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tyler-laundon

Tyler Laundon

Chief Analyst, Cabot Small-Cap Confidential and Cabot Early Opportunities

Tyler Laundon is chief analyst of the limited-subscription advisory, Cabot Small-Cap Confidential and grand slam advisory Cabot Early Opportunities. He has spent his entire career managing, consulting and analyzing start-up and small-cap companies. His hands-on experience has taught Tyler that the development of a superior business model is the biggest factor in determining a company’s long-term success. Accordingly, his research focuses on assessing the viability of management’s growth strategies, trends in addressable markets and achievement of major developmental milestones.

Tyler’s small-cap portfolios favor a high allocation to stable, high growth companies, upon which he layers strategic purchases of higher risk, event-driven investments. He first began publishing his analysis of small-cap opportunities in 2009. Since 2012, he has led his subscribers into 10 doubles. Between 2012 and September, 2015 his small-cap recommendations generated cumulative returns of over 2,300%, including both winners and losers, and outperformed the Russell 2000 Index by an average of 28% per year.

Prior to joining Cabot, Tyler founded and operated a small business for 15 years. He then worked as a consultant for start-up technology companies, as well as Vermont’s largest health care institution. From 2009 to 2015, he was the chief analyst of growth stocks at Wyatt Investment Research, where his research spanned the full spectrum of the growth stock universe, from micro-cap start-ups to multi-national mega-caps.

Tyler holds a B.S. and MBA from The University of Vermont, where he graduated Valedictorian. He has been a long-time contributor to the Wall Street’s Best Investments, has been quoted by U.S. News & World Report, and has presented investing ideas and strategies for The Money Show and Bloomberg Markets LiveINSIGHTS.

From this author
AST SpaceMobile (ASTS) Update: Full Steam Ahead
Trump’s victory has given the S&P 600 SmallCap Index the jolt it needed to break out above this year’s overhead resistance at 1,465.

This is what it looks like on a daily chart going back about a year ...
Last evening Zeta (ZETA) responded to the Culper Research short report with a scathing review of the allegations, saying, in short, that Culper is full of it and doesn’t know what the heck it’s talking about. It couldn’t even get Zeta’s auditor right. Link to the press release here.
I moved Zeta (ZETA) to buy this morning given the rather extreme selloff after earnings. Not long after that alert went out, a short seller by the name of Culper Research issued a short report on Zeta. | By far the most questions I’m getting right now are about Zeta (ZETA). You read my update yesterday, and it was bullish. Analysts increased price targets from the mid-30s into the low 40s, with some going up to 50.
OneStream (OS) a Buy, Rivian (RIVN) a Sell
AVPT, AORT and DCBO Still Buys After Reporting
Klaviyo (KVYO) and Soleno Therapeutics (SLNO) Report
Today we’re jumping into a small-cap recovery story that appears to be in its early innings. It’s a familiar name, and we’re not the first to jump on it. Bank of America just put out a very bullish note after the company posted a big earnings beat.

But this stock isn’t a consensus buy, far from it. There’s a lot of work to be done before Wall Street jumps on board. That spells opportunity.

I don’t think it’ll be a small-cap stock for long. Because of the crazy week with the election and FOMC meeting we will start with a half-sized position with today’s stock.
Trump Victory May Spell Higher Costs for SharkNinja (SN); Lock in Gain; Sell UL Solutions (ULS)
UL Solutions (ULS) Reports; HubSpot (HUBS): Sell for Quick Gain
I break the best investment sites for small cap investors into three categories: idea generation, stock analysis, idea capture.
Apple (AAPL) Reports
Willdan Group (WLDN) Delivers Q3
Earnings Roundup: MSFT, SN, FTAI
The broad market has been resilient up until today when we see Microsoft (MSFT) leading the Nasdaq lower.

That said, small caps are hanging tough and are almost exactly flat over the last week.

The darn 10-year yield is still up, which signals the market thinks the Fed did not need to cut by 50bps in September. I’m increasingly dubious about a rate cut next Thursday, even though the market is saying there’s a 95% probability of a cut.

Varonis (VRNS) Moves to Sell. MSFT, FTAI, AAPL, SN up next.
Shares of our silicon battery startup Enovix (ENVX) are trading up nicely today after the company reported Q3 results after the close yesterday. Lots to cover here so I’ll bullet point the most relevant stuff then give my two cents:
We went into the TransMedics (TMDX) Q3 earnings report yesterday afternoon with a quarter of our original position and lingering questions about the underlying trends in the business.
The S&P 600 SmallCap Index has dipped about 3% over the last week while yields have gone up.

The chart of the 10-year yield and the small-cap index plotted together makes this inverse relationship (in the very short term) clear as day.
Sell Veralto (VLTO); Note on Rivian (RIVN); AST Spacemobile (ASTS) Taking off
The deck was stacked against smaller software stocks when the Fed started hiking rates, but the tides are shifting in their favor. Here are five names I like now.
The Russell 2000 is considered the benchmark small-cap stock index, but the S&P 600 SmallCap is the better way to invest in them. Here’s why.
While the S&P 500 Index made record highs (again) this week, the real story has been in small caps.

From last Wednesday’s close through mid-day today, the S&P 600 small-cap index is up 2.9%, more than twice the return of the large-cap index, which is up 1.3%.

The gains have been propelled by consumer discretionary, staples, financials, industrials and tech stocks.
In the October Issue of Cabot Early Opportunities, we go deeper down the software rabbit hole, jump into a new grocery chain stock I suspect you’ve never heard of, dabble with a hot AI semiconductor stock and consider the potential of an EV stock that’s exploded on news of a big DOE loan.

As always, there should be something for everyone!
Sell Modine (MOD)
The small-cap indices (Russell 2000 and S&P 600) have been totally uninspiring over the last three weeks, which is sort of odd given that the Fed cut interest rates by 50 basis points almost exactly three weeks ago.

Theoretically, lower rates should benefit small caps given higher exposure to variable rate debt, which requires lower interest payments as rates decline.
When a company announces a secondary stock offering, it can be a huge buy signal. That was the case for these three small-cap stocks.
Shares of Zeta (ZETA) are up about 5% this morning after the company announced it will acquire LiveIntent, a people-based marketing technology company founded in 2009.