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As other sectors of the market struggle, there are a lot of financial stocks to buy now. Here are three that stand out.

“It takes a gutsy investor to buy a stock when it’s down and the bad news about the company shows little sign of abating. But such bottom-fishing can be enormously profitable if you’re right about the long-term prospects of an outfit for which the here-and-now crowd on Wall Street has no patience. Take the Cabot Turnaround Letter, for example. Buying out-of-favor stocks has made it one of the best-performing investment newsletters in the business, returning an annualized 21.2% for the five years ended November 30, compared with just 11.2% for the broad market, as measured by the Standard & Poor’s 500 index.”

Anne Kates Smith, Kiplinger Personal Finance

Risk-Controlled Investing is a monthly subscription-based service that includes a monthly newsletter. It is highly innovative and written to teach advisors and individuals how to develop investment portfolios with lower risk. The Risk-Controlled Investing subscription service includes: a monthly electronic newsletter written for financial advisors; monthly “Ask the Editor” Conference...

The market has definitively changed character, with our Cabot Tides and Two-Second Indicator now negative—when combined with breakdowns among leading growth stocks, the odds favor more short-term weakness ahead. We’ve been holding some cash for a while and have boosted that this week, with 37% on the sideline, and we could raise more if the selling continues.

That said, we’re not aiming to hide out in our bunkers--following some short-term pain, the odds favor further long-term gains given the underlying trend and the lack of big-picture abnormal action out there. Thus, having taken partial profits in many names, we’re OK giving them a chance to find support, as some are likely to have another leg up after this downturn. In tonight’s issue, we’re moving a couple more stocks to Hold, hanging onto our cash and writing about many names that are taking the selling in stride and could have upside if the market finds its footing.

This week’s note includes our comments on earnings from Advance Auto Parts (AAP), Macy’s (M), Tyson Foods (TSN) and Vodafone (VOD). The earnings season is winding down, with Kohl’s (KSS) reporting next Tuesday (Nov. 21) and Duluth Holdings (DLTH) reporting on November 30.

This week, we comment on results from Duluth Holdings (DLTH), the last of our companies to report this earnings season.

We also include the Catalyst Report and a summary of the September edition of the Cabot Turnaround Letter, which was published on Wednesday. We encourage you to look through the Catalyst Report. This report is a listing of all of the companies that have reported a catalyst in the past month. These catalysts include new CEOs, activist activity, spin-offs and other possible game-changers. We source many of our feature recommendations from this list. You will find it nowhere else on Wall Street.

This week, we comment on earnings from Duluth Holdings (DLTH) and Macy’s (M).

We also include the Catalyst Report and a summary of the June edition of the Cabot Turnaround Letter, which was published on Wednesday. We encourage you to look through the Catalyst Report. This report is a listing of all of the companies that have reported a catalyst in the past month. These catalysts include new CEOs, activist activity, spin-offs and other possible game-changers. We source many of our feature recommendations from this list. You will find it nowhere else on Wall Street.

The former leaders are taking the back seat in this changing bull market, and these two undervalued dividend stocks look poised to help pick up the slack.

Current Market Outlook


After trading in a tight range for nearly two months, the major indexes were clobbered last Friday; most fell below their 50-day lines and a couple hit their lowest levels since Brexit. The action should certainly be respected—we’re knocking our Market Monitor down a couple of notches—but it’s important to look at all the evidence. While the intermediate-term trends are mostly sideways at this point, the longer-term trend is still up, the broad market isn’t falling apart as it would at major tops, and many individual stocks are pulling back normally so far. Overall, you should take things on a stock-by-stock basis, selling stocks that crack but giving others a chance to hold support and resume their advance. Overall, we remain optimistic, but picking your spots is important, and the next few days should be telling.



This week’s list includes many resilient stocks from a variety of sectors, which is a positive sign. Our Top Pick is Las Vegas Sands (LVS), a big-cap turnaround stock that has just lifted off following a huge bottoming effort.

Stock Name	Price	Buy Range	Loss Limit
Urban Outfitters (URBN)	0.00	35-36.5	32-33
Twilio (TWLO)	183.39	54-57	47.5-49
Tempur Sealy (TPX)	85.53	78-80	70-71
PDC Energy (PDCE)	0.00	64-66	59-60
MercadoLibre, Inc. (MELI)	980.83	174-178	160-161
Las Vegas Sands Corp. (LVS)	0.00	55-57	50-51
GrubHub (GRUB)	140.03	38.5-40.5	35-36
Callon Petroleum (CPE)	0.00	14-15	12.5-13
Burlington Stores (BURL)	193.95	80-82.5	74-75
Alibaba (BABA)	254.81	95-100	89-90

Despite a strong start to the week that saw the S&P 500 gain a combined more than 2% Monday and Tuesday, the sellers once again took control, as the index then fell 4.5% Wednesday and Thursday.

Despite a strong start to the week that saw the S&P 500 gain a combined more than 2% Monday and Tuesday, the sellers once again took control, as the index then fell 4.5% Wednesday and Thursday.

The market is down on the day, though individual stocks aren’t doing too badly. As of 2 pm EST, the Dow is off 280 points while the Nasdaq is off 165 points.

Be cautious. The selling pressure has spread to the rest of the market, with the recent decline cracking a bunch of stocks and causing our Cabot Tides to turn negative.

Much of the advice and so-called facts that you hear on TV and read about in financial magazines is basically nonsense. I found that out the hard way. By losing money! So, here are some things to keep in mind as you enter the market’s battles of 2010.

Everyone knows Warren Buffett. As the dean of value investing in the U.S, the Chairman and CEO of Berkshire Hathaway (BRK-B) draws thousands of people to his annual meetings in Omaha. As the world’s greatest investor, Warren Buffett seemingly has it all. But there’s one major advantage you have over the Oracle of Omaha.

Are you skeptical of the rally in bitcoin and think the cryptocurrency is long overdue for a crash? Here’s how to short bitcoin and profit handsomely.

There are lots of good U.S. stocks. But even more opportunities lie beyond our borders. With that in mind, here are 3 Canadian stocks to buy.