When markets start to bet against a company, its fall can be very rapid. So, a philosopher (and trader), Jared Woodard, may be the most dangerous analyst that Reed Elsevier has ever encountered:
We regard the common stock as an implicit naked short put option because, while the upside potential from the publishing division is limited, the downside risk from any revolt by its customers (libraries), laborers (academics), or funders (governments) is not. Elsevier's substantial profit margin has persisted for as long as it has partly because of the lack of awareness and the apathy among stakeholders; those factors are changing. (From The Street).
Rather than lobbying politicians and rewarding well-placed academic insiders, companies like Reed Elsevier need to think more about building mutually rewarding relationship withs their free labor force, that is, us.
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