Latest Summary
CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Mike Cintolo talks about the market’s pullback this week, which he sees as very normal and constructive. He put a little more money to work, and he’s looking for the market and many individual names to break out on the upside as the sign to move into a heavily (or fully) invested position.
Stocks Discussed: NOW, DOCS, MNDY, FLUT, ANET, CRDO, CBRE, RKT, DASH, UBER, TGTX, NTRA, PBR, FIX
Cabot Street Check (Podcast)
This week on Street Check, Chris and Brad discuss Nvidia’s (NVDA) latest earnings and the market’s reaction, cannabis stocks going up in smoke following delays in potential rescheduling and Super Micro Computer’s (SMCI) precipitous fall after a Hindenburg research report and the subsequent filing delay. Then, they welcome on Mike Cintolo of Cabot Growth Investor and Cabot Top Ten Trader to talk all things growth stocks, the action under the surface and what he’s seeing heading into fall.
Cabot Webinar
Boost Your Profits: 4 Experts & Their Top Picks for Fall 2024
Join seasoned Cabot analysts Mike Cintolo, Tyler Laundon, Tom Hutchinson, and Nancy Zambell as they share their wealth of wisdom.
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 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 August 22: The market’s rebound from the August 5 mini-panic has been unusual—in a good way, with a straight-up advance that’s recouped most of its prior decline, given up very little of its gains along the way, and has been led by a gaggle of growth stocks that have powered ahead on earnings. Now, we’re not totally free and clear here, and some short-term wobbles could easily come; by our measures, the intermediate-term trend is sideways and defensive stocks are percolating, so there’s more work to do. All in all, we’re putting a little more money to work tonight but will still be holding just shy of 40% in cash as we see if the market can further confirm a new uptrend.
Bi-weekly Update August 29: WHAT TO DO NOW: We think the strong action from the mini-panic low in early August is a good sign the next big move is up—but the timing of that move is less certain, possibly getting going soon, but it could also take more time to set up. Our market timing indicators are improving, and so we’ll do a little more buying tonight, but we’re OK going slow here to see how the rally progresses from here. In the Model Portfolio, we’re adding a half-sized stake in Shift4 Payments (FOUR) and putting On Holding (ONON) back on Buy—though we’re also holding on to a cash position of around 32% and want to see further upside soon before putting more cash to work.
Cabot Top Ten Trader
Weekly Issue August 26: The market’s rebound has been very impressive, though there are a couple of flies in the ointment (we’re not huge fans of defensive sectors rallying strongly) and this week looks like a good test for a couple of reasons: First, there are some key quarterly reports coming out in key technology areas, and trend-wise, many growth-oriented measures are closing in on five-week highs, which could turn the intermediate-term trend up … if all goes well. For now, nothing has officially changed: If we see more breakouts and further upside, it would obviously be bullish, but while some retrenchment from here wouldn’t necessarily be bearish, it would be a sign the market likely needs more time to set up. We’ll leave our Market Monitor at level 6 this week.
This week’s list is a bit more diversified than the past two weeks, and for our Top Pick, we’re going with a name that’s very strong following quarterly results, has triple-digit growth and a great story—if you enter, be sure to keep it small and use a loose stop.
Movers & Shakers August 23: After two big support and accumulation weeks, this week has seen more digestion in the major indexes—and, really, we saw the first “real” selling since early August on Thursday, with some heavier-volume selling. Even so, as of this morning, it’s still shaping up to be a positive one, with most indexes up in the 1% range given the pre-market indications, maybe a bit more on the growth side of things.
Cabot Value Investor
Monthly Issue August 1: Two years after the yield curve inverted, there’s still no U.S. recession in sight. As a result, financials – beaten to a pulp during the double whammy of the 2022 bear market and the March 2023 bank collapse – have become the fastest-growing non-tech sector of the market. It’s also one of the most undervalued. So in this month’s issue, we add a very recognizable big bank that does a little bit of everything – and seems to be everywhere. It’s growing at a healthy clip and yet is cheaper than even the average financial at the moment.
Details inside.
Weekly Update August 29: It is a late-summer/early-fall rite of passage on Wall Street: After Labor Day, the institutional investors and hedge fund types return from their summer vacation homes in the Hamptons and immediately start selling. They sell out of their weakest positions that have been neglected and left to rot during the summer months, in the hopes of beefing up their quarterly returns before October brings a new quarter. The result is that September is, far and away, the worst month for stocks, with an average decline of -1.17% in the S&P 500 dating all the way back to 1928. The next-worst month is February, with a mere -0.14% decline.
That’s the bad news as we enter September. Here’s the good news.
Cabot Stock of the Week
Weekly Issue August 26: After an unusually eventful start to the month, stocks have settled into their normal pre-Labor Day malaise. It won’t last long. Early September typically brings a round of selling as Wall Street returns from vacation and starts culling laggards from their portfolios. But with a Fed rate cut now definitely coming just a couple weeks later, could this be a more constructive September than normal? We’ll see. In the meantime, let’s try and sidestep the coming volatility by adding an undervalued mega-cap tech stock that’s well outside U.S. borders. It’s a former market darling that’s become unloved in recent years. But new Cabot Turnaround Letter Chief Analyst Clif Droke spots a bargain, and so today we add it on the cheap to our Cabot Stock of the Week portfolio as well.
Details inside.
Cabot Explorer
Bi-weekly Issue August 29: While there are a lot of healthy signs of growth out there, stocks that do not meet high expectations are being punished.
Super Micro Computer (SMCI) was off 29% this past week after some allegations of faulty accounting by short sellers was followed by the company reporting yesterday that it was postponing filing of its annual report with the SEC to assess “internal controls over financial reporting.”
Given the uncertainty, we have little choice but to sell the stock. We took some profits earlier this year, and the stock is still up 43% so far this year. My guess is that we will be back to Super Micro at some point, and I will watch this stock carefully.
Bi-weekly Update August 22: Explorer stocks had a good week, but I wanted to highlight that recently, Warren Buffett sold almost 400 million of Apple (AAPL) stock during the second quarter. The Oracle of Omaha sold about 390 million shares of Apple stock, reducing Berkshire Hathaway’s ownership to roughly 400 million shares.
Granted, Berkshire booked some giant investment gains during the second quarter, with Apple accounting for a big share of those winnings. This is nothing to sneeze at, but why did Buffett and company decide to sell the shares, thereby missing out on some big capital gains? Forbes notes that Apple’s average closing price in the second quarter was 186, which is well below the 226 at which the stock closed on August 20.
Cabot Small-Cap Confidential
Monthly Issue August 1: Infrastructure has been a hot topic for the last couple of years given passage of a bipartisan bill to finally spruce up the U.S. and try and address climate change.
This month we’re jumping into a pure-play infrastructure company that owns railroads and deep-water ports supporting crude oil and clean fuel shipments, as well as a modern power plant that’s getting tons of calls from AI data centers.
One thing – the company reports quarterly results after the bell today!
Weekly Update August 29: The S&P 600 Small Cap ETF (IJR) closed out last week on a high note as the index rallied 3.4% on Friday following comments from Fed Chair Jerome Powell in Jackson Hole that confirmed what investors were expecting, that an interest rate cut in September is likely.
Small caps have chopped around this week, inching a little lower but not making any dramatic moves.
The market is now pricing in a roughly 35% probability of a 50-bp rate cut next month, and just over 100 bp of easing by the end of this year.
Cabot Dividend Investor
Monthly Issue August 14: The explosive growth of artificial intelligence, electric cars, and manufacturing is causing an explosion in the demand for electricity in this country.
After nearly two decades of stagnant growth, electricity demand is expected to soar in the years ahead. This year alone, electricity demand is growing 81% more than it did last year. Electricity demand is expected to grow at nearly twice the past rate for the rest of this decade.
The new demand transforms certain previously stodgy and boring utility stocks into growth investments.
In this issue I highlight one of the very best and fastest-growing electricity producers in the country. This company is in an ideal position to benefit from the increasing electricity demand from data centers and other sources. AI may be the cutting edge of technological innovation. But it doesn’t work without electricity. While most investors are running around chasing the same AI stocks, we can reap the rewards of the tremendous new opportunity from Thomas Edison’s invention.
Weekly Update August 28: This market just continues to impress with the S&P within a whisker of the all-time high in these waning days of summer.
Why shouldn’t the market be strong? Everybody expects the Fed to start cutting the Fed Funds rate next month. The benchmark 10-year Treasury rate has fallen below 4%. And there’s no recession in sight. We’re getting the lower rates without the requisite economic pain.
Cabot Early Opportunities
Monthly Issue July 17: In the July Issue of Cabot Early Opportunities, we continue to lean into the strong market and focus our attention on the small end of the market cap curve.
We have small and mid-cap players in the software, semiconductor, green energy, industrial tech and AdTech spheres, each of which has compelling reasons propelling shares higher.
Cabot Profit Booster
Weekly Issue August 27: Note: Due to the Labor Day market holiday next Monday, you will receive your next Cabot Profit Booster issue on Wednesday, September 4.
Before we dive into this week’s covered call idea, we need to address our four August positions that expired a week ago.
Cabot Income Advisor
Monthly Issue 27: New technology is driving huge demand growth in old technology. The growth of artificial intelligence, electric vehicles, and semiconductor manufacturing will generate huge growth in electricity.
After being stagnant for most of the last two decades, electricity demand is soaring. Most of the increasing electricity demand (from data centers, EVs, and chip manufacturing) is coming from climate-conscious technology companies that will likely try to secure carbon-friendly power sources whenever possible.
Companies that can provide low-carbon electricity generation should be the primary beneficiaries of this increasing electricity demand. Opportunity is being created for certain companies that also tend to be very recession-resistant at a time when the economy is slowing.
But there is one utility that stands above all others in terms of the current opportunity. And it is highlighted in this month’s issue.
Weekly Update August 20: What recession? After a terrible start to August, the market has completely turned around. The S&P 500 has moved 7.5% higher since August 5 and is again near the high.
The recession fears that contributed to the worst day for the market in over a year were overblown. And numbers have come out since that indicate a recession is unlikely any time soon. But the Fed is still expected to start slashing rates next month. It looks like we will still get the rate cuts without a recession. The market loves it.
Cabot Turnaround Letter
Monthly Issue August 28: After the tumultuous sell-off in the broad equity market last month, the S&P 500 Index is back to within a few points of its all-time high as of this writing in what has been one of the fastest comebacks in recent memory.
Weekly Update August 30: In today’s note, we discuss the recent earnings reports from Foot Locker (FL), along with our decision to completely exit our position in the stock and take profits. We also discuss the latest addition to the portfolio in the form of Zillow (Z).
Cabot Cannabis Investor
Monthly Issue July 31: Cannabis is a highly politicized sector because it is extensively regulated.
The political news has been very good for cannabis. But cannabis investors have been slow to recognize this.
A late-July Fox News poll showed that Vice President Kamila Harris has caught up to and surpassed Donald Trump in five key swing states.
Cannabis stocks should have advanced on the news. Not only is Harris a better cannabis advocate than President Joe Biden, she’d obviously be more favorable to the sector than Trump.
Monthly Update August 14: The cannabis sector has a dream ticket with Kamala Harris and Tim Walz. Investors act like they haven’t even noticed. This seems like a big mistake.
The key takeaway: Cannabis stocks look buyable in the current bout of dramatic sector weakness. Cannabis investors are notoriously bipolar. Right now, they are in a dark mood. That’s usually been the best time to add to positions, especially when there are potential catalysts on the horizon like now. In today’s update, I outline the main ones and the possible timing.
Cabot Money Club
Monthly Magazine August: Exchange-traded funds (ETFs) are a popular low-cost alternative to mutual funds that can help investors achieve their diversification goals, gain exposure to asset classes and sector trends they’re interested in, and save money while they do it. This month, we’ll dive into the pros and cons of investing in ETFs, how to identify the funds that match your investing style, and how to evaluate their risks and potential. In short, we’ll explore everything you need to know to make more money investing in ETFs.
Stock of the Month August 8: I have to admit, a couple of weeks ago, on our Cabot Street Check podcast, Chris Preston, host and Chief Analyst for Cabot Value Investor, and I discussed the possibility of a recession and I commented that I thought recession fears were mostly over.
Well, I’m going to reconsider that (a bit) after Monday’s 1,000+ point loss in the Dow. Last week’s jobs reports came in at 114,000 jobs—considerably less than the 185,000 expected—spooking the markets and causing economic gurus to once again bring up the possibility of the dreaded “R” word. Additionally, the unemployment rate edged up to 4.3% and manufacturing and construction spending were also less than expected, furthering economic worries.
Ask the Experts
Prime Question for Mike: Mike, do you want a specific volume to occur when buying on breakouts? Like 100%, 200%, 300% more than the 50-day average?
Mike: I don’t have specific metrics, but yes, if we’re buying a breakout I want volume to be very heavy, at least 50% but preferably 100%, 300% or more, and just as important is whether the daily and weekly volume was the largest in a while (a year or more is best, excluding weird days or weeks when there is index rebalancing etc.). Usually the volume takes care of itself as our breakout buys are often (not always) on earnings or some decisive move.