1 Surprising Stock Drop that Makes Perfect Sense

Earnings yielded some interesting stock movement.

May 15, 2014 at 9:15AM

Editor's Note: This video was filmed May 7th.

Biotechs Aegerion Phamaceuticals (NASDAQ:AEGR) and Isis Pharmaceuticals (NASDAQ:ISIS) reported earnings last week, and the market reacted pretty negatively to the news --  Isis lost about 4% after reporting, while Aegerion cratered 25%. Looking at the numbers, you might wonder if that was a transcription error.

After all, it was Isis whose revenue dropped to $28 million from $43 million in the year-ago first quarter. Isis also reported a wider loss, with a $0.27 loss per share comparing unfavorably to a $0.02 loss in first quarter of 2013. And Aegerion increased revenue -- in fact, it roughly doubled it to $40 million from $19 million in the year-ago quarter. And the company narrowed its net loss from $0.64 per share to $0.54 per share.

So, what happened?

In the video below, Motley Fool health care analysts Michael Douglass and David Williamson lay out why Aegerion lost so much more than Isis -- how analyst expectations and weaker-than-expected sales of the drug Juxtapid combined to sink the stock last week.

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David Williamson and Michael Douglass have no position in any stocks mentioned. The Motley Fool recommends Isis Pharmaceuticals. 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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