Why Logitech International Shares Leaped

Is this meaningful or just another movement?

Jan 23, 2014 at 12:59PM

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 Logitech International (NASDAQ:LOGI) soared 22% today after the computer accessories company's quarterly results and outlook topped Wall Street expectations.

So what: The stock has soared over the past year on improving fundamentals, and today's blowout third quarter -- adjusted earnings per share of $0.35 on revenue of $627.9 million versus the consensus of $0.22 and $534.4 million -- coupled with upbeat full-year guidance only reinforces that trend. In fact, Logitech's retail growth categories -- tablet accessories, audio, and PC gaming -- combined for a 62% surge in sales from the year-ago period, suggesting that management is investing in all the right places in order to return to profitable and rapid growth.

Now what: Management now sees full-year 2014 operating income of $120 million-$125 million on revenue of about $2.1 billion, up from its prior view of $100 million and $2 billion. "We're encouraged by the robust sales in our growth categories, as well as the success of our ongoing initiatives to improve profitability, which includes the earlier-than-expected return to profitability of LifeSize," said President and CEO Bracken Darrell. "We still have more work ahead, but our turnaround is on track as we continue to build a faster and more profitable Logitech." Of course, with the stock now up a whopping 160% over its 52-week lows and trading at a 30-plus forward P/E, much of that bullishness might already be baked into the price.

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Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Logitech International SA (USA). 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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