Why Shares of hhgregg, Inc. Dropped

Is this meaningful? Or just another movement?

Apr 15, 2014 at 9:26PM

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 hhgregg (NYSE:HGG) were heading south today, falling as much as 15% and finishing down 10% after providing disappointing preliminary earnings results.

So what: The electronics retailer estimated a 9.9% decline in revenue to $538.3 million for the fourth quarter, ending March 31, with a comparable sales drop of 9.9% on large declines in consumer electronics and computing and wireless categories. Because of the drop, management now expects an adjusted per-share loss of $0.25, well below analyst estimates of a $0.10 profit. The Wall Street revenue consensus had stood at $552.1 million.  

Now what: CEO Dennis May said the company "faced a number of headwinds in the quarter" including extreme weather, but it managed to deliver its 11th straight comparable sales increase in appliances, which, with electronics sales flagging, has become the focus of the company's transformation strategy. Still, appliances make up just about half of the company's sales so it will need to do something about plummeting electronics sales. I'm also concerned about the company's badly missing its own guidance,and would expect shares to continue to fall unless it can reverse its sharp sales decline. 

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Jeremy Bowman and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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