Gary,
There really was nothing shocking in anything that was said. As for
their long-term performance, I really can't add much more. I do know
that in the last several years, they have really done well and I'm
almost positive they have handedly beat the S&P 500. I and I'm sure
a lot of other Cabot faithful have been worried recently that Cabot
recommendations have turned into a mania. Lately, they recommend a
stock and it jumps 15-25% or even doubles in a day. That is mania
and I try not to participate in it. But, they also recommend stocks
that have a huge following on wall street and have been very
successful on fundamentals, not hype. Companies such as AMER, ASND,
CSCO, IOMG, HD, CUBE, APCC. All these stocks had huge runups long
after Cabot recommended them. As for the stocks they mentioned as
having dropped today, I say, so what? After the huge runups they have
had, a 10-20% correction is expected. In fact, Cabot is now saying
that IOMG, ZOLT, and PRST are still buys, but look to buy them at
10-20% lower than their highs. They've been saying this for a few
weeks. As for PRST, I think that Cabot has really pushed this stock.
It would be interesting to know what % of the float is owned by Cabot
subscribers. Even if it is a significant amount, eventually
fundamentals will prevail (good or bad). I think it is irresponsible
to say that Cabot is manipulating PRST stock price, but they are
certainly a major factor in its runup and relative stability.
Bottome line, I've earned back 50 times their subscription price in
profits and I'm not about to complain about that.
Jim |
