Bad News, Good News
Our last issue was titled “Burden of Proof is on the Bulls,” and since then, the buyers have failed to step up to the plate, leading to a worsening of the overall evidence—earlier this week, our Cabot Tides flipped to bearish...
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Burden of Proof is On the Bulls
At heart, we’re students of the market, which means one of the key tools we use is spotting the difference between normal, run-of-the-mill action and abnormal, noteworthy action, the latter of which is what usually causes us make...
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Take Advantage of Recent Volatility
Over the Labor Day holiday, I was up with my extended family in Arrowsic, Maine. We enjoyed going for a cruise on the Kennebec River and also got in one last beach day. It was also a peaceful setting reflect...
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The Big Idea
In the early days of social media people mostly wanted to connect with friends and family members to share stories and a few pictures about their lives. There were also those that wanted to network with colleagues and make connections to land...
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Has the “Re-Rotation” Begun?
When our last issue went to press, growth stocks were under pressure. It wasn’t an epic disaster, but there had clearly been a change in character, with the initial market leaders (those that burst to new highs in April or May)...
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Growth Stocks Under Pressure
We saw signs growth stocks were ready for a “real” correction in June, but the buyers showed up. And again in July, it appeared the red-hot growth titles were ready to rest—and some of them did—but most enjoyed yet another to...
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Getting Defensive
This week, I’m on vacation in scenic Manchester-by-the-Sea, Massachusetts. We chose Manchester-by-the-Sea because of the beautiful beaches, but just as importantly, because that’s where my in-laws live.
My wife and I have learned (the hard way) that going on vacation isn’t much of vacation...
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The Big Idea
To say that the U.S. healthcare system is complicated, confusing, and expensive would be a colossal understatement.
One could argue that “system,” defined as an organized framework or method, isn’t a very good term at all. Perhaps “landscape,” which encompasses both existing transitory...
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Positive, but Less Powerful
One of the big reasons the market has always attracted us is that it’s a contrary beast, requiring investors to think and perceive things differently than in their day-to-day view of the real world. To the average person who turns the...
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The Music Changes
When I first arrived at Cabot, I spent a lot of time in the summer of 1999 reading through all (yes, all) of the old issues of the Growth Investor (or Cabot Market Letter for you long-time subscribers). One of my stories...
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Micro Caps Continue to be Ignored
This week, we profile Greystone Logistics (GLGI), a classic micro-cap company that is growing earnings 140% this year but only trades at 6.6x earnings.
Why is the company so cheap? Because it’s a micro cap!
If this company had a cap...
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Still the Same Story
Most times, the market environment is in a constant state of change, so when we report to you our latest thoughts on this page, there’s plenty to discuss—rotation among sectors, major moves in the indexes, earnings season or some big-picture that...
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The Big Idea
If there was ever any doubt that digital payments is a big trend the coronavirus pandemic has squashed the argument.
Locked up at home, people have still needed to buy things and pay their bills. Businesses, from car and boat dealerships to to...
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Much More Good than Bad
We believe it was the late, great Marty Zweig who once wrote that, in the world of the market, you’re never going to get everything lined up in one direction—if you had 100 market timing indicators, to get 85 90...
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Patience Will Pay Off
This week, we profile Liberated Syndication (LSYN), an under-the-radar podcast hosting company in secular growth that is about to announce the results of a strategic review. Make sure to use limits when buying LSYN as the stock is very illiquid.
Our recommendations...
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The unemployment-stock market correlation is a picture-perfect inverse on a chart. So what does that mean for stocks with unemployment at 90-year highs?
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Believe What You See
Most of the time, the stock market and U.S. economy are in gear—there are always fits and starts, but as the economy expands, earnings generally grow and that contributes to a bull market. But it’s the times when the two moving...
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The Big Idea
We’ve enjoyed tremendous success investing early in off-the-beaten path insurance brokerage companies.
This success is due, in large part, to selecting technology-enabled companies with business plans developed around efficiently capturing, and keeping, clients.
These companies include Goosehead Insurance (GSHD) and Everquote (EVER). Both rapid-growth,...
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The Perfect isn’t the Enemy of the (Very) Good
In a perfect world, everything would be lined up on the bull side of the fence. Market timing-wise, not only would our Cabot Trend Lines and Cabot Tides be bullish, but investor sentiment would be the...
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Investing in micro-cap stocks can make you rich. Just ask Warren Buffett and Peter Lynch. Here's what to look for - and what not to do.
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