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Monthly Archives: July 2010

How to Pick Winning Stocks

July 31, 2010
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We recently received this question and I’m betting the person who asked it isn’t the only one wondering … Question: How do I pick a winner? Answer: Obviously no one can predict exactly which stocks will become the next big winners, but the editors at Cabot have spent the last 40 years developing a system that puts the odds in your favor. Here are some tips that will help you pick high-potential growth stocks: Search for strong sales and earnings growth (especially triple-digit sales growth). Search for revolutionary products with major benefits (like First Solar, Crocs, Green Mountain Coffee...

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How to Find the Right Investment System

July 30, 2010
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Every once in a while, we’ll get a message from a potential subscriber asking how it is that we can have different newsletters that use different investing styles.  When we’re trying to explain, we have a maxim that we sometimes cite.  The maxim is, “You can make money in any proven investment system if you follow the rules.” This isn’t an easy idea to explain, but I’ll take a run at it. And if you’re a new, or even just a potential individual stock investor, this topic should be of interest to you.  The big divide in buying individual...

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AgFeed: A Stock for Your Watch List

July 29, 2010
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My investment idea today is a low-priced stock of a Chinese company whose presentation I attended at the 2010 China Conference put on by Global Hunter Securities earlier this month.  As with many of the presentations at the conference, the strength of the story isn’t matched by the performance of the stock (nor, frankly, by the earnings numbers), but a good story is enough to put a stock on your Watch List, and that’s what I’m recommending. The company is AgFeed Industries (FEED), a Chinese pork-producing company that’s bringing advanced Western hog-raising techniques to China. The background of the...

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Acme Packet: A Great Cloud Computing Stock

July 28, 2010
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But I’d rather not invest in the automotive industry (which I discussed yesterday), where high debt levels remain a problem and profit margins seldom top 5%. I’d rather invest in an industry that’s booming, an industry where the profit margins are high and the stocks are strong. Today, the industry that best fills the bill is “cloud computing.” Which is what, exactly? Well, there is no “exactly.”  Cloud computing, in general, refers to the increasing migration of computing resources (hardware, software, data storage, computing power and expense) away from the user and toward a provider … who might be...

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The Truth About Tesla Motors

July 27, 2010
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The Truth About Tesla Motors

While Thomas Edison is arguably the best-known American inventor, a cult following has grown up around Nikola Tesla, the Serbian engineer whose skills as an inventor, perhaps superior to Edison’s, were undermined by his inferior business sense. And this cult MAY have reached its peak on June 29, when the electric car company named Tesla Motors (TSLA) came public, raising $226 million from investors large and small who see great profit potential in the business. I say MAY because there’s a POSSIBILITY that it will be years before this stock (TSLA) closes higher than it did on its very...

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