web analytics

Monthly Archives: December 2008

A Buy Signal for Chinese Stocks

December 26, 2008
By

My father, Carlton, was and is an avid growth stock investor, and he began writing and publishing the Cabot Market Letter back in 1970 because he wanted to share his ideas with other investors. I grew up with the business, so l know a lot about both investing and publishing, but at heart I’m more of a publisher, so I hire investment experts to deliver the nuts-and-bolts content of our various investment advisories. Now, a major truth about the publishing business, whether it’s newspapers, magazines, or newsletters, is that the profits are in the renewals, not the first-time customers....

Read more »

A Dangerous Toy Story

December 25, 2008
By

It was just over one year ago that my wife Jeanne gave birth to our first child, Lila. No doubt last Christmas was wonderful, but I have to be honest and say I remember very little of it as we struggled to immediately adjust to this extra person. Our lives had consisted of slow rising in the mornings, lazily reading the papers and then, usually around 10-ish, getting to work. Suddenly we were up every two hours for feeding and up for good at 5 a.m. because that’s how Lila demanded it. I don’t even remember if I got...

Read more »

Who do you Trust?

December 24, 2008
By

Ever since the story broke last week that Bernard Madoff had lost perhaps $50 billion of investments entrusted to him by friends, hedge funds, charities, etc., I’ve been looking for the answers to a few questions. When and how did it first go wrong? Was there one leveraged investment that went bad back before 1999, when the SEC first “investigated”? Did he dig himself out of that hole only to fall into another one or has he been producing bogus statements steadily since then? Who on the inside of the company was aware of the fraud? And what was...

Read more »

Solar’s Bright Future

December 23, 2008
By

My investing idea for today is about a beaten down sector that was the market’s Fair-Haired Boy just a few months ago. Back when crude oil was sailing along at $140 a barrel (and higher), everyone knew that solar cells were the wave of the future. Silicon was in short supply and companies like First Solar made heroic runs. FSLR began 2007 trading under 30 and peaked in May 2008 at over 300. That’s a winner in anyone’s book! Now, with crude trading under $40, the wheels have come off solar stocks. FSLR dipped back below 100 in November...

Read more »

New Year’s Resolutions

December 22, 2008
By

It’s been a tough year for investors, so today I have some New Year’s Resolutions to share with you. *I will not invest in any growth stock if I can’t give a one-sentence summary of why I like it. Hint: Hearing it mentioned online or on a TV show doesn’t count! *I will not allow any stock position to hand me a loss greater than 20%. Ever. Note: Knowing when to sell is what separates the market’s victors from its victims. *I will clean out my portfolio of any stocks in which I have a big loss.

Read more »