Why Container Store Group Inc Shares Plunged

Is this meaningful? Or just another movement?

Jan 8, 2014 at 2:44PM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of storage products retailer Container Store Group Inc (NYSE:TCS) plummeted 22% today after its quarterly results and outlook disappointed Wall Street.

So what: The stock has rallied nicely since its November IPO on high growth expectations, but the third-quarter results -- EPS of $0.11 on a revenue increase of just 7% -- coupled with downbeat sales guidance for Q4, is forcing analysts to quickly recalibrate their estimates. While the company continues to grow same-store sales and adjusted profit at a solid pace, today's results suggest that it isn't growing fast enough to justify its seemingly lofty forward P/E.

Now what: Management now sees full-year adjusted EPS of $0.40 on revenue of $754 million, versus the consensus of $0.38 and $756.2 million. "With 63 stores today, we have a long runway of growth ahead of us as we expand our store base to realize the 300+ store opportunity that we believe exists," Chairman and CEO Kip Tindell reassured investors. More important, with the stock now off more than 15% from its post-IPO highs, today's hiccup might be providing Fools with a great chance to buy into those long-term growth prospects. 

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A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

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