Stock Market Video
Report from the Cabot Investors Conference
This Week's Fortune Cookie
In Case You Missed It
In this week's Stock Market Video, Mike Cintolo takes a close look at the recent market strength. It's not enough to counteract the medium-term weakness of U.S. indexes, but it's a hopeful sign. The key is still to stay moderately defensive, pick your spots, keep a good amount of cash on the sidelines and work on your watch list. Click below to watch the video.
The second Cabot Investor Conference has now wrapped up in a blaze of glory. Thursday evening some of our attendees walked to Salem's Pickering Wharf for a cruise around the harbor on the Schooner Fame. The breakfasts were excellent, the weather (after a frog-strangler of a rain on Wednesday evening) was New England perfect, clear sunny and cool.
But the real meat of the Conference was the talk. Much of it came Cabot's analysts talking about where they find their best ideas, how to sell better, how to respond to a changing world, how to make money in options, how to get high dividend yields, analysis of value stocks and the constant treasure hunt for great growth stocks.
But my favorite part was the questions and contributions of the Conference attendees themselves, both during the programs and after the programs and (memorably) in the Tavern on the Green of the venerable Hawthorne Hotel.
The fact is, investors are fascinating people. They have strong opinions. Their minds are constantly on the lookout for better ways to amp up their capital. I don't know whether being a stock investor keeps you young, or if our cross-section of investors just seemed younger than their years.
But I know that stock investing keeps minds sharp. I've seldom seen a more engaged, inquisitive, intellectually hungry group.
I can't say that there was any one thing that anyone at the Conference said that changed my way of investing or reshaped my way of looking at the world. But anyone who knows me at all knows that I love a good conversation, even a good argument. And from the evidence of the Cabot Investors Conference, I'm not alone.
The Conference wasn't all fun and games, of course. Cabot's analysts have decades of investing experience to our credit. And we did our best to pass along as much of it as we could (trying not to repeat too much of what we said last year).
About 40% of this year's Conference attendees were repeaters from last year. But in a game like investing, one useful tip can make the difference between a so-so year and a great one. And even after two years of intensive exploration and advice, I reckon we have plenty of good advice and market wisdom to fill another year. Stay tuned.
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Seven Times More Profitable Than Apple
with Zero Competition: Buy Now
This company is riding a wave of unstoppable growth that has already made it seven times more profitable than Apple, handing investors 1,446% annual average gains since March of 1992.
Analysts expect the company to deliver another double-digit earnings surprise not only for the third quarter but also for FY 2014—all while they’re projecting another 21% earnings growth for next year.
When you add the fact that the company has virtually no competition in its space, you can see why we’re recommending that you add this recommendation to your holdings before it declares third quarter earnings.
Tim's Comment: The last time people were scared to death was early 2009-that proved an awesome time to buy. And I think this quote is fairly appropriate right now because a lot of people are feeling tickled. Not only has the economic situation improved substantially over the past five years, but investors did especially well in 2013. As a result, I'm feeling relatively cautious about investing today.
Paul's Comment: First, I'm impressed that one of Cabot Market Letter's Market Maxims from 13 years ago has wound up as one of the selections in the Stock Trader's Almanac. The Almanac is full of useful and interesting facts about the stock market and its behavior over the years, and it's a nice honor to be included. But the actual sentiment is a great restatement of a valuable piece of market wisdom. Someone once said that you should invest when there is blood in the streets, even when it's your own blood. And there's no doubt that getting to work on investing immediately after a major market bottom (and getting to work selling after a major top) is a very profitable experience.
In case you didn't get a chance to read all the issues of Cabot Wealth Advisory this week and want to catch up on any investing and stock tips you might have missed, there are links below to each issue.
Tim Lutts, Chief Analyst of Cabot Stock of the Month, talks about a number of different ways to handle a profitable position in Tesla. Tim also talks about the appeal of The Fastest Growing Shoe Company in the World. Stock discussed: Skechers (SKX).
In this issue, Cabot Options Trader's Chief Analyst Jacob Mintz talks about how options can protect your portfolio against unexpected market moves. Covered calls can generate income, and buying puts can give you cheap insurance while maintaining your upside potential.
Cabot Market Letter's Chief Analyst Mike Cintolo gives a selection of useful market wisdom for growth investors, including some on handling winners as well as losers. Stock discussed: Stocks discussed: Tesla Motors (TSLA), Palo Alto Networks (PANW) and Chipotle Mexican Grill (CMG).
Have a great weekend,
Chief Analyst, Cabot China & Emerging Markets Report And Editor of Cabot Wealth Advisory