Why Hanesbrands, Inc. Shares Popped

Is this meaningful or just another movement?

Jan 30, 2014 at 1:16PM

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 apparel company Hanesbrands (NYSE:HBI) rallied 10% today after its quarterly results and outlook blew out analyst expectations.

So what: The stock has soared over the past year on better-than-expected growth, and today's Q4 results -- adjusted EPS of $0.90 topped Wall Street by $0.08 on a revenue increase of 11% -- coupled with upbeat guidance only reinforce that momentum. In fact, the company ended 2013 with record revenue, EPS, and margins despite sluggish consumer spending, suggesting that it still has plenty of room to grow if and when the retail environment improves. 

Now what: Management now sees full-year 2014 EPS of $4.60-$4.80, well above the consensus of $4.46, on revenue of $5.1 billion. "We are raising our 2014 earnings guidance because we are increasingly confident that the momentum of our Innovate-to-Elevate strategy will deliver even better results," said Chairman and CEO Richard Noll. "The combination of our brand power, low-cost supply chain and innovation platforms is generating value and growth opportunities." Of course, with the stock now up 100% from its 52-week lows, I'd wait for some of the excitement to fade before buying into those prospects. 

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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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