Don’t writers know any other words?

More importantly, don’t you think that when there’s such unanimity of opinion about the market, it’s ripe for a change?

I think so, and I think the market’s next major move will be up.

My reasons are these:

One, the market’s been down a pretty long time, and the selling pressures, which peaked in August, have been easing.  Institutions are clearly using the big dips to accumulate shares at reasonable prices.  And the institutions love these dips.  They know value, so it’s to their benefit to extend the bottoming phase so they can continue to accumulate shares.

Two, individual investors feel terrible about investing here.

In fact, many tell me so, using words like these.

“I suspect that the market is going into a rat hole for a long time.”

“I fail to see the logic of buying … the European debt crisis … is years from solution!”

As a result, they’re inordinately focused on safety, which tells us that before long, the market will reward those brave souls who are courageous enough–and independent-thinking enough to take on risk.

Three, progress continues to be made in numerous industries, from energy to pharmaceutical to technology. And the best stocks in these industries offer brave investors a chance to make profits now!

One of the most interesting to me is a company named Health Management Systems (HMSY), a boring name but an accurate one, for a company that gets paid for (successfully) keeping health care costs under control.

Mike Cintolo, editor of Cabot Top Ten Trader, recently recommended the company. Here’s what he said.

“The issue of cost containment in the U.S. medical industry is a pressing one, and companies like HMS Holdings are on the front lines in the battle. The company specializes in cost containment, revenue recovery, reimbursements and benefits coordination, contracting with state and national government agencies and insurance companies to manage third-party liability claims, reconcile state regulations with national Medicare and Medicaid requirements and keep a watch on potential fraud or mismanagement.

“The company’s Q3 earnings report points toward a “national focus on improper payments” as a major source of future growth, and investors clearly agree. When HMS Holdings acquired Health Data Insights (HDI) in November, it strengthened the combined company’s position as a recovery audit contractor in the quest for the integrity of claims in both Medicare and Medicaid. Revenue growth has been steady, with 26% growth in 2008, 24% in 2009 and 32% in 2010. As the company’s Q3 earnings summary states, “Medicaid grows regardless of political environment,” and the more efforts are made to reform the system, the better HMS Holding will thrive.”

HMSY has been in a long-term uptrend for years, and in recent weeks, it’s been building a base between 30 and 31.  Mike suggested getting on board after any dip of one point, and that still seems like good advice to me.

But if you want the best advice, with regular follow-ups on this stock (and many more), I suggest you take a no-risk trial subscription to Cabot Top Ten Trader.

Disclosure: The author does not have a position in the stock.

My two cents says the market was ready for it! It had been down long enough. People were discouraged enough. And there were bargains enough.

So it’s time to be less defensive, and more aggressive, in particular by seeking out the leaders of this new bull market.

Leaders are favored, rather than laggards (which may look cheap) because history tells us the leaders are most likely to be higher in the months ahead.  Inertia tells us that stocks sitting at lows are likely to stay near their lows.

And leaders are favored especially in the early phases of a bull market because they have far more potential buyers than sellers. Institutions are still climbing on board, building their positions. And the buying of all these new investors pushes these stocks higher.

One of my favorites today is Ulta Salon (ULTA), which has been recommended several times in Cabot newsletters in recent months.

Here’s an excerpt from the latest Cabot Top Ten Trader written by editor Michael Cintolo:

“Ulta Salon is aiming to be a national beauty products chain, selling itself on having the widest selection with constantly changing inventory, rather than top-of-the-line products that demand super-premium pricing. There’s nothing revolutionary there, but investors have had a lot to be excited about in the company’s consistent expansion, which has led to outstanding growth numbers. In the just-announced third quarter (which ended October 31), Ulta saw sales rise 22%, same-store sales rise 9.6%, profit margins rise, and earnings boom. Just as important for investors, Ulta opened 28 new stores in the quarter, and has already opened another seven this quarter, completing the company’s 16% planned increase in square footage for the year. Better yet, the top brass expects 15% to 20% square footage growth for many years (probably closer to 20% in 2012). … Given ULTA’s monster run during the past few years (up from 4 to 74!) and its lofty valuation, you would think that shares would have been walloped during the market’s downturn since mid-July. Instead, the stock has some of the best price-volume action we can find, with repeated big-volume rises and just a couple of mild-volume declines during the past few months.”

For more, including specific advice on exactly where and when to get on board this hot stock, I recommend a no-risk trial subscription to Cabot Top Ten Trader.

The Toyota Prius has become the poster child of the hybrid car movement, leading a growing range of hybrid offerings–including the massive Cadillac Escalade– from nearly every manufacturer.

Pure electric cars are just beginning to emerge, with the Chevy Volt and Nissan Leaf targeting the mass market and Tesla aiming higher.

And as these technologies improve and gasoline and diesel-burning engines are gradually displaced from our roads, the result will be lower pollution, better health and lower oil prices, too.

But investing in automobile companies is difficult, not least because this is a mature industry.

More than four years ago, in September 2007, I surveyed all the publicly traded automobile manufacturers, asking if there were any that were attractive investments, based on either valuation or growth.

And I ranked them from best to worse.

Here’s a much-abbreviated version of my comments then.

“Nissan (NSANY) … having its lunch eaten by Toyota.

“Ford (F) … being killed by legacy costs, … by some measures, it’s a screaming bargain, but only if the company can find its way back to profitability.

“General Motors (GM) … also cheap … but earnings estimates have been cut … and the stock has been weak for most of this year.

“Honda (HMC) … a fine track record of growing both revenues and earnings … but the stock has only equaled the market’s performance over the past five years.

“Toyota (TM) … the most expensive major carmaker in the world, measured by price to sales ratio. Trouble is, it’s performed no better than the broad market over the past 12 years.

“DaimlerChrysler (DAI) … sells at just 58% of annual revenues … and it’s in an uptrend, so it’s probably a decent investment here.

“Tata Motors (TTM) … is a real growth story! … Not as cheap as the preceding companies … but it’s got great growth prospects.

“Volkswagen (VLKAY) … is hitting new highs … both revenues and earnings are on growth tracks … the most successful foreign automaker in China. In short, I like it.”

And how have these stocks done since?

Well, in the short term, Volkswagen was the top performer, climbing 255% from the time of my recommendation to its October 2008 peak as investors fled from American automakers that were nearing extinction. It’s now 27% below that 2007 point and not particularly attractive.

But in the long-term, the top performer has been Ford, which did find its way back to profitability (wisely passing up a government handout on the way), and is up 37% since that week in 2007 (after falling 88% along the way … could you have held on through that?). But the stock is weaker than Volkswagen’s and analysts are predicting reduced earnings in both 2011 and 2012, so it’s not attractive to me.

As to the others:

While all Japanese automakers were hurt by the March tsunami, there are bigger problems. Honda and Toyota are both having their lunch eaten by Hyundai/Kia of Korea. Revenues at both Japanese companies peaked in 2008 and their stocks are in downtrends. And investors in Toyota have lost 45% since 2007; that’s partly a consequence of the stock being the most highly valued back then.

Nissan is slightly better, having posted record revenues in fiscal 2011. But its stock is a yawn.

Daimler looks terrible. Revenues peaked way back in 2005 and the stock is down 52% since 2007.

General Motors looks no better. Revenues peaked in 2006, and the stock has been steadily underperforming the market since the government sold it back to the public a year ago.

In short, the stocks of all well-known automakers are unattractive.

You shouldn’t buy them for the dividends. The biggest payer is Tata, which pays 2.2% per year.

And you shouldn’t buy them for value. None of these companies qualifies for the Top 250 Value Stocks list of Cabot Benjamin Graham Value Letter.

But in the case of two companies, you might invest for growth!

The first is Tata Motors, whose stock has been weak in the recent difficult market, but may have turned the corner. The company has seen revenues grow every year of the past decade, and analysts are looking for record revenues and earnings in 2012. Tata’s after-tax profit margin is a healthy 5.9%. Additionally, the company’s Indian labor force is cost-competitive, and Tata’s ability to sell into that market as the middle class grows is tops. Finally, Tata has a broad product line, ranging from the tiny Nano–the world’s cheapest production car–to luxury cars made by Jaguar and LandRover, which Tata bought from cash-strapped Ford in 2008. So the stock is worth keeping an eye on.

The second, and most exciting company, is Tesla (TSLA), which came public in June 2010 at 17, and is now trading at 34, just 6% off its all-time high.

If you’re into cars, you probably know more about Tesla’s electric cars than I can tell you here, but if you’re not, you should pay attention.

I’ll give you the main points right up front.

While Toyota has blanketed the U.S. with milquetoast hybrid Priuses, following the standard old automakers’ game plan, and the Chevy Volt and Nissan Leaf are uninspiring “appliances,” Tesla has done something different. It has built cars that are thrilling to drive. And from its headquarters in Silicon Valley, it’s been acting like a high-tech company!

And why not, considering that co-founder and current CEO Elon Musk made his fortune by selling PayPal to eBay for $1.5 billion?!

While there are five official co-founders of Tesla, Musk looms large in the story because he used much of his own money to bankroll the project, supplemented in time by money from private investors–as well as $465 million from the U.S. Department of Energy. Last year’s IPO was just the latest chapter of financing, and possibly the last.

From the beginning, the goal of the company has been to create and sell affordable mass-market vehicles that would have a material impact on oil consumption. But Tesla hasn’t yet targeted the mass market!

Its first step was to build and sell two-seat electric sports cars costing $109,000. It’s sold more than 2,000 of these Roadsters (in 30 countries) and will stop after 2,500.

The revenues from that effort are driving work on the company’s next car, the Model S, a sedan that sells for $57,400. Tesla has already taken reservations for more than 6,000, and will begin deliveries next year. It also expects to offer an SUV (Model X) based on the same platform, and begin deliveries of those in 2014.

Photo courtesy of www.teslamotors.com

And the profits from those cars will fund development of a mass-market car, priced around $30,000, that will compete with the likes of the Toyota Camry, Honda Accord and Ford Taurus.

This strategy mimics the way successful Silicon Valley companies launch products; hit the rich early adopters first, then drive costs down to serve the mass market.

Furthermore, Tesla has boosted its cash flow by inking major deals with Daimler and Toyota for its proprietary powertrain systems … which tells me these components are the best!

The company’s revenues were $15 million in 2008, $112 million in 2009 and $117 million in 2010. Next year could bring in $550 million, as the Model S hits the streets. And Musk promises a profit in 2013.

In conclusion, Tesla looks like one of the stars of the evolving automotive revolution.

While recent history has left the roadside littered with old names (Mercury, Plymouth, Pontiac and Saturn are dead, and Saab is comatose), Tesla is a fast-growing young company with minimal debt burdens and no retirees with costly pensions!

So what to do? You could simply buy the stock today and hope for the best. Or you could take a no-risk subscription to Cabot Top Ten Trader, which recommended the stock back on September 26, when it was trading at 26, and continues to update subscribers in each issue.

I recommend the latter, because this stock could be very big, and having expert guidance will help you make the most of it.

For more details, click here.

Silicon Laboratories has been recommended in Cabot Top Ten Trader in 2003 and 2006 and 2009, and investors who stayed on their toes made money each time.  But between each of those periods, the stock fell to the ground like a dead asteroid, as investors exited en masse.

But now SLAB is back in favor, and I think investors who get on here will do very well.

Here’s what editor Mike Cintolo wrote about the company in last week’s issue of Cabot Top Ten Trader:

“With sales of electronic gadgets on the rise, here Silicon Labs is again, with its huge assortment of microcontrollers, wireless transmitters and receivers, touch-sense controllers, sensor, modems, clocks and oscillators and other devices. The company is an innovator, plowing more than a quarter of earnings into R&D, and a wave of new products is helping to lure market share away from the competition. Silicon Labs is a fabless designer (meaning that it partners with world class manufacturers rather than owning its own factories), and sells to China (28% of 2010 revenue), Taiwan (16%), the U.S. (14%) and Korea (13%), with the other 29% scattered around the world. The company’s Q3 results last week beat analysts’ estimates handily, and guidance for the next quarter was solid, putting Silicon Labs near the head of the microchip sector.”

As for the stock, “SLAB got slammed three months ago when management’s overly cautious guidance (plus the early August downtrend in the market) keyed a drop from 42 to 31. The stock hung in there, making small gains in volatile trading, then blasted off last week to its highest level since May. SLAB will likely need some time to consolidate gains at this level, so a dip to 42 or so is likely. That’s an advantageous place to get in.”

Since then the stock has traded as low as 41, and I think you can buy it now, taking care, as with any high-volatility stock, to use protective measures like stop-losses.

For more details on SLAB and other top stocks featured in Cabot Top Ten Trader, click here.