Latest Summary
CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Mike Cintolo says the market’s intermediate-term uptrend has decisively cracked, turning negative for the first time since October. Now, longer-term, the trend of most everything is still up, and there’s been a lack of major abnormal action, so this downturn will finish up--eventually. But for the here and now, Mike advises caution, including holding cash, though he’s busy keeping an eye on many stocks that are retreating normally and building his watch list for the next upmove.
Stocks Discussed: CHRD, SCCO, TDW, CART, DELL, AXP, MLM, IBKR, DASH, NTRA, CPNG, ONON, DXCM
Cabot Street Check (Podcast)
This week on Street Check, Brad opens the show by making the case that ASML’s (ASML) earnings are a canary in the coal mine for the broader market narrative. Then, Chris and Brad discuss the recent market pullback and if it presents a buying opportunity or is part of a deeper correction. After that, they cover the early stages of earnings season and the winners and losers just a few weeks in. To close the show, they talk Bitcoin and debate whether the rally is over for cryptocurrencies or if it’s just taking a breather. To the listeners, thank you for helping make the first year (of many) of Street Check a memorable one.
Cabot Webinar
March 26, 2024 12:00 PM ET
Capitalizing on the Bull Market: 4 Experts & Their Top Picks for April 2024
Watch Now
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts from January 24, 2024 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 Plus 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 April 18: The market has definitively changed character, with our Cabot Tides and Two-Second Indicator now negative—when combined with breakdowns among leading growth stocks, the odds favor more short-term weakness ahead. We’ve been holding some cash for a while and have boosted that this week, with 37% on the sideline, and we could raise more if the selling continues.
That said, we’re not aiming to hide out in our bunkers--following some short-term pain, the odds favor further long-term gains given the underlying trend and the lack of big-picture abnormal action out there. Thus, having taken partial profits in many names, we’re OK giving them a chance to find support, as some are likely to have another leg up after this downturn. In tonight’s issue, we’re moving a couple more stocks to Hold, hanging onto our cash and writing about many names that are taking the selling in stride and could have upside if the market finds its footing.
Bi-weekly Update April 11: WHAT TO DO NOW: Continue to hold your ground. There’s been some headline news this week, but nothing much has changed with the evidence—our market timing indicators are positive, but leading growth stocks are still stuck in the middle, with selling on strength but also (as we’ve seen the past couple of days) buying near support. We do like the action of the past couple of days, but we need to see more before concluding the sluggish period is over. We’ll mostly stand pat tonight as we remain flexible and wait for leaders to show their hand—our only change is downgrading Pulte Group (PHM) to Hold given some recent distribution. Our cash position is 27%.
Cabot Top Ten Trader
Weekly Issue April 22: With weeks of churning action and complacent sentiment, the market was flirting with trouble for a while, and now it’s hit the intermediate-term tripwire. Thus, we mostly advise defense here—after a big run up and the aforementioned churning, the odds favor more short-term downside testing and/or pain ahead. That said, the odds also favor a resumption of the longer-term uptrend down the road, so it’s best not to get too holed up in your bunker, either. Tonight, we’ll leave our Market Monitor at a level 6 and the main message is to hold a good chunk of cash, honor stops and be very selective on the buy side.
This week’s list is another broad mix of stocks, with something for everyone in terms of stories, sectors and set-ups. Our Top Pick is a reliable grower in the infrastructure area that’s pulling back toward support. Given the market, keep new buys on the small side.
Movers & Shakers April 19: After weeks of ping-pong action, the sellers have finally taken control for the first time since last fall: The intermediate-term of the major indexes has turned down and the broad market has done the same, with more than two-thirds of all stocks now south of their 50-day lines. It’s the same when it comes to leaders—for weeks they had found support at key levels, but now most have cracked intermediate-term trend lines, including the key chip sector, which keeled over this week.
Cabot Value Investor
Monthly Issue April 4: After years of being either ignored or sold off, value stocks are finally having a moment on Wall Street. The Vanguard S&P 500 Value Index Fund (VOOV) is up 25% in the last five months and is actually outpacing growth titles over the last month. Still, it’s a bull market, and growth stocks are king. How to compete as value investors in a growth-minded market? By seeking growth stocks at value prices.
Today, we do just that, adding a household name that’s been rejuvenated thanks to a shift in industry trends. The stock is up 18% year to date, and yet its shares remain dirt cheap by virtually every measure.
Enjoy!
Weekly Update April 25: Tesla (TSLA) has had a rough start to the year. Entering Wednesday, TSLA shares were down nearly 42% year to date thanks to a bitter cocktail of sagging revenues, narrowing margins, and increased competition, especially in China. At the start of this week, TSLA shares had dipped to 142, a 52-week low, and were trading at their cheapest valuation on a price-to-earnings basis since last May and on a price-to-book-value basis since 2019.
Cabot Stock of the Week
Weekly Issue April 22: It’s been a painful April for stocks, with the S&P 500 down more than 5% and many growth and small-cap stocks down much further. But in the grand scheme, some selling was to be expected after five straight months of gains. It’s still a bull market, and it’s not likely to up and fizzle after five months. Eventually, selling pressures will ease, and the market will bounce back. Until then, we have to ride out the storm. Today, we do that in several ways: selling two more of our laggards, downgrading two once-red-hot stocks that are in the midst of steep corrections, and adding a new stock from perhaps the one strong sector at the moment: gold miners. It’s a new addition from Tyler Laundon in Cabot Early Opportunities.
Cabot Explorer
Bi-weekly Issue April 11: Inflation appears stuck at a much higher level than acceptable for the Federal Reserve so lower interest rates are on pause. Gold is one beneficiary.
This means that some high-flyer tech stocks may be vulnerable. Meanwhile, Japanese stocks remain near all-time highs.
Fortunately, we have exposure to both gold and Japan in the Explorer portfolio, and today we add to that exposure.
Bi-weekly Update April 18: When I started in this business as an institutional stockbroker, Peter Lynch, the portfolio manager for Fidelity’s Magellan fund, was seen as a master of the game. His forte was picking smaller growth stocks. Upon stepping down in 1990 after his fund became too big to make any small-cap stock pick meaningful, he had delivered, over a 13-year period, a 29% per annum return to investors.
His lessons still ring true today.
Cabot Small-Cap Confidential
Monthly Issue April 4: There is a growing mental health crisis going on out there.
But it’s starting to be addressed by a tiny, unknown (so far) company with a virtual care platform that’s beginning to make a difference across the U.S. And it’s doing so while growing both the top and bottom lines.
All the details are inside the April Issue of Cabot Small-Cap Confidential.
Weekly Update April 18: The market continues to struggle with the rapid jump in interest rates (10-year at 4.63% after hitting 4.7% on Tuesday).
I think we’re still fluctuating somewhere between a code yellow and a code orange situation (was code green a few weeks ago!) so long as that yield doesn’t go over 4.7% and all hell doesn’t break loose in the Middle East.
Cabot Dividend Investor
Monthly Issue April 10: While the financial news obsesses over what the Fed might have vaguely implied in the latest statement, the world is morphing into a different place. The demographic of humanity is rapidly transforming in a way that will massively affect the flow of money for the rest of our lives. The world is currently undergoing a technological revolution that is transforming society and everyday life.
The aging population and the technological revolution are megatrends that will dominate the investment landscape for years to come regardless of what the Fed does, or GDP in the next few quarters, or whoever gets elected president. It’s not an accident that the best performing stocks in the Cabot Dividend Investor portfolio are in healthcare and technology. Nor will it be an accident that these same stocks continue to dominate from this point forward.
In this issue, I highlight the massive opportunity to position yourself in front of a tsunami that could provide the best investments of your lifetime.
Weekly Update April 17: After five consecutive up months for the market, April has been a bummer. Is this just an overdue end to the recent rally or something worse?
The S&P 500 is down 3.6% so far in April. But the more interest rate-sensitive sectors have faired far worse. Sure, the rally was long in the tooth anyway. But the narrative has also changed for the worse.
Cabot Early Opportunities
Monthly Issue April 17: In the April Issue of Cabot Early Opportunities we take heed of the market’s recent volatility by digging into a wider-than-normal range of emerging opportunities.
We have gold mining, AI website development tools, healthy fast-casual dining and a few things in between!
As always, there should be something for everybody.
Cabot Profit Booster
Weekly Issue March 23 : Before we get into this week’s idea we need to clean up a couple of positions from April expiration last Friday. This is what we are going to do …
Sell FROG Stock
Sell HOOD Stock
Sell IOT Stock
Stepping back, we are closing our FROG and IOT positions for losses, while HOOD will be closed at its max profit.
Cabot Income Advisor
Monthly Issue April 22: The rally sputtered. And it’s all about interest rates.
Investors had been factoring in falling interest rates and a soft landing. But now, investors are increasingly expecting no landing and continued high rates. Recent strong economic numbers, along with higher-than-expected inflation, are changing the perception.
It looks like these high rates will stick around for a while. And most stocks don’t like high rates. But not all. There are some companies that actually thrive with higher interest rates. And that creates opportunity. In this issue, I highlight a stock that pays a massive dividend generated by these high interest rates. As income investors, we can reap the bounty.
Weekly Update April 16: This market has been resilient. But that resilience is being severely tested. The next couple of weeks should tell us the near-term direction of stocks.
The S&P rallied higher for five straight months. That’s long in the tooth for any rally. The market is down so far in April and the story is changing for the worse.
Cabot Turnaround Letter
Monthly Issue March 27: TThank you for subscribing to the Cabot Turnaround Letter. We hope you enjoy reading the April 2024 issue.
In this issue, we discuss the most effective and often the only way to reverse the fortunes of a struggling company: a change in leadership. We offer our views on four new CEO situations that are currently attractive and three that are not quite ready yet.
This month’s Buy recommendation, Barnes Group (B), is an aerospace and industrial components maker that is stepping up its efforts to become more valuable, helped by a new CEO and urged on by pressure from a credible activist investor that recently gained several board seats.
Weekly Update April 19: Nokia (NOK) missed on revenue but beat on earnings yesterday, reporting EPS of $0.10/share, which exceeded estimates by over 50%. CEO Pekka Lundmark noted that 2024 will probably remain a weak year for the mobile RAN (radio access network) market, but reiterated expectations that it will likely pick up over the final two quarters. Declining demand for 5G equipment in the U.S./Canada, and a significant slowdown in China (also notably affecting AAPL) are the root cause, but economic data has only recently started to inflect.
Cabot Cannabis Investor
Monthly Issue April 24: Cannabis stocks have fallen sharply since the beginning of April. The AdvisorShares Pure U.S. Cannabis (MSOS) is down 15.4% since April 1. There are two reasons.
First, investor enthusiasm for stocks overall has waned, creating significant declines across indices. Because cannabis is perceived as a riskier sector, cannabis stocks decline more than most stocks when investors move into risk-off mode.
Second, many analysts and investors had hoped for visible progress on key catalysts by now – chiefly rescheduling and cannabis banking reform. They have been disappointed.
Monthly Update April 10: Cannabis stocks are generally flat since I sent you the March 27 issue of Cabot Cannabis Investor.
Given the potential magnitude of near-term catalysts, I suggest continuing to hold exposure to the group, and accumulating on weakness. If you have zero exposure, consider buying some now. If you have full exposure, consider adding on any substantial weakness of 2%-4% or more in this highly volatile group.
Cabot Money Club
Monthly Magazine April: Artificial intelligence (AI) is everywhere these days, and personal finance is no exception. In this month’s issue we’ll dive into the next generation of personal finance apps, the new tools available to savers and investors, and how to deploy them in your daily lives to optimize your financial wellbeing.
Stock of the Month April 11: It was more of the same for the markets this past month—some momentum, but ultimately, we ended up in just about the same place.
Investors are a little gun-shy as most were expecting Fed rate cuts to begin in the latter half of the year. But as the inflation beast is proving harder to tame than expected, Fed Chair Powell has indicated it may take longer before we see a rate cut.
Naturally, the markets had an issue with that.
However, they seem to have absorbed that information and gone back to business.
Ask the Experts
Prime Question for Tyler: Hi Tyler. What are your thoughts on Cadre (CDRE) and Soleno Therapeutics (SLNO)?
Tyler: Have been watching those closely and decided to move to hold today, as you likely saw.
SLNO/biotech just isn’t liking the upturn in rates.
I’m very surprised CDRE is not doing better with the news out of Gaza, etc. Not that it’s a pure defense stock, but it’s in the general group. And Northrop Grumman (NOC), General Dynamics (GD) and some other defense names up today (Kratos Defense & Security (KTOS) is also OK). Might take a day or two for some of these smaller defense type names to shrug off today’s action and move more on their own group/story/fundamentals.
Continuing to watch ...