Why Icahn Enterprises, ExOne, and Interactive Brokers Jumped Today

Stocks sailed higher for a second day in a row as investors applauded positive earnings results. But these three stocks did even better. Find out more about what made them soar.

Apr 16, 2014 at 8:05PM

After yesterday's impressive recovery, the stock market kept plowing forward Wednesday, with major-market benchmarks gaining 1% or more on the strength of general optimism about how the first-quarter earnings season is going and the overall direction of the U.S. economy. Yet even with those sizable advances, Icahn Enterprises (NASDAQ:IEP), ExOne (NASDAQ:XONE), and Interactive Brokers (NASDAQ:IBKR) managed to give shareholders even more of a good thing, with outsized gains tied to favorable conditions for those companies and their respective industries.


Carl Icahn. Source: Twitter.

Icahn Enterprises jumped 8% after an article in Barron's yesterday afternoon praised Carl Icahn's public investment vehicle, arguing that after nearly a 40% decline in the limited partnership's unit price since late last year, it makes a much more reasonable play for value investors. Although Icahn Enterprises still likely trades above the value of the investments it holds minus its debt, Barron's thinks that the limited partnership deserves a premium to that value based on Icahn's reputation and ability to move markets with his calls. For those who disagree, Icahn's moves are usually so well-choreographed in the public eye that you might be able to get similar exposure simply by owning the stocks that the partnership holds.

ExOne rose 11% on a good day for stocks in the 3-D printing space generally. Despite the lack of any specific news tied to ExOne, the fact that one of its 3-D printing rivals was able to follow through on a secondary stock offering raised sentiment about the prospects of the space for investors. Nevertheless, it's important to remember that even with today's gains, ExOne has plunged about 60% from its January highs, and there are still real questions about whether the fledgling 3-D printing specialist will be able to hold its own in an increasingly competitive market.

Interactive Brokers climbed 12% in the aftermath of its first-quarter earnings report. The discount broker reported huge gains from its year-ago quarter, as revenue soared 64% as adjusted earnings per share more than doubled. In particular, the favorable market helped lift Interactive Brokers' electronic-brokerage segment metrics, as the number of customer accounts grew by 16% and total customer equity jumped 38% on growth in the size of typical accounts. High margin-borrowing levels pushed net interest income up 23% from the year-ago quarter, and Interactive Brokers' market-making segment reversed a year ago loss with a pre-tax profit. As long as the market behaves itself, Interactive Brokers appears to be turning the corner and could deliver greater returns for investors in the future.

3 stocks to own for the rest of your life
As every savvy investor knows, Warren Buffett didn't make billions by betting on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal The Motley Fool's 3 Stocks to Own Forever. These picks are free today! Just click here now to uncover the three companies we love. 

Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends ExOne and Interactive Brokers and owns shares of ExOne. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't 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.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information

Compare Brokers