Dow Rises for 3rd Straight Day, Navigator Holdings Surges

Home Depot again finishes as one of the Dow's finest; King Digital Entertainment stock rallies

Jun 17, 2014 at 7:00PM

The Dow Jones Industrial Average (DJINDICES:^DJI) ended in the green for a third-straight session on Tuesday despite subpar real estate data for May and a larger-than-expected rise in the consumer price index. Curiously enough, Home Depot (NYSE:HD) stock finished as one of the best blue chip performers for a second-straight day. Investors will listen intently to the Federal Open Market Committee tomorrow as members discuss the economy and interest rates. With Wall Street cautiously optimistic about what the central bank leaders will do and say on Wednesday, the Dow rose 27 points, or 0.2%, to end at 16,808.

Yesterday, Home Depot shares finished as outperformers after a popular gauge of builder sentiment ticked higher. But May's housing starts data, which missed market expectations, should've been a net negative for Home Depot. Housing starts, or the number of residential projects that builders break new ground on, fell 6.5% in May from April. The data could encourage the Fed to keep interest rates lower for longer, but policy makers have already vowed to keep rates at rock-bottom levels for the foreseeable future. Whatever the rationale, Home Depot stock was up 1.4% today.

Candycrush Ipad

Candy Crush being played on a tablet. Source: King Digital Entertainment

King Digital Entertainment (NYSE:KING) shareholders saw even bigger gains on Tuesday, and for similarly fuzzy reasons. Shares of the game developer, best known for its Candy Crush Saga game, soared 4% today. While there was no definitive impetus behind the move today, I think King's top brass deserve credit for the way the stock's IPO was priced back in March. Pricing the public offering at $22.50 a share, or a valuation of roughly $6 billion, the stock trades at more than a 20% discount to that price today. However, unlike other businesses taking advantage of the frothy IPO market in recent years, King Digital is debt free, and has been both cash flow positive and profitable for nearly a decade.

Lastly, shares of Navigator Holdings (NYSE:NVGS) added 6.2% on Tuesday. The London-based company operates a fleet of more than 20 ships across the globe, transporting liquefied petroleum gas and other products across international waters for energy companies and traders. Navigator Holdings has grown sales at a breakneck speed of more than 60% annually for the last two years. While that's an amazing and enviable rate of growth, shipping gases internationally is a capital-intensive business, and Navigator Holdings may have to take out more debt if it wants to increase its fleet and continue its explosive run.

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John Divine has no position in any stocks mentioned. You can follow him on Twitter @divinebizkid and on Motley Fool CAPS @TMFDivine.

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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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