Latest Summary
CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Mike Cintolo goes in-depth on the growth stock pullback, including how he’s been handling it and his thoughts for what’s to come in the near-term (using one of his big winners as an example). Overall, Mike has pared back due to the action of individual leading stocks, though he’s flexible and is keying off what comes next -- he’s OK holding a chunk of cash in case another round of selling hits near-term. but his watch list is chock-full of names if and when big investors step up.
Stocks Discussed: DASH, GEV, GOOG, AVGO, TSM, VST, COIN, IBIT, TTD, SHOP, CRDO, CIEN, Z, CRWD
Cabot Street Check (Podcast)
This week on Street Check, Chris and Brad are going to pay for six months of spicy takes with heaping servings of assorted hot sauces. They reckon with bad calls on rate cuts, gold, homebuilders, energy and more (with a healthy dose of smart predictions thrown in for good measure). As always, Producer Madison joins to dole out the punishment with a few added twists thrown in to up the ante. For more information about the promotion mentioned in this week’s episode, visit https://www.cabotwealth.com/street.
Cabot Webinar
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts is now available for you to listen to at your convenience—click here for access. This private call with our analysts is one of your exclusive Cabot Prime Core member benefits.
RECENT BUY AND SELL ACTIVITY
This table lists stocks bought or sold in the most recent Issues or Updates.
PORTFOLIO UPDATES THIS WEEK
Cabot Growth Investor
Bi-weekly Issue December 12: After an amazing run higher, growth stocks hit an air pocket this week, with many highfliers coming down and some abnormal action being seen. We haven’t exactly floored the accelerator during the past few weeks, and we took our cues from individual stocks, paring back this week and leaving us with a good-sized cash position. That said, we’re not making any major market call--the trends remain up, and many growth stocks are acting OK--so while we want to see how growth reacts from here, we’re flexible and could put some money back to work soon if key names stabilize.
Bi-weekly Update December 5: WHAT TO DO NOW: Remain bullish but continue to manage your portfolio and pick your spots carefully on the buy side. Our market timing indicators are in good shape, and leading growth stocks continue to impress, though near-term sentiment is getting euphoric. Tonight, we’re going to sell one-third of our stake in Shift4 (FOUR), which has fallen sharply on out-of-the-blue news, which will leave us with 16% in cash.
Cabot Top Ten Trader
Weekly Issue December 9: From a top-down perspective, the market remains in good shape, but the real action in the past few weeks has concerned leading stocks, and today many hit air pockets, with plenty of short-term abnormal action (and some intermediate-term abnormal action, too). So where do we stand? One day doesn’t mean the party is over, and frankly, we see some stocks that are approaching decent risk/reward entries, but today is a red flag for some names and is a reminder to manage your portfolio (partial profits, respecting stops) and to aim for decent entries. We’re not panicking, but we’ll lower our Market Monitor to a level 7 and see how things go from here.
This week’s list has a nice mix, with some winners that have been resting for a few weeks alongside some names that have recently shown power. Our Top Pick is a name we’ve kept an eye on for a long time and is now beginning to emerge after a tough mid-year stretch.
Movers & Shakers December 13: We had been writing about some of the secondary yellow flags that had been popping up of late, mainly due to the incredible rise in many growth stocks in both price (well above moving averages) and time (the biggest winners got going back in September), as well as near-term sentiment (getting giddy, not just with growth stocks but everything post-election).
Cabot Value Investor
Monthly Issue December 5: The market party is on, but someone forgot to tell healthcare stocks.
They’re the only one of the 11 S&P 500 sectors that is actually down in the month since the presidential election. That has everything to do with these five letters: RFK Jr. But are concerns about Trump’s controversial pick to lead the Health and Human Services Department overblown? It appears Wall Street is starting to think so, as the sector has been in steady recovery after an initial sell-off. Still, as a whole, healthcare stocks have been the weakest performers of any major sector this year. And that spells opportunity for value investors.
In today’s issue, we add a big-name, undervalued healthcare stock to our Buy Low Opportunities portfolio. It’s a company whose name you likely know – and that’s showing signs of more consistent profit growth.
Details inside.
Weekly Update December 12: The market is getting a little frothy.
The S&P 500 is up 5.5% in the five weeks since election day, though that’s a historically normal bump following an election. The bull/bear ratio topped 3.9 last week – just shy of the 4.0 “danger zone” that often precedes pullbacks, though it’s not the first time it’s been this high in recent months. And Bitcoin, an asset that thrives in bull markets and typically tops right before a major pullback, just crossed the $100,000 threshold for the first time and has more than doubled in the last three months.
Cabot Dividend Investor
Monthly Issue December 11: It’s been a great year in the market with the S&P up 27%. And there is good reason for optimism about 2025.
We are in a bull market that began in October of 2022. Bull markets don’t usually run out of gas after just two years, especially recent ones. The Fed has begun a rate-cutting cycle that is likely to last for the next two years. Plus, the economy is solid and expected to get stronger. Rate cuts in a strong economy are unusual, but the combination should be great for stocks.
One sector may have a better 2025 prognosis than the overall market: Financial stocks have been on a tear since the summer. The Financial Select Sector SPDR Fund (XLF) is up 33% YTD and 22% since early August. Despite the recent spike, many financial stocks are still cheap after a decade and a half of underperformance.
Financial stocks are dependent on yield spreads, economic growth, and relaxed regulations. All those areas are improving or expected to improve as a result of the election.
In this issue, I highlight one of the highest-growth companies in an industry that is on the rise. It is the leading all-digital bank in the country. Unlike many other industry-leading stocks, it is still well below the high because of a recent temporary stumble which has likely only delayed its price spike.
Weekly Update December 3: These are good times. The S&P 500 is up 6% since the election and 27% year to date. This adds to a 26% return for the index in 2023.
The market is seemingly making new highs every day as investors expect a higher level of economic growth going forward because of the election. We’ll see if the economic growth materializes. But this optimistic economy expectation comes while the Fed has begun a rate-cutting cycle that will likely last the next two years. Why wouldn’t the market be partying?
Cabot Early Opportunities
Monthly Issue November 22: In the November Issue of Cabot Early Opportunities, we jump into a crazy semiconductor growth story, an electrification name and an international travel story. We also kick the tires on a new company focused on acquiring outdoorsy brands as well as another playing in the healthy and alternative food space.
As always, there should be something for everyone!
Cabot Income Advisor
Monthly Issue November 26: The election is changing things.
The difference is the expectation of stronger economic growth. As a result, new sectors have emerged as market leaders. Cyclical sectors have taken off. Financial, energy, and consumer discretionary sectors are leading the market. And this changing dynamic is likely just in the very early stages.
In this issue, I will focus on an opportunity in the financial sector.
Financial stocks, of which banks make up a big part, generally make profits from the spread between the cost of funds, mostly short-term rates, and what they charge for loans. Higher spreads mean more profits.
The Fed has begun a rate cutting cycle that will likely last for two years. Banks also need a good economy with strong loan demand. The better economic prognosis after the election is bullish. Plus, there is likely to be a much friendlier regulatory environment for banks and financial companies in the new administration.
In this issue, I highlight one of the highest-growth major financial companies that will surely benefit from the improving dynamic going forward. It is the leading all-digital bank in the country. Unlike many other industry-leading stocks, it is still well below the high because of a recent temporary stumble, and a price spike should be ahead.
Weekly Update December 10: The post-election bounce is over. But stocks could still finish the year higher. These are good times. The S&P 500 is up about 30% year to date. This adds to a 26% return for the index in 2023.
Cabot Turnaround Letter
Monthly Issue November 27: With the approach of the Christmas shopping season, we’re heading into what’s regarded as prime “restaurant season,” as the holidays typically see more foot traffic than any other time of the year, and with December historically the highest-selling month for U.S. restaurants.
Today, we introduce a stock that’s poised to take advantage of the holiday shopping boom - and the ongoing post-Covid recovery in the trillion-dollar industry.
Weekly Update December 13: Quick Note: Due to the Christmas holiday, you will receive the next Cabot Turnaround Letter issue a week early, on Wednesday, December 18, 2024.
In today’s note, we discuss a number of positive developments and bullish outlooks for several of our portfolio positions, including American Airlines (AAL), SLB Ltd. (SLB), the SPDR S&P Retail ETF (XRT) and Super Hi International Holding (HDL).
Cabot Money Club
Monthly Magazine December: Stocks may be trading at all-time highs, but economists and analysts are looking for even more gains going into 2025. So, with meaningful catalysts still on the horizon, here are the strategies you can use and the steps you can take right now to take advantage of the continuing bull market.
Stock of the Month December 12: The markets reacted strongly—and bullishly—to the results of the presidential election and also found favor after the Federal Reserve’s quarter-point rate reduction.
As of today, they’ve pulled back a bit, awaiting the latest inflation report.
However, the economy continues rolling along. Unemployment remains steady, and consumer sentiment is positive. And while the housing market continues to be challenged by low inventory and rising prices, on the local level, I’m seeing improvement in both categories.
ASK THE EXPERTS
Prime Question for Mike: Hi Mike. Can you share some of the sell rules that you use?
Mike: Well, in terms of individual stocks, you have loss limits of course, but then there are a variety of things that we look at as abnormal intermediate-term action that could include:
Big-volume breakout failures
Big-volume breaks of intermediate-term support
Expectation breakers (big run-ups that are quickly given back)
20% gain turning into a loss (or close)Then there’s portfolio management (partial profits with stocks that are extended and big positions) and market timing (trimming broadly if our indicators turn down). I would say most are tools rather than hard and fast rules, but over time you’ll see the same things triggering the sells.