Why Barnes & Noble, magicJack VocalTec, and Red Robin Gourmet Burgers Soared Today

Stocks were up modestly today as investors try to figure out whether the economy is slowing or not, but these three stocks posted huge gains. Find out more about what made them soar.

Feb 10, 2014 at 8:02PM

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.

Today's relatively quiet trading in the stock market came as a relief to many investors who were unprepared for last week's volatility. But even though the broader market benchmarks had relatively small gains today, Barnes & Noble (NYSE:BKS), magicJack VocalTec (NASDAQ:CALL), and Red Robin Gourmet Burgers (NASDAQ:RRGB) weighed in with much bigger advances because of news that investors took as favorable for the companies and their future.

Barnes & Noble advanced 9% after reports surfaced claiming that the company had laid off hardware engineers in its Nook division. Even though the news essentially confirms that the Nook hasn't lived up to the potential of helping the bookseller compete with archrival Amazon.com (NASDAQ:AMZN) and its Kindle line of mobile devices, investors apparently believe that signs that Barnes & Noble is ready to move on and focus on other ways to try to drive growth in its core business are a positive for the stock's long-term value. Yet it's still unclear how Barnes & Noble can turn the tide of deep losses and become profitable in the long run.

For magicJack VocalTec, today's 18% jump came after prominent hedge-fund investor Whitney Tilson compared the tiny telecom company to Netflix (NASDAQ:NFLX). Tilson believes that efforts to market its low-cost phone services could send the stock soaring in a similar way as Netflix has in recent years. The key for the company will be whether it can stop its recent drop in revenue and boost its customer counts enough to sustain and build on its profits. If it can start growing again, magicJack might have substantial upside.

Red Robin soared 13% after getting a favorable upgrade from analysts at Raymond James. With the restaurant chain scheduled to release earnings later this week, a combination of cost-cutting measures and smart marketing and renovation moves could reinvigorate the company's growth prospects. Even though the stock has been falling in recent months, Red Robin still has the ability to regain its former glory if it can win business from its competitors.

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Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and Netflix and owns shares of Amazon.com, Barnes & Noble, and Netflix. 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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