Professor Elam

You might think McGraw Hill would be happy to sell $150 textbooks, I guess not.  Seems structured finance revenue is not what M H had hoped for?  Structure finance revenue?  Apparently MH Has been playing the debt markets weary of that boring textbook market I guess.  The stock is down from the 70s to 38 bucks. One thing I have learned over the years, when a firm leaves its area of expertise, the results are usually that they and the stockholders get an expensive learning curve. Tend to what you know hot to do, just ask H and R Block which is suffering similar calamities.

Here is EY’s explanation of Structured Finance.   My guess is that MH tried to be a player in putting such deals together and ended up with worthless IOUs, now that would cause a 50% decline.

Well here is one clue, M H owns Standard and Poors, seems there will be les demand for bond ratings with less debt being issued, but that hardly explains the waterfall drop in MH stock price, read here.

Hmm, more on M H via Business Week Blues.

This stock has not declined 50% in six month because the phones are not ringing as often at S & P.  There is something else seriously wrong but I cannot locate what it is in these articles, take a look at the chart and you will see what I mean.