A Fool Looks Back

Let's take a look back at the news that made waves.

Jun 14, 2014 at 6:00AM

Priceline (NASDAQ:PCLN) is hoping that travelers get hungry. It's acquiring restaurant reservations leader OpenTable (NASDAQ:OPEN) in a $2.6 billion deal. Cashing out OpenTable investors at $103 a share represents a 46% premium to where the stock was trading ahead of Friday morning's announcement.

Some are arguing that Priceline is paying too much. Then again, the company with the "name your own price" mantra for its namesake site has an ironic habit of paying too much, such as for Kayak and other travel websites. But Priceline has proved over time that it gets good deals, and that will probably be the case this time around as well.

Priceline's been a market darling on the strength of its travel bookings, but the logical expansion into reservations at foodie haunts makes sense. Priceline's strength in Europe should also help shore up OpenTable's presence in Europe, which has been somewhat lackluster since expanding overseas a few years ago.

That doesn't mean someone will step up with a better offer. OpenTable's stock popped above $103 on the news for a deal that should close next summer, but it's not as if Priceline will be under pressure to top that price. OpenTable is worth a premium to Priceline, but this is unlikely to be a prelude to a bidding war. 

Briefly in the news
And now let's look at some of the other stories that shaped our week.

  • Tesla Motors (NASDAQ:TSLA) turned heads by opening up its patents to folks with honorable intentions to make electric cars more feasible. The market wasn't keen on the idea. Intellectual capital is pretty valuable to give away. However, it's not the first time Elon Musk has bucked conventional wisdom. He will probably win again this time.   
  • General Motors (NYSE:GM) just can't seem to stop calling back its vehicles. It issued recalls covering another 600,000 cars this week, with most of that going to owners of 511,500 Chevy Camaros after an internal investigation found another ignition switch problem.  
  • It was more sheer madness for lululemon athletica (NASDAQ:LULU) shareholders, after the upscale fitness apparel retailer posted uninspiring results. It hosed down its outlook for all of fiscal 2014, tagging 2014 as a "transitional" year. It's hard to get excited about the premium yoga clothing chain when comps at its company-owned stores are negative.  

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Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends General Motors, lululemon athletica, OpenTable, Priceline Group, and Tesla Motors and owns shares of Priceline Group 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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