3 Predictions for the New Week

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

Jun 1, 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 JinkoSolar (NYSE:JKS) would move higher on the week. The Shanghai-based solar company was reporting quarterly results on Tuesday, and it had been bottom-line beats in recent outings. It wasn't a great report, but a bullish analyst note helped the longs win out. The stock moved 8% higher on the week. I was right.
  • The Dow Jones Industrial Average (DJINDICES:^DJI) had been clobbering the Nasdaq Composite through April and early May, 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 happened. The Nasdaq Composite climbed 1.4% on the week. The Dow moved 0.7% higher. I was right.
  • My final call was for Michael Kors (NYSE:KORS) to beat Wall Street's income estimates in its latest quarter. The fast-growing distributor of luxury handbags and accessories 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 a profit of $0.78 a share. Analysts had been projecting net income of $0.68 a share. I was right.

Three out of three? I call that a pretty good week!

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. Netflix will move lower on the week
There was no "sell in May and go away" for Netflix (NASDAQ:NFLX) investors. The stock was one of the market's biggest winners, soaring 30% last month. 

There are certainly plenty of reasons to get excited about Netflix and its market leadership position in the booming realm of premium video streaming. A growing catalog and recent price increase for new members should keep existing subscribers close.

However, Netflix has a history of correcting after major moves up. It seems ripe for a pullback before it resumes its rightful upward trajectory.

My first call is for the stock to move lower 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 was a bad bet through most of March and April, but it's been rolling in recent weeks. 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. Ambarella will beat Wall Street's earnings estimates
Some stocks are just flat-out better than others. Ambarella (NASDAQ:AMBA) is a fast-growing provider of video compression chips. Its solutions power GoPro wearable cameras, Dropcam surveillance systems, and other products.

Another thing it does is make analysts look like perpetual underachievers. If analysts say the company rang up a profit of $0.21 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. The market for video compression chips can intensify, and the wearable GoPro juggernaut is showing signs of peaking. GoPro revealed in its prospectus that revenue slipped in its latest quarter

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.

Your credit card may soon be completely worthless
The plastic in your wallet is about to go the way of the typewriter, the VCR, and the 8-track tape player. When it does, a handful of investors could stand to get very rich. You can join them -- but you must act now. An eye-opening new presentation reveals the full story on why your credit card is about to be worthless -- and highlights one little-known company sitting at the epicenter of an earth-shaking movement that could hand early investors the kind of profits we haven't seen since the dot-com days. Click here to watch this stunning video.

Rick Munarriz owns shares of Ambarella and Netflix. The Motley Fool recommends and owns shares of Ambarella, Michael Kors Holdings, and Netflix. 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

Compare Brokers