Houghton Mifflin Harcourt Company (HMHC, Financial) (HMHC - $1.81 – NASDAQ) develops, markets and sells textbooks and other instructional material for K-12 schools. Although Houghton’s shares lost more than two-thirds of their value during the rst quarter of 2020, the stock did not participate in the second-quarter U.S. equity rebound, nishing down 3.7% in Q2. e company had posted good performance in 2019, but early in 2020 guided to disappointing billings guidance. en, in the second quarter, the pandemic wreaked havoc not just on the broader economy but also on investors’ perceptions of upcoming state education spending on instructional materials. While no major delays have been announced, the market has remained skeptical about certain states’ adoptions of textbooks as planned. Houghton Mi in Harcourt management has continued to maintain that the company is in a position to provide instructional materials to educators, whether in textbook form or virtually.
From Keeley Asset Management Corp (Trades, Portfolio)'s Small-Mid Cap Value Fund second-quarter 2020 shareholder commentary.
