Why Shares of The McClatchy Company Popped

Is this meaningful? Or just another movement?

Mar 10, 2014 at 1:07PM

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 The McClatchy Company (NYSE:MNI) were rocketing higher today, gaining as much as 28% after a consortium it belongs to put up Cars.com for sale.

So what: McClatchy is one of five newspaper publishers belonging to the Classified Ventures consortium, which owns Cars.com, and the group is putting the website on the selling block for as much as $3 billion. McClatchy owns a 25.6% stake in the venture, meaning it stands to take home more than $750 million if Classified can find a buyer willing to shell out $3 billion. Last week, Classified announced it would sell another major asset, Apartments.com, for $585 million. So the joint venture will essentially be dismantled if the Cars.com sale goes through. 

Now what: McClatchy shares jumped 8% the day the Apartments.com deal was announced, and at a current market cap of $600 million, the cash infusion from a potential Cars.com sale would have a huge benefit. The market for e-commerce websites has been heating up lately as rival AutoTrader.com was recently valued at $7.2 billion in equity sale, and McClatchy has at least part ownership in a number of other web properties including Careerbuilder.com, Dealsaver.com, and Homefinder.com. If the Cars.com sales goes through, don't be surprised to see those other websites go on the trading block, a move that should send McClatchy shares up even higher.   

One other stock flying under the radar
Shares of McClatchy have soared lately as investors have started to see it as an asset play, and there's another hidden stock our chief investment officer likes. In fact, he's selected it as his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Jeremy Bowman 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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