Pearson

[Horsey]

As I know a lot of people here hold PSON. Top current (22nd Feb 2017) thread on Reddit, top comment, discussing poor coding.

https://www.reddit.com/r/AskReddit/comm ... of_really/

"Pearson had an online ebook that cost $90, except students could use it free by changing the url from =false to =true.
College textbook companies are a massive joke."

"They also have software that is AWFUL.
They had some software we needed to use - painful describes the installation. A joke describes everything else.
Then... the users actually get used to it, and get upset when we try to get them to use a far superior product because it's different."

"Used to do College IT and yeah, horror stories about book publishers crappy software. Pearson definitely stands out as a leader in god awful products. Managed online learning software and sometimes the students would pay quite a lot for useless and sparse course add on content that were added onto their book purchase price."

[Minesadouble]

I heard several comments like this regarding Pearson.
I concluded that a business that was trying to sell product consumers could get for free was on a sticky wicket.
That and an unseemly amount of profit warnings suggested to me a lack of grip on the part of management.
I lost confidence and bailed.
Not very HYP, I know.

[Arborbridge]

OTOH: if it's that bad, the only way is up

But seriously, yes, I wished I had bailed out too. However, on the "anecdotals" I'm always a bit wary of customer reviews.
For one thing, you can't be sure they are genuine, and secondly, there are a lot of chumps around.

Have you ever read Amazon reviews on products hoping for elightenment? One usually ends up more confused than at the beginning. When I've bought a product despite awful reviews, I've found it works perfectly well and wondered which planet the complainants were living on. As I said: there are a lot of chumps about.

I'm must be one of them: I still wished I'd sold out!

[monabri]

It seems Pearson need to employ some junior hackers to prevent their content being stolen.

[toofast2live]

I think they need Arb as their investor relations PR guru!

[JohnnyCyclops]

But this stuff all sounds fixable, with sufficient management attention and technical skill. The issue with online and digital services is they will quite often be 'tested' in public, and iterated fast. The really measure is the organisation's agility to flex and adapt.

I'm not seeing anything in these posts that indicate a fundamental business model or management failure. That may still exist, but it's not driven by or driving technical shortcomings.

[toofast2live]

I'm not seeing anything in these posts that indicate a fundamental business model or management failure.

Well, nothing except the financial results, and missing results guidance communicated to analysts.

FWIW, Trustnet report that Lindsell and Train are both considering topping up their holdings, despite grovelling apologies for PSON share performance. Since they are bound to be closer to management than you and I, maybe the model and management are viable going forward.

[JohnnyCyclops]

I'm not seeing anything in these posts that indicate a fundamental business model or management failure.

Well, nothing except the financial results, and missing results guidance communicated to analysts.

FWIW, Trustnet report that Lindsell and Train are both considering topping up their holdings, despite grovelling apologies for PSON share performance. Since they are bound to be closer to management than you and I, maybe the model and management are viable going forward.

The point I inelegantly expressed is, with large cap businesses, given enough time and management effort/changes, there's a reasonable chance the relevant company pulls through. Whereas smaller enterprises might go to the wall or get bought up or broken up for parts.

[toofast2live]

IT manager Nick Train gives his excuses, sorry reasons, for still holding this dawg.

http://app.ft.com/content/8e0e203e-f9e1 ... d53499ed71

Maybe behind registration wall and the link is from my iPad app bu should be in the FT.

[Raptor]

IT manager Nick Train gives his excuses, sorry reasons, for still holding this dawg.

http://app.ft.com/content/8e0e203e-f9e1 ... d53499ed71

Maybe behind registration wall and the link is from my iPad app bu should be in the FT.

To avoid registration details, enter "nick train financial times pearson" as a search argument.

Raptor.

[Arborbridge]

Train, one of the longest-standing investors in Pearson, suggested the company could suspend its dividend for two years. This would save £800 million which it could use to increase investment in its online business and reduce debts, he said.

The point I inelegantly expressed is, with large cap businesses, given enough time and management effort/changes, there's a reasonable chance the relevant company pulls through.

(JC)

That makes it sound like a sell, unless you want to wait two-five years. Dorisians do nothing: others (Dodians, let's call them ) will be tempted to say "sell now and move on.


Sorry: I've just realise that in trying (and failing) to search for the FT article, I picked up one from Oct 29 2015 on citywire. Still relevant, though. Searching "nick train financial times pearson" doesn't do it for me - just brings up old articles.

[Arborbridge]

I found this:

http://citywire.co.uk/money/lindsell-tr ... er/a995036

[tjh290633]

In their results RNS Pearson. said that they would rebase their dividend from 2017 onwards. One assumes that Train made his comments before the results came out.

Which just goes to show, he knows no more than the rest of us. That includes how the dividend will be rebased.

TJH

[UncleEbenezer]

If some part of your portfolio is taking a Buffetting, maybe it's time to consider buying when others are fearful.

[Arborbridge]

In their results RNS Pearson. said that they would rebase their dividend from 2017 onwards. One assumes that Train made his comments before the results came out.

Which just goes to show, he knows no more than the rest of us. That includes how the dividend will be rebased.

TJH

Nick Train made the comment in October 2015, I believe, and it was a suggestion from him about what they should do. It looks like they agreed with him, and did it.

[tjh290633]

Nick Train made the comment in October 2015, I believe, and it was a suggestion from him about what they should do. It looks like they agreed with him, and did it.

Rebasing the dividend is not the same as suspending it for two years.

I prefer news that comes from the horse's mouth, not the other end.

TJH

[ayshfm1]

I steered clear of Pearson, the move to digital bothered me, I know it inevitable but it looks a hard place to make money.

I'm reminded of the old adage of my youth

If I have a game and my friend has a game - how many games do we each have?

Looking at fixed digital content it would seem to be difficult to legislate for copywrite theft, especially given the companies demographic.

[AJC5001]

Dorisians do nothing: others (Dodians, let's call them ) will be tempted to say "sell now and move on.

If some HYPers are said to be 'pickering' when trying to decide on their next actions, surely those following Dod1010's approach must be Doddering.

Adrian

[Dod1010]

Dorisians do nothing: others (Dodians, let's call them ) will be tempted to say "sell now and move on.

If some HYPers are said to be 'pickering' when trying to decide on their next actions, surely those following Dod1010's approach must be Doddering.

Adrian

Well I am pretty ancient but not quite doddering yet, but thanks for the thought.

Dod

[Arborbridge]

TJH,

Rebasing the dividend is not the same as suspending it for two years.

I prefer news that comes from the horse's mouth, not the other end.

TJH

Quite, but I wasn't giving this as news only quoting what Nick Train had suggested.

Which just goes to show, he knows no more than the rest of us

I don't suppose Nick Train knew the dividend would be cut, but the point I made was that his remarks I quoted about suggesting slashing the dividend were made before the event. He was ahead of the game in that respect and presumably approves of the board's actions - though I'm sure he would have preferred a cut to a suspension! Interestingly, he thought it was a necessary action, but still didn't feel it right to sell the shares. Bloody-mindedness, or justifiable faith in the company? It'll take a few years to find out.