Cabot has the death touch. Any stock he likes, crumbles. I am a subscriber too and avoid what he likes. I have never seen anyone so consistently wrong. His stock of the Decade, CROX, his guarantee double, VDSI......all in the gutter. On paper GFA is good - but he is down about 15% on this one. Brazil is a great land of opportunity, but the Americans who buy stock are avoiding this real estate play like the plague. But keep listening to Cabot!
I am also a long time Cabot investor, subscribing to both their flagship Market Letter and the Emerging markets letter, and think that genegene 118 is unfair and wrong about their advice. I'm not a professional or a pollyanna, just an individual investor, but they have earned high marks from Hulbert and if you follow their recommendations, including when to sell and when to stay in cash during volatile periods, you have made substantial profits over time. If you invest in mutual funds, you would not look only at a 3 month or one year return. Likewise, you need to look at the longer records of a financial newsletter. It took me several years and several wasted susbscriptions with other letters, as well as many free 30 day trials, to realize just how good Cabot is.
Should be big growth this year. There was a good piece on it in IBD the other day, mainly talking about how well they're set up to handle growth, the good companies they've partnered with, and how good their market is.
I bought in at 36.20 this morning. I love the growth story, but I do not understand where Yahoo is getting the 4.18 EPS figure for next year. Reading the IBD article, the EPS for 2006 was .54. Expecting an increase of 53% EPS this year brings the EPS to .82 for 2007. 200% increases each of the next two years would give you an EPS of 2.46 in 2008 and 7.38 EPS in 2009. Even with a PE of 30 this stock looks like it has a lot of room to run as long as GFA can follow through with the new Barrio Novo project and if they can keep costs under control.