Why Receptos Inc. Shares Briefly Popped

Receptos shares jump following the company's fourth-quarter earnings report. Here's what investors should really have their eyes on.

Mar 6, 2014 at 4:15PM

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 Receptos (NASDAQ:RCPT), a clinical-stage biopharmaceutical company focused on developing therapies to treat immune disorders, briefly popped as much as 11% following its fourth-quarter earnings report after the closing bell last night, but are now up a more modest 3%.

So what: For the quarter, Receptos reported $773,000 in revenue, primarily from amortized milestone payments, and a net loss of $15.2 million, or $0.86 per share, which is significantly larger than the $4.5 million loss reported in the year-ago quarter. However, this loss of $0.86 met expectations, which is a nice change after Receptos had reported three straight quarterly losses that were much wider than expectations. The other major quarterly highlight includes the initiation of patient enrollment in a phase 3 trial involving RPC1063 in relapsing multiple sclerosis.

Now what: As you might expect with clinical-stage biotechs, their earnings reports are often non-events, and just a reason for management to further showcase a company's pipeline development. In this case, it appears that investors were pleased that Receptos' loss didn't balloon past the Street's expectations, and that it completed a sizable share offering in January which should give it ample cash to conduct its clinical research for quite some time. As for me, I'd much rather wait for the concrete data set to be released in mid-2014 surrounding RPC1063 than chase Receptos blindly higher at these levels.

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Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

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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.

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Everything else is details. 

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