Tim, I have been following MXWL for the past few months from your newsletter. I wanted to purchase 300 shares but the stock is acting poorly. Down 30% in the last five months. Should I be waiting for it to turn or should I buy now? Thanks and keep up the good work, it really does make it easier to understand.—P.Y.

Tim Lutts: I like Maxwell fundamentally as much as anyone. Trumping that, however, is the lesson I have learned over the decades. If a growth stock is in a downtrend, you should avoid it. Trends can go to unreasonable extremes. In short, your growth stock money is best used elsewhere, in a strong stock near or at its highs.

Timothy Lutts
President, Chief Investment Strategist, Editor of Cabot Stock of the Month Report

Timothy Lutts heads one of America’s most respected independent investment advisory services, publishing eight newsletters to more than 200,000 subscribers around the world. Tim leads a dedicated team of professionals who serve individual investors with high-quality investment advice based on time-tested Cabot systems. Under his leadership, Cabot has been honored numerous times by both Timer Digest and the Hulbert Financial Digest as among the top investment newsletters in the industry. Tim also edits Cabot Stock of the Month.

Editor's Note: If you want to learn more rules for growth investors and get the top growth stock picks in the market, you should check out Cabot Market Letter. The Letter is top-ranked for both one-year and long-term market timing because it follows a finely tuned system that has been perfected during the last 40 years. Click here to find out more.

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