These 3 Stocks Should Make Big Moves This Week

Find out who they are, and why they are primed for such volatile moves.

Feb 16, 2014 at 7:00AM

It's no secret that we Fools are a buy-to-hold, long-term-investing bunch. We don't like trying to time the market, or anticipate huge one-day swings. But the fact is, we're still human. Seeing our stock plunge or skyrocket in just one day can still lead us to consider the unthinkable: making investment decisions based on emotion (gasp!).

To prevent such a calamity, it's worth preparing when some of our community's favorite stocks -- which are also heavily shorted -- report earnings. This week, the following three companies are reporting earnings, and because there are lots of investors betting against their short-term success, huge moves are likely to be in the offing.


% of Shares Short


Expected Revenue (Millions)

Expected EPS

Potbelly (NASDAQ:PBPB)















Sources: E*Trade,

This neighborhood sandwich and sub shop saw its stock burst after going public last October, but since then, it hasn't been a pretty ride for investors. After topping out at a little over $32 per share, the stock has fallen more than 30%.


The interesting thing about Potbelly's slump is that it's actually done quite well in matching analyst expectations as a public company.

It seems the real concern has more to do with simple valuation than anything else. The company is expected to pull in $0.38 per share in 2014. At today's prices, that means it's trading for almost 60 times earnings. For a chain that has shown same-store sales jump just 1.8% so far this year, that's very expensive

Tesla Motors
Tesla might be one of the most hotly debated company's and stocks of the past few years. What was once an unprofitable company that was the butt of every joke is now selling electric cars much faster than anyone could have expected. Those who were willing to cast their lot with CEO Elon Musk have been rewarded, as shares have surged 420% over the past year alone.


But with such success, and pops in one's stock price, come the eventual short-sellers; and in Tesla's case, there are a lot. The company revealed last month that its sales would come in well ahead of guidance, and China recently changed some of its policies to become more EV friendly.

The stock now trades for 125 times expected 2014 earnings. Many would argue that this assumes the absolute best-case scenario and that there's little upside potential. Stay tuned to the company's guidance for the rest of the year to see if that's the case.

MannKind is a biopharmaceutical company that has put shareholders on quite the roller-coaster ride over the past decade. More recently, however, the news has been good for investors, as shares are up 130% over the past year.

The key for the company moving forward hinges on the results of an FDA advisory committee meeting on April 1. MannKind's next potential blockbuster is Afreeza, an inhalable insulin treatment for those suffering from diabetes.

But the drug has been turned down twice before, and for the company to come anywhere near creating the type of revenue to justify a $1.7 billion market cap, Afreeza needs to produce. Though the really big moves will likely occur when the FDA rules, it's still worth listening into the conference call to see what management has to say about potential approval.

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Brian Stoffel has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Tesla Motors. 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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