Why Zogenix Inc. Shares Swooned

Zogenix shares falter after the company reports disappointing fourth-quarter results. Find out what investors should really have their eyes on instead.

Mar 6, 2014 at 2:31PM

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 Zogenix (NASDAQ:ZGNX), a biopharmaceutical company focused on developing therapies to treat central nervous system disorders and pain, dipped by as much as 13% after the company reported worse than expected fourth-quarter results after the closing bell last night.

So what: For the quarter, Zogenix reported a modest increase in revenue to $9.9 million, from $9.5 million in the year-ago period. Sumavel DosePro, the company's FDA-approved rapid-acting migraine medication, provided $9 million in revenue, with service and other revenue accounting for the other $0.9 million. The company's adjusted net loss shrunk on an earnings-per-share basis to $0.13 from $0.16 due to more shares now outstanding, but actually delivered a widening in its net loss of 4% compared to this quarter last year. By comparison, Wall Street had expected a narrower quarterly loss of just $0.09 per share.

Now what: These results were pretty much par for the course as Sumavel DosePro sales growth has been unimpressive for multiple quarters now. The real allure for Zogenix comes from Zohydro ER, its severe pain therapy that was approved in October and first made available in select pharmacies this week. The Food and Drug Administration is quite fickle with severe pain med approvals, so this was a bit of a surprise that could go a long way to getting Zogenix toward profitability. If all goes well, Zogenix may be profitable by 2015, but given that its shares have vaulted higher by more than 200% since September, much of that optimism may already be baked into the share price.

Zogenix shares have soared over the past year, but even it may struggle to keep up with this top stock in 2014
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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.

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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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