Why This Company That You've Never Heard of Is a Buy Today

"Boring" stocks make the best stocks, especially when they corner a niche like this one has.

Apr 3, 2014 at 2:00PM

Shares of Balchem Corp. (NASDAQ:BCPC) jumped 23% this week, a move that caught many investors by surprise for this quiet and barely discussed company. Balchem develops and manufactures key nutrients as ingredients for both human and animal food, such as choline, also known as vitamin B4. The stock popped big this week on the market after the announcement of its acquisition of Specialty Effects, a company whose model and technology fit in extremely well with Balchem's current offerings.

This is an enormous acquisition for Balchem, as Specialty Effects represents approximately 35% of Balchem's current size. The deal is all-cash as well, which shows a lot of confidence by management that the acquisition will be immediately accretive to earnings.

In this video from today's Stock of the Day, host Mark Reeth and Motley Fool analyst Sara Hov talk investors through the business and its massive acquisition this week. Sara also discusses why even after the 23% price jump, she still loves the business and its growth prospects. She tells investors several reasons why Balchem taking on debt to fund this cash acquisition doesn't worry her, why she sees the acquisition as a great one, and why the stock is a buy today.

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Mark Reeth and Sara Hov have no position in any stocks mentioned. The Motley Fool recommends Balchem. 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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