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Monthly Archives: January 2011

Is the Stock Market Overvalued?

January 19, 2011
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Is the Stock Market Overvalued?

I am often asked how I determine whether the stock market is going to go up or go down during the next few weeks or months. No one knows for sure which direction the stock market is going to take, because there are too many variables that influence the stock market, and unforeseen events can negate the best research and analysis. While I cannot predict what the stock market will do next, I know I can enhance my investment performance if I invest more conservatively when the stock market is high, and aggressively take advantage of bargains when the...

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WAG and GM: Two Stocks for the Future

January 18, 2011
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Today I want to talk to you about two companies that are benefiting from growing interest in electric vehicles. The first is Walgreen (WAG), which partnered with NRG Energy (NRG) in November to install high-powered rapid charging stations for electric vehicles at 18 Walgreen locations in Houston, Texas. The first station in set to be installed next month. The second is General Motors’ (GM), which announced this week at the Detroit Auto Show that it plans to produce more plug-in hybrid vehicles based on its Chevrolet Volt. Initial estimates show that General Motors could build 25,000 Volts next year,...

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AmBev: A Nice Package

January 17, 2011
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For my stock pick this week, I’m going to discuss AmBev (ABV), which I recommended in my Cabot China & Emerging Markets Report a month ago. AmBev, also known as the Companhia de Bebidas das Americas, is a Brazilian beverage company with a lineup that includes beers like Brahma, Skol and Antarctica as well as drinks like Gatorade, Lipton and Pepsi-Cola. While Brazilian beer sales contribute more than half of the company’s revenues (52% in 2009), AmBev has operations in 14 countries, and gets a sizable chunk of sales in Canada (17% in 2009) from its ownership of Labatt...

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Stock Market Analysis Video: Growth Leaders

January 14, 2011
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In this week’s Stock Market Analysis Video, Cabot Market Letter Editor Mike Cintolo says that from a top down perspective, not much has changed with the market as the indexes remain in firm uptrends. He says that the real story is underneath the surface and lies with the big-cap growth leaders. Stocks discussed include Priceline.com (PCLN), OpenTable (OPEN), Google (GOOG), Las Vegas Sands (LVS), Amazon (AMZN), Brigham Exploration (BEXP), Continental Resources (CLR) and Caterpillar (CAT). Click to watch the video!

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The Enormous Complexity of the China Story

January 14, 2011
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The Enormous Complexity of the China Story

When you spend hours every day reading about a phenomenon as big as China, you begin to build up a picture of the stories behind the headlines. And it’s these little stories that help to fill in the blanks behind all the government-sanctioned news stories and official press releases. One example is the “white guy in a tie” stories I’ve read in the last couple of months. These stories are about a practice by some Chinese companies (I wouldn’t even venture a guess as to how common it might be) of hiring a Westerner with a good suit to...

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