I think Cabot has been having problems recently. I went back (arbitrarily) about 5-6 months to October to review his recent success. His recommendations (12 stocks)at that time were to buy Vivus, Key Energy, Anchor Gaming, Dell, Cymer, Presstex, Labor Ready, Zoltek,Diametrics, Vitesse, Herman Miller and Maverick Tube. As of today, 10 of them are down at least 20% and over half of these stocks were sold by Cabot with a minimum 20% loss. The only marginal success from that time has been Herman Miller which is up 18%, but less than the market, and Vitesse is selling at about the same price as it was then. The only other two stocks he held on to - Zoltek and Presstek - are both substantially down from October. Not a stellar record in my view.
My real problem with Cabot was during the Centennial Technologies fiasco. He claimed that much of the street rumor was false, based on his intimate knowledge of the company, and continued to recommend the stock. After my $25000 loss ( I'm uncertain how much I'll get in the class action suit) as the stock dropped 10-fold, and the CFO was sent to jail, I started to wonder how well he really knows the companies he recommends.
My advice is to look at what he has to say, but then do a lot of independent analysis. |
