1. Hello Guest Do you know binary.com offers exclusive $20 No Deposit Bonus for FX Binary Point visitors? Click here to sign up

FTSE falls again with Pearson hit by downgrade

Discussion in 'Market News' started by Lily, Oct 27, 2015.

  1. Lily

    Lily Forum Member

    Joined:
    Aug 29, 2015
    Messages:
    7,354
    Likes Received:
    0
    Investors remain cautious ahead of US Federal Reserve meeting

    Leading shares are heading lower again, with Pearson one of the biggest losers so far.

    The educational publisher is down another 14.5p to 890.5p after slumping last week in the wake of a profit warning, which it blamed on a slowdown in enrolments to US colleges and weaker text book sales in South Africa. The company has been selling off divisions such as the Economist and the Financial Times to concentrate on its educational business but this is now currently struggling.

    Whilst we continue to see the potential for longer term upside for the group as it makes the digital migration, we believe these results demonstrate that it is no longer possible to have any meaningful conviction in the group’s short-medium term trading and as such we no longer believe its assets deserve a premium to its more stable professional publishing peers. As such, we downgrade the group to neutral.

    ValiRx takes a low-risk approach to cancer drug development: by outsourcing much of its drug development work to contract research organisations the company has flexibility in quickly terminating any struggling research programmes. The agreement with Pharmatest further supports this strategy. Moreover, the agreement is on favourable commercial terms to ValiRx, requiring no immediate payments to Pharmatest for providing services.

    Continue reading...
     

Share This Page