Blog Archives

Market Update 12/10/13

December 10, 2013
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By Timothy Lutts, Analyst, Cabot Stock of the Month The big bull market of 2013 rolls on, driven by growing inflows into the market as well as increased focus on the market leaders. Behind the scenes, the broad market is slowly weakening (which is typical of a mature bull market), but the indexes keep forging upward and leading stocks continue to attract buyers. Thus my advice to growth-oriented investors remains unchanged: Invest in companies with good growth potential whose stocks are under accumulation, as evidenced that healthy chart patterns. Value investors should do as always: Buy when stocks are...

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Tim Lutts Discusses One Great Solar Stock

November 4, 2013
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Last week, one of my Cabot Stock of the Month subscribers, who also subscribes to several other Cabot services, wrote me a brief email asking about a couple of stocks (AMBA and GLW) that had been recommended in Cabot Top Ten Trader earlier this year. After checking the charts, I sent him a brief reply, saying if I owned the stocks I would hold them. And he answered back with this long email that you may enjoy reading, because it describes clearly the challenges so many of our readers face. “Dear Mr. Lutts, “I am terribly impressed—and equally grateful—that...

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Columbus Day and a Great Solar Stock

October 15, 2013
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Today is Columbus Day. I’m working, and the stock market is open. But the bond market is closed. Here in Massachusetts, the banks are closed, government offices are closed, the post office is closed and schools are closed. Stores of all kinds are open, but retail establishments that operate after 12 noon are required to pay their employees time and a-half … regardless of the number of employees on their payroll. The holiday is not celebrated in Minnesota (can you guess why?). In South Dakota, it’s a state holiday known as “Native American Day.” And in Nevada, it’s not...

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Market Update 10/8/13

October 8, 2013
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From Cabot Stock of the Month Up until the past day or two, the market was taking the U.S. government shutdown story in stride, but for whatever reason (and who knows, it could have nothing to do with Washington, D.C.), the sellers have really flexed their muscles of late. Today, in fact, was one of the heaviest selling days among leading growth stocks all year. That said, the overall market isn’t a disaster; many stocks that have recently broken out on the upside are still in good shape, and even among the stocks that were hit hard today, only...

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My Final Revolutionary Stock

September 26, 2013
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In last week’s column, I asked your opinion on John Kenneth’s Galbraith’s 1958 theory that free markets oversupply luxuries because commercial advertising stimulates demand for unnecessary goods and services—in the process diverting money from public goods. Case in point was the gold iPhone that Apple had just introduced. Your responses: “Dear Timothy…… I think that Galbraith’s basic premise is wrong; he seemed to think that advertising drives demand. I think that is just wrong. Companies like PepsiCo, RCA and Apple have spent a lot of time and money figuring out what people want and then offering it to them....

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