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Monthly Archives: January 2010

Cree: A High-Potential Investment

January 6, 2010
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Cree: A High-Potential Investment

The start of a new year means a lot of investors are ready to jump into something new, something with great profit potential.  For me, this means younger, smaller companies that are not just faster-growing but also relatively unknown; as they become better-known, they attract more buyers, and the combination of improving fundamentals and improving perceptions makes for a one-two punch that can send a stock soaring. One of my favorites for this year is Cree Inc. (CREE), which is in the business of making light-emitting diodes (LEDs). Cree has great numbers now; in the latest quarter, its revenues...

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Investing Tips for 2010

January 5, 2010
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Investing Tips for 2010

In the spirit of New Year’s resolutions, I’m going to share some of Cabot’s top tips, tricks and tools that you can use in 2010 to become a better investor. These aren’t resolutions exactly, but more like rules and tools to keep in mind when investing. 1. Cut losses short (definitely rule #1 for growth stock investing). 2.  Search for strong sales and earnings growth (especially triple-digit sales growth). 3.  Search for revolutionary products with major benefits. First Solar and Crocs filled the bill in 2007 and were our two biggest winners.  This year we’ve benefited from Green Mountain...

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Layway: An ’80s Comeback

January 4, 2010
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Layway: An ’80s Comeback

I recently read an article about how the last decade has made many of the 1980s’ most popular objects obsolete. The author cited rolodexes, Polaroid photos and foldable road maps as things that were once ubiquitous and are now nearly nonexistent because of changes in technology and habits. But there’s one thing that was popular in the ’80s that has had a recent resurgence: layaway. For the first time in more than a decade, layaway signs graced the windows of many retailers this holiday shopping season. I noticed them on an Olympia Sports store in New Hampshire while I...

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APOL and ESI: My Two Favorite Education Stocks

January 1, 2010
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APOL and ESI: My Two Favorite Education Stocks

The business of educating America has been expanding quickly during the past decade. Student enrollments at for-profit post-secondary schools have advanced rapidly during the past couple of years, as adults upgrade their education and skills to achieve higher paying jobs. Also, adults who have lost their jobs are enrolling in vocational training programs and college degree programs to improve their chances in the job market. Online education programs are growing by leaps and bounds at for-profit post-secondary schools. State schools have been unable to expand their online programs because of the current squeeze on state and local budgets. For-profit...

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