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Monthly Archives: February 2010

Getting Back to Investing Basics

February 26, 2010
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A couple of weeks ago, I asked Cabot Wealth Advisory readers to take a survey for us so we can better understand how to serve your investing needs. Many of you responded and I appreciate all of your feedback. We’re going to integrate some of your suggestions into Cabot Wealth Advisory and Cabot’s other newsletters, as well as cover many of the topics you requested. In fact, earlier this week Brendan Coffey wrote about biofuels, which was one of the topics that came up frequently in the survey results. Today, I’m going to discuss another topic that came up...

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The Benjamin Graham Approach and Reinsurance Group of America

February 25, 2010
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The Benjamin Graham Approach and Reinsurance Group of America

Benjamin Graham is known as the father of value investing. He influenced many modern investors, including Warren Buffett. Ben Graham wrote books, taught investment courses and created several methodologies to help investors evaluate stocks. I have used one of Benjamin Graham’s methods for the past seven years in the Cabot Benjamin Graham Value Letter with great success. The method is based upon minimum price-to-earnings ratios, price-to-book value ratios and measures of quality. The full description of this analysis can be found in Benjamin Graham’s book, “The Intelligent Investor.” Mr. Graham suggested that investors should buy stocks that fit all...

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The PEG Ratio and Atlantic Tele-Network

February 24, 2010
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The PEG Ratio and Atlantic Tele-Network

Today, I’m going to skip the small talk and jump right into my investing topic–fundamental stock analysis. Let’s start off with my definition as a value investor: Fundamental analysis is any method to evaluate the prospects of a company and/or its stock by analyzing the qualitative and quantitative factors of the company. There are hundreds of ways to determine whether a stock is undervalued or not. Some methods always work well, while other methods work for only a short time. Some methods are complicated, but others are simple. I have been using a couple of simple systems during the...

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The Outlook for the New Generation of Biofuels

February 23, 2010
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The Outlook for the New Generation of Biofuels

Investing in biofuels stocks isn’t a slam-dunk. Ethanol-related stocks got a huge boost in early 2008 after the EISA was passed, but by the middle of that year, criticisms of the effect of ethanol on the price of food supplies reached a crescendo, and the market turmoil added to the pressure on biofuels producers. Some that had been seen as good bets, like #2 ethanol producer VeraSun, went under and saw its assets sold off at a fraction of their value to refiners like Valero (VLO). Yet lately, we’re seeing increasing strength in the shares of the surviving ethanol-related...

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Alternative Auto Fuels of Yesterday

February 22, 2010
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Alternative Auto Fuels of Yesterday

A friend just forwarded me an email from the editors of Mother Earth News, an eco-centric DIY magazine, compiling some of their favorite stories from the publication’s past 40 years. Those snowbound in the mid-Atlantic may appreciate imagining a little revenge on Punxsutawney Phil by reading the how-to-serve-groundhog feature from 1984, while the morbidly frugal may want to bone up on a 2003 feature on building your own coffin (“it makes a great coffee table or storage trunk before its final use”). Those with a Green bent, like me, can enjoy a good selection on alternative fueling options for...

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