Today I have a special new feature to introduce to the Weekend
Digest issues of
Cabot Wealth Advisory
. Every Saturday, I will bring you a button with a phrase that
relates to investing and a short explanation of what the button
means. Here's a brief passage written by Cabot Publisher Tim
Lutts on what to expect:
"You are entering the world of my buttons, a world that will make
you think ... particularly about the role of the average investor
in the stock market. Ideally, increased understanding of the
thoughts expressed on these buttons--particularly the wisdom that
comes from thinking differently--will help you become a better
investor ... though it will take time.
"Where did the buttons come from? It all started in 1963.
"That was the year Humphrey B. Neill hosted the first Contrary
Opinion Forum in Manchester, Vermont. Humphrey, who styled
himself "The Vermont Ruminator" had written a number of books on
Tape Reading and Market Tactics
Understanding American Business
The Inside Story of the New York Stock Exchange
The Art of Contrary Thinking
(1975). The Contrary Opinion Forum was a gathering at which he
spoke and shared ideas--typically on the subject of
investing--with open-minded and contrary-minded people.
"The Forums became an annual event, and soon Jim Fraser joined
Humphrey as co-host. Jim ran a money management business in
Burlington, Vermont, relying in part on contrary opinion to guide
him into stocks of value and away from areas too heavily
influenced by the crowd. But Jim was more than a money manager;
he was also a dealer in old books (primarily books on investing)
and he eventually came to republish many of them as Fraser
"While I never knew Humphrey Neill (he passed away in 1977, and I
attended my first Forum in 1986), I knew Jim Fraser well. A kind
and wise independent thinker who found his own quiet road to
success, he was notable for donning an old silk top hat at the
Forum and honking a battered brass automobile horn to attract the
crowd's attention and start the event rolling.
"Somewhere along the way (quite early), Jim began the tradition
of printing the buttons (soon producing two a year) and
distributing them to the attendees, and I've kept all mine. Like
Jim, I have a soft spot for the wisdom of the ages and a
"Jim bowed out of the business after the turn of the millennium,
and the book publishing business faded with him, but Fraser
Management lives on under the guidance of Alex Seagle and Len
Davenport and the Contrary Opinion Forum is still going strong.
Equally important--at least in my opinion--Alex Seagle has
maintained the tradition of producing and distributing the
"For many years, I've had my buttons arrayed on the wall of my
cubicle, where I can draw inspiration and wisdom from them.
"Interestingly, while doing the research for these
interpretations, I learned that many of the sayings were
quotations (often miss-quotations) from famous people, and this
has added a new layer of meaning to many of them.
"I hope you enjoy the buttons and feel a little wiser after
And now for the first button ...
It Pays to be Contrary
Attributed to Humphrey B. Neill, founder of the Contrary Opinion
Forum. If you can be a buyer when everyone else is selling, and
then be a seller when everyone else wants to buy, you'll be rich!
You can view this and other buttons
by clicking here
--- Advertisement ---
Introducing Cabot Global Energy Investor
A confluence of energy crises is bearing down on the world like
an unstoppable force. And at this very moment, savvy investors
are getting rich by investing in a multitude of energy companies.
You too can profit from the tremendous opportunities gaining
momentum in the energy industry with the guidance of
Cabot Global Energy Investor
Subscribe by May 31
to take advantage of our Charter Rate!
If you keep up with the news, you probably know that retail
stocks have been faring better lately as the economy recovers and
consumers start spending again.
Abercrombie & Fitch (
has benefited from that in a big way and the stock shows it!
Abercrombie is known for catering to brand- and fashion-conscious
teens and has earned a reputation for pushing the envelope with
its racy advertising. But that's not why the stock is hot right
The stock is doing well for several reasons.
- * Management recently announced that the company should
earn $4.75 this year (versus $2.05 in 2011) and that total
revenues would likely double to $7.5 billion by 2015.
- * A recent report revealed that many retailers' same-store
sales trounced analyst expectations. Abercrombie's were up a
- * The company plans to open stores in Paris, Madrid,
Singapore, Brussels and Dusseldorf. Abercrombie already has
1,000 stores (after closing some that were underperforming,
another cause of growth), and this international expansion is
sure to open many new markets.
ANF flew under the radar for a long time, but soared in early
April on huge volume on news of the guidance hike. It formed a
nice base around 70 for about a month after that and the stock
broke out again last week after the same-store sales news was
announced. The stock is now trading in the mid-70s.
The company reports earnings next week, so getting in just ahead
of that could be risky. But if management is right in its bullish
outlook, the stock likely has a lot further to run.
You could buy ANF here and hope for the best or you could see
Cabot Top Ten Trader
Editor Mike Cintolo is recommending. He's featured ANF recently
and subscribers already have a 15% profit in the stock.
to learn what he thinks about it now!
In this week's Stock Market Analysis Video,
Cabot Market Letter
Editor Mike Cintolo says the market has bounced back this week,
but it's difficult to gain traction in this environment. From a
top-down perspective, the indexes aren't in bad shape, but under
the surface, there's more pressure on individual leading stocks.
We recommend that you closely manage your existing positions and
keep a fresh watch list. Stocks discussed:
iShares Silver Trust (
), OpenTable (
), Green Mountain Coffee Roasters (
), IMAX Corp. (
), Qlik Technologies (QLIK), Wynn Resorts (WYNN)
Melco Crown (MPEL)
Click here to watch the video.
Until next time,
Editor of Cabot Wealth Advisory