Why InterMune, Inc. Shares Popped

Is this meaningful or just another movement?

Jan 9, 2014 at 1:44PM

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 biotechnology company InterMune, Inc. (NASDAQ:ITMN) climbed 10% today after its preliminary Q4 results impressed Wall Street.

So what: InterMune shares have soared on strong global penetration of its franchise lung disease drug Esbriet, and the current-quarter outlook -- management expects Esbriet revenue growth of 212% in Q4 -- coupled with upbeat full-year guidance suggests that the trend is accelerating. So while a good portion of Esbriet's long-term prospects still depend on its approval in the U.S. (the drug initially rejected by the FDA in 2010), InterMune's surging global sales are prompting analysts to increase their valuation estimates.

Now what: InterMune now expects Esbriet revenue growth of 65% to 90% in 2014. "As we closed out 2013, we announced our progress and planned investments in our growing R&D pipeline that build on our commercial momentum with Esbriet, leverage our expertise in IPF and fibrosis and move us toward realizing our strategic vision of becoming a leader in specialty fibrotic diseases," said Chairman and CEO Dan Welch. Of course, with management still set to communicate top-line results from the U.S. ASCEND study in the second quarter of 2014, I wouldn't bet too much on that optimism just yet.

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Fool contributor Brian Pacampara has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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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