Dear Fellow Investor,
Our story starts over two decades ago with early Internet businesses like GEnie (owned by General Electric), Prodigy (a joint venture between CBS, IBM and Sears, Roebuck) and CompuServe (a division of H & R Block for 18 years).
In the early days, the only people investing in these geeky little companies were the stodgy old companies you see above. The Internet as we know it today was absolutely unimaginable.
But as the technology progressed, and computers became cheaper, and more people got online, the utility of the Internet grew. More important—for the purposes of this letter—the value of these companies began to rise. Eventually a dynamic little company named America Online (AOL) came along, growing rapidly thanks to an audacious and unprecedented marketing campaign that involved mailing shiny CDs to millions of American households.
In 1997, AOL bought CompuServe for $175 million.
In 1998, AOL bought Netscape for $4.2 billion.
In 1999, AOL bought Moviefone for $525,000 and MapQuest for $1.1 billion.
Then in 2000, having survived the turn of the millennium unscathed, AOL found itself merging with that titan of old media, Time Warner. The price tag … an astounding $164 billion!
“Dear Mr. Coffey: I have never written to you before, but I think that now is a great time to let you know how valuable your advice is to me and my husband. Our stocks have all soared...creating a fabulous portfolio. I am, of course, a Cabot Green Investor, and have bought many of your recommendations over the past month or two, making my stock portfolios invaluable to me. I invested in March, and ALL of your stock picks have soared. Thank you again for all your help and advice. It is literally making me a fortune.”
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Turns out that was an absolutely horrible investment. AOL’s user base stopped growing in 2001 and is now a shadow of its former self.
Time Warner’s revenues were 45% lower in 2009 than they were in 2000 … and its stock is down a horrible 89% since the heady days when the merger was announced. Finally, at the end of 2009, Time Warner announced that it would spin off AOL into a separate public company.
In short, investors who got into the Internet sector early, when the future was still indistinct, reaped great profits as the industry matured in the late-90s.
But investors who waited to buy until the industry was clearly viable and buying was “acceptable” to the masses, saw their fortunes disappear.
So what do we learn from all this?
In the early days, when a sector is still young and the future is uncertain, it provides investors the best investment opportunities.
Now the world is changing once more … and early investors are again getting rich.
Don’t Think Internet—
Think Green
The clean energy industry is still very small and it's future is uncertain. Thus it has the potential to grow exponentially as the world seeks out economically attractive alternatives to high-priced fossil fuels.
And if we've learned any lessons from the days of the Internet boom, it’s that early investors get rich, and those late to the party get nothing.
The time to invest in this sector is now. Stocks are starting to move …
Since March, clean energy stocks have put together a mighty rally, outpacing the U.S. equities market. Three major indexes tracking Green energy companies have risen
sharply …
The U.S.-only WilderHill Clean Energy Index, comprising 51 companies, is up 73% since March,2009. Its global counterpart, the WilderHill New Energy Global Innovation
Index, which tracks 88 companies in 21 countries, is up 74%.
The CleanTech Index, which tracks a broader group, including industries like sustainable agriculture, is up 90%.
The Green sector is still in the early days, AND it’s providing investors the best investment opportunities. This is only the beginning …
The Next Technological Revolution
It’s nothing short of a crisis.
World energy resources are dwindling—yet global demand for energy is predicted to increase 50% in the next 20 years.
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Political leaders around the world are worried … and they’re looking to renewable energy to help them out of the mess.
As President Barack Obama told Congress last February, “We know the country that harnesses the power of clean, renewable energy will lead the 21st century.”
Global leaders have begun to take the double threat of global warming and Peak Oil seriously.
They’re concerned about national energy security. They’re hoping to stimulate their economies. And they’re pouring money into renewable energy
infrastructure like there’s no tomorrow.
- China invested $35 billion in clean energy in 2009, almost twice the U.S. investment.
- China has targeted renewable energy to make up 15% of its total energy consumption by 2010, and 15% by 2020.
- Russia’s Prime Minister Vladimir Putin has signed a directive calling for a more than 400% increase in renewable electricity generation by 2020.
- Even in the Middle East, solar energy use has grown by 40% to 50% per year for the last 10 years.
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But it’s not just governments. Corporations, too, are ramping up their Green investments.
You may be familiar with some of them. Big companies like Intel … PepsiCo … Dell … and WalMart are investing substantial amounts of money in solar, wind, Green building and other renewable technologies.
World leaders and CEOs of multinational corporations aren’t tree-hugging liberals getting into renewables because they want to “make the world a better place.” They’re shrewd economic realists betting big dollars that Green technology is vital to their economic survival.
Twenty years ago, renewable energy may have been the domain of Birkenstock-wearing idealists, but today it’s one of the fastest-growing sectors on Wall Street. Green is here to stay. And it’s shaping up to be the cornerstone of the 21st century economy.
In short …
We are witnessing a technological revolution that will change the course of history—and seasoned investors are taking notice.
Want to make money? Then …
Follow the Money
You’ll recognize the names of other major league investors who are betting big money on solar power, wind power, electric vehicles, biofuels and other Green technologies.
Like multibillionaires Bill Gates, who plunked down $84 million in biofuels, and Warren Buffet, the largest
investor in the geothermal company CalEnergy, and Google.org, which has invested $45 million in renewables.
Just scope out these Green energy gains:
- Gushan Environmental (GU)—biodiesel—gained 60%
- Capstone Turbine (CPST)—power distribution—increased 120%
- SunPower Corp (SPWR)—solar power technologies—jumped more than 251%
- Akeena Solar (AKNS)—residential solar power—zoomed up 316%
- Zoltek (ZOLT)—carbon fiber—gained over 100% in 2007 and a jaw-dropping 1,849% over the previous five years
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I find them excellent and I am new at managing my own money. I have sampled lots of other market letters but I prefer the Cabot family and have recommended
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This is just a taste of the kind of gains we could be looking at in renewable energy in the very near future. Solar has already experienced a big run up, but there are plenty of profits to be made in the sector plus other segments of the Green sector—like wind power, electric vehicles, environmental consulting and a host of other opportunities.
Alternative energy and other Green areas —from organic foods to waste recycling to energy efficiency—have been growing like supercharged weeds in the heat of summer—and there’s no end in sight.
Early investors—not just the Bill Gateses and Warren Buffetts but ordinary men and women just like you—have already enjoyed substantial returns. And there’s still time to get in on the ground floor … if you act now.
Check out these early gains in solar stocks from 2007:
- SunTech Power (STP) gained over 140%
- SunPower Corp (SPWR) gained over 251%
- JA Solar (JASO) gained over 292%
Savvy investors rode these stocks to extraordinary new peaks, banking huge profits. But these gains are just the beginning … don’t miss out on the next wave of monster profits poised to hit the Green sector!

Rock Solid Fundamentals
Don’t let the recent events on Wall Street scare you off. As I’ll explain in a minute, renewable energy fundamentals are still rock solid. “Alternative” energy is rapidly becoming mainstream—and its popularity is taking off like a bull on a hornets’ nest.
The bull market we’re in represents tremendous opportunity for the discerning investor.
The most lucrative time to get in is now.
So how do you know which stocks are the weeds and which will provide you with a bountiful harvest?
Your Guide Through the Jungle of Green
I’m Timothy Lutts, Chief Investment Strategist here at Cabot. I’d like to introduce you to an expert in the field of Green investing. Someone who can help you cherry-pick the best of the best Green companies, and avoid the bum stocks and wanna-be’s.
His name is Brendan Coffey. He’s the editor of Cabot Green Investor, and we here at Cabot are thrilled with his insight into this blossoming market.
More than a decade’s experience in investment journalism has given Brendan a unique, highly unbiased perspective on market trends. A respected financial journalist (he’s a former news reporter for Dow Jones), he has written investment articles for publications like the Wall Street Journal, Barron’s and Forbes.
Brendan’s talent for spotting trends has made his work required reading at Harvard and Marquette business schools. His veteran insight is gleaned from covering everything from the Brazilian ethanol market to the global bottled water craze. And it’s earned him the privilege of talking investing strategy one-on-one with the world’s savviest investors—people like Carl Icahn, Felix Rohatyn and Mark Cuban.
Before joining us at Cabot, Brendan helped pick stocks for Forbes as a member of their Money and Investing Team. It was there that he began to take note of the tremendous potential for profit in the Green sector.
Brendan is especially enthusiastic about the opportunities awaiting early investors in renewable energy.
Beyond solar power, for instance, there’s wind power, another free, non-polluting source of energy that’s about to explode!
In that sector alone you can invest in the stocks of the manufacturers of strong and light carbon fiber blades … in the turbines that generate the electricity … in the batteries that store the power … in the controllers that regulate the entire system … and in the companies that install and maintain the systems.
Then there’s solar water heating, geothermal, biofuels … it’s a whole garden of opportunities!
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— B. Kim, Bell Canyon, California, USA
Our Time-Tested Investment System
I’m happy to report that Cabot Green Investor Editor Brendan Coffey uses Cabot’s proven investment system to identify the most
promising stocks in the Green sector. This is the same system we’ve been using—and refining—here at Cabot for 40 years and counting.
This system steered subscribers of Cabot Market Letter to profits of over 1,200% in Amazon.com.
It recommended that readers of Cabot Top Ten Report buy Intuitive Surgical way back in August 2004—before the stock shot up more than 1,500% to its peak!
And it’s a key factor behind the success of Cabot China & Emerging Markets Report, which performed stronger than any other
investment advisory in 2006 (according to Hulbert Financial Digest), with a gain of 78.6%. It topped the list again in 2007 with a gain of 74.1%.
And it’s the best-performing newsletter over five years with annualized gains of 19.5% as of March 31, 2010.
A Savvy and Selective System
This system is all about being selective. We don’t recommend a stock just because it looks good on the surface. First, it must pass a rigorous set of standards:
- We start by examining the fundamentals. We make sure the company’s management is doing its job … that it has low debt, a strong business model and a competitive advantage … and that it’s well supported by other aspects of the economy. In other words, the company must have a solid grounding in reality.
- But we go way beyond the fundamentals before we’ll decide that a stock is worthy of consideration. It’s got to be a stock that’s outperforming the market, one that stands out as being substantially better than average.
- It must have excellent indicators of growth. Fast-growing stocks always get our attention over those that have peaked. Growth industries (like renewable energy right now) tend to hand out the greatest gains, no matter what the overall market is doing. We’re looking for companies with growth revenue in the double digits, at least.
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And finally, we keep a close watch on the broad market. Even the most promising stocks can tumble against all reason when the broad market goes into freefall—like it did last year. That’s why you need a tool to time your buying and selling for the best times to profit—and to save your shirt if things go haywire.
In each monthly issue of Cabot Green Investor, you’ll receive ...
- An overview of the market. On the second Thursday of every month, Brendan will give you an informative overview of the Green marketplace. You’ll come away with an awareness of the major trends and outlook for Green investing—and of the specific industries and stocks recommended by Cabot Green Investor.
- Featured sector. The Green sector is full of niches, some well-known and some you may never have heard of. Each month, Brendan will highlight one or more of the hottest of these sectors and let you in on the growth patterns he sees there.
- Two hot Green stock picks each month. Here you’ll find an in-depth description of each company and the specific advantages of its products or services, along with a look into each company’s fundamentals to discover what will make the company’s stock take off.
Brendan also analyzes the stock, focusing on technical analysis of the chart and recent price action. This helps him determine the stock’s suggested buy range, so you’ll know when you’re paying a reasonable price.
Each issue also keeps you up to speed on every stock in the Cabot Green Investor portfolio and Watch List.

But There’s More!
You’ll also get:
- Weekly email updates. No monthly newsletter could begin to keep up with the fast-changing world of Green investing. So we email you each week to keep you current on our insights and stock recommendations.
- Special Bulletins. When the market—or any of your recommended stocks—is especially active, we’ll email you right away with the news and the actions you need to take to make the most of your investment.
- VIP access to our subscriber-only website. You’ll be privy to special reports, past issues and more.
- You’ll get personalized access to the editor himself! That’s right—along with your subscription to Cabot Green Investor, you’ll be entrusted with Brendan Coffey’s very own email address—a direct connection with the expert! Got a burning question or an insight you’d like to share? Go ahead—Brendan is quick to provide you with a personal answer.
And don’t forget, like every one of our investment advisories, Cabot Green investor is backed by our 100% satisfaction money-back guarantee. If, for any reason, you’re not completely satisfied, you can cancel within the first 60 days of your trial period and receive a full and complete refund of your subscription fee—no questions asked. And, of course, you can keep the past issues and special reports as our way of saying thanks for giving our newsletter a fair try.
As a special bonus, you also get our new report: 5 Stocks Wall Street Visionaries are Buying Now, detailing the companies that will lead this growth wave higher.
“Brendan, I appreciate and welcome these seemingly personal heads-ups on The Green. You seem to be going a step beyond. Thank you.”
— L. Rudolph, Bel Air, Maryland, USA
I’ll tell you more about how to get your hands on the Cabot Green Investor in a minute. But before I do ...
There’s another reason more and more investors are turning to the Green sector ...
These are the companies that are quite literally building the foundation upon which the future U.S. economy will be built.
The potential for profits is huge! Imagine having had the opportunity to invest in Standard Oil or Royal Dutch Shell at the start of the last century, and you’ll get the picture. Many of those who invested wisely in energy back then went on to make obscene profits—and become some of the most powerful and influential individuals in America.
Hidden among the scores of companies getting their start right now will be the most powerful corporations of the 21st century … and this is your opportunity to get in on the ground floor.

Remember …
- You’ll get in right away on the hottest stocks in Green with our exclusive report, 5 Stocks Wall Street Visionaries are Buying Now.
- You’ll use our time-tested stock picking and market timing system, which has been making money for Cabot subscribers for 40 years and counting.
- You get expert guidance from seasoned investment professional Brendan Coffey (and don’t forget, you have private access to his insight and advice—this alone is worth more than the price of a subscription!)
The bottom line is, subscribing to the Green Investor could be the most lucrative decision you make this year. And the best time to start is right now, before the markets take off again!
Order Now!
Timothy Lutts
Chief Investment Strategist and Publisher
P.S. For more than 40 years now, we’ve staked our reputation on every single recommendation we’ve made. That’s why if you’re not 100% satisfied with Cabot Green Investor—for any reason—you can cancel within the first 60 days of your subscription period and receive a full and complete refund of your subscription fee—no questions asked. If you decide to cancel after 60 days, a refund will be issued for all undelivered issues. And, of course, all the past issues and our newest report, 5 Most Promising American Green Companies, are yours to keep, just for giving our newsletter a fair try.

P.P.S. But hurry—the stock market has bounced back. The global recession is behind us, consumers and companies are spending again … and the Green sector is benefiting. There will never be a better time than now to start investing in the Green sector. If you subscribe now, you’ll be poised to profit from it!
