Why Express, Inc. Shares Jumped Today

Is this meaningful? Or just another movement?

Jun 13, 2014 at 5:34PM

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 Express, (NYSE:EXPR) were flying higher today, up as much 24%, and finishing 21% higher after the clothing chain said it received a letter from an investor offering to take the company private. 

So what: Express said that Sycamore Partners, a private equity firm that revealed it accumulated a 9.9% stake in the company, indicated that it was interested in acquiring the company. In response, Express said it established a Special Committee of the Board to "determine the best course of action," and it adopted a shareholder rights plan to prevent any unwanted takeover attempt by Sycamore or another investor. 

Now what: Express had seen shares plunge by nearly 50% before today's news as sales have fallen sharply, and the company has missed earnings estimates in its last three quarterly reports. In its most recent quarter, same-store sales declined 11%, and earnings fell from $0.38 a share to $0.06. Clearly, Express is facing numerous challenges as fashion tastes appear to be changing. Sycamore has already taken clothing chains such as Hot Topic and Talbot's, and is a major investor in Aeropostale, so it's not a surprise to see it chasing yet another ailing retailer. No price tag was attached to Sycamore's letter, but given the recent sales decline, a buyout may be the best option for Express shareholders.

Your credit card may soon be completely worthless
The plastic in your wallet is about to go the way of the typewriter, the VCR, and the 8-track tape player. When it does, a handful of investors could stand to get very rich. You can join them -- but you must act now. An eye-opening new presentation reveals the full story on why your credit card is about to be worthless -- and highlights one little-known company sitting at the epicenter of an earth-shaking movement that could hand early investors the kind of profits we haven't seen since the dot-com days. Click here to watch this stunning video.

Jeremy Bowman 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. 

Something big just happened

I don't know about you, but I always pay attention when one of the best growth investors in the world gives me a stock tip. Motley Fool co-founder David Gardner (whose growth-stock newsletter was rated #1 in the world by The Wall Street Journal)* and his brother, Motley Fool CEO Tom Gardner, just revealed two brand new stock recommendations moments ago. Together, they've tripled the stock market's return over 12+ years. And while timing isn't everything, the history of Tom and David's stock picks shows that it pays to get in early on their ideas.

Click here to be among the first people to hear about David and Tom's newest stock recommendations.

*"Look Who's on Top Now" appeared in The Wall Street Journal which references Hulbert's rankings of the best performing stock picking newsletters over a 5-year period from 2008-2013.

Compare Brokers