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Monthly Archives: April 2011

OpenTable: A High-Potential Growth Stock

April 13, 2011
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Last week while on a trip to Munich, I was looking for a good restaurant close to my hotel after a long day of sightseeing. So I turned to a company I’ve mentioned here before, a company that’s been making my restaurant experiences better since I joined—for free—in 2005. It’s OpenTable (OPEN), the company that allows you to make free restaurant reservations over the Internet at more than 20,000 dining establishments in the U.S. as well as in Canada, Germany, Japan, Mexico and the United Kingdom. The company began operations in San Francisco in 1998 and has grown every...

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Apple, a Long-Term Perspective

April 12, 2011
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Last week brought the news that when the market closes on April 29, Apple’s (AAPL) weighting in the Nasdaq 100 will be cut from 20.5% to 12.3%. The reason?  The stock has been too successful, and the “extra boost” that it was given as a small stock when the index was last adjusted in 1998 now makes the stock’s impact on the index excessive. Other successful growth stocks will see their weightings reduced as well. At the same time, the weightings of the titans of a decade ago, Microsoft (MSFT), Oracle (ORCL) and Intel (INTC) will be increased, in...

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Lululemon, One Year Later

April 11, 2011
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Almost exactly one year ago, I recommended Lululemon Athletica (LULU) here for the first time. At the time, the stock was not that well known and was trading around 44. Since that first recommendation, we’ve written about the stock many times here and in our other Cabot newsletters. It’s also had a big run, recently trading around 90. And we still like it! In fact, Michael Cintolo recommended it recently in Cabot Top Ten Trader, writing this: “When Lululemon first started telling its story of yoga wear, most pundits giggled–it smelled too much like just another fad that would...

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Readers’ Favorite Investing Wisdom

April 10, 2011
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Readers’ Favorite Investing Wisdom

Last week I shared some of my favorite bits of investing wisdom with you and asked you to write in with your own favorite pieces of investing advice. Today, I’m sharing some of the best submissions with you. I hope you enjoy it and learn something! And if you didn’t send me your favorite investing quote yet, please do so by replying to this email. — Baron Rothschild, an 18th century British nobleman and member of the Rothschild banking family, is credited with saying that “The time to buy is when there’s blood in the streets.” “Buy when others...

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The Real Rules of Stock Investing

April 9, 2011
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I remember a (bad) old joke that was a favorite tool of speech teachers. A man in the Old West accepts a ride on a wagon pulled by a mule. The driver is bragging that the mule will do anything he’s told. But after several unsuccessful attempts to get the mule moving, the driver gets off the wagon and hits the mule between the eyes with a big stick. When the driver resumes his seat and says, “Giddap, mule,” the animal starts walking. The passenger, appalled, says, “I thought you said he’d do anything he was told.” The driver...

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