Big Day for Green Mountain and Some Ugliness From Elizabeth Arden

The two things you need to know on May 13.

May 13, 2014 at 11:00PM
What's the best way to share your enthusiasm for stocks reaching new records? "Primp" your dog to look like a panda. (It's the cool thing to do in China right now, according to the New York Post. Seriously.) The Dow Jones Industrial Average (DJINDICES:^DJI)(DJINDICES:^DJI) gained 20 points Tuesday, touching a new all-time high midday.

1. Cosmetics giant Elizabeth Arden delivers ugly earnings
It's too bad you can't put some foundation and blush on a corporate earnings report to make it look better. That's what the cosmetics chemists over at makeup giant Elizabeth Arden (NASDAQ:RDEN) wish they had done after the stock fell 22.8% Tuesday following its unattractive earnings report -- revenue fell 20% last quarter to $210.8 million, well below the $256.9 million Wall Street expected.

Unlike everyone's favorite model, Heidi Klum, Elizabeth Arden struggled all across Planet Earth to kick off 2014. In North America, sales fell 23% as the company launched fewer fragrances than usual and dealt with the brutal winter weather deterring beauty-seeking consumers. And despite Arden's presence in 120 countries worldwide, international sales fell 16% after management "strategically decides" to reduce its shipments to avoid giving out brand-hurting discounts at the end of the season.

The takeaway is that Elizabeth Arden is trying to get picked up like it's on a corporate date. Just last month, Household Health & Care announced that it was interested in purchasing Arden. So during the earnings report, the company tried to please investors by mentioning that it's working with Goldman Sachs, as if the bank is a matchmaker, to explore "strategic options" for its future.

2. Green Mountain Coffee Roasters enjoys some Coke love
It was a caffeine surge for Keurig Green Mountain (NASDAQ:GMCR) after soda giant Coca-Cola (NYSE:KO) announced Tuesday it will buy millions more shares of the K-Cup coffee company. Coke's big buy is driving up Green Mountain's share price, which neared an all-time high after the huge endorsement, gaining 7.6%.
The biggest global brand can't get enough of the coffee company. After taking a 10% stake in the company this February, Coca-Cola is doubling down on its bet that Keurig coffee can be the growth engine it needs. Suddenly, Green Mountain shares are the hottest thing in Vermont since the Purple's Pleasure sandwich hit the college town of Middlebury.
The next frontier for Green Mountain will be a single-cup Keurig soda maker. As the company takes on Israel-based SodaStream (NASDAQ:SODA) in its own market, it will be good to have the biggest soda company in the world supporting it. Coca-Cola will be the biggest owner of the company, with 16% of the shares.
Remember that soda sales dropped globally this past quarter for Coke for the first time since 1999 (thanks, juice cleanse trend), so investors are craving growth from healthier beverage options. One part of the answer is Green Mountain -- it's been an awesome stock for years, growing to a $20 billion company as the single-cup coffee revolution has swept America, one Keurig machine at a time.
As originally published on

Warren Buffett just bought nearly 9 million shares of this company
Imagine a company that rents a very specific and valuable piece of machinery for $41,000 per hour. (That's almost as much as the average American makes in a year!) And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report details this company that already has over 50% market share. Just click here to discover more about this industry-leading stock, and join Buffett in his quest for a veritable landslide of profits!

Jack Kramer and Nick Martell have no position in any stocks mentioned. The Motley Fool recommends Coca-Cola, Goldman Sachs, Keurig Green Mountain, and SodaStream; owns shares of SodaStream; and has options on Coca-Cola. 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.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information