Why Shares of Forest Oil Corporation Recovered Today

Is this meaningful or just another movement?

Jun 17, 2014 at 11:23AM

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 Forest Oil Corporation (NYSE:FST) jumped 13% today after its merger deal appeared to be back on.

So what: Yesterday, shares of Forest Oil fell after reports surfaced that its merger with Sabine Oil & Gas had come into question because of a delay in an $850 million loan, but today, the deal is back on. Sabine's CEO David Sambrooks said, "All parties remain fully committed to this transaction."  

Now what: The issue appears to be on the bank level, where Barclays Plc is shopping financing to investors, but that doesn't impact the financing commitment they made. As I said yesterday, the delay wasn't worth investors panicking over, and some of the jitters should be gone today. Shares are nearly back to where they started the day yesterday, and unless something major changes, I'd expect the merger to go through as planned.

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Travis Hoium 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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