Why Sprint Might Slip in 2014

Does this analyst make a good case? Or is it just more noise from Wall Street?

Jan 9, 2014 at 9:45AM

While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of Sprint (NYSE:S) slipped 2% this morning after Deutsche Bank downgraded the telecom giant from buy to hold.

So what: Despite the downgrade, analyst Brett Feldman raised his price target to $9.25 (from $8.50), representing about 6% worth of downside to yesterday's close. While Feldman remains bullish on Sprint's long-term prospects, he believes that the stock's recent run, coupled with short-term M&A uncertainty, offers investors a good chance to take some money off the table.

Now what: According to Deutsche, Sprint's near-term risk/reward trade-off is unattractive at this point. "[W]e believe the shares now reflect both a potential ramp in EBITDA in '14-'15 from Network Vision cost savings and some of the potential upside to longer term numbers," noted Deutsche. "In our view, it is too soon to increase estimates, especially in light of the shifting competitive environment, or to pay for potential synergies from a deal with TMUS, which Sprint may not pursue near term and which would likely face stiff pushback from the regulators if it does." With Sprint shares still up about 80% from their 52-week highs, it's tough to disagree with Deutsche's cautious stance.

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Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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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