Editor’s Note: This is part four of an ongoing series explaining Cabot’s eight publications. The first three parts of the series can be found here http://www.cabot.net/Issues/CWA/Archives.aspx Today I’ll be writing about Cabot Green Investor.
Cabot Green Investor, launched in January 2008, takes Cabot’s stock picking and market timing system and applies it to earth-friendly investments. As a sector, Green investments offer the most profit potential since the Internet boom of the mid-1990s, and Cabot’s system ferrets out the best stocks to own and profit from.
Brendan Coffey, a veteran financial journalist, is the editor of Cabot Green Investor. Brendan has spent more than a decade writing about investments for publications including Barron’s, Forbes, the Wall Street Journal and a number of private-client brokerage newsletters.
With earth-friendly investing growing into its own, Brendan draws upon insights gleaned from covering everything from the Brazilian ethanol market to the global bottled water craze and filters it through Cabot’s proven system for identifying and capitalizing on fast-growing stocks.
Selecting the Stocks
Cabot has spent 38 years honing a stock picking and market timing system that uncovers leading stocks in some of the fastest growing sectors. Cabot Green Investor applies this system to environmentally friendly investments, which just happen to possess some of the most exciting growth prospects of any sector in the market.
Many of Brendan’s recommendations are young and their stories are often unknown, giving them bigger upside potential as the big-money crowd accumulates positions. The demand for alternative energy is growing all the time, along with demand for Green building practices and Green technology. This is only going to increase in the future and Cabot Green Investor will be on top of these trends, selecting the best stocks for subscribers.
Cabot Green Investor looks for promising companies benefiting from the global trend for Green products and services. To qualify as a potential recommendation, a large part of the company’s growth must be the result of a Green business arm, product or innovation and the stock must trade on a U.S. exchange.
Companies featured in the Cabot Green Investor also meet our strict fundamental and technical criteria. Our recommended companies almost always possess rapid sales and earnings growth, huge margins and the potential for continued growth down the road. Most important, the stocks of our companies are in solid uptrends, telling us that the aforementioned big-money crowd is indeed buying shares.
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How to Find the Gems in Wall Street’s Rubble
In roughly six weeks, the market has fallen off a cliff. The Dow has lost about 14% since May 19 when the index closed slightly above 13,000. Each day, Wall Street traders are fretting more and more about over-stretched consumers, the overly long credit crunch and the far-from-over U.S. economic slump.
But there’s not need to fret because Cabot’s Optimum Momentum stock-picking system has handed investors 65% gains in just three months. Check out these recent winners:
Alpha Natural Resources – up 54%
Research in Motion – up 65%
DryShips – up 95%
And there’s more where they came from. So if you think you can’t get rich in this market, think again. Cabot Top Ten Report can guide you to huge profits every week, despite the market’s fluctuations. Click the link below to get started with a risk-free subscription.
Once the Cabot Green Investor owns a stock, it will be held for as long as the stock performs well. Our goal is to hold stocks for the long-term. But we let the stocks tell us when they should be sold, applying the same time-tested proprietary tools that we’ve developed and refined for 38 years–and that have helped us deliver outstanding results for readers of Cabot Market Letter and Cabot China & Emerging Markets Report.
Specifically, we pay close attention to each stock’s chart. Is the stock in a solid uptrend? Does trading volume show accumulation? Are corrections brief and shallow? We judge a stock’s health using traditional technical analysis tools–trendlines, support/resistance, etc.–relative performance and volume analysis. In the event that a loss develops, it will be limited to no more than 20% at the close of any trading day.
What is a Green Stock?
Many people ask us, “What is a Green stock?” Good question. Green stocks are those leading the trend toward environmentally friendly ends, be they new sources of clean energy, products that mitigate the environmental impact and energy cost of existing technologies or those that profit from the increasing move by consumers to organic and efficient products. There’s no hard and fast rule for what is Green and what isn’t. The definition, like the market, will change over time.
We’re looking to capitalize on trends, not to make value judgments, so we approach the stocks solely as investors. We don’t require our selections to be socially responsible companies, although almost by definition Green stocks can be equated as socially responsible. If the fundamentals are poor, the trend is bad or a company is overvalued, then it’s a poor stock to buy now, regardless of how we may feel personally about the product or service.
What doesn’t change is that the Cabot Green Investor looks for promising companies benefiting from the Green trend.
A subscription to Cabot Green Investor includes the monthly issue, delivered by email only. Each issue contains market commentary, an analysis of two stocks and updates on previously recommended stocks. Subscribers receive weekly updates on all current stocks, including detailed buy and sell instructions and special alerts anytime there is important news on the markets or one of our stocks. Subscribers also get email access to the editor, Brendan, and access to a subscriber-only Web site.
I hope this helped you better understand Cabot Green Investor and how it can help you get on board early in this fast-growing area. Look for more issues in this series in the weeks ahead. And as always, we welcome your questions, comments and suggestions.
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Ultra-Safe Investing System Delivers Double Digit Profits
Cabot Benjamin Graham Value Letter is the only investment advisory in the country that applies the fundamental principles developed by Benjamin Graham to stock picking. Benjamin Graham taught these investing secrets to Warren Buffett, who used them to become the richest man in the world.
Now, we’re teaching them to you, so you too can see above average returns. For more than 80 years, through Benjamin Graham, then Warren Buffet and now editor J. Royden Ward, this system has delivered an annualized return of 20% in almost every kind of market.
Click the link below to find out how to safeguard your wealth and see double digit returns.
Letters From Readers
Last week I wrote about my upcoming trip to Yellowstone and Grand Teton national parks and the strife the airline industry has been causing me. I received a few travel tips and commiserations and will share them with you here:
“My wife and I had planned a vacation to Maui this year. The day before our flight was to leave, I tried to check in online, only to find out the airline was going out of business. Yes, this was Aloha Airlines. We received no warning from the airline at all even though they had our email address and phone number.
Turns out our flight to Maui did leave, and it was the last flight ever out of Sacramento. The employees were very nice to us, and understandably emotional. But we didn’t hear anyone complain. While we were in Hawaii another airline went out of business (ATA). Thankfully, we had arranged our return flight on Hawaiian.
Our credit card company did manage to recover half our roundtrip ticket prices, but we actually paid a little more than that getting home. Oh well, better to be in Maui and worrying about getting home than having to worry about getting to Maui. Actually, my wife was perfectly willing to stay …
“At Driggs, ID, on the west side of the Tetons, you can get a glider ride that requires no security check, no taking off your shoes, just a super silent flight with the Tetons in backdrop to let you take all the photos you want and, possibly, have a hawk or eagle come in to your thermal and fly with you. The only way to fly! Dangerous? Sure. You have to drive to and from the airport!”
“We’ve been [to Yellowstone] twice. (We drove the 4,800 mile round trip both times.) It’s absolutely fabulous. Yellowstone contains half of the geysers on this earth. Lots of wild animals, like elk and bison. Give ’em space–you’re invading their home (without permission). Yellowstone Falls are magnificent, but there’s no yardstick to measure their immensity and grandeur. The Tetons are off there in the distance, sorta like a painting on the wall. Again, there’s no yardstick. But gee whiz, what a painting!”
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, we have links below to each issue.
Cabot Wealth Advisory 6/30/08 – Benefits of Creative Destruction
In Monday’s issue of Cabot Wealth Advisory, Timothy Lutts wrote about Joseph Schumpeter’s theory of creative destruction. At the root of creative destruction, according to Schumpeter, are entrepreneurs, possessing a spirit of innovation that drives economic growth forward by improving on and “destroying” the old. Tim applied this theory to our petroleum-based society and the rise of alternative energy. Stock featured in this issue: Energy Conversion Devices (NSDQ: ENER). Click the link below to read the full issue.
Cabot Wealth Advisory 7/3/08 – Debunking Investment Myths
In Thursday’s issue of Cabot Wealth Advisory, Michael Cintolo recounted how he became interested in the stock market and how he learned to do what’s right and avoid what’s wrong when investing. Mike also debunked several investment myths, ranging from the value of insider selling to the value of diversification to the wisdom of considering tax implications when taking profits. Click the link below to read the full issue.
Editor’s Note: Since the start of the year, Cabot Green Investor has led subscribers to double digit profits in stocks such as American Superconductor (AMSC) and Clean Harbors (CLHB). Click the link below to get on board with the Green revolution.
Until Next Time,
Editor of Cabot Wealth Advisory