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Cabot Benjamin Graham Value Letter
Buy With Confidence
"The stock market is healthy as a horse today, not least because the details of numerous second quarter earnings reports in recent weeks have assuaged investors’ worries. Conditions in the business world are not as bad as had been generally feared."
- J. Royden Ward, Value Investment Specialist, Analyst
and Editor of Cabot Benjamin Graham Value Letter, August 2009
Dear Reader,
The typical individual investor's biggest enemy is himself.
He buys when news is good and his friends are talking about their profits. And he sells when he's feeling bad and his investments are down. Trouble is, buying high and selling low is a recipe for portfolio shrinkage, not growth.
The solution?
For thousands of investors, it's Cabot Benjamin Graham Value Letter, our advisory service that guides them into stocks that are so undervalued they provide a Margin of Safety, and then advises selling when they stocks have climbed so high that holding would be imprudent.
Cabot Benjamin Graham Value Letter is based on the value investing system developed by Benjamin Graham in the 1930s and refined in the decades since, mainly by editor J. Royden Ward, who computerized the system in 1969 and has been its steward ever since.
Benjamin Graham, by the way, is the fellow who taught Warren Buffett at Columbia University, and Warren's done very well with the system, though he's modified it in some cases by simply holding an investment "forever."
Subscribers to Cabot Benjamin Graham Value Letter don't hold forever, they take profits!
For example,
Just on May 4, subscribers received this special email message:
Sell Alert: Raytheon (RTN: 46.90) Minimum Sell Price = 46.70
Raytheon produces ground-based air defense systems, Patriot guided missiles, radar systems and communications systems and services. Earnings per share jumped 19% in 2008 and will likely increase another 15% during the next 12-month period. However, RTN shares have jumped 35.4% since our March 2009 recommendation just two months ago and are now overvalued. Therefore, we advise selling RTN at 46.70 or higher.
(As I write, RTN is back down below 44. Looks like good sell advice!)
The week before that, on April 24, subscribers received this message:
Sell Alert: Watts Water Technologies (WTS: 22.46) Minimum Sell Price = 22.13
Watts Water Technologies is the leading manufacturer of products used in the plumbing and water quality industries. The depressed housing market in the U.S. and Europe will send EPS lower in 2009. Commercial construction has declined more than expected. The company will report first quarter sales and earnings results on April 28. WTS shares have increased 40% during the past six weeks and have now exceeded our Minimum Sell Price of 22.13. Sell WTS now.
(Well, the earnings came out: the company lost a million dollars. And the stock is now down below 21. So that was good sell advice, too.)
Here's one more.
Back on April 13, subscribers received this sell message:
Sell Alert: Cintas (CTAS: 25.93) Minimum Sell Price = 25.92
Cintas is the leading supplier of uniforms in the U.S. and Canada. The company has increased sales and earnings for 39 straight years, but the growth streak may be broken in 2009 as corporations lay off workers and close facilities. Sales for the quarter ended 2/28/09 were down 7%, and EPS declined 11%. CTAS shares are slightly overvalued at 10.9 times latest 12-month earnings per share and the dividend provides a 2.0% yield. CTAS was first recommended in our March 2009 issue of the Cabot Benjamin Graham Value Letter at 19.70. During the past month, CTAS shares have increased to our Minimum Sell Price of 25.92 for a quick gain of 31.6%. You can sell CTAS now, or you can attempt to sell higher by using a trailing stop that is ratcheted up behind the stock as it climbs.
(The stock climbed higher for nine more days, but now it's down below 25, so all subscribers should be out... with good profits.)
That's how it works. No economic projections. No emotions. And no hype.
Editor Roy Ward is a matter-of-fact guy. He crunches numbers, he finds values, and tells subscribers, in plain English, what to buy and what to sell.
The stocks are often boring ... like Raytheon, Watts and Cintas.
But the long-term results are excellent.
Roy's Classic Benjamin Graham Value Model has achieved a compound annual return of 8.4% since inception in 2002, while the Dow has delivered a compound annual loss of 1.3%.
Roy's Wise Owl Model has achieved a compound annual return of 12.5% since inception in 1995, while the S&P 500 has achieved a compound annual gain of just 2.6%.
So, if you like the idea of buying low and calmly sitting tight ...
If you like the thought of taking a vacation and not worrying about being out of touch with the market for days at time while your stocks appreciate ...
And if you like the low risk that comes from buying stocks when they're dirt cheap, I'm guessing Cabot Benjamin Graham Value Letter is the newsletter that's right for you.
So today I'm going to make you an offer that makes it easy for you to find out.
While the regular price for a year's worth of Cabot Benjamin Graham Value Letter is $249, today I'm offering first-time subscribers a one-year subscription for just $87.
Plus, I'll throw in a timely report, which contains details on the top five stocks every value investor must own.
It's the best deal I've ever offered, and now is a great time to take advantage of it.
To start your no-risk trial subscription now, simply click here.
Cordially,
Timothy Lutts
Publisher
P.S. The market gyrations of the past year have underscored how important it is to have an investing system you can trust. With Roy Ward's time-tested system, you can buy with confidence, secure in the knowledge that your stocks will appreciate in the long run and bring you the profits you deserve.
Check it out!