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A Guide to Cabot’s Premium Advisories

If you’ve ever been offered something for free, your first reaction was probably, “What’s the catch?” And that’s true here, too.

If you’ve ever been offered something for free, your first reaction was probably, “What’s the catch?” After all, there are usually strings attached to any giveaway. As Robert Heinlein taught us, “There Ain’t No Such Thing As A Free Lunch,” the maxim that put TANSTAAFL into the lexicon of acronyms.

And that’s true here, too. But I’m going to tell you the catch first, and then make the offer. See what you think.

Cabot Heritage is very much a family business. We were founded by Carlton Lutts in Salem, Massachusetts in 1970 and our first investment newsletter, Cabot Market Letter, was written on the Lutts family’s kitchen table and published in their home for many years.

Carlton retired nine years ago and his son Tim picked up the reins and continues as our Chief Investment Officer, editor of Cabot Stock of the Month and the man who signs all our paychecks.

Tim’s daughter, Chloe Lutts, stepped in over four years ago as editor of Dick Davis Investment Digest and Dick Davis Income Digest. And to my way of thinking, three generations makes a family business any way you look at it.

Because Cabot is a private company, there are no stockholders to worry about every quarter. And there’s no parent company to mess with how we do things.

But family or not, we’re still a business, and what we have to sell is information and advice. We stick very close to what we know, concentrating on the stock market, giving advice about everything from undervalued blue chips to fast-rising growth stocks to tiny small-cap stocks that most investors have never heard of. And we throw in some ETFs and options just to give the mix some flavor.

The Cabot Wealth Advisory (CWA), our free investment newsletter, which you’re reading now, is our primary way of getting people familiar with what we do. Every editor writes at least one issue every month, so over the course of a few months, you will have a chance to get to know each of us pretty well.

When we started the CWA, our main marching order was, “Give away the good stuff.” What you get in CWA is the best advice, the most recent market analysis and the freshest stock picks that we all have in our pockets. We figure that the only way to build our credibility and earn your trust is to lead with our strength. In the stock market, last month’s advice is hardly worth lining the birdcage with.

So here’s the bottom line. Even though we love having hundreds of thousands of people reading Cabot Wealth Advisory for free, we also put lots of effort into offering cheap and easy ways for you to try out our paid publications.

Imagine my surprise that many of you haven’t done so!

My theory is that you may not know what a Cabot advisory has to offer because you’ve never seen one.

So I’ve informed my colleagues that I’m going to give away a free issue of a premium Cabot advisory to anyone who asks. (Note: I’ve been given permission to do this for every publication except Cabot Small-Cap Confidential—that puppy is just too valuable to give away—and Cabot Options Trader, which does not have issues, but concise buy and sell option trades send by email and as text messages.)

I’m talking about the most recent issue. The whole thing. A free investment newsletter. Free. Note: the offer has expired, but we may renew it some time in the future. Stay tuned.

So what are the Cabot premium advisories? Here’s a short guide.

Growth Advisories

Cabot Market Letter: A growth advisory that picks a portfolio of up to 12 stocks. Uses market timing to move into strong markets and out of weak ones. New issues every two weeks with full updates on alternating Wednesdays.

Cabot Top Ten Trader: An aggressive research tool that details the 10 strongest stocks of the previous week, analyzing why they’re strong and giving buy ranges and follow-up on previous picks. Published every Monday, with an update on Fridays.

Cabot China & Emerging Markets Report: (My baby) An aggressive growth advisory focused on stocks of emerging markets and selected international stocks. New issues every two weeks, with updates on alternating Thursdays.
Value Advisory

Cabot Benjamin Graham Value Investor: A value advisory following the footsteps of Benjamin Graham and Warren Buffett. Published monthly with at least four recommendations for undervalued stocks and a full data set of candidate stocks. Includes maximum buy prices and minimum sell prices for a low-risk, diversified portfolio.


Cabot ETF Investing System: This advisory uses fundamental analysis and market timing to recommend trades among market sectors. There are two systems, one for conservative investors and one for more aggressive investors. You get market exposure without the turmoil of trading individual stocks.


Cabot Stock of the Month: This advisory delivers one stock recommendation every month, selected from one of Cabot’s advisories to take advantage of market conditions. Stock picks are more aggressive during bull phases and more defensive when the bears are in charge. Updates are sent very week.


Dick Davis Investment Digest: From a review of hundreds of financial newsletters, the editor selects the best ideas for investing in stocks, mutual funds, exchange traded funds, large-caps, small-caps, blue chips, technology, healthcare, financial stocks, undervalued stocks and takeover candidates. Technically, it’s published twice a month, but you get a new idea by email every day!

Dick Davis Dividend Digest: Like the Investment Digest, the Dividend Digest is put together from more than 200 investment newsletters devoted to dividend-paying stocks, muni and corporate bonds, mutual funds, ETFs and REITs that generate continuing income for investors. This is published once a month, but features a daily email with a new recommendation.

So, there you have it. Those are the Cabot advisories. They’re all independent, unbiased investment guides. We don’t accept advertising, promotional fees or any kind of outside input. Each publication follows a set of rules that have been refined over the years (and decades) to give you straight talk about making money in the markets.

Just pick the one you want to see and I’ll get the latest issue off to you.

I hope you like them. And I hope you’ll see that subscribing to a concise, well-written investment advisory that distills years of investing experience into easy-to-follow advice is a brilliant choice.

Or is there some other reason for your non-subscribing that I haven’t thought of?

If there is, I’d be genuinely interested. And if reply to this email and let me know, I’d even be very grateful.

A Very Big Story in Japan

My stock pick today is a chance to jump on a very big story.

Japan’s economy has been mired in a recession for more than twenty years, a period that the Japanese call The Lost Two Decades or Ushinawareta Nij?nen. Lots of books have been written about why this happened and many political careers have hit the rocks because leaders couldn’t get things moving.

But it looks like something—maybe a massive stimulus package, maybe the declining value of the yen, which supports exports—is finally working. The Nikkei 225 Index, which traded near 39,000 in January 1990 but was trading at 8,700 last November, has now put on a burst of speed and is happily soaring higher at 13,800 and change.

One way to play the resurgence of Japan is by buying Toyota Motor (TM), the largest automaker in the world by units sold. Toyota vehicles include many strong brands, including the Toyota Corolla, Yaris and Camry, Lexus, Scion, 4Runner, RAV4, Highlander, Land Cruiser, Prius and many others.

The resurgence of consumer interest in Japan (which accounts for about 40% of Toyota’s revenue) and North America (25% of revenue) combined with the appeal of a spruced up lineup of cars portends good results for Toyota.

And the company’s attractive cash dividend program (currently paying a forward annual yield of 1.2%) makes for a nice combination of price appreciation and income.


Paul Goodwin is a news writer for Cabot’s free e-newsletter, Wall Street’s Best Daily.