Rite Aid Marches On as Sales Climb, Zulily Down 30% From Highs

Disney decides to invest in wearable computing; the Dow ends sideways

Apr 3, 2014 at 6:22PM

More than six in 10 stocks lost ground on Thursday, as markets cooled off after a four-day rally. Although most stocks fell today, the major financial averages finished sideways; the Dow Jones Industrial Average (DJINDICES:^DJI) lost less than a single point, to finish at 16,572.

Dow component Walt Disney (NYSE:DIS) was also unchanged in trading today, although the company is far more exciting than today's ho-hum performance suggests. The entertainment giant is investing $1 billion in wearable technology -- specifically, wearable technology for guests at its world-famous theme parks. MyMagic+ and FastPass+ wristbands will allow Disney to live-monitor traffic flow in its parks; but more importantly, the wristbands will allow guests to skip long lines by planning out when they'll attend certain attractions and reserving those times.


Rite Aid still has Easter to look forward to.  Source: Wikimedia Commons

Although the broader market didn't budge much, Rite Aid (NYSE:RAD) shares were on the move Thursday, adding 2% by day's end. The drug store announced sales numbers for March and, yet again, Wall Street was impressed -- something investors are getting used to following Rite Aid's 270% rally in the last year. Though overall store sales were up just 0.7% from last March, Easter fell on March 31 in 2013, which gave sales a nice boost from in-store purchases of knickknacks and delicious chocolate bunnies. With Easter on April 20 this year, it looks like April same-store sales will enjoy more than a 0.7% boost!

Lastly, shares of flash sales site Zulily (NASDAQ:ZU) lost 4.9% today, continuing a steep pullback from its highs in late February. Shares have tumbled 30% from their highs in that time, as investors have reigned in their expectations. The stock has a tendency to be extremely volatile, which isn't unreasonable given the fact that it just IPO'd back in November. There's no question about it... this business has two things investors love: momentum and potential. Sales zoomed from $18 million in 2010 to $695 million in 2013, a 3,682% increase. But with barriers to entry in the online retail industry so low, and an unproven track record, I don't think Zulily deserves a $6.4 billion valuation just yet.

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John Divine has no position in any stocks mentioned. You can follow him on Twitter @divinebizkid and on Motley Fool CAPS @TMFDivine.

The Motley Fool recommends Walt Disney. The Motley Fool owns shares of Walt Disney. 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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