Why TravelCenters of America Shares Were Rolling Higher Today

Is this meaningful? Or just another movement?

Jun 9, 2014 at 6:27PM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of TravelCenters of America (NYSE:TA) were headed north today, climbing as much as 12% and finishing up 9% on a strong fourth-quarter earnings report.

So what: The truck-stop operator said revenue fell 1% to $1.91 billion in the quarter, in line with the estimates, and the bottom line fell from $0.08 per share to an adjusted loss per share of $0.39, after removing an income tax benefit. Still, adjusted EBITDAR improved 4% in the quarter, showing some signs of progress. Management noted that the improvements to properties it acquires takes a long time to complete, and CEO Thomas O'Brien said his outlook remains "positive" despite the slow progress.

Now what: Given the seemingly weak quarter, the market's reaction was surprising. As reported, earnings were $0.39 per share because of benefits from changes in the valuation of deferred tax assets, and on a sales basis, TravelCenters remains incredibly cheap at a P/S ratio of 0.04. The company acquired 41 sites last year, more than double the total it added in 2011 and 2012, and those assets should pay off down the line. Shares of TravelCenters crashed in 2007 and never really recovered, but growth on the top and bottom line could help push the stock back to its former heights. Keep an eye out for that turnaround going forward.

Warren Buffett's worst auto nightmare (Hint: It's Not Tesla)
A major technological shift is happening in the automotive industry. Most people are skeptical about its impact. Warren Buffett isn't one of them. He recently called it a "real threat" to one of his favorite businesses. An executive at Ford called the technology "fantastic." The beauty for investors is that there is an easy way to invest in this megatrend. Click here to access our exclusive report on this stock.

Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Ford 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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