Which Cabot Letter is Right for You?
The Chinese Market is Hot!
Stock Market Analysis Video
---
--- Advertisement ---
Diversify for Less Than 13 Cents Per Day …
That’s how little it costs to get the best stock across all sectors. If you want to diversify your portfolio and profit from using several different investing philosophies to pick winning stocks, Cabot Stock of the Month is right for you. Not only is it priced so low that every investor can afford it, it’s also designed so that subscribers get a taste of a multitude of investing styles. Get started today!
---
I’ve written many times before about our most frequently asked question, “Which Cabot Letter is Right for Me?” (Mostly recently on December 25. Read the issue here.)
For a while now, we’ve provided a short questionnaire that helps you figure out which letter best suits your investing style (you access it in the link above). But some people just want the bare bones facts about each newsletter, like its publishing frequency, which type of investments it includes and which type of investor it’s best suited for, all in one, easy to read place. So we’ve created a new table that compares all of our newsletters to help you decide which one you should subscribe to. To view the new table, click here.
I hope it helps you decide which Cabot letters are right for you!
---
One of my favorite television shows is Antiques Roadshow. I’ve been a fan for years. There’s just something about finding an old piece of junk (or inheriting it) and discovering that it’s worth tens of thousands of dollars (sometimes more!) or that it’s totally worthless, that I find exciting.
(Luckily my fiancé does as well; we often have contests to see who can guess the value of an object most accurately. Or we’ll talk about what we’d take to the Roadshow should we get a chance to go. For the record, I’d take an old map we have on the wall. I don’t think it’s very valuable, but I’d love to learn more about it.)
If you watch the show long enough, you know that antiques go in and out of style. Certain things, like really old furniture from New England or Pennsylvania, don’t really seem to ever go down in value, but the prices of pottery, art and the like often fluctuate greatly.
So it’s no surprise that today the market for Chinese antiques is hot, hot, hot. As with Chinese stocks, Chinese antiques have been rising in value during the last several years. In fact, one of the items with the highest appraisal that I’ve ever seen on the Roadshow was an 18th century Qianlong Jade Collection from the Qing Dynasty, worth between $710,000 and $1,070,000!
We’ve seen some Chinese stocks recommended in Cabot China & Emerging Markets Report take off like that too. Baidu (BIDU) has been a big winner, rising from a split-adjusted 38 when Editor Paul Goodwin recommended it in July 2009 to over 100 today.
And there’s plenty more where that came from. One of my favorite stocks in Paul’s portfolio today is Sina Corp. (SINA), the most popular full-service Web portal in China. Paul wrote about the stock in late September, here’s what he said:
“If you haven’t heard of Sina.com, it’s not surprising, since it doesn’t make much effort to build traffic outside China. But for many Chinese, Sina.com is their preferred source for news, email (both free and premium), weather, games, e-commerce, streaming audio and video, community and affinity groups. It’s the default setting on more Chinese computers than any other.
“Sina monetizes all that traffic by selling banner, button and text-link advertising (which collectively contributed 64% of 2009 revenues), offering wireless value-added services (WVAS) such as news, financial information, sports, weather and jokes sent to mobile phones, plus dating services, games, quizzes, educational content, ring tones and screen savers (33% of last years sales) with 99% of revenue coming from within China.
“The company experienced four quarters of slowing earnings growth in 2009, but the most recent quarters have shown earnings up 48% and 45%. Revenue growth is also back on track after three quarters of declines, with 15% growth in Q1 2010 and 10% growth in Q2. Sina Corp.’s after tax profit margin was an admirable 27.9% in Q2.
“But Sina Corp. has always been a solid, well-run operation with strong revenue and earnings growth and profit margins well above 20%. So why is the company suddenly coming in for such enthusiastic support from investors?
“The answer is Sina Weibo, Sina Corp.’s new microblogging service that has mushroomed into an online phenomenon. Sina Weibo (we’re told that the name translates to “Sina microblog”) began beta testing in August 2009, and was up and fully operational by the end of last year. By early March 2010, the service had five million registered users, and had doubled that number by mid-May!
“Other microblog services have been in China for a long time, but Sina Weibo has some strong advantages. First, it has the built-in base of more than 400 million users of Sina.com and Sina’s WVAS customers to market its services. Second, it’s a Chinese service, which many Chinese users prefer, giving it a leg up over Twitter. Third, Sina.com’s long experience in monitoring and controlling content allowed it to step in when Twitter and Chinese services like Fanfou, Jiwai and Digu were banned by the government on suspicion that they had been used to spread messages during the ethnic violence in Xinjiang in July 2009.
“Sina Weibo imposes the same 140-character limit on messages as Twitter, but 140 Chinese characters can convey much more information than 140 English letters. Add to that the embedded photos, videos and lyrics that the service enables, plus the entertainment and sports stars who have signed on as star bloggers, and Sina Weibo has huge momentum going for it.”
Paul recommended the stock at 51 and since his subscribers bought it in early October, SINA has roared higher and is now trading around 80! The stock (and the market in general) took a hit this week. You could buy it here and hope for the best or you could read Paul’s latest thinking on this stock and others in the latest Cabot China & Emerging Markets Report.
---
In this week’s Stock Market Analysis Video, Cabot Market Letter Editor Mike Cintolo says that the market did finally start show some cracks this week, though the indexes still look good. However, if you trade in leading stocks like we do at Cabot, you’ve likely noticed a lot of damage underneath the surface. Stocks discussed include Apple (AAPL), F5 Networks (FFIV), Nvidia (NVDA) and Novellus (NVLS). Click below to watch!
--- Advertisement ---
Wall Street’s Next Big Shocker
With unemployment rising and real estate prices spiraling south, it’s clear the market’s volatility is about to increase exponentially—especially in the new year. For these reasons, 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. Click here to get it today!
---
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.
Cabot Wealth Advisory 1/17/11 – Is the Stock Market Overvalued?
On Monday, Roy Ward discussed how he determines whether the stock market is over or undervalued. He also discussed the future of the auto industry and the investment opportunities in the industry. Featured stocks: Ford (F), Magma International ‘A’ (MGA) and Tata Motors (TTM).
---
Cabot Wealth Advisory 1/18/11 – Microsoft: The Best of Both Worlds
On Tuesday, Chloe Lutts wrote about price discrimination in the airline and other industries. Chloe also discussed Microsoft, which was selected as a top pick for 2011 by experts featured in both of the Dick Davis Digests. Featured stock: Microsoft (MSFT).
---
Cabot Wealth Advisory 1/20/11 – Predicting the Future, Twitter-Style
On Thursday, Brendan Coffey discussed a new hedge fund that will select investments based on the frequency of tweets about them and why this likely isn’t a reliable investment system. Brendan then wrote about the usefulness of stock charts in helping you decide when to buy or a sell a stock.
Until next time,
Elyse Andrews
Editor of Cabot Wealth Advisory
P.S. You read our newsletters, now show Cabot some love on Facebook. Click here to “like” our page!