Daily Posts Archive
The most dangerous way to sell short is to pick a hot little stock that’s “way overvalued” and bet that it will come down. Such a case in recent weeks has been American Superconductor (AMSC), a company that recently found new life by entering the market for wind energy. For the past five months, AMSC’s chart, in climbing from 16 to 45, has rewarded investors who were long on the stock, and it has punished short-sellers ... despite the broad market being unsupportive.
The publication that would become Cabot China & Emerging Markets Report was first published in March 2004 under the name Cabot’s China Investor. The editors at Cabot saw the huge growth potential in China and it has paid off in the years since. In 2006, the name was changed to Cabot China & Emerging Markets Report and the publication expanded its focus to include other strong emerging markets.
The economic development of China has been one of the biggest business stories of the 21st century. With enormous reserves of cheap labor, a centralized government that can implement economic decisions quickly, and a real flair for capitalism, the country has become the factory for the world in an amazingly short time. As a result, growth of China’s gross domestic product has topped 10% a year for more than a decade.
I have gone from great success to less success and back to great success (relatively speaking--I’m not able to compare myself to Warren Buffett--yet). The up, down, up cycle of life can be compared to many of the stocks that pop up as undervalued opportunities in my research analyses. I concentrate on companies with temporary setbacks, where management is taking action to correct the problem and get the company back on track.
Three very different expressions of love took place during two weddings and one engagement, providing an opportunity to learn life, and investing, lessons. The conclusion: Everyone has to do things in their own way. Finding your belief system and sticking to it will produce better results in the end.
One of the most important investing lessons—letting winners run and cutting losses short—is often the downfall of investors. Many disobey this rule, leaving them with a portfolio of losing stocks. Novatel Wireless (a losing stock that had to be cut) and First Solar (a winning stock that’s been allowed to run) are used to illustrate this lesson.
Redoing a kitchen proves that making Green choices is easier than expected, despite the hype surrounding it. Environmentalists oppose Greenwashing by wine jug makers and real estate developers trying to sell their products as earth-friendly. And a Chinese biodiesel offers investors a great opportunity in a growing area.
We get a lot of questions from our subscribers, often the same question many times. So today we’re answering some of our most common inquiries. These are questions and comments that can help all investors better understand not just how we invest, but also some important principles that will quickly improve your skills.
Cabot Stock of the Month Report is a great publication for people new to investing, or new to Cabot. It gives subscribers a taste of five of Cabot’s newsletters, allowing them to decide which investing system is right for them. By offering something from each of Cabot’s publications, it introduces you to several different investing systems, helping you decide which one is right for you. It also provides a diverse selection of stocks.
The high price of gasoline is one of the biggest concerns of Americans today. Everyone wants to know whether the price will decline, stay up here at $4 a gallon, or climb higher. Well, at Cabot, our very successful growth stock investing system works because we DON’T try to predict the future. Instead, we simply observe trends and invest on the expectation that they will continue.