Why Garmin and Micron Technology Shares are Dropping as Glu Mobile Rallies

Shares of Garmin and Micron Tech are lower on Wednesday, while Glu Mobile rallies.

Jul 9, 2014 at 11:30AM

The Dow Jones Industrial Average (DJINDICES:^DJI) had gained more than 33 points as of 11:30 a.m. EDT. Tech stocks Garmin (NASDAQ:GRMN) and Micron Techology (NASDAQ:MU) were notably underperforming the market, while Glu Mobile (NASDAQ:GLUU) surged to the upside.

Garmin drops on downgrade
Shares of GPS maker Garmin fell nearly 6% on Wednesday after Pacific Crest downgraded the stock to underperform. Pacific Crest believes the stock is overvalued and should be trading in the mid-$40 range; presently, shares of Garmin are changing hands above $57.

Garmin's GPS devices face competition from smartphones. Pacific Crest believes this competition will intensify in the coming quarters, particularly if Apple launches an iPhone with a larger screen (as is widely expected). Apple's rumored iWatch could also pressure Garmin's line of fitness bands if it comes equipped with fitness-tracking technology. Other technology giants are also expected to launch fitness tracking devices that will compete with Garmin's offerings.


Source: Wikimedia Commons.

Micron Tech tumbles
Shares of Micron Technology fell more than 2% on reports that Samsung is boosting its production of DRAM, one of Micron's primary products.

Competitive pressure from Samsung could weigh on Micron's performance. The stock has become a favorite of analysts in recent quarters, largely on the basis of its DRAM portfolio. Last month, for example, R.W. Baird upgraded the stock from neutral to outperform, largely on the basis of the DRAM market. R.W. Baird believes the DRAM market is tight and will continue to tighten in the second half of the year, helping to boost Micron's financial performance.

Increased competition is cause for concern, but investors in Micron might wish to sit tight for the time being. Despite rallying more than 140% in the last year, Micron remains cheap on the basis of several metrics. It's trading with a below-market multiple, and most analysts remain bullish on the stock.

Glu's Kardashian continues to dominate the app charts
Glu Mobile stock rose more than 6.5%, continuing a recent trend that has seen shares of the company rise nearly 40% year to date. As a developer of mobile games, Glu Mobile's financial performance depends entirely on the success of its titles.

Glu Mobile's Kim Kardashian: Hollywood is currently No. 4 on the iTunes free apps chart, and it has been among the top-ranked apps since it launched late last month. Another Glu Mobile title, Deer Hunter 2014, is in the top 100 most popular apps. Last week, Glu Mobile released another game, Hercules, based on the upcoming film. It's popularity could increase after the film is released later this month.

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Sam Mattera has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. 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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