Why Knightsbridge Tankers, PowerSecure International, and Zogenix Jumped Today

The stock market's losses steepened Tuesday in a more wide-ranging drop among many different stocks. Yet these three companies proved immune to the declines, rising substantially. Find out more about why these three stocks soared.

Mar 11, 2014 at 8:00PM

On Tuesday, there was an apparent change in psychology among investors that went beyond the modest declines in the major market averages. Even though most benchmarks fell only by half a percent or so, many formerly high-flying momentum stocks came crashing back to earth, especially those in the hydrogen fuel-cell arena. Yet some stocks still managed to climb even on a tough day, and Knightsbridge Tankers (NASDAQ:VLCCF), PowerSecure International (NYSE:POWR), and Zogenix (NASDAQ:ZGNX) were among the best performers on the day.

Knightsbridge climbed almost 14% after receiving an analyst upgrade from Global Hunter Securities. The oil and dry-bulk shipping company had said on Monday that it would buy six Capesize bulk carriers from Frontline 2012, in which Frontline Ltd. (NYSE:FRO) has a stake and which Frontline CEO John Fredriksen also leads, and Karpasia, which is controlled by a trust for the benefit of Fredriksen's immediate family. The deal involves paying a total of $360 million, with more than half coming in Knightsbridge stock valued at $10 per share. The move fits with Knightsbridge's strategic plan to take advantage of what it sees as a recovery in dry-bulk shipping, and if it's right, the new vessels should help it capitalize well.

PowerSecure gained 9% after the utility- and energy-technology supplier reported strong fourth-quarter earnings last night. Sales soared 57% during the quarter, with strongest growth in its energy-efficiency and utility-infrastructure areas. With record levels of backlog, a strong balance sheet, and synergies from recent acquisitions, PowerSecure believes that 2014 has the potential to be an even better year for the company and its stock. The company also got an upgrade from analysts at Maxim Group this morning, adding to the positive sentiment surrounding PowerSecure.

Zogenix rose almost 12%, regaining just about all the ground the drugmaker lost last week. Last Thursday, Zogenix plunged 15% after reporting poor earnings. But the bigger question mark for the company is whether its FDA-approved drug Zohydro, a painkiller that has raised huge amounts of controversy, will end up having its approval revoked. Organizations have been lobbying against Zohydro, arguing that it is too dangerous. Yet with the FDA having already overruled the objections of its advisory committee in granting approval last year, investors are apparently feeling somewhat more secure that the regulatory agency won't act hastily to reverse course at this time.

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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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