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GILD has soared from under 20 to over 120 over the past four years, thanks to mushrooming revenues from Sovaldi and Harvoni, the company’s hepatitis C drugs, revenues grew 52% from last year—and that was the slowest revenue growth rate in five quarters!. But the stock is very well known, and some analysts (Goldman Sachs apparently among them) are worried that falling prices and competition will cut into the company’s fat profit margins.

Here at Cabot we try to find out which way markets are trending and manage our portfolios accordingly.

Cabot aligns our interests with those of our readers. We want our subscribers make money by following our advice.

If you ever forget that the market actively wants to take your money, the value of your portfolio will be glad to remind you.

This year marks the 30th year of the Dick Davis Digests’ publication. In addition, later this week, the Investment Digest will publish its 700th issue. Dick Davis started the Digest in 1981, in the middle of a two-year recession. You can see by the orange arrow on the chart of the...

Answers to many of the questions asked by readers in last week’s survey.

Today’s missive comes to you from a small Swedish city called Lund, where I’m staying with some good friends before heading to London to wrap up my European tour. This is my second stop in Scandinavia after a week in Copenhagen, the capital of Denmark. It was my second visit to...

If you want to own the top-performing stocks, you’ve got to adapt to the times.

Many analysts have been touting the coming correction, which has not yet appeared.

A great stock story--even one about solar power--is still just a story.

IAC/Interactive Corp. (IACI) is up 40% since it was recommended as a top pick in January.

One of the longest-running Investment Digest features is our annual Top Picks issue, for which we ask all our contributors to send us their single favorite stock to buy for the coming year. In July, we ask them to update us on their picks. And finally, in December, I like...

I’ve taken a few weeks off from the series I’m writing to help explain Cabot’s publications, but today I’m going to discuss Cabot Top Ten Report.

The annual listing of the Forbes 400 Richest Americans is light on opinions and heavy on data, which means it’s right up my alley. I haven’t delved very deeply into the list beyond the featured Top 20, but there are lots of interesting insights just in that small group.

Our Emerging Markets Signal is still positive as the MSCI Emerging Market index (EEM) basket—containing 800 stocks worth $1.9 trillion—pulled back only slightly.

This webinar will help you learn how to invest in expansive, high growth enduring markets that Carl Delfeld calls “Blue Ocean” markets.

It will give you specific actionable ideas to tap into growth markets such as:

• e-commerce - learn about international company at the heart of the world’s most lucrative consumer market growing top line revenue six times faster than Alibaba
• electric vehicles (EV) - learn all about the high risk/high reward “Tesla of China” - by far the world’s largest market for EVs
• financial technology (fintech) - learn about why e-commerce and banking is now powered by fintech companies and a stock leading the revolution

As a bonus, Carl discusses both cyber security and rare earths and why two ETFs are the best plays on these key trends.

After a few weeks of solid action that eased most worries, the latest shenanigans in Iraq have reminded investors that the market is a two-way street. Not that the damage has been severe—stocks have generally eased normally since Iraq grabbed the headlines last Thursday—but we’re viewing this as the rally’s first test. If dips in the indexes and individual stocks come on generally tame volume and find support, it will be highly bullish. If not … well, we’ll deal with that if we see it. Right now, the evidence remains clearly bullish, and while the bulls aren’t running wild, many stocks are making solid progress.

This week’s list has a bunch of great stories, as well as a nice mix of newer and older names. Our Top Pick is Restoration Hardware (RH), which is going about business in a unique way, leading to outstanding results. The stock is getting going after a multi-month rest.

Stock Name	Price	Buy Range	Loss Limit
RH Inc. (RH)	252.93	79-84	72-73
VeriFone Systems, Inc. (PAY)	0.00	35-36	32-33
Netflix, Inc. (NFLX)	423.92	410-430	370-380
Health Net (HNT)	0.00	38.5-40	35-36
GT Advanced Technologies (GTAT)	0.00	18-19	15-16
Keurig Green Mountain (GMCR)	0.00	115-121	105-107
Eagle Materials Inc. (EXP)	0.00	90-94	84-85
Con-way (CNW)	0.00	46.5-48.5	43.5-44
Charter Communications (CHTR)	0.00	144-147	134-135
Baidu (BIDU)	0.00	170-175	158-160

Growth stocks, led by the Magnificent Seven, have again carried the market this year.

The Mag. 7 – the clever name for big-tech behemoths Amazon (AMZN), Apple (AAPL), Google (GOOG), Meta (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA) – are up an average of 22% this year. Because those seven companies account for more than a third of the entire S&P 500, they’ve carried the index to a solid 16.5% gain year to date. The Equal Weight S&P 500 index, which equally weighs each of the 500 stocks that comprise the benchmark index, is up a mere 8.5% and has barely budged since the Fourth of July. For most stocks, the entirety of this year’s rally occurred during the post-Liberation Day run-up from the second half of April through early July.

This month we’re jumping back into the pure-play software space with an up and coming SaaS company that has remained under the radar since going public in December, just a few months before the market tanked.

It specializes in social media management solutions, which are increasingly important as the trend toward digital transformation strategies gets stronger. Organizations increasingly recognize they must market to consumers through social networks.



Revenue growth is hovering around 30% and first profits are still a couple years away, meaning we’re still early to the table.



All the details are inside this month’s Issue. Enjoy!