Stock Market Analysis Video 5/21/2010
Editor Mike Cintolo talks about how it is important during volatile market action to not try to make predictions, but instead just follow the technical indicators. Stocks discussed include Priceline.com (PCLN), Acme Packet (APKT), Baidu (BIDU), Sandisk (SNDK), Chipotle (CMG), and Coinstar (CSTR).
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, Cabot President and Chief Investment Strategist
Most of the stocks on my lists have been going up.
Longtime subscribers are making money, and new subscribers are signing up
every day, motivated by the desire to make some money for themselves,
while reassured by media reports that economically, the situation is
getting better all the time.
Yet making (and keeping) money is still difficult for many investors, and
the #1 reason is that they don't follow a firm investing system!
For example, the following is a letter I received from a reader this
"I trade with TradeKing.com. I'm really new to the whole stock market
investing thing and am trying to figure everything out. I want to invest
in Neah Power Systems (NPWZ), which is trading at $0.23 per share. I've
been watching them since 12/21/09. I've tried to buy shares of it and
TradeKing won't let me buy. I REALLY want to get into this company at
ground level because I think that they are really going to go places in
the future. If you could shed a little light on the situation it would be
"P.S. I'm a high-school drop out that has finally gotten my life
together at the age of 30. The way you write your articles and the fact
that you explain the technical stuff (i.e. Mini-Dictionary) has helped me
immensely. I've been doing my own studying on the side because I can't
afford college. So my knowledge of financial things is very rudimentary. I
can't express in words my gratitude of your works. I just wanted to let
you know that there are people out there like me who appreciate what
you're doing. Thanks again."
Now, I don't know NPWZ from this guy's mother-in-law, but I can read a
stock chart, so here's how I replied:
"Thanks for being a reader. And congratulations on taking charge of your
future. We're happy to help.
"If you've been watching NPWZ since 12/21/09, you've watched NPWZ go from
$.70 to $.21. I assume you "liked it" at all the way down. Just note
that if you'd bought along the way you'd now be in the hole, perhaps
significantly. And this is in a strong bull market! If you really want
to get in on the ground floor, WAIT until the stock bottoms and starts
"Alternatively, ignore ALL stocks priced under $10. Risk is higher there.
Your odds are better with Netflix (NFLX), OpenTable (OPEN), NetLogic
Microsystems (NETL) or Priceline.com (PCLN), just to name a few."
Since I replied, NPWZ has fallen further, from $0.21 to $0.18. My initial
advice stands. And while I didn't even check to see what the company did
before I replied to him, I've done some research since, and I can tell you
now that Neah Power Systems has a patented design on silicon-based fuel
cells that it hopes to sell to the military and industries who need
lightweight portable electric power. The technology may be great, but
there's a long road from technology to earnings, and right now the chart
tells me there are better places to invest.
Momentum stocks, for example!
In a mature bull market such as we have today, momentum stocks are king!
Of those four stocks I suggested above--which I simply mentioned off of the top
of my head--three have been recommended previously in this bull market by
Cabot Top Ten Report.
Since those recommendations, one is up 30%, one is up 34% and one is up 83%.
Subscribers to Cabot Top Ten Report are still holding them. And when the
stocks turn down, subscribers will be advised to sell them, and take their
profits. That's how the system works.
Now, admittedly, those stocks can turn into long-term winners; for
example, Green Mountain Coffee Roasters (GMCR) was first recommended back
in August of 2007, when it was trading at a split-adjusted 23. It's up
320% 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 40 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
Simply click below.
P.S. Cabot Top Ten Report does not practice market timing explicitly; it
recommends 10 stocks in every issue, regardless of the market environment. Today is a great time to join the winners who invest according to Cabot Top Ten Report.
What are you waiting for?