Dow Jumps 123 Points; Ameresco Inc. and Teekay LNG Partners Plunge

Disney advances with the broader market despite bidding wars for live sports broadcasting.

Jul 18, 2014 at 6:18PM

The Dow Jones Industrial Average (DJINDICES:^DJI) regained most of the ground it lost in yesterday's chaotic market. The stock market began a steep, day-long sell-off on Thursday after a commercial Malaysia Airlines flight was shot down by an unknown party near contested parts of the Ukraine-Russia border. Germany and the U.S. have now accused Russian-backed militants for the attack, drawing a line in the sand, and demanding that Russia withdraw its support for these rebels or face repercussions.

On a lighter note, robust sales growth from Google and AbbVie's $54 billion acquisition of Shire both testified to the financial power of corporate America. Boosted by a strong start to earnings season, the Dow gained 123 points, or 0.7%, to end at 17,100.

Twenty-eight of the Dow's 30 components finished higher on Friday. Walt Disney (NYSE:DIS) shares joined in on the fun, adding 0.9%, breaking a four-day losing streak. Though Disney is a diversified, global entertainment juggernaut in a league of its own, investors shouldn't get complacent by any means. Competition is heating up, particularly in the world of sports broadcasting, where Disney's ESPN is the crown jewel. The Disney-owned ABC is currently negotiating a multiyear deal with the NBA, seeking to retain exclusive rights to the NBA Finals. But the NBA wants double the $485 million ABC currently pays annually to the league for broadcasting rights. On top of that, Time Warner may try to outbid Disney for those rights.

The final layer of competition could come from Twenty-First Century Fox, which offered to buy Time Warner for $80 billion -- largely for its sports broadcasting rights -- but was turned down.

While Disney offers all sorts of quintessential entertainment services, Ameresco (NYSE:AMRC) offers services that can be equally alluring, if not as exciting. Ameresco is in the business of saving its clients money. Ameresco offers custom solutions that aim to bring down the day-to-day operational costs, and energy costs for its clients, which often include the U.S. government, hospitals, and other large businesses. While energy efficiency remains one of the hottest topics in our society today, Ameresco's stock hasn't been so hot this year: It's down more than 30% in 2014 after today's 2.2% stumble. With no dividend to lure investors, analysts expecting sales to fall off this fiscal year, and sexier rivals like SolarCity getting all the attention from Wall Street, the pressure's on Ameresco to prove the market wrong.


Teekay LNG carrier the "Madrid Spirit." Image Source: Teekay

Teekay LNG Partners (NYSE:TGP), a Bermuda-based company that ships liquid natural gas and oil across the world, shed 4.2% today. In sharp contrast to Ameresco, Teekay LNG does offer a hefty dividend that it can use to lure investors. In fact, its 6.3% annual dividend is tough to ignore. But before falling hopelessly in love with this stock, consider how Teekay can afford to reward investors with such a juicy chunk of cash. My colleague Robert Zimmerman refers to it as "that four letter word" -- debt. Mr. Zimmerman argues convincingly that Teekay's debt is the company's Achilles' Heel, an argument supported by both bad liquidity ratios and the fact that the company doles out more money in the form of dividends than it actually earns each year. The rest is financed through debt.

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John Divine owns shares of Google (C shares). You can follow him on Twitter @divinebizkid and on Motley Fool CAPS @TMFDivine.

The Motley Fool recommends Ameresco, Google (C shares), SolarCity, and Walt Disney. The Motley Fool owns shares of Google (C shares), SolarCity, and Walt Disney. 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.

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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