Today's Top Health Care Stocks to Watch: Celgene and Rite Aid

Today's top stories in biotech and health care.

Jun 19, 2014 at 9:05AM


Let's take a look at today's top stories in biotech and health care. Keep an eye out for Celgene (NASDAQ:CELG) and Rite Aid (NYSE:RAD) 

Celgene shares move higher after split is announced
Celgene shareholders approved a two for one stock split yesterday at the company's annual meeting. The split will increase the number of outstanding shares from 399 million to approximately 798 million. What this means is that shareholders will receive one extra share for every share they currently own.

Is this a good move? Forward stock splits generally help increase a company's value over the long-term, as it makes the stock more affordable for a broader base of investors. With a share price presently exceeding $160 per share, for example, some retail investors are probably unwilling to invest even if they think the company still has upside potential. In short, a lower share price tends to entice more buyers over the long term. Celgene shares are up 0.58% following this news.   

Rite Aid shares falling after reporting first-quarter earnings
Shares of drugstore company Rite Aid are down over 4% in premarket this morning after posting first-quarter results. Per the release, the company reported net income of $41.4 million or $0.04 per diluted share, which is in-line with consensus estimates. Revenues also increased year over year by 2.7% to $6.47 billion, beating consensus by $3 million.

Despite earnings coming in more or less on target, investors are keying in Rite Aid's lower profitably due to higher taxes, drug costs, operating costs and reimbursement rate reductions. Specifically, profit fell by a noteworthy 55% compared to the same period a year ago. Looking ahead, management reaffirmed its 2015 guidance, with annual sales expected to come in between between $26.0 billion and $26.5 billion.  

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George Budwell has no position in any stocks mentioned. The Motley Fool recommends Celgene. 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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