Why Idera Pharmaceuticals, Bofi Holdings, and Eastman Kodak Are Today's 3 Best Stocks

The S&P 500 puts an end to its two-day losing skid as Idera Pharmaceuticals, Bofi Holdings, and Eastman Kodak all ran higher by double-digits.

Mar 28, 2014 at 5:15PM

Following day after day of mixed economic data this week, the broad-based S&P 500 (SNPINDEX:^GSPC) managed to muster up a solid gain on Friday after all data finally pointed in the correct direction.


First off, the final Thomson Reuters/University of Michigan consumer sentiment reading for March came in at 80 on the dot, up a fraction from the earlier reading of 79.9 and signaling that consumers' short and long-term financial outlooks are improving. Consumer sentiment is an often overlooked but important figure to monitor since consumer spending accounts for approximately 70% of U.S. GDP.

Also, personal spending and personal income both rose a nice 0.3% from February, meeting or exceeding economists' expectations. Similar to the previous discussion on consumer sentiment, consumers with positive economic outlooks are likely to spend their money. If incomes rise in accord with spending, the U.S. economy and the service sector have a good shot at continuing higher.

When the gavel struck to signal the end of the trading day, the S&P 500 had risen by 8.58 points (0.46%) to 1,857.62, reversing a two-day loss.

Leading all companies to the upside today was clinical-stage DNA and RNA-based drug developer Idera Pharmaceuticals (NASDAQ:IDRA), which rocketed 17.8% higher after delivering positive phase 2 results from a study involving IMO-8400 in moderate-to-severe plaque psoriasis patients. The phase 2 study met both its primary and secondary endpoints by demonstrating the tolerability of the drug, as well as through its clinical benefit of which nine in 20 patients on IMO-8400 achieved a Psoriasis Area and Severity Index score of 50 (i.e., a 50% improvement compared to the baseline at week 12) compared to just one in seven patients on the placebo. What shareholders can take away from this study is that IMO-8400 in its early stages is positioned toward a larger target audience (plaque psoriasis is the most common form of psoriasis) and that the clinical benefit of its treatment pathway appears validated. I'd still prefer to see later-stage data before breaking out the champagne, but Idera is clearly headed in the right direction.


Source: Images Money, Flickr.

Internet banking giant Bofi Holding (NASDAQ:BOFI) jumped 14.4% on the day following a before-the-bell upgrade to outperform with an $88 price target from research firm Raymond James. The new price target implied 14.5% upside from yesterday's close, which Bofi shareholders practically captured the entirety of today. Bofi is by no means cheap compared to its banking peers, but its phenomenal growth expectations. taking into account that it's entirely based online, could very well lead to further upside in its share price. With a forward P/E of just 20 and a growth rate well in excess of 20%, I'd say this revolutionary bank is worthy of at least being added to your watchlist.


Source: Eastman Kodak.

Finally, shares of born-again commercial imaging giant Eastman Kodak (NYSE:KODK) rose 11.2% despite no company-specific news, at least today. The move, however, could very well be a continuation of an announcement earlier this week that the company was looking for a buyer of its 1,200-acre Eastman Business Park in Rochester, N.Y., so it could pursue its focus on commercial imaging and perhaps beef up its cash position. Investors are obviously still wary of Eastman following its bankruptcy and reemergence, so any effort to improve its cash position and narrow its focus to a few core business groups will probably be viewed positively by investors, as we're seeing today.

Idera, Bofi, and Eastman Kodak may have soared today, but they're likely no match for this top stock in 2014
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Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

The Motley Fool owns shares of, and recommends BofI Holding. 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.

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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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