Stock Market Analysis Video 3/26/2010
Editor Mike Cintolo is starting to see choppy and sloppy action in the market, and addresses questions he's had about lagging stocks in the current market environment. Stocks discussed include Home Inns (HMIN), Buffalo Wild Wings (BWLD), Apple (AAPL), Baidu (BIDU), Cliffs Natural Resources (CLF), and Priceline.com (PCLN).
Vice President of Investments, Editor of Cabot Market Letter and Cabot Top Ten Report
A growth stock and market timing expert, Michael Cintolo is editor of Cabot Market Letter and Cabot Top Ten Report. Since joining Cabot in 1999, Mike has uncovered exceptional growth stocks and helped to create new tools and rules for buying and selling stocks. Perhaps most notable was his development of the proprietary trend-following market timing system, Cabot Tides that has helped Cabot place among the top handful of market-timing newsletters numerous times. Cabot Market Letter is one of only nine newsletters included in Hulbert Financial Digest's 2010 Honor Roll for performance in up and down markets, and Timer Digest Top Ten Long-Term Timer.
And now a word from: Timothy Lutts President, Chief Investment Strategist
The Strongest Stocks in the Market
In the last few weeks I received emails from readers asking my opinion of the following three stocks:
MediZone (MZEI), HearAtLast (HRAL) and Sino Clean Energy (SCLX).
I glanced at them, and what did I see? Stocks trading at 28 cents, seven cents and 38 cents. And that’s all I needed to see.
I did mistype HRAL and stumble on Hormel (HRL), which looks just great, trading at 39 and motoring higher. (Maybe people are eating more Spam.)
But those three companies trading below a dollar are just too risky for me. And I suggest they’re too risky for you, too, if your goal is to make
money and not lose it.
Yes, it’s possible one of them might turn out to be a big winner. It’s possible to win big on the Powerball lottery, too. But I don’t like the
odds. To put the risk/reward ratio in your favor, you’ve got to invest in stocks that are higher-priced, and that are becoming recognized by
These institutions, you see, have the power to push stocks dramatically higher, and if you can find these stocks and jump on board at the right
time, you can enjoy a mighty profitable ride.
That’s the investing system practiced by Cabot Top Ten Report, and today I want to explain it to you a little more by taking you back three months to Monday, November 9.
On that day, Cabot Top Ten Report recommended 10 stocks to its readers.
They were: Compellent Technologies (CML), Dendreon (DNDN), Fuel Systems Solutions (FSYS), IAMGOLD (IAG), Lumber Liquidators (LL), MercadoLibre (MELI), Nalco Holdings (NLC), Trina Solar (TSL), VistaPrint (VPRT) and Vivo Participacoes (VIV).
The average price of these stocks at the time was 31, with a low of 17 and a high of 48.
And here’s how they’ve done since.
The average price of these stocks today is down 7%, exactly the same as the Dow Industrials, which were trading at 10,227 back then … and there’s nothing impressive about that.
But here’s the difference.
While the Dow only gained 5% from November 9 to its peak, the average price of these 10 stocks climbed 20%! The strongest climbed 60%, while the weakest climbed “only” 7%.
In other words, every single one of these 10 stocks outperformed the Dow on the way to its subsequent peak. And now, as a group, they’re no worse than the Dow.
Now, if you’re a buy and hold investor, you’re probably better off going with the Dow, buying a low-cost index fund and sitting tight.
But if you’re an active investor, the message is clear. Your best course is to invest in the stocks recommended by Cabot Top Ten Report. Hold them as long as they go up. And then sell and preserve profits when they start to backslide.
Cabot Top Ten Report is published every Monday. And it always includes the 10 stocks whose momentum is most favorable for near-term gains.
Now, sometimes, those stocks can turn into long-term winners; for example, Green Mountain Coffee Roasters was first recommended back in August of 2007, when it was trading at a split-adjusted 23. It’s up 247% since then … and still attractive.
But the vast majority of Cabot Top Ten Report recommendations are more suited to short-term holding. In fact, you’ll often want to sell so you
can take advantage of a new Cabot Top Ten Report recommendation!
This is a system Cabot has been using for the past 39 years. Last year it worked exceptionally well, and I’m supremely confident that it will work this year and next year as well.
If you’d like to learn more, including details of the system, and details of last year’s performance, I invite you to read a message from editor
to which camp do you want to belong? I believe the choice is clear. If you want to be presented with all the strongest stocks in the market, every week ...
If you want to know at what prices to buy them, as well as when to sell them ...
If you want to get in on the ground floor of the next bull market, putting you ahead of 99% of other investors ...
Then you owe it to yourself to give Cabot Top Ten Report a try. And best of all, you can get onboard for a special introductory price. Click here to begin your subscription.
P.S. Cabot Top Ten Report does not practice market timing explicitly; it recommends 10 stocks in every issue, regardless of the market environment. But we do keep an eye on the market environment, and I’m happy to say that the market correction of the past three weeks is setting up some nice buying opportunities. Today is a great time to join the winners who invest according to Cabot Top Ten Report. Get started today!