Investing Commentary

Cabot Wealth Advisory

10-commandments

Beach Weather in the Market

It’s the beginning of August, high summer in New England, and a bit of summer fatigue is setting in. Summer in New England is short, so we try to pack half a year’s worth of cookouts, beach days, hikes, kayaking, sight-seeing and other outside recreation into three months. It’s fun, but the pace can be a bit frantic, especially as the season enters its third act. Frankly, all I want to do now is lie on a beach somewhere and read a book.

china-greece

Managing Your Stock Portfolio to the Market's Tune

In today’s Wealth Advisory, I’m doing something I’ve never done before—reprinting an entire piece I wrote in Cabot Growth Investor last Wednesday. It doesn’t involve any specific stock advice (that is and always will be for subscribers only), but it details the wild divergences in the market (which are now getting lots of press—even the Wall Street Journal had a big write-up on it Monday), what it means, and how I’m advising people to handle it—I think it’s very timely.

china-greece

Do Your Stocks Have Borrowing Trouble?

Hostess is making news today as it is issuing $1.23 million in term loans—most of which will go toward paying $905 million in a special dividend to its private shareholders—which I may add, is also more than two times what the buyers paid for this tasty snack business, and triples the company’s debt. According to Bloomberg, these types of deals grew to nearly $16 billion in the second quarter, the highest level in the past 12 months. I’m not making a judgment for or against this action. I just want to make a point that this debt, or leverage recapitalization—spurred by low interest rates—is increasingly becoming a method in which private equity holders get their money back—without selling the business. But it does burden the company with additional debt, which isn’t going to fund company expansion or operations.

china-greece

Sell Apple

Today, I’m writing on a MacBook Pro. This morning I did my morning crossword puzzle on my iPad. All day long, my iPhone is by my side. My home Wi-Fi comes from Apple AirPorts. And some nights, I stream entertainment through my Apple TV. In short, I love Apple products, and I expect to continue using them for many more years. But one of the most important market truisms is this: “The company is not the stock.”

10-commandments

Sunny Days

Every year, usually on a Thursday in July, most of the Cabot crew gathers in Salem, jumps into cars and heads north. With bathroom breaks and a stop to purchase refreshing beverages (ahem), the group drives through New Hampshire’s tiny seacoast neck and winds up in Kittery, Maine, at the Chauncey Creek Lobster Pound. There, lobsters, baked beans, coleslaw, steamers, mussels and (importantly) chips are consumed and the store of tissue-restoring beverages is significantly reduced.

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Cabot Weekly Review

Focus Only on the Best | Cabot Weekly Review

 

In this week's video, Mike Cintolo, Chief Analyst of Cabot Top Ten Trader and Cabot Growth Investor discusses the mixed market, where growth stocks continue to act well on balance, but many areas of the broad market look awful and the major indexes chop sideways. Overall, Mike's still leaning bullish, and he talks about having a plan to deal with your current stocks and focusing on the best-of-the-best set-ups when doing new buying.

Cabot Chart School

Managing Your Portfolio for Maximum Profits

In this third of three videos in Cabot's stock chart school series, “How to Invest in Growth Stocks,” Cabot Market Letter editor Mike Cintolo takes you through portfolio management -- a skill that most people don't really develop and which leads to them getting sub-par returns. He discusses the concept of portfolio management in general, as well as looking at some specific trades Cabot has made in the past.

Stock Picks

Ross Stores

McKesson (MCK) distributes ethical and proprietary drugs, surgical supplies and health and beauty products throughout North America to the healthcare industry. The company also provides technical consulting services to biotech and pharmaceutical manufacturers.

Carnival Cruise Lines

Having just returned from vacation, Tim Lutts is thinking of the millions of baby-boomers who are spending more and more money on leisure travel, particularly on cruises, an industry that is dominated by a few big players.

China Biologic Products

Paul Goodwin advises putting this stock on your watch list.

Cabot Wealth Advisory

Beach Weather in the Market

By Paul Goodwin on July 31, 2015

It’s the beginning of August, high summer in New England, and a bit of summer fatigue is setting in. Summer in New England is short, so we try to pack half a year’s worth of cookouts, beach days, hikes, kayaking, sight-seeing and other outside recreation into three months. It’s fun, but the pace can be a bit frantic, especially as the season enters its third act. Frankly, all I want to do now is lie on a beach somewhere and read a book. Read More >

Managing Your Stock Portfolio to the Market's Tune

By Michael Cintolo on July 30, 2015

In today’s Wealth Advisory, I’m doing something I’ve never done before—reprinting an entire piece I wrote in Cabot Growth Investor last Wednesday. It doesn’t involve any specific stock advice (that is and always will be for subscribers only), but it details the wild divergences in the market (which are now getting lots of press—even the Wall Street Journal had a big write-up on it Monday), what it means, and how I’m advising people to handle it—I think it’s very timely.Read More >

Do Your Stocks Have Borrowing Trouble?

By Nancy Zambell on July 28, 2015

Hostess is making news today as it is issuing $1.23 million in term loans—most of which will go toward paying $905 million in a special dividend to its private shareholders—which I may add, is also more than two times what the buyers paid for this tasty snack business, and triples the company’s debt. According to Bloomberg, these types of deals grew to nearly $16 billion in the second quarter, the highest level in the past 12 months. I’m not making a judgment for or against this action. I just want to make a point that this debt, or leverage recapitalization—spurred by low interest rates—is increasingly becoming a method in which private equity holders get their money back—without selling the business. But it does burden the company with additional debt, which isn’t going to fund company expansion or operations.Read More >