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Non-Tech : CABOT Sinkhole (PRST, ZOLT, IOMG...) How deep? -- Ignore unavailable to you. Want to Upgrade?

To: Elwood who wrote (69)	3/27/1998 5:59:00 PM
From: aatkinson	Read Replies (1) \| Respond to of 90

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.

To: Elwood who wrote (69)	3/30/1998 4:01:00 PM
From: Toby Zidle	Read Replies (1) \| Respond to of 90

First, Elwood, I didn't intend my message as a 'bitch'. It was an inquiry as to what Cabot has done lately that would counteract my impression of his advice when I stopped subscribing. I saw a lot of his stocks go down and his Sell recommendations tended to be rather late, but still profitable if you got in at the very beginning. As for my winning investments, they're hardly relevant to the discussion but consider: CNTO 3/12/98 @ 36 3/4, now 46 1/8 SCS 2/18/98 (IPO) @ 28, now 36 7/8 SFSK 2/17/98 @ 63 1/2, now 73 3/8 LYO 2/11/98 @ 28 7/16, now 35 1/2 UVSGA 1/9/98 @ 29 1/2, now 42 1/2 Also consider: PRST bought 2/18/98 @ 27 3/8, sold 2/19/98 @ 26 7/8, now 22 1/4 Of 37 stocks in my portfolio, I'm ahead on 32 of them, so no, I'm not bitching. Toby

To: Elwood who wrote (69)	4/1/1998 9:05:00 PM
From: Toby Zidle	Read Replies (1) \| Respond to of 90

Elwood, From your posting: <In defense of Cabot, he cuts his losses and tells his subscribers to do the same - prudent advice for anyone! As far as pressteck goes - show me any other company with a comparable earning stream & eps growth rate that beats it - I don't think you can. Now is when you should be buying prst.> Are you still in your PRST now? As I'd told you, I got out at $26 7/8. I guess I cut my loss better than Cabot. From what I've read elsewhere, he finally TODAY removed his Buy recommendation, going to a Hold instead. Where does he cut his loss?? Let's see.... If I were Carlton Lutz, how could I face my subscribers if I said 'Sell' now, after holding this all the way from $100 to $17. I think I'm going to be stuck with this stock forever. Especially if I ever said 'sell' and then the stock ever makes it back to a $30-40 level. I'm STUCK, maybe forever. Now if I'd said sell it at, say $75, on the basis of never holding beyond -25% down from a High, I could be a true guru with a buy recommendation at $10 with a 12-month expectation of $40. Now Carlton's in a true no-win dilemma. Holy printing plates, dude!!