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Monthly Archives: December 2009

Reading, ‘Riting and ‘Rithmatic

December 31, 2009
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Reading, ‘Riting and ‘Rithmatic

Recently, I attended my 50th high school reunion in Bethel, Maine. I had not attended any reunions during the past 20 years, so it was a delight to see many of my friends. Going this year made me wish I had attended more often. I was lucky to go to an excellent school that prepared me well for college and the future. Many of today’s students aren’t so lucky, though. They attend inferior schools (although teachers strive to do their best). Many students lack discipline and have very little support from their parents. That’s not true all across America,...

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Apple: A Great Company, a Great Chart

December 30, 2009
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Apple: A Great Company, a Great Chart

The Second Most Important Rule for Growth Investors might be to respect strong charts. Case in point, Apple (AAPL), which broke out of a basing pattern today, gapping up to new all-time highs. Now, Apple is far from an undiscovered stock.  With revenues of $37 billion and a market capitalization of $192 billion, it’s a giant, and my preference is for smaller companies with more obvious upside potential in investor perception. Nevertheless, Apple’s chart is sending a strong signal. For the past 10 weeks it’s been building a base at the 200 level, which is where the stock topped...

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The Most Important Rule for Growth Investors

December 29, 2009
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The Most Important Rule for Growth Investors

Today, between the holidays, I’m keeping this post short and sweet. We start with an email I received today. “Hi Tim–Hope you had a great holiday. Was hoping for an update on ESLR. Looks like they are showing a slight heartbeat and had some news last week. What do you think? I am still in from the late 2007 article from Cabot describing a sector (solar) that will do well in the near future. I did write back asking which was the better stock to buy, ESLR or CSIQ. Unfortunately I was told ESLR. It is still down about...

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Cree: A Growth Stock Pick in a Booming Segment

December 28, 2009
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Cree: A Growth Stock Pick in a Booming Segment

By one estimate, lighting in the U.S. commands 22% of electricity usage. Shifting to CFL bulbs helps, since they are three times more energy efficient than incandescent bulbs. But because they use mercury, which has dire consequences on wildlife, CFLs are seen as simply a stop-gap measure until the next wave of lighting matures. This next generation technology is LED, or light-emitting diode. Like the name suggests, LEDs aren’t bulbs like we think of them, but a collection of small silicon chips-like instruments that emit a certain color of light. They use so little electricity that when Prince Charles...

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All in the Family

December 26, 2009
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Merry Christmas from everyone at Cabot! I hope you’re having a wonderful holiday season full of family, food and fun. You may have noticed us talking about a special issue of Dick Davis Digest to be published in January that will contain the top stock picks for 2010 from the best investment pickers in the business. Today, I have an interview with the editor of the publication, Chloe Lutts. Her name probably sounds familiar and it should; she’s Timothy Lutts’ daughter (and Cabot’s founder Carlton Lutts’ granddaughter). You’ve never heard from her in Cabot Wealth Advisory before, but you...

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