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Monthly Archives: August 2011

Crocs (CROX): A Stock with Legs

August 8, 2011
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Today I want to discuss a stock that Cabot had great success with back in 2007 and that has recently reappeared on our radar screens: Crocs (CROX). Way back before the big bear market of 2008 (remember that?), Cabot Market Letter nabbed its subscribers 307% profits in CROX. And recently, the stock popped up in Cabot Top Ten Trader. I remember clearly the first time I saw someone wearing a pair of Crocs shoes. It was the summer of 2004 and they were bright orange. I thought the shoes were the most ridiculous looking things I’d ever seen. Nevertheless,...

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Growth Stock Investing: Streaky and Skewed

August 7, 2011
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Growth Stock Investing: Streaky and Skewed

Switching gears, I wanted to expound about something I wrote in the recent Cabot Market Letter; I got a good response to it, and I feel it teaches us a couple of lessons about the current market environment. What I wrote was that, in a growth stock investing system, your results are almost guaranteed to be both skewed (meaning a few stocks will account for the majority of your gains) and streaky (you’ll make big money for a few weeks, but then stagnate for months). I also included a chart of the Market Letter’s Model Portfolio from last year,...

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Assets Segregate Liabilities Accumulate

August 6, 2011
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Assets Segregate Liabilities Accumulate

Now for this week’s Contrary Opinion Button. Remember, you can always view all of the buttons by clicking here. Assets Segregate Liabilities Accumulate Many people learned the second part of this the hard way in 2007 and the years that followed when the over-leveraged U.S. housing market collapsed, dragging the developed world into a global recession. As to the first part, it’s been expressed in more common language as “A fool and his money are soon parted.” (We sometimes wonder how a fool and his money get together in the first place.)

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Don’t Fall in Love with Your Stocks

August 6, 2011
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Imagine yourself in the following position: You buy a stock you’ve researched and feel excited about. The company has a new product or service, and as soon as you buy the stock, the price heads higher … and higher … and higher! There might be a shakeout or two that you’re able to sit through, but after a few months, you’re sitting on huge gains. At this point, it’s only natural to feel affection toward the stock. After all, it’s done everything you’ve asked it to do, and all the news is good, pointing to even higher gains. It...

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Stock Market Video: Breaking Down

August 5, 2011
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Stock Market Video: Breaking Down

In this week’s Stock Market Video, Cabot Market Letter Editor Mike Cintolo says that the stock market has decisively broken down after the Dow’s 500-point drop on Thursday. The broad market is weak and it, along with many sectors and stock, has likely put in an intermediate-term top. Be defensive and protect your capital, so you have cash and confidence when the market gets going again. Stocks discussed: Baidu (BIDU), Apple (AAPL), Chipotle Mexican Grill (CMG) and Lululemon (LULU). Click below to watch!

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