A Fool Looks Back

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

Jul 12, 2014 at 12:00PM

The Container Store (NYSE:TCS) has set an ugly tone for this upcoming earnings season. The housewares retailer lowered its outlook -- again -- and this time it's dashing the hopes of investors in general by talking up what it calls a "retail funk" that's coating the shopping landscape.

When The Container Store went public in November, it seemed as if the market was getting the opportunity to buy one of the retail realm's class acts. The Container Store is the trendy place in the suburban strip mall. It's the place to buy housewares and stylish storage boxes. It's the place to go when you want finally want to install that slick closet organization system. 

At a time when there's growing sentiment to boost the pay scale of retail employees, The Container Store is one of the more notable chains that already pays pretty well. It brags about offering wages and salaries for its salespeople that are are as much as 50% to 100% higher than the industry average. Employees don't have to press hard on customers to ring up commissions, and when internal sales contests take place, they are done more to foster a friendly competitive spirit than to weed out the unfortunate. 

However, The Container Store has a been a bit of a dud since going public. When earnings fell short of expectations during the holiday quarter, it blamed the weather. When the next quarter also missed analyst profit forecasts, it suggested that a calendar shift was to blame. Now that it's eyeing its third straight disappointing quarter since going public late last year, it's owning up to the fact that the winter snowstorms or Easter's shift from March to April this year weren't completely to blame when it failed to live up to the post-IPO hype. 

The Container Store was one of a handful of companies that warned this past week, and the "retail funk" that the stumbling chain is alluding to may be a recurring theme if more consumer-facing companies disappoint this upcoming earnings season. 

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

  • Netflix (NASDAQ:NFLX) walked away with 31 Emmy nominations this week. No one will confuse Netflix for HBO, but we're still talking about more than doubling the 14 nominations that it rang up a year ago. It's clear that the movie and TV show universe is accepting premium streaming as a viable distribution outlet, and drumming up the respect of critics will make it that much easier to land hot new shows in the future.  
  • Keurig Green Mountain (NASDAQ:GMCR) has signed another deal with a major retailer to nab its private-label business. Keurig Green Mountain will provide Harris Teeter's grocery stores with the upscale supermarket chain's branded K-Cups. Life after patent expiration hasn't been so rough after all.  
  • Joe's Jeans (NASDAQ:JOEZ) posted better-than-expected earnings, offering up a small profit when analysts were targeting a deficit. This is the third quarter in a row that this has happened, leading one to wonder when Wall Street will get the memo.  

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Rick Munarriz owns shares of Keurig Green Mountain and Netflix. The Motley Fool recommends Keurig Green Mountain, Netflix, and The Container Store Group and owns shares of Netflix and The Container Store Group. 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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