This Week's 5 Smartest Stock Moves

These five companies got it right.

Feb 28, 2014 at 5:17PM

If you're feeling good about the market, you're not alone. Take my hand as we go over some of this week's more uplifting headlines.

1. Mickey Mouse clubs 
(NYSE:DIS) kicked off the week by increasing its ticket prices. It now costs $99 for a one-day ticket to the Magic Kingdom.

The media naturally jumped on the $4 increase as insensitive, but it's not as if $95 was such a crazy bargain before. More importantly, Disney seems to keep boosting its attendance to record levels despite the regular upticks. 

Disney's move still makes the cut because of its timing. The family entertainment giant has engaged in annual rate increases in early June, but this time it rolled it out four months earlier. With the economy improving, it should help boost revenue for the current quarter. 

2. Shake and bake
Middleby (NASDAQ:MIDD) keeps heating things up.

The seller of commercial ovens and other food service essentials moved higher after posting another blowout quarter in which revenue and earnings climbed 30% and 32%, respectively.

A big part of Middleby's strategy is to grow through acquisitions. It can snap up related companies in this fragmented market, milking the synergies and cashing in by selling the acquired products through its superior distribution. Organic revenue rose just 9%, but the company still came through with yet another bottom-line beat. Middleby has beaten Wall Street profit estimates every single quarter over the past year.

3. Charged up
Shares of Tesla Motors (NASDAQ:TSLA) hit yet another all-time high after the company announced plans for its battery facility. Tesla's Gigafactory will give the electric-car maker a place to build enough lithium-ion batteries to satisfy its demand for years.

That's important because Tesla is ramping up production, and batteries have been a sticking point. Tesla's Gigafactory will help keep costs in line, and that will become more critical when Tesla's more reasonably priced plug-in sedan hits the market in a couple of years.

Tesla's stock isn't cheap, but bears waiting for Elon Musk to mess up will have to keep waiting.

4. Frontier lands 
All three of the high-yielding telecoms that specialize in underserved rural markets reported this week. Frontier Communications (NASDAQ:FTR) stepped up first, and it did not disappoint

Revenue dipped marginally to $1.18 billion, but that was expected. Frontier's trying to replace landline customers cutting the cord with more lucrative broadband accounts. The real surprise came in its adjusted profit of $0.07 a share, which bested the $0.06 per share it posted a year earlier. Wall Street expected flat bottom-line growth. The beat is important, and not just because it's the first time in fiscal 2013 that it happened. Frontier's chunky 8.6% yield demands that profitability stop degrading the way it has in the past. For one quarter at least, Frontier proved resilient.

5. Don't be silly, zulily 
One of this week's biggest winners is a fast-growing online retailer that sells fashionable clothes for children and their moms. Shares of zulily (NASDAQ:ZU) are trading 79% higher through Thursday's close after the company posted stunning results in its first quarter as a public company.

Net sales more than doubled, and zulily's net income of $0.10 per share humbled the pros, who were forecasting a profit of just $0.04 a share. It's a tremendous showing for a company that went public at $22 just three months ago. IPOs -- they grow up so fast.

3 more smart moves
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Rick Munarriz owns shares of Walt Disney. The Motley Fool recommends and owns shares of Middleby, Tesla Motors, and Walt Disney. 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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