Why Office Depot Inc. Shares Dropped Today

Is this meaningful or just another movement?

Feb 25, 2014 at 12:25PM

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 Office Depot (NASDAQ:ODP) plunged 12% today after the office supply retailer's quarterly results and outlook disappointed Wall Street.

So what: Office Depot has rallied nicely over the past six months on its synergistic merger with OfficeMax, but today's fourth-quarter results -- adjusted loss of $0.03 per share on revenue of $3.5 billion -- coupled with downbeat guidance is forcing Mr. Market to quickly sober up. Although the company did increase its cost-savings estimate to more than $600 million by 2017, a 4.4% drop in North American same-store sales reignites much larger concerns about intensifying online and big-box competition.

Now what: Management now expects 2014 total company sales to be lower than 2013 pro forma combined sales. "For 2014, market trends are expected to remain challenging across our product lines and distribution channels," Office Depot cautioned in a statement. "The expense deleverage from lower sales is expected to offset some of the merger synergies and operating improvements anticipated during the year." Given the strong competitive and operational headwinds continuing to work against Office Depot, average investors would do well to remain on the sidelines.

More compelling ways to grow
They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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. 

Something big just happened

I don't know about you, but I always pay attention when one of the best growth investors in the world gives me a stock tip. Motley Fool co-founder David Gardner (whose growth-stock newsletter was rated #1 in the world by The Wall Street Journal)* and his brother, Motley Fool CEO Tom Gardner, just revealed two brand new stock recommendations moments ago. Together, they've tripled the stock market's return over 12+ years. And while timing isn't everything, the history of Tom and David's stock picks shows that it pays to get in early on their ideas.

Click here to be among the first people to hear about David and Tom's newest stock recommendations.

*"Look Who's on Top Now" appeared in The Wall Street Journal which references Hulbert's rankings of the best performing stock picking newsletters over a 5-year period from 2008-2013.

Compare Brokers