Why Gold Resource, Keurig Green Mountain, and Halozyme Therapeutics Are Today's 3 Best Stocks

The S&P 500 claws its way above 1,900 intraday, while Gold Resource, Keurig Green Mountain, and Halozyme Therapeutics give shareholders a reason to smile widely.

May 13, 2014 at 5:15PM

Today's economic data certainly didn't befit a move higher in the broad-based S&P 500 (SNPINDEX:^GSPC), but following yesterday's romp higher to a record close, it didn't seem that anything was going to stop it from cresting 1,900 (at least intraday!).


The big news was April's retail sales figure, which increased fractionally, just 0.1%, as big-ticket items like furniture and appliances weakened, and restaurants witnessed sales retrace. We should, of course, put into context that this 0.1% gain comes on the heels of March's 1.5% surge in retail sales, the single-largest monthly gain in four years, so some "deflating of the balloon" was expected in April. This figure is especially important for U.S. GDP because consumer spending accounts for roughly 70% of GDP. While growth was subtle, it still signals progress in the U.S. economy, and the fact that the retraction we witnessed in first-quarter GDP figures was likely due to the weather and not some other endemic slowdown.

By day's end, the S&P 500 managed to claw its way to another record close, pushing higher by 0.80 points (0.04%), and ending at 1,897.45. Despite the minimal move to the upside, three stocks managed to surge higher and pull investors along for the ride.


Source: Giorgio Monteforti, Flickr.

Leading the pack and galloping 21.6% higher was small-cap gold and silver miner Gold Resource (NYSEMKT:GORO), which reported its first-quarter results last night. According to its report, Gold Resources sold 20,600 gold-equivalent ounces at a total cash cost of $422/oz., which was an 18% decrease from the year-ago quarter and a 38% decline from the sequential fourth quarter. Total net income fell ever so slightly, to $7.1 million, or $0.13 per adjusted share from $7.4 million in the prior-year period. Compared to Wall Street's lone estimate, which was for a $0.05 per-share profit, Gold Resource crushed it! Furthermore, Gold Resource increased its cash and cash equivalents by $4.5 million over the prior quarter, and stuck to its previous production forecast. Although gold prices have been largely uncooperative, with a favorable cost structure and improving cash flow potential, I'd suggest it might finally be time to give Gold Resources a look.

Shareholders of specialty coffee company Keurig Green Mountain (NASDAQ:GMCR) also received a caffeinated jolt today with its shares rising 7.6% after Coca-Cola (NYSE:KO) announced in a regulatory filing that it was increasing its stake in Keurig Green Mountain to 16%. Keep in mind this comes after Coca-Cola announced in February that it'd be taking a 10% stake in Keurig Green Mountain for $1.25 billion.

Source: Keurig Green Mountain.

The idea here is that Keurig's cold beverage machine gives Coke products another way of infiltrating American households, while also giving Keurig the brand-name power of Coca-Cola to help introduce its product to foreign markets. Invariably, with such a large stake being built up, investors also have to be thinking about the potential for a long-term buyout. We know consumers love their coffee almost universally around the globe, and with Keurig's unique position in the single-serve brewing market, I continue to believe there could be more upside in its shares, even with shares valued where they are.

Finally, biopharmaceutical company Halozyme Therapeutics (NASDAQ:HALO) jumped 6.9% after reporting its first-quarter results. The figures themselves weren't all too exciting, with Halozyme's revenue ticking up slightly to $12 million from $11.8 million, and the company reporting a wider loss of $0.22 per share. Wall Street, for instance, was expecting a narrower loss of just $0.14 per share. What got investors excited, however, was CEO Helen Torley's commentary that its pancreatic cancer therapy PEGPH20, which it voluntarily halted the study of in April so the data monitoring committee could look into the potential for thromboembolic events, was now off hold, and the DMC had agreed to let it continue with its phase 2a study. It's been my opinion that PEGPH20 shouldn't have factored much into Halozyme's share price back in April, anyway, so its drop then seemed a bit unwarranted. With this trial resuming, and MabThera SC approved in the EU as of March, it's looking like Halozyme could turn the corner to profitability within the next year or two. It's a biotech name worth keeping your eyes on.

Gold Resource, Keurig Green Mountain, and Halozyme all soared today, but may still be no match for this top stock over the long run
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The Motley Fool recommends Coca-Cola and Keurig Green Mountain. The Motley Fool has the following options: long January 2016 $37 calls on Coca-Cola and short January 2016 $37 puts on Coca-Cola. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.

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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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