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Monthly Archives: May 2011

How to Profit from Rising Energy Prices

May 12, 2011
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Sometimes a few seemingly unconnected facts lead to a startling realization. Allow me to tell you about three I recently encountered. A financial advisor I’m friendly with told me an interesting fact I hadn’t heard before: The average American household buys 1,100 gallons of gasoline a year. That’s a lot–and with the national average price for gas last week at $3.906, that’s $4,297 annually that we’ll spend on filling up our cars. Compared to the price one year ago, it’s $1,147 more a year out of pocket. That’s a big deal to most people and it also means huge...

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Youku.com: The YouTube of China

May 11, 2011
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For my stock idea today, I’m going with a small company with a big story that’s just had its first major pullback since blasting off in February.  I’m talking about Youku.com (YOKU), which has been called the YouTube of China, but in reality, it’s more like a combination of a Netflix or Hulu (because it offers generally professionally-made movies and shows) and YouTube (because advertising is the main source of revenue). The company just reported first-quarter earnings last Thursday evening, and while the loss per share of six cents was a bit better than expected, the real upside showed...

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Learning to Love the Fat Tail

May 10, 2011
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Learning to Love the Fat Tail

I’ve written a lot about the importance of keeping track of your past trades and calculating key metrics such as batting average and slugging percentage.  I won’t rehash all that here, but I do want to touch on something that occurred to me when reviewing a few of my trades this week. Aside from all the customary statistical analysis, I also plot a histogram of my trade results. I create a dozen or so columns on the chart, each one measuring the number of trades that resulted in X amount of profit (or loss). One column in the middle...

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Manitowoc: A Turnaround Stock

May 9, 2011
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New building construction is a key economic indicator that analysts scrutinize when trying to divine the direction of the economy. One construction company that’s benefiting from the rebounding economy is Manitowoc (MTW), which was recommended in Cabot Top Ten Trader earlier this year. Mike Cintolo had this to say about it in late March: “While three out of every four big winners in market history are growth stocks, one in four is a turnaround stock, usually a dominant player in a stagnant field that suddenly comes to life because of something new, such as new management, a new product,...

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Stock Market Analysis Video: An Interesting Week

May 6, 2011
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Stock Market Analysis Video: An Interesting Week

In this week’s Stock Market Analysis Video, Cabot China & Emerging Markets Editor Paul Goodwin says it’s been an interesting week in the stock market, not a disaster, but there has been weakness as earnings season grinds on. We don’t have a distinct sell signal on our China-Timer, but we are pulling in our horns a bit. Stocks discussed: Polypore (PPO), MercadoLibre (MELI), Green Mountain Coffee Roaster (GMCR), OpenTable (OPEN), Netflix (NFLX), Molycorp (MCP) and RealD (RLD). Click below to watch the video!

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