3 Predictions for the New Week

This Fool sees a limb to go out on. And another. And another.

May 11, 2014 at 3:00PM

went out on a limb last week, and now it's time to see how that decision played out.

  • I predicted that Monster Beverage (NASDAQ:MNST) would miss analyst profit forecasts. I'm a fan of the energy drink maker's product. It joins Red Bull as the two category killers in the juicy niche of carbonated energy beverages. However, I couldn't ignore Monster's knack for coming up short on the bottom line over the past year. I figured Monster would do the same this time around. The pros were holding out for $0.49 in net income per share for the period, and on Thursday we saw Monster come through with earnings of $0.55. I was wrong.
  • The Dow Jones Industrial Average (DJINDICES:^DJI) has been clobbering the Nasdaq Composite lately, but I still think the tech-centric Nasdaq is the place to be. My second prediction was for the Nasdaq to beat the Dow on the week. It didn't work out this time. The Nasdaq Composite slipped 1.3% on the week. The Dow moved 0.4% higher. I was wrong.
  • My final call was for Tesla Motors (NASDAQ:TSLA) to beat Wall Street's income estimates in its latest quarter. The coolest player by far in the realm of electric sedans had beaten analyst targets consistently over the past four quarters, and I was banking on a repeat performance. We saw it close out the quarter with an adjusted profit of $0.12 a share. Analysts had been projecting net income of $0.10 a share. The stock may have taken a hit on the report as a whole, but it was a beat on the bottom line. I was right.

One out of three? I can do better than that!

Let me once again whip out my trusty, dusty, and occasionally accurate crystal ball to make three calls that may play out over the next few trading days.

1. SodaStream shares will move higher on the week
SodaStream (NASDAQ:SODA) has been making headlines in recent weeks as a buyout candidate, but this week it can set aside the fizz and hope that it earns its gains by not going flat. The company behind the popular home-based soda maker reports on Wednesday, giving it a chance to show investors that the recent correction before the acquisition chatter-fueled rally was a mistake.

It's easy to bet on SodaStream here. It has continued to post healthy sales growth across all three of its product categories, and it has beaten profit targets consistently over the past year. 

My first call is for SodaStream to move higher for the week. 

2. Nasdaq will beat the Dow this week
I've routinely picked the tech-heavy Nasdaq Composite to beat the Dow Jones Industrial Average, and it's been a bad bet in recent weeks. It didn't pay off this past week, but I'm going to stick with it again for a repeat performance. My second call is for the Nasdaq Composite to beat the Dow Jones Industrial Average for the week.

3. magicJack VocalTec will beat Wall Street's earnings estimates
Some stocks are just flat-out better than others.

magicJack VocalTec (NASDAQ:CALL) is a growing provider of Web-based telephone service. The VOIP pioneer markets its magicJack service as a low-cost alternative to traditional landlines. It has sold more than 10 million of its namesake devices.

Another thing it does is make analysts look like perpetual underachievers. If analysts say the company rang up a profit of $0.10 a share in its latest quarter, I'll argue that it held up better than that. History's on my side!

One of my best tricks to beating the market is finding stocks that perpetually land ahead of the prognosticators. Let's go over the past year of earnings reports.


EPS Estimate



Q1 2013




Q2 2013




Q3 2013




Q4 2013




Source: Thomson Reuters.

Things can change, of course. Consumers can continue to ditch secondary phone lines completely. Cheaper platfroms may emerge. That's all stuff to keep in mind down the road, but not now. Everything seems to be falling into place for another market-thumping quarter on the bottom line.

One more prediction about a $14.4 trillion revolution
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Rick Munarriz owns shares of SodaStream. The Motley Fool recommends and owns shares of Amazon.com, Monster Beverage, SodaStream, and Tesla Motors. Try any of our Foolish newsletter services free for 30 days. 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.

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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