Latest Summary
CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Mike Cintolo is seeing more of a stock-by-stock market, where he’s happy to ride winners that are extended to the uspide, but also is formulating a plan with those names for when we get the inevitable pullback. Meanwhile, he goes into detail on many fresher names that have emerged more recently that should be earlier in their runs -- and possibly hold up better if the market does wobble.
Stocks Discussed: PSTG, APP, PLTR, ARM, AXON, ITB, TOL, FRPT, CELH, NXT, ABNB
Cabot Street Check (Podcast)
This week, Street Check presents the first annual “Streeties,” the most prestigious awards on Wall Street. Chris and Brad hand out awards Oscar-style for the Best Growth Stock, Best Value Stock, Best Dividend Stock and many more. Join your hosts as they celebrate a year in investing and comment on the best and worst “dressed” companies, honor the companies we’ve lost, and recognize the leaders behind the new bull market. If you normally listen to the podcast, check out this one on our YouTube page.
Cabot Webinar
February 29, 2024 Webinar: 3 Ways to Profit from Declining Interest Rates
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts from October 18, 2023 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 March 7: The market remains in a solid uptrend, though there’s no question some sellers are beginning to step up, with more volatility in the Nasdaq seen in the past month and, outside of chip stocks, some churning in the leading stocks. That’s not bearish, per se, as we’re still riding our winners, but for new buying we’re being more selective and looking for fresher leaders that have recently emerged with some power. In the Model Portfolio, we sold one stock in the past two weeks while starting a half-sized stake in one of those fresher leaders, and tonight, we’re averaging up in that name and starting another new position, too.
Bi-weekly Update February 29: WHAT TO DO NOW: Remain bullish, but continue to be selective on the buy side. The market continues to act well, and we’re encouraged by the snapback seen in many leading stocks of late, as well as a fresh barrage of positive earnings reactions in recent days. In the Model Portfolio, we’re happy to own some very strong actors, and tonight we’re going add one new half-sized stake (5% of the portfolio) in Applovin (APP), while also restoring our Buy rating on Nutanix (NTNX), which reacted well to earnings today. Our cash position will be around 28%.
Cabot Top Ten Trader
Weekly Issue March 4: As we plow into March, the overall story remains mostly the same for the market—the primary evidence remains strong, with the trends of the major indexes up, most leading stocks in good shape and with hundreds of stocks hitting new highs. That’s the main focus, of course, but not to be ignored is the near-term froth seen in many names and the fact that few leaders are at high-odds entry points, extended above moving averages and having been on the run for months. Thus, our advice is unchanged: We’re riding winners higher, but are picking our spots on the buy side, aiming to find earlier-stage stocks. We’ll again leave our Market Monitor at a level 7.
This week’s list has many stocks that have emerged in recent weeks that seem worth a shot, especially if we see a normal retreat in the market. Our Top Pick has a great story and has transformed into a well-sponsored name (nearly 1,500 funds own shares!) as it’s the clear leader in a unique sector.
Movers & Shakers March 8: It’s been a volatile week for the indexes with a slight upward bent—most indexes are up in the 1% range as of this morning.
Not surprisingly, being more than four months into an intermediate-term advance, it’s becoming a bit more of a stock-by-stock situation among the leaders. Chip stocks, for instance, remain mostly firm (though the best are very extended to the upside), but other names that have been running for three to four months are seeing more than a little churning—up-down-up-down action without much price progress for the past month. We’re seeing similar action in our Aggression Index (Nasdaq vs. consumer staples).
Cabot Value Investor
Monthly Issue March 5: Thank you for subscribing to the Cabot Value Investor. We hope you enjoy reading the March 2024 issue.
We discuss the similarities between poker and value investing. This past month we moved two stocks from Buy to Sell – Allison Transmission (ALSN) as it reached our price target, and Sensata Technologies (ST) as its management continues to take a path that is not shareholder friendly.
Please feel free to send me your questions and comments. This newsletter is written for you and the best way to get more out of the letter is to let me know what you are looking for.
Weekly Update February 27: We’ve all seen the data: Nvidia (NVDA) shares have jumped 59% in this still-young (37 trading days) year and 615% since touching $112 in October 2022. The 171x gain in the past decade – turning a $4,500 purchase into $800,000 – makes Nvidia’s price increase among the largest in market history over such a brief period, and certainly the largest for a company that began its 10-year run at a not-small $11.6 billion market value.
Cabot Stock of the Week
Weekly Issue March 4: The party continues on Wall Street, and we’re not going to forecast when it will end. Instead, we’re going to try and capitalize on the strength, a strategy that has worked very well for the Stock of the Week portfolio over the last four months. Today, we take another big swing in a stock that was a home run for Cabot Explorer Chief Analyst Carl Delfeld several years ago, before the sellers came for it. Now, it’s back. It’s an overseas stock that doesn’t have the China stench on it, something that hurt other perfectly good stocks (see BYD (BYDDY)) in the last year.
Cabot Explorer
Bi-weekly Issue February 29: You may have noticed that last week when Nvidia (NDVA) announced its earnings, its stock rose 16% while Explorer recommendation Super Micro Computer (SMCI) went up 32%.
This is consistent with my view that Super Micro is a leveraged bet on artificial intelligence (AI), and I expect this will also be the case when Nvidia stock price moves the other way. Nvidia is now priced at an incredible 32 times trailing annual sales and has a larger market cap than Germany’s entire blue-chip DAX index. Super Micro has already tripled in 2024 so consider taking partial profits. Remember, J.P. Morgan allegedly stated that he made his greatest profits by selling too soon.
Bi-weekly Update March 7: Luxury leader LVMH Moët Hennessy (LVMUY) CEO Bernard Arnault has a mantra that can be applied to business and investing: “In times of uncertainty, be patient.”
I would add that this requires playing both defense and offense.
For offense, Super Micro Computer’s (SMCI) share price was up another 40% this week and is now up 300% since the start of the year. Sea (SE) had a good first week in our portfolio as well after an encouraging financial report.
Cabot Small-Cap Confidential
Monthly Issue March 7: Half of all people need cataract surgery. But even though messing with your eyes is a massive decision, the Big 3 MedTech players in this market don’t have the best solution out there.
This is where today’s company comes in. It has developed cutting-edge technology that drives better outcomes for patients needing cataract surgery. The key? Its lens can be customized once in the eye!
All the details are inside the March Issue of Cabot Small-Cap Confidential.
Weekly Update February 29: It’s amazing how much some of our stocks have moved over the last week while the average gain of our portfolio is almost EXACTLY the same as that of the S&P 600 Small Cap Index.
Measuring Wednesday to Thursday early morning, shares of Remitly (RELY) are up 18%, Docebo (DCBO) is up 17% and Enovix (ENVX) is down 12%. Taking a simple average of our positions’ change over the last five sessions, though, the average change is 0.7%. That compares to a 0.8% gain in the S&P 600!
Cabot Dividend Investor
Monthly Issue February 14: A year from now we could be in a raging bull market or bounding toward a recession. Interest rates could be high or much lower. And we have to see what will happen with these wars and who will be elected president in November. Nobody knows the answers to these questions.
But a year from now there is at least one thing we can bank on: The population is already older than ever before in history and will continue to get still older at warp speed. Between 2011 and 2029, about 76 million boomers born in the U.S. between 1946 and 1964 will turn 65. That’s about 3.6 million per year. There will be tens of millions more older people running around in the years ahead.
The inescapable fact about older people is that they spend much more than any other segment of the population on healthcare. That’s just how we’re built. Boomers control about 70% of this nation’s wealth and the aging population has enormous implications for businesses and markets.
Certain healthcare companies and stocks are positioned ahead of a megatrend and a massive wave of spending. In this issue, I highlight two “BUY”-rated portfolio healthcare stocks. If you don’t own them already, they are well worth considering.
Weekly Update March 6: The market rally is forging ahead and making fools of the doubters, despite the Tuesday pullback. The S&P 500 is up 20% since late October and 7.5% so far this year as of Monday’s close.
Cabot Early Opportunities
Monthly Issue February 21: In the February issue of Cabot Early Opportunities, we take something of a barbell approach, reviewing a couple of phenomenal large-cap stocks poised for the next big chapter of their lives while also uncovering a handful of much smaller companies, one of which is just getting its business off the ground (literally)!
Cabot Profit Booster
Weekly Issue March 5 : As we plow into March, the overall story remains mostly the same for the market—the primary evidence remains strong, with the trends of the major indexes up, most leading stocks in good shape and with hundreds of stocks hitting new highs.
Cabot Income Advisor
Monthly Issue February 27: The Goldilocks scenario of falling inflation and a still-strong economy is unlikely to last. Interest rates will have to come down before long or the recession that the market is dismissing might be just a little further down the road. But recent higher-than-expected inflation is making lower rates less likely.
Sure, the rally could last for a while. The economy always seems to be more resilient than people expect. But the circumstances behind the rally since October are unlikely to last. This environment will change. For that reason, it doesn’t make sense to chase stocks that have been working so far this year. It’s better to position ahead of a new dynamic that is likely coming.
Change creates opportunity. There are many great income stocks that are not benefiting from this rally. Yet these stocks are selling at historically very cheap valuations with high yields. These stocks also can thrive in a slowing economy. In this issue, I highlight two stocks in particular that are cheap and high-yielding ahead of a period of likely market outperformance.
Weekly Update March 5: The good times keep rolling. The S&P 500 continues to make new highs and closed last week up 7.7% YTD. Nine of the 11 S&P sectors are well into positive territory for the year so far.
As usual, the index is being led higher by technology, which is by far the largest sector. Technology stocks are up over 12% YTD. While no other stock sectors are up as much as the overall market, most of them are delivering very respectable returns for the year so far. The only down sectors are Real Estate and Utilities. But even these beleaguered sectors are only down 1.4% and 3.25% respectively YTD.
Cabot Turnaround Letter
Monthly Issue January 31: This issue focuses exclusively on spin-offs and discusses seven attractive and relatively recently spun-off companies.
This month’s Buy recommendation, Baxter International (BAX), a major producer of medical equipment and hospital supplies, is involved in a spin-off. In this case, it is the parent company of an upcoming spin-off. The transaction, along with fundamental improvements and a long-time low share valuation, makes Baxter shares attractive.
Weekly Update March 8: In today’s note, we discuss the recent earnings reports from Bayer AG (BAYRY), Duluth Holdings (DLTH) and LB Foster (FSTR).
We are moving shares of LB Foster from a BUY to a SELL. The turnaround continues to grind forward, but the stock has moved above our 23 price target and we see little reason to increase it. The likelihood of the company reaching its 2025 guidance is fairly high, so the only upside would be from earning a higher valuation multiple. We’ll take our certain profit today instead of letting it ride on the possibility of more profits in the future, balanced by the possibility of a backward slide. The shares have generated a 79% return since our July 2023 recommendation.
Cabot Cannabis Investor
Monthly Issue February 28: In my last update on February 14, I suggested cannabis stocks had fallen enough to be buyable ahead of the expected rescheduling catalyst. That was an opportune entry point.
As of the close February 23, the AdvisorShares Pure U.S. Cannabis (MSOS) and the leveraged version, AdvisorShares MSOS 2X Daily (MSOX), were up 12% and 20%, respectively.
Then investors got impatient again with the lack of progress on catalysts. As of the close February 27, 2024, volatile cannabis stocks had given back most of these gains. The MSOS was up 2.4% and the MSOX was up 1.7%. I think cannabis stocks have weakened enough to consider adding again (more on this below).
Monthly Update February 14: It sounds heartless to say, but successful investing is largely about exploiting the emotions of others.
The two biggest emotions to exploit in the market are obviously fear and greed. When investors are too fearful, it pays to exploit that emotion by betting the other way. And vice versa for greed.
Another common emotion to exploit is impatience.
Cabot Money Club
Monthly Magazine March: Passive real estate investing is surging in popularity as it promises the wealth-building power of real estate without the headache of managing properties and tenants. This month’s issue features the pros and cons of passive real estate investing, the types of opportunities available to investors, and what you need to know before you get started.
Stock of the Month February 8: The markets have continued their bullish momentum so far in 2024, with growth stocks continuing to lead the way—especially large caps, which are up 32.94% so far this year.
Sector-wise, Communication Services (up 9.74%), Technology (up 5.07%), and Healthcare (up 4.11%) are the winners so far, with Real Estate (down 4.37%), Utilities (-2.91%), and Consumer Discretionary (-0/83%) the losing sectors.
Ask the Experts
Prime Question for Mike: Hi Mike. Is there an ETF you like for precious metals or gold?
Mike: I wouldn’t say I “like” per se – generally not a huge gold guy – but if you want to play it, you have:
GLD for gold prices themselves
GDX for major gold producers
And GDXJ for minor gold producers.
So far, GLD is certainly stronger than the stocks. There’s also UGL (2x gold prices) but I have never owned or recommended that so not exactly sure of the details there.