Why Voxx International Shares Tumbled

Is this meaningful? Or just another movement?

Jan 9, 2014 at 8:36PM

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 VOXX International (NASDAQ:VOXX) were getting tuned out today, falling 18% today after posting disappointing guidance in its third-quarter earnings report.

So what: The maker of automotive entertainment products actually beat earnings estimates with a profit of $0.63 against expectations of $0.50, but revenue came up short. Sales ticked up 1.1%, to $245.8 million, below estimates of $250.5 million. CEO Pat Lavelle said the results were "tracking in line" with expectations, and said that the lowered guidance is a result of exiting certain product categories. Still, he added that "everything is materializing as expected." Management dropped its full-year revenue projection to $825-$830 million, below analyst expectations of $840 million.

Now what: Despite the revenue miss and lowered sales guidance, Voxx said it sees net income growth of 3%-4% next year, roughly in line with expectations. Considering profits are still moving in the right direction, and CEO Lavelle's explanation for the reduced sales guidance is accurate, today's sell-off may be exaggerated. Voxx now trades at a P/E of just 11 and, with auto sales improving, the company stands to benefit. Now may be a smart time to buy.

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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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