Why Forest Labs, Apollo Education, and TASER Jumped Today

The stock market fell back from yesterday's gains as the Fed's cautious approach didn't inspire huge confidence among investors. But several stocks posted strong gains, with Forest Labs jumping 18%, Apollo Education climbing 14%, and TASER rising 13%. Find out more about what helped these stocks soar.

Jan 8, 2014 at 8:01PM

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

The Federal Reserve has been a key driver of the bull market in stocks ever since 2009, with its accommodative monetary policy helping to stimulate economic growth and pushing many investors into the stock market. Yet, today's minutes from the most recent Fed meeting didn't produce a positive response from stock investors despite their dovish tone, leaving unanswered the question of exactly how quickly future tapering could occur. Still, even though the Dow fell, Forest Labs (NYSE:FRX), Apollo Education Group (NASDAQ:APOL), and TASER International (NASDAQ:TASR) all posted double-digit percentage gains due to favorable company-specific news.

Forest Labs climbed 18% on news that the drug company would buy drug-developer Aptalis from private-equity firm TPG Capital for $2.9 billion. The deal gives Forest Labs greater exposure to the cystic fibrosis and gastrointestinal-disorder markets, building up its pipeline at a critical time during which the company is facing the loss of patent protection on a major blockbuster Alzheimer's drug. Ordinarily, acquiring companies see their shares drop after a buyout, but Forest Labs says that the acquisition will actually add to its earnings immediately, suggesting that the company got a very good deal in negotiating the price.

Apollo Education rose 14% following its quarterly report last night. As expected, the for-profit educational company reported that overall enrollment at its University of Phoenix fell 18%, with new-student enrollment down 23%. But better-than-expected adjusted net income, and a $50 million increase in the company's guidance for fiscal 2014 revenue, pointed to the idea that the worst might be over for Apollo and the for-profit education industry. After years of scrutiny, investors hope that Apollo and its peers can climb higher from current levels.

TASER gained 13% after announcing that more than a dozen customers made substantial orders for new weapon products, including police departments in Atlanta, Pittsburgh, and California's Inland Empire. In addition, departments in other areas, including New York City and New Orleans, added or upgraded their existing TASER arsenals. With law enforcement officials looking for nonlethal ways to perform their duties, TASER appears to be cashing in on the opportunity it has to deliver what police departments want.

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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.

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