Myriad Genetics, TiVo Buck the Bearish Trend; Dow Off 189 Points

Home Depot stock down more than 2% as emerging markets incite fear.

Jan 29, 2014 at 6:05PM

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.

Yesterday, investors got a much-awaited reprieve from Wall Street's recent slump, and the Dow Jones Industrial Average (DJINDICES:^DJI) broke its five-day losing streak. But the bears were out in force again on Wednesday, as January's pullback reared its ugly head once more. Although the Federal Reserve policy meeting took center stage today, investors seemed to be more worried about the stability of emerging markets and their currencies. Turkey's central bank took drastic moves on Tuesday in an emergency meeting, raising its benchmark one-week lending rate for banks from 4.5% to 10%. The Dow, fearing a currency contagion, shed 189 points, or 1.2%, to end at 15,738. 

One of the Dow's biggest laggards was Home Depot (NYSE:HD) stock, which lost 2.4% Wednesday. With no particularly negative news to speak of regarding the home-improvement giant, today's decline can largely be chalked up to the mood of the market at large. That said, Home Depot shareholders have been amply rewarded in recent years with the revitalization of the U.S. real estate market, and data today from the Mortgage Bankers' Association painted a bleaker picture of real estate growth going forward. Applications at mortgage lenders for the week ending Jan. 24 plunged 12% from the same week last year, indicating softer demand for homes. I think the market's extrapolating too hastily and would encourage long-term investors to consider broader trends before dumping shares.

Or you could do what TiVo (NASDAQ:TIVO) stock did today -- shares ignored trends altogether and tacked on 1.2% in the face of market pressure. TiVo, which was a pioneer in the DVR market, announced the acquisition of Digitalsmiths before the market opened this morning, and shares didn't trade in the red the whole day. Wall Street applauded the $135 million cash purchase of the cloud-based software, which "allows Pay-TV operators to deliver an advanced user experience integrating search, recommendations, discovery and browsing across a variety of devices," according to the press release. Not only has TiVo seen the light and shifted its focus to software rather than hardware, but it also approved a $100 million share buyback. Well played, TiVo.

Lastly, shares of the $2 billion molecular diagnostic business Myriad Genetics (NASDAQ:MYGN) surged 4.3% Wednesday after the company put out a press release touting its prostate cancer prognosis test Prolaris as a game-changer in its field. Myriad Genetics claims that the most recent study "demonstrated the significant clinical value of Prolaris to physicians who are treating men with prostate cancer." Only time will tell what the implications of Prolaris will be in the future, but if its claims are true then it physicians shouldn't take long to get on board with the product. 

John Divine has no position in any stocks mentioned. You can follow him on Twitter, @divinebizkid, and on Motley Fool CAPS, @TMFDivine.

The Motley Fool recommends Home Depot. 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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