Why Hewlett-Packard, Renewable Energy Group, and GT Advanced Technologies Jumped Today

The S&P climbed to a new record high above 1,900 on Friday, as investors stayed confident in the staying power of the bull market. These stocks did even better. Find out more about what made them soar.

May 23, 2014 at 8:06PM

Friday led to record gains for the stock market, as the S&P 500 closed at an all-time record. Investors remain upbeat about the prospects for economic growth in the U.S. and around the world, and they largely dismissed concerns about Russian President Vladimir Putin's comments concerning Ukraine as political posturing. Even though the broader market posted reasonable gains today, the truly impressive moves came from a select group of stocks, with Hewlett-Packard (NYSE:HPQ), Renewable Energy Group (NASDAQ:REGI), and GT Advanced Technologies (NASDAQOTH:GTATQ) among the best performers Friday.


Hewlett-Packard gained 6% after reporting its fiscal second-quarter earnings yesterday afternoon. Revenue fell 1% from the year-ago quarter, but earnings met expectations, and the tech giant said that it would reduce its labor force by another 11,000 to 16,000 jobs. Given that Hewlett-Packard had already planned for a massive job reduction of 34,000 just two years ago, the move shows the extent to which CEO Meg Whitman is willing to go to keep costs under control in a falling-revenue environment. At least for now, shareholders are interpreting the move as positive for earnings; but some worry that Hewlett-Packard is following a course that many other companies have seen as unfruitful in the long run.

Renewable Energy Group jumped 11%. The biodiesel producer announced earlier this week that it would fully acquire Dynamic Fuels, a privately held joint venture in which meat producer Tyson Foods currently holds a 50% interest. In combination with an earlier move to acquire Syntroleum, which owns the other 50% of Dynamic Fuels, Renewable Energy Group's deal with Tyson will involve cash and repayment of debt of about $30 million, with possible earn-out payments of as much as $35 million depending on production at the biorefinery plant that Dynamic Fuels owns. Today's move suggests that it took some time for analysts to get comfortable with the deal, which should increase Renewable Energy Group's output capacity by almost 30%.


Source; GT Advanced Technologies.

GT Advanced Technologies rose 8% after reports that smartphone producers Samsung and LG would add covers made out of sapphire material to their mobile offerings. GT Advanced Technologies is a major producer of sapphire, which has attractive durability characteristics. Until now, the general objection to sapphire has been cost-related, as other materials, like Gorilla Glass, are far less expensive. But with the prospects of seeing greater use of sapphire in mass-produced mobile devices, GT Advanced Technologies and its peers appear to be making inroads toward gaining greater acceptance in the mobile arena.

Leaked: The next smart device (warning, it may shock you)
One tech giant recently recruited a secret-development Dream Team to guarantee their newest smart device was kept hidden from the public for as long as possible. But the secret is out... and some early viewers are even claiming its everyday impact could trump the iPod, iPhone, AND the iPad. In fact, ABI Research predicts 485 million of these type of devices will be sold per year. But one small company makes this gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see the latest new smart gizmo, just click here!

Dan Caplinger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.

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