Why Westell Technologies, Inc. Shares Jumped (Again)

Is Westell's jump meaningful? Or just another movement?

Feb 4, 2014 at 9:04PM

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 Westell Technologies, (NASDAQ:WSTL) jumped more than 10% during Tuesday's intraday trading, then settled to close up around 5% after the company beat expectations with its latest quarterly report.

So what: Remember, shares of Westell also jumped last Thursday after analysts at Cowen listed the company in a new research report as a potential beneficiary of higher-than-expected 2014 capital expenditures budgets reported by several of Westell's large communications customers.

Curiously enough, Westell's quarterly revenue came in at $25.2 million, or short of expectations for sales of $26.75 million. However, that translated to adjusted net income of $0.07 per share, compared with estimates that called for a breakeven quarter. 

Now what: Westell doesn't typically provide forward guidance, so it's hard to blame analysts for once again missing the mark. But hey, at least they were somewhere in the neighborhood this time, especially considering last quarter's blowout numbers resulted in the stock jumping by as much as 40% in a single day.

Nonetheless, while the results were solid, I still prefer more visibility from management in personally selecting my long-term investments. For now, and given the risk of being on the wrong end of such volatility going forward, that's why I have no qualms steering clear of Westell stock.

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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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