Stock Market Today: 3D Systems’ Hit And Herbalife’s Ackman Battle

Why 3D Systems, Herbalife, and Alexion Pharmaceuticals stocks are on the move today.

Mar 10, 2014 at 9:00AM

Investors can expect a flat start to the stock market today: The Dow Jones Industrial Average (DJINDICES:^DJI) has lost a modest 40 points in pre-market trading. Stocks are near record highs as we pass the five year anniversary of the start of the bull market. World indexes were mostly lower in overnight trading, led by a 3% drop in Chinese shares after new data showed an 18% plunge in the nation's exports for February. Economists were looking for China to post a more modest 7.5% trade dip.

Closer to home, news is breaking on several stocks this morning that could see heavy trading in today's session, including 3D Systems (NYSE:DDD), Herbalife (NYSE:HLF), and Alexion Pharmaceuticals (NASDAQ:ALXN)

3D Systems shares are down 4.3% in pre-market trading after the company was profiled in a Barron's cover story over the weekend titled "Beware 3-D Printing!" The article doesn't break much new ground; arguing, as many others have, that 3-D printing stocks seem overvalued on earnings and sales metrics. Still, Barron's suggests that 3D Systems' stock could fall an eye-popping 80% while still being generously valued. That's an extreme proposition that might convince some shareholders to sell today, but long-term investors should be used to volatility in the space and are better off focusing on 3D Systems' business fundamentals.

Herbalife's long battle with activist hedge fund manager Bill Ackman was the focus of a front page article in The New York Times this morning. The newspaper chronicles what amounts to a coordinated campaign against Herbalife by Ackman's Pershing Square Capital Management, which has a $1 billion short position on the company that the hedge fund manager has described as a pyramid scheme. The campaign succeeded in gaining support from government regulators, political leaders, and community groups while in some cases using questionable tactics, the Times reported. For example, many of the letters from diverse organizations pressuring state and federal regulators used the exact same language, and some of their signatories do not remember sending them. Herbalife's stock is down 2.2% in pre-market trading.

Finally, Alexion Pharmaceuticals this morning boosted its 2014 sales and earnings outlook after reaching an agreement with the French government regarding sales of its blood-disorder fighting drug Soliris. Alexion will be reimbursed for past sales of Soliris this year, which will help push sales to $2.16 billion, above the prior guidance for $2 billion in revenue. Its profit forecast was even more dramatically scaled up from $3.75 a share to about $4.40 a share including the Soliris deal. Alexion's stock is up 3.1% in pre-market trading.

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Demitrios Kalogeropoulos owns shares of 3D Systems. The Motley Fool recommends 3D Systems. The Motley Fool owns shares of 3D Systems and has the following options: long January 2015 $50 calls on Herbalife Ltd.. 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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