Why Silvercorp Metals, Enbridge Energy Partners, and BlackBerry Jumped Today

The stock market was largely mixed as investors wait for more clarity and for the coming earnings season to start. Find out why these stocks soared.

Jun 19, 2014 at 8:05PM

The stock market was little changed on Thursday, with investors assessing the situation after the Federal Reserve's pronouncement on interest rates yesterday afternoon. For the most part, major market benchmarks ignored concerns about the ongoing conflict in Iraq, but they also remained cautious about expecting too much from a market that has been hitting new all-time highs on a consistent basis for more than a year without any substantial correction. Still, pockets of strength abounded in the market, with Silvercorp Metals (NYSE:SVM), Enbridge Energy Partners (NYSE:EEP), and BlackBerry (NASDAQ:BBRY) among the best performers today.

Source: Silvercorp Metals.

Silvercorp Metals jumped 12%, leading just about the entire precious-metals complex higher. Gold prices soared more than $40 per ounce to climb above the $1,300 mark, and silver prices gained almost $1 per ounce to roughly $20.85. The Fed's rate strategy weakened the U.S. dollar, and a weak currency often leads to strength in gold and silver. The plunge in silver prices last year was highly problematic for Silvercorp's overall profitability, but investors hope the silver market can flatten out and even climb. As long as Silvercorp can put some of its production challenges behind it, the stock has more than ample profit potential to justify its modest valuation even after today's gain.

Enbridge Energy Partners rose 13% as the master limited partnership announced a deal to sell a portion of its ownership interest in the Midcoast Operating limited partnership for $350 million. The move should serve the dual purpose of allowing Enbridge to retain its interest in the midstream natural-gas arena while also collecting additional cash to invest in a prospective new pipeline for transporting liquids. The move is just the latest in a series of similar strategies across the energy industry, as companies seek to focus on their best prospects and to divest noncore assets as appropriate to generate much-needed liquid capital.


BlackBerry climbed 10% as the embattled smartphone maker reported a narrower loss in its fiscal first quarter than investors had expected. Sales of BlackBerry devices rose during the quarter, and even though overall revenue plunged almost 70%, CEO John Chen remains confident about the direction of BlackBerry's turnaround. With substantial improvement in BlackBerry's cost structure, the company's next step is to find ways to use its expertise in secure-mobile technology to grow and carve out a niche area of strength.

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Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Enbridge Energy Partners. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.

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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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