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Here are four step-by-step instructions on stock investing from the American Association of Individual Investors.

I have no idea if the biotech sector is near a bottom, but based on history, it would seem that we’re within 10% or so of that mark. The greatest risk seems to be that the binary outcome possibilities for developmental-stage biotech stocks (either fail or succeed) don’t mesh with investors’ risk appetite right now.

Interest rates are finally dropping and a new era has begun, and these two dividend-paying stocks are ideal for the changing times.

In December’s Issue of Cabot Early Opportunities we look back at one of the strangest years in decades and discuss the seemingly counterintuitive strategy that drove huge portfolio gains.

Then we look at a fresh batch of names that seem ripe for the picking now and which could serve us well in the beginning of 2021. Our new stocks span clean energy, PC gaming, biotech, industrial supplies, and payment processing. As always, there should be something for everyone!

This portfolio stock reported last night what can only be described as an outstanding quarter.

The momentum for emerging market stocks in general, and Chinese stocks in particular, has taken a big turn for the worse.

October proved to be a challenging month for stocks, but one good thing came out of it—it helped me identify stocks that investors really want to own!

Current Market Outlook


Our title last week was “What Happens from Here Will Tell the Tale.” And so the market’s impressive and immediate snapback from the two-day Brexit decline is a good sign that the bears just aren’t able to take control of this market, even when obvious bad news hits. That said, while the panic low from last Monday should hold, we can’t say the bulls are in control, either, as all the major indexes are still stuck below longtime resistance levels dating back to early 2015. Altogether, we’ll nudge our Market Monitor back up a notch, but what we’re really looking for is a decisive move to new highs before getting bullish. For now, you should hold your top performers, but keeping new buys relatively small and holding some cash is also prudent.

This week’s list has a bunch of mid-cap names that are showing excellent strength—they could be among your leaders if the bulls step up to the plate. Our Top Pick is Beacon Roofing (BECN), a growing play on housing and construction, which may actually get a boost as interest rates plunge.

Stock Name	Price	Buy Range	Loss Limit
TAL Education (XRS)	0.00	60-62.5	56-57
TransUnion (TRU)	83.09	32.5-33.5	30-30.5
NetEase, Inc. (NTES)	0.00	181-185	169-170
Newfield Exploration (NFX)	0.00	41.5-43	38-39
Dycom Industries (DY)	0.00	85-88	79-80
DOC (DOC)	0.00	20-21	19-19.5
Beacon Roofing (BECN)	0.00	45-46.5	42.5-43
Activision Blizzard, Inc. (ATVI)	0.00	38.5-40	36-36.5
AG (AG)	0.00	13.5-14.5	12-13
Abiomed (ABMD)	0.00	106-109	98.5-100

The recently-rumored merger between semiconductor companies Marvell Technology Group (MRVL – yield 1.2%) and Cavium (CAVM) was announced this morning.

When considering electric vehicle (EV) stocks, investors would be well-served to broaden their horizons and look internationally.

Many U.S. investors see electric vehicle (EV) trends locally, but the truth is it’s a global phenomena and there’s a lot of value to be found overseas.

The stock market provides the marketplace for public companies to sell shares, and for investors to buy and sell them. Both make can money in the exchange.

It’s been another volatile week for the market, with some promising signs at times, but as has been the case a few other times this year, the Fed’s hawkishness crushed any bullish hopes, leading to a selloff. Taking into account this morning’s expected gap, the S&P 500 and Nasdaq are off in the 2% range for the week, while some broader indexes are off more and growth-oriented indexes are off a bit less.

MLPs (short for master limited partnership) are exempt from U.S. corporate taxes in exchange for passing on most of their income to investors, who are called unitholders. As a result of this unusual situation, unitholders accept the tax burden on the distributions they receive from the MLP.

Regarding the here and now, we’re starting to see signals that we could have a market dip, which would be entirely normal given that it’s only had two small retreats since stocks began racing higher in September.

This month we’re adding a small company that specializes in the opaque and inefficient market for selling surplus and salvaged goods.

The company has a market cap of just $580 million and is growing revenue and EPS by double digits. It’s an interesting setup, especially as government agencies and corporations increasingly look to save money and achieve sustainability goals.

All the details are inside this month’s Issue.

For today’s Dividend Edition of Investment of the Week, I wanted to introduce investing with dividend reinvestment plans, or DRIPs. We have two Dick Davis Digest contributors who focus exclusively on investing with DRIPs, and others who recommend them occasionally. So DRIPs appear in the Digests fairly regularly, and I...

Three of our stocks reported first quarter earnings. There are no rating changes.