Why Triumph Group Tanked Today

Is this meaningful or just another movement?

Jan 29, 2014 at 11:48AM

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.

What: Shares of aerospace equipment company Triumph Group (NYSE:TGI) plunged 10% today after its quarterly results and outlook missed Wall Street expectations.

So what: The stock has rebounded in recent months on signs of strengthening demand, but today's fiscal-2014, third-quarter results -- adjusted earnings per share of $0.99 missed the consensus by $0.23 on a revenue increase of just 3% -- coupled with downbeat guidance is forcing Mr. Market to quickly sober up. In fact, adjusted EBITDA margin decreased 550 basis points from the year-ago period to 12.7%, suggesting the company's competitive position is getting more expensive to maintain.

Now what: Management now sees 2014 EPS of $4.75 on revenue of $3.8 billion, down from its prior view of $5.25 and roughly $3.9 billion. "We continue to make excellent progress with the Jefferson Street to Red Oak transition which remains on schedule and on budget," President and CEO Jeffry Frisby reassured investors. "Strategically, we expanded our relationship with Airbus by securing the recently announced award to provide machined and assembled structural components for the fuselage structure which support the cabin storage bins and aircraft systems for the Airbus A350 XWB." With the stock hitting a new 52-week low today and trading at a cheapish forward P/E of 10, now might even be an opportune time to buy into that bull talk.

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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.

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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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