Ask the Editor

Here are some recent questions from our readers and answers from our editors. If you wish to submit a question, send an email to questions@cabot.net. Please note that questions from Cabot subscribers will receive priority.

Stop Losses for Small Caps

I just subscribed to Cabot Small-Cap Confidential, and I am preparing to enter my positions this week. Do you use stop loss numbers, or are these markets too volatile?

Opening and Closing Options

Would you explain the transaction process for opening and closing an option? 6/24/10

Stocks at All Time Highs

Why do you talk about so many stocks in Cabot Wealth Advisory when they are at all time highs? 4/13/10

Maxwell Technologies (MXWL)

I wanted to purchase 300 shares of MXWL but the stock is acting poorly. Should I be waiting for it to turn or should I buy now?

Effect of Global Conflicts on the Markets

A subscriber asks Tim how the market might react to increased conflict in the Middle East.

MACD Indicator

I have read so much about the MACD indicator and began to incorporate it into my stock selection process. My question to you is this: Do you find it reliable despite the fact that it is a lagging indicator?

Low Priced Stock Report

I subscribed to the year-end Cabot Low Priced Stock Report back in December. What should I do now?

How Many Stocks?

A Cabot Benjamin Graham Value Letter follower asks how many stocks should he buy, and how to choose them.

Good Companies with Beaten Down Stock Prices

When the market is down, is it a good time to invest in good companies whose stocks are beaten down?

Ex-dividend Dates

If I buy a stock on the ex-dividend date, will I receive the dividend for that quarter?

Small Cap Buy and Sell Philosophy

A subscriber asks Tom Garrity to describe his buy and sell philosophy. 8/20/10

Averaging Up

A reader asks Tom Garrity's position on averaging up as one of Tom's recommendations climbs.

Core Trader

Tom, what do you mean by "core trader?"

Buying on Weakness

Mike Cintolo explains why buying the most resilient growth stocks when the market gets going is a good bet. 5/27/10

Buy Rating versus Hold Rating

A Cabot China subscriber asks Paul Goodwin why he should hold stocks rated HOLD rather than sell them to buy BUY-rated stocks.

Buy Ratings

When you return a stock to a buy rating, is that considered a suggestion or a formal buy recommendation?

Technical Data in Cabot Benjamin Graham Value Letter

Roy Ward responds to a question about technical data used in the Value Letter.

Value of ETFs in the Cabot Benjamin Graham Value Letter

ETFs are included in the Cabot Benjamin Graham Classic portfolio because they are reduce volatility. 6/3/10

Attractive Dividend Yields

Roy Ward recommends a bond fund and two ETFs for their attractive dividend yields. 8/19/10

When Should You Average Down?

Bottom line, averaging down is fine for investors in value stocks, but dead wrong for investors in growth stocks. 6/3/10

Averaging Down

Paul Goodwin responds to a reader who has a small position in a stock and is looking to add to it at its now lower price.