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Monthly Archives: February 2009

A Small Company with a Big Future

February 28, 2009
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A Small Company with a Big Future

My stock pick for today is a small company in the aerospace industry.  Kaman (KAMN) manufactures bearings, parts and subassemblies for commercial and military aircraft and helicopters.  The company has been a supplier of commercial and military aircraft parts and subassembly systems for over 50 years.  Kaman’s products can be found in nearly every commercial and military aircraft manufactured in North America, South America and Europe. Flash Player 9 or higher is required to view the chart Click here to download Flash Player now View the full kamn chart at Wikinvest The company’s earnings per share (EPS) jumped 30%...

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Answering Readers’ Survey Questions

February 27, 2009
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Two weeks ago, many of our Cabot Wealth Advisory readers kindly filled out a survey and, in doing so, asked several great investing questions, some of which I’m going to tackle today. Please feel free to send us any other questions, comments or suggestions you might have in the comments section below. Question: What are some low-risk strategies that I can employ during a market downturn? Answer: At Cabot, most of our editors practice a system of growth investing that uses market timing to determine when to stay in the market and when to get out. So our advice...

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Is 2008 the Year Buy-and-Hold Came to Die?

February 27, 2009
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Many value investors adhere to the old buy-and-hold forever theory.  The past year, though, has been a brutal time to be a buy-and-hold investor.  According to Morningstar, 95% of all mutual fund managers lost more than 27% last year.  Holy cow! The Standard & Poor’s 500 Index (before dividends) dropped 21.85% for the 10 years ended December 31, 2008.  The buy and hold strategy that many value investing gurus recommend has clearly not worked well during the past 10 years.  Jeff Macke on CNBC’s Fast Money went so far as to proclaim “2008 will go down as the year...

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Some Value Investing History

February 26, 2009
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Benjamin Graham, the father of value investing, taught an investment class at the Columbia University business school for 28 years.  Students in Graham’s classes were taught from the textbook, “Security Analysis,” written by Benjamin Graham and David Dodd.  Several of Mr. Graham’s students became top-notch investors, including the Oracle of Omaha, Warren Buffett.  Mr. Buffett not only studied under Ben Graham, but later worked for Graham as an apprentice. In 1984, Buffett returned to Columbia to give a speech commemorating the 50th anniversary of the publication of “Security Analysis.” During his speech, Buffett presented his own investment performance record...

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Comtech: An Undervalued Telecom Growth Stock

February 25, 2009
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Comtech: An Undervalued Telecom Growth Stock

I’ve mentioned AeroVironment (AVAV) here before, but I wanted to bring it up again.  The company has a high-current fast-charge battery charging system that’s already being used by Ford Motors and Del Monte for their warehouse forklifts, and by Delta Air Lines for its baggage movers.  But the big prize is the still-tiny–but potentially huge–market for charging electric cars!  If this company’s system becomes the standard, this stock could soar for years! Flash Player 9 or higher is required to view the chart Click here to download Flash Player now View the full avav chart at Wikinvest Of course,...

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