Reply to Sean of Elsevier

[Joseph Esposito <espositoj@gmail.com>]

> I feel that it's worth pointing out that earnings per share (EPS) are
> pretty well independent of pricing policy.

JE:  This is an amazing statement.  It is simply not true. Yes, multiple
factors are involved in EPS, but pricing is absolutely a key component in
building the income statement.  Try lowering all your prices 30 percent
and still increasing EPS!  An accurate statement would be (and I think
this is increasingly true of Elsevier):  "A well-managed company has many
vehicles with which to increase EPS, of which increased pricing is but
one."  An even better one would be:  "Of the many ways of building EPS,
price increases are among the worst, as they tend to indicate a business
that has matured and for which the management has lost confidence in its
ability to add value through innovation."

-- 
Joe Esposito