Why Glu Mobile Inc. Shares Could Fly Above $5

Does this analyst make a good case? Or is it just more noise from Wall Street?

Jun 27, 2014 at 10:24AM

While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of Glu Mobile (NASDAQ:GLUU) gained 3% this morning after Benchmark upgraded the mobile-game publisher from hold to buy.

So what: Along with the upgrade, analyst Mike Hickey planted a price target of $5.60 on the stock, representing about 26% worth of upside to yesterday's close. So while contrarian traders might be turned off by Glu Mobile's Android TV-related pop yesterday, Hickey's call could reflect a sense on Wall Street that mobile gaming trends give the stock plenty of room to run.

Now what: According to Benchmark, Glu Mobile's risk/reward trade-off is particularly attractive at this point. "In our view, management has renewed credibility, from recent product success, after a significant retooling of their development expertise," said Hickey. "The Company's product portfolio and subsequent financial performance should benefit from the rapidly expanding smartphone/tablet hardware device market and related consumer software ecosystem." With Glu Mobile continuing to boast a rock-solid balance sheet and shares that are still off more than 20% from their 52-week high, the downside might even be limited enough to bet on those prospects. 

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Brian Pacampara 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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