Why Shares of Home Inns & Hotels Management Inc. Got Dumped

Is this meaningful? Or just another movement?

Mar 13, 2014 at 7:05PM

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 Home Inns & Hotels Management (NASDAQ:HMIN) fell as much as 13%, and finished down 11% today after reporting fourth-quarter earnings last night.

So what: The Chinese motel-operator said revenue grew 9.8%, to $265.9 million, and earnings came in at 1.91 RMB versus estimates at 1.99 RMB. CEO David Sun acknowledged "the weak market environment" and "near term challenges in the macro environment," but said, "We continue to believe in the long-term growth prospects of China's travel and lodging industry." Sun also noted that Home Inns revenue growth has slowed due to a transition from a leasing and operating model to a franchise model, which should be a path to sustained profits.

Now what: Home Inns continues to expand at a rapid pace, adding 139 in the quarter, bringing the total to 2,180, and has 417 more hotel projects in the pipeline. As China's middle class gorws, the demand for budget lodging should increase along with it, and Home Inns' franchise, like that of American motel companies, seems poised to benefit from this organic growth. Revenue guidance, however, was a bit weak, as the company expects 7% to 10.2% increase in the top line, below estimates of 12.6%.

This could be bad news for China
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Jeremy Bowman 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. 

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