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Pearson, a UK-based education company, has seen EPS growth of 21% per year over three years. However, revenue and EBIT margins have remained flat. The company has a market capitalization of £6.7b and insiders own £20m worth of its stock, indicating buy-in and conviction in the business strategy. While Pearson has potential, investors should be cautious as loss-making companies can act like a sponge for capital.

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