Why Humana, Kandi Technologies, and GT Advanced Technologies Jumped Today

Stocks moved higher overall, but these three stocks positively soared. Learn the details you need to know.

Feb 24, 2014 at 8:01PM

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.

Monday was a big day for several major market averages, as the S&P jumped to nearly set a new all-time record, while the Nasdaq Composite reached its highest level since 2000. Although the overall market lacked any definitive catalyst sending shares higher, big gains for Humana (NYSE:HUM), Kandi Technologies (NASDAQ:KNDI), and GT Advanced Technologies (NASDAQOTH:GTATQ) helped paint a bullish picture for market participants.

Humana rose almost 11% after the health-insurance company said that, based on proposals from the Department of Health and Human Services covering how much money Humana and its peers are eligible to receive for services related to Medicare Advantage plans, it believes that its revenue from the government program will fall less dramatically than it had originally feared. The news sent health insurers up nearly across the board, but Humana has particularly high exposure to the Medicare Advantage niche, so had the most to gain from the good news.

Kandi Technologies jumped 16% as the Chinese manufacturer and rental agency for electric vehicles said that it expects to expand its current service into key cities in the emerging-market nation, including Shanghai and Beijing. By using a Zipcar-like business model of offering its vehicles for short-term rentals, Kandi users avoid some of the inconveniences of electric-car ownership, especially the hassle of charging. Analysts believe that Kandi might be a key component of the nation's efforts to cut pollution by reducing reliance on fossil-fuel vehicles by the end of the decade.

GT Advanced Technologies soared almost 17% after releasing strong guidance along with its fourth-quarter earnings results. Ugly past results were misleading because of a new supply agreement in November with smartphone giant Apple (NASDAQ:AAPL), which ordered huge amounts of GT's sapphire materials for potentially greater use in future models. Revenue is expected to multiply by several times as a result of the deal, and even though margins on the Apple contract will be lower than its existing business, making it up on volume seems like a reasonable solution for GT investors.

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Dan Caplinger owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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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