Last year, the Corporate Executive Board Company (NYSE:CEB) made an acquisition, which it was very enthusiastic with. So far, all signs show that the acquisition isn't really adding anything to the company except for adding a badly managed business with ultra low margins to its holdings.
First, some background information: Corporate Executive Board is a consulting company that provides a variety of services to corporations and its clients include many Fortune 500 companies. The company has been growing at a pretty decent rate until recently and the investors have a lot of faith in the company, evidenced by its P/E ratio of 71. When companies reach maturity and their earnings nearly peak, they are expected to trade for...
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