The Contrary Opinion Buttons
A Hot Retail Stock
Stock Market Analysis Video
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Today I have a special new feature to introduce to the Weekend Digest issues of Cabot Wealth Advisory. Every Saturday, I will bring you a button with a phrase that relates to investing and a short explanation of what the button means. Here’s a brief passage written by Cabot Publisher Tim Lutts on what to expect:
“You are entering the world of my buttons, a world that will make you think ... particularly about the role of the average investor in the stock market. Ideally, increased understanding of the thoughts expressed on these buttons--particularly the wisdom that comes from thinking differently--will help you become a better investor ... though it will take time.
“Where did the buttons come from? It all started in 1963.
“That was the year Humphrey B. Neill hosted the first Contrary Opinion Forum in Manchester, Vermont. Humphrey, who styled himself “The Vermont Ruminator” had written a number of books on investing, including Tape Reading and Market Tactics (1931), Understanding American Business (1939), The Inside Story of the New York Stock Exchange (1950), The Art of Contrary Thinking (1954) and The Ruminator (1975). The Contrary Opinion Forum was a gathering at which he spoke and shared ideas--typically on the subject of investing--with open-minded and contrary-minded people.
“The Forums became an annual event, and soon Jim Fraser joined Humphrey as co-host. Jim ran a money management business in Burlington, Vermont, relying in part on contrary opinion to guide him into stocks of value and away from areas too heavily influenced by the crowd. But Jim was more than a money manager; he was also a dealer in old books (primarily books on investing) and he eventually came to republish many of them as Fraser Publishing Company.
“While I never knew Humphrey Neill (he passed away in 1977, and I attended my first Forum in 1986), I knew Jim Fraser well. A kind and wise independent thinker who found his own quiet road to success, he was notable for donning an old silk top hat at the Forum and honking a battered brass automobile horn to attract the crowd’s attention and start the event rolling.
“Somewhere along the way (quite early), Jim began the tradition of printing the buttons (soon producing two a year) and distributing them to the attendees, and I’ve kept all mine. Like Jim, I have a soft spot for the wisdom of the ages and a well-turned phrase.
“Jim bowed out of the business after the turn of the millennium, and the book publishing business faded with him, but Fraser Management lives on under the guidance of Alex Seagle and Len Davenport and the Contrary Opinion Forum is still going strong. Equally important--at least in my opinion--Alex Seagle has maintained the tradition of producing and distributing the buttons.
“For many years, I’ve had my buttons arrayed on the wall of my cubicle, where I can draw inspiration and wisdom from them.
“Interestingly, while doing the research for these interpretations, I learned that many of the sayings were quotations (often miss-quotations) from famous people, and this has added a new layer of meaning to many of them.
“I hope you enjoy the buttons and feel a little wiser after reading them.”
And now for the first button ...
It Pays to be Contrary
Attributed to Humphrey B. Neill, founder of the Contrary Opinion Forum. If you can be a buyer when everyone else is selling, and then be a seller when everyone else wants to buy, you’ll be rich!
You can view this and other buttons by clicking here.
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10 Stocks to Profit from $5 Gasoline
With oil prices soaring over $100 a barrel and gas now threatening to reach $5 a gallon this summer, these stocks are ready to break out. Our newest special report reveals 10 high-potential stocks that are poised to land big profits for investors as energy prices rocket higher. Don’t miss out on this opportunity to profit from these high-potential plays. Order now.
If you keep up with the news, you probably know that retail stocks have been faring better lately as the economy recovers and consumers start spending again. Abercrombie & Fitch (ANF) has benefited from that in a big way and the stock shows it!
Abercrombie is known for catering to brand- and fashion-conscious teens and has earned a reputation for pushing the envelope with its racy advertising. But that’s not why the stock is hot right now.
The stock is doing well for several reasons.
- * Management recently announced that the company should earn $4.75 this year (versus $2.05 in 2011) and that total revenues would likely double to $7.5 billion by 2015.
- * A recent report revealed that many retailers’ same-store sales trounced analyst expectations. Abercrombie’s were up a solid 10%.
- * The company plans to open stores in Paris, Madrid, Singapore, Brussels and Dusseldorf. Abercrombie already has 1,000 stores (after closing some that were underperforming, another cause of growth), and this international expansion is sure to open many new markets.
ANF flew under the radar for a long time, but soared in early April on huge volume on news of the guidance hike. It formed a nice base around 70 for about a month after that and the stock broke out again last week after the same-store sales news was announced. The stock is now trading in the mid-70s.
The company reports earnings next week, so getting in just ahead of that could be risky. But if management is right in its bullish outlook, the stock likely has a lot further to run.
You could buy ANF here and hope for the best or you could see what Cabot Top Ten Trader Editor Mike Cintolo is recommending. He’s featured ANF recently and subscribers already have a 15% profit in the stock. Click here to learn what he thinks about it now!
In this week’s Stock Market Analysis Video, Cabot Market Letter Editor Mike Cintolo says the market has bounced back this week, but it’s difficult to gain traction in this environment. From a top-down perspective, the indexes aren’t in bad shape, but under the surface, there’s more pressure on individual leading stocks. We recommend that you closely manage your existing positions and keep a fresh watch list. Stocks discussed: iShares Silver Trust (SLV), OpenTable (OPEN), Green Mountain Coffee Roasters (GMCR), IMAX Corp. (IMAX), Qlik Technologies (QLIK), Wynn Resorts (WYNN) and Melco Crown (MPEL). Click here to watch the video.
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The Shocking Truth About the New Bull Market
Our special report reveals what you need know to become 50% richer or 50% poorer, depending on what you do now! Make no mistake about it. The last year hasn’t been the easiest for most investors--and it’s not over yet, not by a long shot. One that will soon affect all the stocks you own.
The next market move we see headed our way in the next 30 days could be the biggest shocker of 2011. My free report reveals what you must do now to protect yourself and profit. Get it now!
In case you didn’t get a chance to read all the issues of Cabot Wealth Advisory this week and want to catch up on any investing and stock tips you might have missed, there are links below to each issue.
On Monday, Cabot Market Letter Editor Mike Cintolo wrote about plotting a histogram of your trades, so you can see the fat tail on the bell curve. The trades in that fat tail are how a winning investor beats the market. Mike recommended watching a stock that’s been called the “YouTube of China.” Featured stock: Youku.com (YOKU).
On Tuesday, we heard from StreetAuthority’s Nathan Slaughter, editor of Scarcity & Real Wealth. He discussed the Bakken Shale oil field in the Midwestern U.S. and how you can profit from this discovery.
On Thursday, Brendan Coffey introduced Cabot Global Energy Investor, our newest publication, that will cover any and all high-potential investments in the booming energy sector. Brendan discussed three startling energy usage facts that are converging to make these stocks highly profitable.
Until next time,
Editor of Cabot Wealth Advisory