Why Shares of LIN Media LLC and Media General Shot Up

Is this meaningful or just another movement?

Mar 21, 2014 at 1:55PM

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 LIN Media LLC (NYSE:LIN) and Media General (NYSE:MEG) surged today, climbing as much as 32% and 13%, respectively, after the two television companies agreed to merge in a $2.6 billion deal.

So what: LIN shareholders will receive a combination of cash and stock worth $27.82 a share, a 29% premium to Thursday's closing price, and the new company will keep the Media General name. LIN shareholders will own 36% of the new company, while Media General shareholders will hold the remaining 64%. LIN CEO Vincent Sandusky will become the new company's CEO, and the two companies said the new deal would yield $70 million in annual cost-saving synergies within three years.  

Now what: The deal is just the latest consolidation move we've seen in the television industry, as 2013 featured a number of acquisitions and mergers that sent industry stocks soaring. Peers Gray Television and Nexstar Communications jumped earlier in the day, both up more than 10% as investors may be hoping for more deals. Earlier this week, TV stocks fell after Wells Fargo downgraded the broadcasters on a heightened regulatory environment, and the companies acknowledged that the merger will force divestitures in some markets, which investors should keep an eye out for. Shares of Media General cooled off after the morning spike, as the deal, with its buyout of LIN, primarily benefits those shareholders.

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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.

So, here's my index-card financial plan:


Everything else is details. 

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