Why Regis Corp. Shares Tumbled

Is this meaningful? Or just another movement?

Jan 27, 2014 at 6:56PM

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 thesis.

What: Shares of Regis Corp. (NYSE:RGS) were getting dumped today, falling as much as 14% and finishing down 10% after posting an underwhelming earnings report this morning.

So what: The hair-salon chain missed badly on both top and bottom lines, reporting a loss of $0.04 a share, below estimates of a $0.02-per-share profit, while revenues dropped 7.5% to $468.4 million, missing the consensus at $480.3 million. The drop in sales came almost entirely from negative organic growth as same-store sales fell 6.2%. CEO Dan Hanrahan seemed to say that the loss of sales came from a poor or slow execution of the company's restructuring plan, but he was confident that the company eventually "will realize increased growth and profitability throughout our entire organization."

Now what: With same-store sales falling more than 6%, I'm almost surprised that shares didn't fall further than they did. The parent of Supercuts and other chains explained that the company has been changing its point-of-sale system, its retail plan, and has reorganized its field structure, which includes moving from a branded to a geographic management structure. But with this quarter's report, the early verdict seems to be a fail, and the salon business is very competitive anyway. Analysts are expecting minimal growth for this borderline profitable company. Based on all that, it's hard to see a reason to invest here.

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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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