Why VeriFone Systems, Keurig Green Mountain, and Petrobras Jumped Today

A solid jobs report sent U.S. stock markets to new record highs, but these three stocks posted truly outstanding gains Friday. Find out more about what made them soar.

Jun 6, 2014 at 8:05PM

Investors had waited all week to see how the U.S. economy would perform on the employment front, and they were largely pleased with what they saw on Friday. Both the Dow and the S&P 500 jumped out to new record levels yet again today as investors took the not-too-strong, not-too-weak reading on jobs as evidence that the current trajectories of the economy and the stock market are sustainable. Helping to lift stocks today were VeriFone Systems (NYSE:PAY), Keurig Green Mountain (NASDAQ:GMCR), and Petroleo Brasileiro (NYSE:PBR), each of which jumped substantially more than the broader market.


Source: VeriFone Systems.

VeriFone Systems jumped almost 9% as the payment-processing equipment company posted a stronger earnings report than most investors had expected. Revenue rose 9% and, although adjusted income came in lower than year-ago levels, VeriFone still outpaced its own initial projections for the quarter. In particular, customers have been making substantial upgrades to their electronic-payments equipment in the aftermath of major data breaches, and VeriFone anticipates that those trends should continue, issuing favorable guidance for the current quarter and full fiscal year. In combination with restructuring efforts to cut costs, VeriFone seems to be doing everything shareholders want to see, and the stock is responding accordingly.


Keurig Green Mountain gained 8%, with most of the gains coming in the last couple hours of the trading day. Speculation arose that with soft-drink giant Coca-Cola having made two separate major purchases of positions in the maker of the Keurig home-brew coffee machine during the past several months, additional share purchases, or even a full takeover bid for Keurig Green Mountain, might come in the near future. Options traders noted substantial activity in short-term options, but neither company released any news during the trading session that would suggest such a move is taking place.

Petrobras rose nearly 8% as investors in Brazil cheered recent polls showing that Brazilian President Dilma Rousseff's popularity dropped, suggesting the possibility of a change in government after elections later this year. Brazilians are frustrated with high inflation combined with slowing economic growth, and Rousseff has thus far failed to find success in accelerating the economy's expansion while fighting price pressures. With the Brazilian real rising against the U.S. dollar, and with the Brazilian stock market jumping substantially today, Petrobras and its vast wealth of natural resources is a popular vehicle U.S. investors use to participate in rising prospects for Brazil.

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Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Keurig Green Mountain and Petroleo Brasileiro S.A. (ADR). 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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