Why Measurement Specialties, McEwen Mining, and BlackBerry Are Today's 3 Best Stocks

The S&P 500 inches higher to another all-time record close as Measurement Specialties, McEwen Mining, and BlackBerry all rocketed higher on the day.

Jun 19, 2014 at 5:15PM

If you're into somewhat confusing moves, then you'll love today's trading action in the broad-based S&P 500 (SNPINDEX:^GSPC), which oddly spent most of the day in negative territory despite two positive economic reports that would normally be expected to push the market higher.


The big report of the day was the release of the weekly initial jobless claims data, which showed a decline of 6,000 claims to a seasonally adjusted 312,000. A drop in jobless claims is viewed as a positive by investors because it might signal that fewer people are having trouble finding work. With seasonally adjusted claims staying put near the 300,000 mark, it's quite possible the U.S. unemployment rate could drop even further.

Also providing a boost to optimists was the release of May's leading economic indicators, which grew by 0.5%, its fourth-consecutive month of gains. This strong reading comes on the heels of the FOMC's meeting yesterday, as it plans to potentially get more aggressive with lending-rate hikes in 2015 and 2016, and signals that the economy is finally ready to stand on its own two feet once again.

Despite fighting off profit-taking pressure for much of the day, the S&P 500 still managed to trudge higher by 2.50 points (0.13%), to close at another all-time record of 1,959.48.

Topping the charts today was sensor manufacturer Measurement Specialties (NASDAQ:MEAS), which gained 10.7% after TE Connectivity (NYSE:TEL) announced it was purchasing the company for $1.7 billion, including debt. TE Connectivity anticipates that the global sensor market will grow by an average of 8% per year through 2019, so the move to acquire Measurement Specialties should help improve its adjusted profits by the mid-single digits in the first year following completion of the deal. With solid product diversity, TE Connectivity should remain a solid long-term option for investors, while at 23 times forward earnings, Measurement Specialties shareholders appear to have received a more than ample premium for their shares.

Gold Bar

Source: Istara, Pixabay.

Following closely behind Measurement Specialties is small-cap miner McEwen Mining (NYSE:MUX), which jumped 9.8% along with much of the metals sector, as gold prices soared $50 per ounce. The primary catalyst pushing gold prices higher was yesterday's Federal Open Market Committee meeting, which slowed down its growth prospects for the U.S. economy in 2014. When gray clouds emerge over the U.S. economy, investors occasionally turn to hedged bets such as gold as a safety net -- thus the significant move higher today in the underlying metal. While McEwen didn't have any company-specific news sending its shares higher, a higher gold price, if sustainable, could yield beefier margins for gold miners like McEwen.

Blackberry Z

BlackBerry Z10, Source: BlackBerry.

Finally, struggling smartphone manufacturer BlackBerry (NASDAQ:BBRY) surged 9.7% after reporting better-than-expected first-quarter results. For the quarter, BlackBerry's revenue plunged to just $966 million from $3.1 billion in the year-ago period. However, tight cost controls, including job cuts, and operational improvements led the company to report $23 million in net income, reversing a year-ago loss of $84 million. Furthermore, gross margin improved almost 13 full percentage points, to 46.7%. While it's encouraging to see BlackBerry moving back toward profitable sustainability, cutting costs is only a temporary solution. Without any true innovation, I'm afraid the upside in this stock is very limited.

These three stocks may have soared today, but keeping up with this top stock over the long haul could prove difficult!
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Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

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 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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