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CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Mike Cintolo talks about the late-week selling, which was the first across-the-board hit seen for the market in a few weeks; as he talked about in his webinar last week (see more under Free Resources on Cabotwealth.com), Mike’s thinking the next couple of weeks could see more tricky trading, and the selling this week has put the intermediate-term trend on the fence. However, the key part of the evidence of late--that of individual stocks--remains in fine shape, so he’s continuing to lean bullish, though is focused mostly on earnings season for stocks he owns and hopes to buy in the weeks to come.
Stocks Discussed: RBRK, URI, HRI, CCL, GVA, MRVL, AMZ, BX, POWL, CRDO, ARGX, SG - TOST, VST
Cabot Street Check (Podcast)
This week on Street Check, Chris and Brad talk about the disappointing jobs numbers this morning, third-quarter earnings surprises, and volatility on the horizon with both the Fed meeting and election next week. Then, Brad quizzes Chris on the portfolios of members of Congress, the most popular stocks traded by elected officials, and whether fears about political “insider trading” are overblown.
Cabot Webinar
3 Under-the-Rader Stocks with HUGE Turnaround Potential
Join gold and turnaround specialist Clif Droke, Chief Analyst of the Cabot Turnaround Letter, for this exclusive live event where he’ll discuss:
- How today’s abundant liquidity environment provides investors with a near perfect set-up for turnaround stocks
- Why small- and mid-cap stocks offer more attractive turnaround opportunities than large caps
- Insights on the post-election market landscape and where it could be go next • Key reasons why gold and silver still offer some great turnaround plays
- His secrets to generating outsized profits, by combining core value investing principles with dynamic momentum trading tactics for optimal results
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 October 17: After some choppy action the prior two or three weeks with defensive stocks leading, growth stocks and many major indexes have improved their standing - including the strongest names continuing to zoom higher. Now, near-term, there are some uncertainties, with earnings season and the election coming up, and there are still areas (including the Nasdaq itself) that are still battling with old resistance. Thus, we wouldn’t be shocked if extended names shook out a bit. But overall, we’re still leaning bullish, though are picking our spots; tonight we’re starting one more half-sized stake in a familiar name we think can do very well should the bulls remain in charge.
Bi-weekly Update October 24: WHAT TO DO NOW: The market remains in good shape, though we have seen the indexes and many individual titles exhale a bit of late as many short-term uncertainties (earnings season and the election) and headwinds (rising interest rates) weigh. We’re bullish overall, but are being selective on the buy side—tonight, we’re standing pat, holding our 20%-ish cash position and collection of relatively strong performers.
Cabot Top Ten Trader
Weekly Issue October 28: All in all, the evidence remains unchanged: The major indexes are positive but not exactly powerful, with resistance (such as near 500 on QQQ) still capping many measures, but leadership remains intact, with strong stocks refusing to give much ground and fresh breakouts from the past month acting well. Of course, earnings season is still ongoing, and you can never rule out the market’s key leadership being dented or some abnormal action appearing. But you can always find something that could go wrong in the market—right now, the buyers are in control. We’ll keep our Market Monitor at a level 8.
This week’s list is very broad, with everything from industrials to real estate to true-blue growth stories. Our Top Pick is a pure cyclical name that just busted out of a long-term consolidation on giant volume.
Movers & Shakers November 1: We’ve been writing about some of the market’s short-term uncertainties (election mainly) and secondary headwinds, including rising Treasury rates and relatively elevated sentiment (there really hasn’t been much selling since early September)—and this week finally brought an air pocket, mainly via yesterday’s across-the-board selling.
Cabot Value Investor
Monthly Issue October 3: Between the expansion of the war in the Middle East, a U.S. dockworker strike that could slow the supply chain again, and the uncertainty of a too-close-to-call presidential election next month, there are a lot of headwinds out there serving to counterbalance the good vibes created by last month’s Fed rate cut. Add in the fact that we’re in the traditional “spooky season” of October – the month in which the market has bottomed in each of the last four years – and it’s a good time to add some security to your portfolio.
So today we do just that … by adding a well-known home security company to our Buy Low Opportunities Portfolio. It’s been in business for a century and a half but has only been a public company for the past seven years. And with profits accelerating, the stock has become cheap.
Details inside.
Weekly Update October 31: As you read this, I am likely fortifying my house in preparation for the 400-500 Trick-or-Treaters that are sure to descend on our place in Vermont in a few hours. That’s no exaggeration – we live on a crowded street that draws kids from all over town, and even adjoining towns, trying to maximize their Halloween hauls. The 1,000 pieces of candy I buy every year and the countless ghouls, skeletons, smoke-emitting jack-o’-lanterns and giant spiders I’ve accrued the last few years to adorn our lawn are almost like an annual tax.
Living in such a bustling Halloween hotbed is fun, and it’s certainly a blast for our two kids. But it’s a lot of work, and we’re always happy when the calendar flips to November. And in that way, it reminds me a bit of the market every October.
Cabot Stock of the Week
Weekly Issue October 28: The deep breath before a toss-up presidential election has arrived on Wall Street, with stocks barely budging in the last two to three weeks. Investors are likely prepared for either outcome but are waiting until a winner is declared before resuming this two-year bull market rally. While we wait, it’s a good time to pare down our portfolio a bit, which we do today by saying goodbye to three recent laggards. We also add a high-growth tech stock with plenty of momentum that Mike Cintolo recommended to his Cabot Top Ten Trader audience a week ago.
Details inside.
Cabot Explorer
Bi-weekly Issue October 24: As I mentioned recently, I’m now in Europe looking for intelligence and ideas.
This week I’m in Madrid and visited the stock exchange (bourse) and met with some local brokers to try to get a feel for the market and region. Like brokers always are, they were bullish on stocks and especially gold. One stock we discussed which I have followed from time to time is Banco Santander (SAN). It is in a nice uptrend and still well below book value, but I need to do some research and reach out to some friends who previously worked for Santander to get their views before considering a recommendation.
Instead, today I have a new gold stock recommendation.
Bi-weekly Update October 31: We need to begin with some bad news. Super Micro Computer (SMCI) stock tumbled 32% yesterday after its audit firm, Ernst & Young, resigned. The auditor said it had recently learned of information “which has led us to no longer be able to rely on management’s and the audit committee’s representations, and to be unwilling to be associated with the financial statements prepared by management.”
Cabot Small-Cap Confidential
Monthly Issue October 3: Surging data center demand. Electric vehicles. Heat pump HVAC systems. Severe weather events. Hurricanes. Rising sea levels. North Carolina flooding.
This is just a short list of the drivers behind rising electricity demand, the harsh realities of being behind the curve when it comes to global warming, and the resulting push toward energy efficiency and greenhouse gas emission reductions.
Today’s portfolio addition is a small and still-unknown company that helps solve these challenges, moving the country toward a more sustainable, clean-energy future.
I think you’ll find it interesting.
Weekly Update October 31: 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.
Cabot Dividend Investor
Monthly Issue October 9: There is a colossal housing shortage in this country.
A decade of underbuilding in the housing industry following the financial crisis has left the industry unable to meet the needs of the growing population. It is estimated that the demand for homes exceeds the current national supply by a whopping 4.5 million.
The jilted supply/demand dynamic has caused the median U.S. home price to soar a staggering 40% just since the pandemic. In addition, mortgage rates have soared to the highest level in two decades. The prices and mortgage rates are making housing unaffordable for vast numbers of potential buyers. Sellers are unwilling to trade up and get a higher mortgage rate.
There aren’t enough new homes, and existing homes aren’t coming on the market either. Buyers can’t buy and sellers won’t sell. But there is reason to believe the housing problems will get a lot better in the years ahead.
While the situation is likely to improve, the supply/demand imbalance will likely remain for several years. That’s a problem for the housing market and economy to work through. But it’s good news if you’re a homebuilder. New homes should be in high demand for years to come, and sales should increase with the improving conditions.
In this issue, I highlight the premier luxury home builder in the U.S. The stock has the best track record of all large homebuilders, and the company is in an ideal position to benefit from high demand and increasing buying in the years ahead.
Weekly Update October 30: It has been a great market for most of the last two years. But the bull run will be severely tested over the next couple of weeks.
The S&P 500 is within a whisker of the all-time high after rallying 22% YTD and over 60% in the past two years. The recent investor perception is that the Fed has begun a rate-cutting cycle that will last for two years, and the economy is still solid. That view will be put to the test this week.
Cabot Early Opportunities
Monthly Issue October 16: 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!
Cabot Profit Booster
Weekly Issue October 29: Ahead of a monster week of economic data and earnings releases the S&P 500 fell 0.85%, the Dow lost 2.6%, and the Nasdaq gained 0.4%
Cabot Income Advisor
Monthly Issue October 22: This country has a massive shortage of housing.
It is estimated that the current demand for homes exceeds the national supply by a whopping 4.5 million. The shortfall has caused the median U.S. home price to double since 2011 and soar a staggering 40% just since the pandemic. In many areas, prices have increased a lot more.
High prices combined with the highest mortgage rates in decades have made housing unaffordable. Zillow estimates that only 15.1% of current non-homeowner households can afford a typical mortgage.
But there is reason to believe the housing problems will get a lot better in the years ahead.
Mortgage rates are falling. The average U.S. 30-year fixed mortgage rate has fallen to 6.6% from 7.2% this past May and 7.8% a year ago. And rates are likely to continue to trend lower from multi-decade highs in the years ahead. Prices are coming down too. The average U.S. home price has declined about 7% since the beginning of last year.
While the situation is likely to improve, the supply/demand imbalance will likely remain for several years. That’s a problem for the housing market and economy to work through. But it’s good news for homebuilders. New homes should be in high demand for years to come, and sales should increase with the improving conditions.
In this issue, I highlight one of the best homebuilders on the market. The stock has been a stellar performer as investors realize the opportunity. But it is still reasonably valued and has momentum. It should provide a covered call opportunity soon.
Weekly Update October 29: It has been a great market for most of the last two years. But the bull market chops will be severely tested over the next couple of weeks.
The S&P 500 is within a whisker of the all-time high after rallying 22% YTD and over 60% in the past two years. The recent investor perception is that the Fed has begun a rate-cutting cycle that will last for two years, and the economy is still solid. That view will be put to the test this week.
Cabot Turnaround Letter
Monthly Issue October 30: For much of the last four years, the “friendly skies” have been anything but for the airline industry and its customers. The restrictive measures of the Covid era put the entire $1.2 trillion air travel industry into a tailspin, causing massive financial losses and layoffs for the major carriers, not to mention major headaches for travelers.
The problems began in March 2020 and continued through that year, but by the start of 2021, industry-wide losses totaled over $35 billion, with no fewer than 64 airlines around the world ceasing operations. By the time Covid restrictions were lifted in 2023 (in the words of a contemporary CNN report), “A handful [of airlines] have revived after announcing bankruptcy, or changed names, but the vast majority are gone for good.”
Weekly Update November 1: In today’s note, we discuss a flurry of key news developments for several of our portfolio positions, including Agnico Eagle Mines (AEM), Atlassian (TEAM), Intel (INTC) and Janus Henderson Group (JHG).
Two strong earnings reactions after Thursday’s market close bode well for two of our recent portfolio additions.
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 October 9: Cannabis now has its highest election-year profile ever.
Both presidential candidates have highlighted their favorable positions on cannabis reform, obviously because voters in all the key swing states favor reform. Cannabis reform appears on the ballot in referenda in several states – most notably Florida.
Cabot Money Club
Monthly Magazine November: Your finances touch almost every aspect of your life in some way or another, and that can make tackling them feel overwhelming. This month, we’ll lay out a monthly “to-do” list that can help you save money on taxes, set aside more money, and plan for the future. Plus, the monthly breakdown will help make sure you won’t miss financial deadlines that you never saw coming.
Stock of the Month October 10: The markets have continued to flirt with new highs—pulling back and then moving forward—for the past month.
The Fed’s 50-basis-point rate cut inspired investors, home buyers, and those folks wanting to refinance their homes. The Mortgage Bankers Association reported that refinancing applications rose 20% right after the rate cut!
Ask the Experts
Prime Question for Mike: Mike, one of two things is going to happen on November 5: either Trump will win or Harris will win. I believe that the market has already priced in a Trump win. So if Trump does win on November 5, the market may rise a little bit. However, if Harris wins, I think the market will correct.Am I right about this Trump Win being priced in? If it’s not a potential Trump win, then what is the cause of this market rise that we’ve been seeing over the last several weeks?So, with a small upside possibility and a large downside possibility, might it be prudent to sell my stocks before November 5? I would rather rebuy them and miss a little rise than to lose a large amount.Also, if Trump wins, several people (that I believe have some inside knowledge) have said that there will be riots. That’s going to cause the market to fall also.I know that you can’t advise on what I should do, but have you heard of anyone with stock trading experience doing what I’m proposing?There’s also the possibility that I could just take some profits, decreasing my exposure. Another option would be to set stop-loss orders, but I don’t think that the market will completely collapse in the event of a Harris win or riots. I think it would just be a moderately-sized correction, so I’m just looking to not lose all the gains of the last few months.Your thoughts?Thanks.
Mike: Well, the betting markets have Trump as a 60% or a bit more favorite, so if I had to guess, I wouldn’t say it’s totally priced in. But it’s possible, no way to really know.I won’t really get into the causes of the market rise. And by the way, the market really hasn’t risen much in recent weeks – the Nasdaq is still below its July highs and the S&P looks great but is up 1% this month. Not saying that as a bad thing, but it’s not like we’re ripping higher in the overall market.As for how to “play” the election – we just ride through it. I hear you if you want to trim or hedge type of thing, there’s nothing wrong with that. But it’s possible the market ramps, or the stocks you own ramp after the election and then pull back a few weeks later. Timing is everything.Bottom line: I don’t think trimming is a bad idea in general, we’ve had a big run after all. So if you want to give up potential upside but lock in some gains, I certainly wouldn’t argue with that. But as a general rule I would avoid making massive decisions (selling 75% of your portfolio, etc.) based on what amounts to a guess as to what the market will do.