Why Bazaarvoice Inc. Shares Popped Today

Is Bazaarvoice's jump meaningful? Or just another movement?

Jun 5, 2014 at 4:56PM

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 Bazaarvoice (NASDAQ:BV) jumped more than 13% Thursday after the company announced mixed fiscal fourth-quarter results and an agreement to divest its PowerReviews business.

So what: Bazaarvoice's quarterly revenue rose 11% year-over-year to in at $47.1 million -- including sales from PowerReviews -- which translated to an adjusted net loss of $8.4 million, or $0.11 per share. Analysts, on average, were modeling a slightly narrower loss of $0.10 per share on lower sales of $45.45 million.

Investors appear more pleased, though, with Bazaarvoice's agreement to divest PowerReviews for $30 million in cash to Viewpoints subsidiary Wavetable Labs. Remember, in March Bazaarvoice CEO Gene Austin stated several interested buyers for the divestiture, which is the result of a previously announced U.S. court decision that Bazaarvoice violated U.S. antitrust law with its acquisition of the company. 

Now what: Putting aside lost time and litigation costs, Bazaarvoice didn't do too badly considering it paid just $31 million for PowerReviews in June, 2012. However, I'm still not particularly intrigued by Bazaarvoice given its already sluggish top-line growth and lack of profitability. For now, I'm content watching this one from the sidelines.

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Steve Symington 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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