BAC was chosen as a Top Pick for 2013 by Cabot Market Letter at $11.98 in Investment Digest issue 734, dated January 9, 2013. LEN was recommended as a Top Pick for 2012 by Cabot Market Letter at $22.03 in Investment Digest issue 711, dated January 18, 2012. Subscribers were advised to sell one-third in the September 27 Daily Alert and Investment Digest issue 728.
“Our market timing indicators remain positive, so we don’t advise panicking out of all of your stocks. But there has been plenty of damage, and our guess is that some stocks and sectors have topped out. Today we’re going to raise more cash by selling Bank of America Corp. (BAC, $11), which has been caught up in the selling in financial stocks, as well as Lennar Corp. (LEN, $39), a stock we’ve made great money in but whose major trend is now in question. Over time, the housing bull market likely has further to run, but after a huge advance, Lennar has broken major support.
“[We also] think the financial turnaround is for real, but BAC hasn’t made much progress since its powerful upmove in early January. It’s possible we just jumped on the wrong horse in the sector, so we are watching some of the other well-known names (like Goldman Sachs), but either way, we think it’s best to let BAC go and look for greener pastures. SOLD.”
- Michael Cintolo, Cabot Market Letter, February 26, 2013