Why Halcon Resources, Bebe Stores, and Akebia Therapeutics Jumped Today

The stock market bounced back from last week's losses, but these three stocks performed a whole lot better. Find out more about what made these stocks soar.

Apr 14, 2014 at 8:05PM

Investors came back from the weekend refreshed after last week's substantial losses, and the stock market bounced back to produce fairly strong gains Monday. Government data showed a sharp rise in retail sales in the U.S. last month, and that translated into gains of almost 1% for major-market benchmarks. For Halcon Resources (NYSE:HK), Bebe Stores (NASDAQ:BEBE), and Akebia Therapeutics (NASDAQ:AKBA), though, Monday was an even stronger day, with more sizable gains for the three companies.

Oil Well

Photo credit: Flickr/Paul Lowry

Halcon Resources jumped 9%, following in the footsteps of other big players in the Tuscaloosa Marine Shale area of Louisiana and Mississippi after Goodrich Petroleum announced extremely encouraging results from one of its wells in the area. With Goodrich showing strong production composed almost entirely of oil rather than natural gas, investors hope that Halcon Resources will see similar success in its own extensive holdings in the region. Given that Halcon's holdings are in the same general vicinity as where the well results were from, it's reasonable to expect the fortunes of both companies to remain tied together for at least the near future.

The 15% gain that Bebe Stores gave shareholders today came after an analyst firm upgraded the women's retail stock and boosted its price target by more than a third. The industry niche claimed another victim when Coldwater Creek declared bankruptcy last week, and Bebe Stores has had trouble with falling sales in a difficult competitive environment. Even though the analyst expects sales to start growing again, Bebe Stores could take a long time to become profitable again, and that could make any rise in the share price somewhat premature.

Akebia Therapeutics soared more than 25% on a topsy-turvy day that included wild swings for the small and newly public biotech stock. Several analysts joined forces to give positive assessments of the company, with one offering a grandiose price target of $90 per share -- more than quintuple its price last week. Yet it's important to note that all three analysts giving Akebia positive ratings were involved in its initial public offering, including the two joint book-running managers and a co-manager for the offering. That doesn't automatically mean that their opinion is biased, but Akebia only has a couple of pipeline prospects and no approved products. With mid-stage trials still ongoing, it could be years before Akebia can even seek FDA approval for its treatments for kidney disease, anemia, and cancer.

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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.

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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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