Mcgraw Hill Companies (MHP)

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McGraw-Hill to Vend Broadcast Arm

By: Zacks Equity Research: "The McGraw-Hill Companies Inc. (MHP - Analyst Report) has decided to dispose its Broadcasting Group with an aim to re-evaluate its portfolio of businesses and concentrate more on global brands, and thereby enhance shareholder value through proper capital allocation. The company recently hired Morgan Stanley (MS - Analyst Report) for advice on the divestiture process." AND "McGraw-Hill, a publisher and provider of financial information and media services, is also assessing general and administrative expenses to run all its divisions smoothly."

What the above quotes are saying is that MHP has hit the ICEBERG and has turned the pumps on and are making ready the life boats. The ICEBERG is the collapsing economy and the hoards of either angry students that are refusing to buy the exorbitant priced text books or just can not afford the overall high price of college. Students are finally standing up and saying we have had enough and the professors that are in bed with the publishing companies and the publishing companies themselves can take their expensive text books and shove them.

This same type of social/economic movement will happen with the MHP's business information divisions when enough of the investment public have lost the shirts off their backs in collapsing markets. Who needs business information data when you have no money to invest and the quality of the information is suspect.

The dumping of the Broadcasting Group and Business Week Magazine before it, is just the beginning of the meat axe chopping off the companies appendages. I would dump the stock now and buy it back when I do some where below $1.00 when the company has shrunk back to it's former size for survival in the Greatest Depression we are just beginning to enter. For more information read the rest of my post on the major stock message boards and read my free informative site http://fallofthehouseofmcgrawhill.com/.