Why Newmont Mining, J.C. Penney, and Select Comfort Jumped Today

Stocks generally rose on optimism about earnings season and the U.S. economy, but these three stocks posted much larger gains than the broader market. Find out more about what made them soar.

Apr 21, 2014 at 8:03PM

On Monday, investors began the week on a generally upbeat note, with positive sentiment from last week's solid gains for the major-market benchmarks following through into today's session. Yet even though the major indexes saw only modest gains of about a quarter-percent to a half-percent, Newmont Mining (NYSE:NEM), J.C. Penney (NYSE:JCP), and Select Comfort (NASDAQ:SCSS) all saw their shares climb much more extensively on what was otherwise a fairly quiet day.

Gold Dollar

Newmont Mining climbed 6% amid speculation over whether the gold and copper producer might merge with fellow gold giant Barrick Gold (NYSE:ABX) to create a colossus in the mining industry. Interestingly, the moves followed reports last Friday that a proposed merger had reached advanced discussions but had eventually failed due to a failure to resolve some issues with respect to which mining assets might end up in a proposed company to be spun off after the merger. With $1 billion in annual cost savings, the two companies clearly have an incentive to do a deal, but Newmont shareholders are apparently happier with the company as an independent entity -- or believe that a better deal might come in the future.


J.C. Penney climbed 9% on relatively little news, although most traders pointed to unusual activity in the options market as a sign of a possible future move. With Easter having come this year toward the end of its fiscal first quarter, which runs through the end of April, investors were watching closely to see if Easter-related sales would help bolster the company's same-store sales. Given how weak J.C. Penney's performance was last year, it's almost a foregone conclusion that the retailer will be able to bounce back with positive comps. Yet from an earnings standpoint, few investors expect J.C. Penney to become profitable even within the next few years.

Select Comfort jumped 10% as the mattress-maker reported solid earnings results after the bell last Thursday. With the economy starting to fire more strongly and with the housing industry in particular seeing some encouraging signs of growth, Select Comfort saw same-store sales move up 2% on a 7% rise in overall revenue. With plans to open between 20 and 30 new stores this year and remodel many more, Select Comfort is betting that investing in a rebound now will pay dividends well into the future. Marketing strategies will cost money in the short run, but if they pay off, they could foster a new era of growth for the mattress specialist.

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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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