

[romi2nikki1] 16/12/2015 22:28

Exane a little more positive, see FT Alphaville 17.12.15

[salpara111] 14/12/2015 16:47

The FT was certainly not holding back today in an article about how they have massively jacked up the cost of academic ebooks and that some UK universities are refusing to buy any Pearson products as a result.
I would agree that there would appear to be more back news in the offing before the ship turns.

[little beaker] 14/12/2015 12:27

They have a long-term policy of 2x dividend cover. Assuming 2016 eps of 60p/share (and this is starting to look generous) they should cut to 30p.

I would actually argue lower than this to protect the balance sheet... there needs to be some recognition that the problems are structural not cyclical.

[little beaker] 14/12/2015 12:25

The main problem they have is their US business esp in assessments. PARCC is under fire from every direction politically from what I hear. I'd expect more bad news at results, and the market is reflecting this.

[bigbertie] 09/12/2015 21:49

FT Alphaville has negative stuff on PSON today. (They can discuss it now as PSON is no longer owner of FT). Basic problem is collapse of printed textbook market in US. I was considering a first purchase, but not now. However DYOR and good luck to all.

Edit. I know PSON are trying to beef up digital offering, but I'm sure the US competition will be doing this too.

[edwardt] 09/12/2015 13:51

valuation still way above peers - more pain to come me thinks.