Why Micron Technology, Insteel Industries, and SINA Jumped Today

The stock market finished narrowly mixed as a large number of major earnings releases gave conflicting views of the corporate economic environment. But these three stocks posted solid gains. Find out more about what made them soar.

Apr 17, 2014 at 8:05PM

On Thursday, with the prospect of a holiday-shortened week, the stock market was fairly quiet, with major-market benchmarks sticking close to the unchanged level. A large number of prominent companies tried to cram their earnings releases into the four-day week, and that resulted in widely disparate snapshots of the business climate from many different points of view. For Micron Technology (NASDAQ:MU), Insteel Industries (NASDAQ:IIIN), and SINA (NASDAQ:SINA), though, Thursday was a day of strong gains on good news for their respective stocks.


Source: Micron Technology.

Micron Technology rose 6% after rival memory-maker SanDisk (NASDAQ:SNDK) announced its most recent earnings results. SanDisk's strong performance included sales gains of 13% that drove earnings higher by 63%, as high demand for solid-state drives showed the importance of advanced memory products in powering the smartphones, tablets, and other mobile devices that increasingly rely on the most current technology available. Even as SanDisk gave positive guidance for the current quarter, investors in Micron Technology believed the same factors that have pushed SanDisk's prospects higher should also give Micron the same boost. With so much opportunity for growth internationally, flash-memory-based products have almost unlimited upside, and Micron is arguably just as well-poised to take advantage of that as SanDisk.

Insteel Industries soared 17% as the maker of steel rebar products to secure concrete for construction projects said that sales rose more than 10% in its fiscal second quarter compared to year-ago levels. Although average prices fell slightly, shipment volume gains more than made up for the decline, and Insteel said a fire that had affected part of a Tennessee manufacturing facility didn't hurt the company's overall results. Insteel was also optimistic about the remainder of the fiscal year, as the seasonally strong spring and summer months should lead to increased demand, especially after the brutal winter that halted many construction projects dead in their tracks.

SINA gained 7% after the IPO of its Weibo microblogging service went better than some had expected. Although SINA eventually chose to price the initial public offering at the low end of its expected range, Weibo shares got a nice spike upward, climbing almost 20% above the $17 IPO price. At first glance, that might sound like a disastrous result for SINA, but with the IPO involving less than a 10% stake in Weibo, SINA still retained most of its stake in the microblogging service and will therefore benefit directly from any further appreciation in Weibo's share price. Even after the IPO, SINA also has commanding 80% voting power, allowing it to dictate Weibo's future going forward.

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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." 

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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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