Why Thompson Creek Metals, Tesla Motors, and Regeneron Pharmaceuticals Are Today's 3 Best Stocks

The S&P 500 jumps more than 1% after stronger retail sales data as Thompson Creek Metals, Tesla Motors, and Regeneron Pharmaceuticals all tack on better than 11%!

Jan 14, 2014 at 5:15PM

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

Following the broad-based S&P 500's (SNPINDEX:^GSPC) worst tumble in weeks is one of the strongest gains the index has delivered in nearly the same amount of time.

Pushing the S&P 500 higher today is significantly stronger-than-expected U.S. retail sales data, especially when auto sales are excluded. According to this morning's reports, retail sales excluding autos increased by 0.7% in December, which was much higher than the broad-ranging estimate calling for a decline of 0.1% to a gain of 0.4% -- and it certainly left November's 0.1% gain in the dust. Although consumers clearly weren't buying as many cars in December, the prospect that other retail sales improved appears to be a distinct possibility.

Between this strong data and a select group of preliminary earnings reports, the S&P 500 managed to trek higher by 19.68 points (1.08%) to close at 1,838.88.

Leading all stocks to the upside today – and certainly putting a grin on my face as my largest portfolio holding -- is Thompson Creek Metals (NYSE:TC) which gained 17.8% after announcing its fourth-quarter and 2013 production and sales results and updating its production outlook. Thompson Creek noted that concentrate production at its recently commission copper and gold mine, Mt. Milligan, produced 10.9 million pounds of copper, 21,100 ounces of gold, and 41,800 ounces of copper through Dec. 31. In addition, molybdenum production from its two active mines jumped 34% from the year-ago period to 30 million pounds. Thompson Creek's management also notes that commercial production of Mt. Milligan – defined as operating at 60% production capacity for 30 days – will occur in the first quarter. An upgrade from Bank of America/Merrill Lynch to "neutral" from "underperform" with a fresh price target of $7 added icing on the cake. In other words, Mt. Milligan, despite its higher-than-expected costs, remains on track and, metal prices willing, could deliver surprisingly strong results this year.

Adding some irony to my cheers is my lone short position, Tesla Motors (NASDAQ:TSLA), which advanced 15.7% after announcing mixed news involving its fourth-quarter deliveries and a Model S recall. On the downside, Tesla released a statement that it plans to recall 29,222 Model S sedans to upgrade the car's charger on overheating fears. However, shares exploded higher after the company also commented that its fourth-quarter deliveries would hit 6,900 vehicles, well ahead of its previous estimates of slightly less than 6,000 vehicles. This figure will put Tesla's revenue estimates well ahead of Wall Street's. On the heels of this news, R.W. Baird upped its price target on Tesla to $187 and raised the stock to outperform. As for me, I will remain short given the ridiculous premium-per-car valuation being divvied out to Tesla in the face of a still small manufacturing effort and a general lack of supportive EV infrastructure.

Finally, biopharmaceutical giant Regeneron Pharmaceuticals (NASDAQ:REGN) galloped higher by 11.8% after its CEO noted at the JPMorgan Healthcare Conference that sales of Eylea will top $400 million in the U.S. in the fourth quarter. That represents less than 10% growth from the sequential quarter, but it's still well ahead of expectations and points to Eylea's dominance in treating wet age-related macular degeneration, as well as for its overseas potential. In addition, Regeneron also announced a joint development with Bayer (NASDAQOTH:BAYRY) -- its partner on Eylea -- of another treatment option for wet-AMD, a PDGFR-beta antibody. This new compound comes with an upfront $25.5 million payment to Regeneron and could give Regeneron the ability to earn $40 million in option and milestone payments. Although Regeneron's forward P/E over 50 is still very frothy, the simple fact that Eylea remains so dominant, especially with overseas growth still in its infancy, gives me reason to believe it could hold $300.

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Fool contributor Sean Williams owns shares of Thompson Creek Metals and Bank of America, and is short shares of Tesla Motors, but has no material interest in any other companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

The Motley Fool owns shares of, and recommends Tesla Motors and Bank of America. 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.

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