Latest Summary
CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Tyler Laundon talks about small cap stock performance since the election and illustrates some of the big sector moves that have driven small caps higher. He digs into financials, which have gone bonkers, then moves on to discuss several of the factors behind the bull case for stocks, as well as some risks to be aware of. Tyler wraps things up with a brief overview of three small cap opportunities that look compelling today. Towards the end of the video, Tyler shares an exclusive special offer for new subscribers to join his Cabot Small-Cap Confidential service and gain access to his expert research on the top small-cap stocks for today’s market.
Stocks Discussed: JPM, SEZL, MS, DAVE, ML, XLF, PSCF, GLD, IJR, VBK, CORZ, KVYO, SHOP, AORT
Cabot Street Check (Podcast)
This week on Street Check, Chris and Brad discuss Bitcoin’s rally to all-time highs, signs of sticky inflation, and Rocket Lab (RKLB) blasting off on earnings. Then, they break down recent earnings reports from a handful of names, including Burberry (BURBY), AST SpaceMobile (ASTS), Carvana (CVNA), Dutch Bros (BROS) and more. To learn about this week’s Cabot Turnaround Letter offer, visit cabotwealth.com/street.
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 November 14: It’s been a great couple of weeks in the market, with the major indexes lifting nicely since the election and, more important, with leading growth stocks acting very well—while there have been some earnings wobbles, there’s been even more big rallies, with some stocks going into the stratosphere. It’s been a good couple of weeks, and with the evidence bullish, we are too—but we’re also keeping our feet on the ground, trimming some names on the way up and aiming to enter some fresher leaders, ideally on weakness.
Bi-weekly Update November 7: WHAT TO DO NOW: Remain bullish. The market has reacted well to the election and took today’s Fed decision in stride; both of our trend-following indicators are bullish and leading growth stocks remain in good shape. Today, we took partial profits in AppLovin (APP) via a special bulletin after it went vertical on earnings. But tonight, we’re putting that and a bit more money back to work via two new positions—starting half-sized stakes in Samsara (IOT) and the ProShares Ultra Russell 2000 Fund (UWM), leaving us with a cash position around 18%.
Cabot Top Ten Trader
Weekly Issue November 11: There were a few pre-election wobbles in the market, but last week’s action looks decisive, with many major indexes that had been capped below their summertime peaks bursting to new highs, while leading stocks went bananas, including many out-of-this-world moves on earnings. Now, to be fair, we’re still seeing some earnings duds, and the action is very hot and heavy, which raises the risk of some sort of near-term rug pull. Thus, it’s important to keep your feet on the ground—but overall, there’s no question the evidence is bullish and the buyers are control. We’re moving our Market Monitor back to a level 8 and could go higher if the buying pressures remain intense.
This week’s list is has something for everyone, with a couple of cyclical names sprinkled in among a batch of strong growth titles. Our Top Pick is showing great growth and just staged a solid breakout from a very tight area last week.
Movers & Shakers November 15: After a moonshot among most major indexes following the election and a second Fed rate cut, the market retrenched a bit this week, as the Fed hinted more rate cuts are a coin flip, as Treasury rates picked up again, and as some profit taking set in. The big-cap indexes are off a bit more than 1%, though the broad market and certain growth measures have pulled in more.
Cabot Value Investor
Monthly Issue November 7: The election is over, a winner swiftly declared, and the Fed is set to cut rates again today. All of that is hugely bullish, as evidenced by the market hitting fresh all-time highs on Wednesday. But it’s even bigger news for small-cap stocks, which are historically overdue for a massive run. So today, we add a new small-cap stock whose name virtually everyone knows – and perhaps has indulged in themselves. That addition is part of a sweeping portfolio overhaul in our November issue, which includes two stocks reaching – actually eclipsing – our price targets, and our one true laggard getting the ax after a bad earnings report.
Lots to talk about today. Let’s get right to it.
Weekly Update November 14: The honeymoon phase for a second Trump term continues on Wall Street. Stocks are up 3.5% in the week since Trump won the election, with all three of the major indexes advancing to new all-time highs. The reaction is being framed as specific to Donald Trump and his potential influence on stock prices – the so-called “Trump Trade” – but in reality, this is nothing new.
In recent years, there’s always been a honeymoon phase for stocks after a presidential election – regardless of which party or candidate won. And it typically lasts until the newly elected president’s inauguration in late January.
Cabot Stock of the Week
Weekly Issue November 11: The election is over. Earnings season is largely behind us. And the Fed matched investor expectations by cutting rates by another 25 basis points. The result? A market at fresh all-time highs and with newfound momentum on the heels of a sluggish October. And the Stock of the Week portfolio is performing even better, with no fewer than 10 stocks (!) trading at new all-time or 52-week highs as of this writing.
So, let’s lean into the growth environment while it lasts by adding a mid-cap fintech software stock that Tyler Laundon introduced to his Cabot Early Opportunities readers last month.
Details inside.
Cabot Explorer
Bi-weekly Issue November 7: A broad-based Republican victory in the election is spurring a sharp rally on Wall Street as investors bank on investor-friendly policies.
Bitcoin, the U.S. dollar, and gold also rose. It was reported that the gold reserves of Italy and France have risen in value by about $100 billion in the last two years. It is unusual historically for gold and the U.S. dollar to rise in tandem. Gold’s steady rise is also unusual given that traders would normally take profits along the way. U.S. economic sanctions have encouraged many to move into gold beyond the long reach of the U.S. government.
It is amazing how much money is being spent on politics. More than 11,000 political groups spent almost $15 billion to influence the election. Of course, this amount seems small weighed against a global economy of about $100 trillion, with the U.S. accounting for about $23 trillion (and about 35% of global debt).
It will be very interesting who gets the top economic policy posts and the GOP strategy going forward.
Bi-weekly Update November 14: The rally since the election continues as Bitcoin reached $90,000 for the first time. Tesla (TSLA) has climbed more than 40%, and the KBW Nasdaq Bank Index, which tracks shares of some of the nation’s largest lenders, is surging.
Dutch Bros (BROS) shares jumped 36% this week as it beat analysts’ expectations on the top and bottom lines while offering improved guidance for the remainder of 2024. Sea Limited (SE) soared 10.3% as the Singapore-based company reported overall net income that beat estimates at $153.3 million, with a better-than-projected 31% rise in revenue for the September quarter.
Cabot Small-Cap Confidential
Monthly Issue November 7: Today we’re jumping into a small-cap recovery story that appears to be in its early innings. It’s a familiar name, and we’re not the first to jump on it. Bank of America just put out a very bullish note after the company posted a big earnings beat.
But this stock isn’t a consensus buy, far from it. There’s a lot of work to be done before Wall Street jumps on board. That spells opportunity.
I don’t think it’ll be a small-cap stock for long. Because of the crazy week with the election and FOMC meeting we will start with a half-sized position with today’s stock.
Weekly Update November 14: Trump’s victory has given the S&P 600 SmallCap Index the jolt it needed to break out above this year’s overhead resistance at 1,465.
This is what it looks like on a daily chart going back about a year ...
Cabot Dividend Investor
Monthly Issue November 13: The election of Donald Trump has altered the trajectory of the economy and the market.
Investors perceive his election will deliver stronger economic growth, primarily through deregulation and tax cuts. Although interest rates spiked higher on the expectation of a stronger economy, the market views the revised prognosis as overwhelmingly bullish, so far.
The new administration will employ drastically different policies that will have a significant effect on different sectors and can’t be ignored. The most obvious sector beneficiary of the new administration is energy.
A huge beneficiary will be natural gas exports. The U.S. has recently become the world’s second-largest exporter of natural gas. Exporters ideally sell cheap American gas overseas where it fetches a much higher price. More production and cheaper domestic prices are ideal for exporters. At the same time, the new administration is likely to encourage as much natural gas exporting as possible.
In this issue, I highlight a company that runs the largest liquid natural gas (LNG) export facility in the country. It is a subsidiary of existing portfolio position Cheniere Energy (LNG), which is up 15% since the election. It pays a huge income and still sells at a reasonable price.
Weekly Update November 6: The election is over. The biggest risk, a disputed outcome, has been avoided. The new President is being viewed by markets as generally good for business and stocks. The market is thrilled today and rallying substantially.
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 November 12: The election results and Federal Reserve rate cut were seemingly just what the market was looking for as the S&P 500 rallied 4.7% last week, the Dow added 4.65% and the Nasdaq gained 5.4%.
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 November 12: Donald Trump was elected President last Tuesday, and the market posted the best week of the year. The S&P 500 soared about 5% in the three days following the election.
Investors perceive his election will deliver stronger economic growth, primarily through deregulation and tax cuts. Although interest rates spiked higher on the expectation of a stronger economy, the market views the revised prognosis as overwhelmingly bullish, so far.
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 15: In today’s note, we discuss a number of earnings results and new developments for several of our portfolio positions, including Barrick Gold (GOLD), Centuri Holdings (CTRI), Intel (INTC), Pan American Silver (PAAS) and Super Hi International Holding (HDL).
The favorable liquidity backdrop should continue for the rest of Q4, which is ideal for initiating new turnaround trading positions.
Cabot Cannabis Investor
Monthly Issue October 30: Given that the majority of Americans on both the left and the right favor cannabis legalization, it’s no surprise that marijuana has emerged as a significant campaign issue.
Therefore, it makes sense to think about election outcome scenarios and what they mean for cannabis investors.
Big picture, no matter what happens in the presidential election, cannabis wins. That’s because both candidates support major cannabis reform in one way or another. But obviously, some outcomes are better than others. Here are the three main scenarios, from best to worst.
Monthly Update November 6: The cannabis sector is taking a severe body blow because of election outcomes.
The big negative: Florida voters rejected Amendment 3, which would have legalized recreational use. Voters in North Dakota and South Dakota also rejected cannabis legalization.
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 November 14: 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: Mike, with election of Trump and the threat of Tariffs, I remember all the supply chain issues that caused last time around. Hardware/semiconductors seem more risky. I can see relations with China deteriorating, China invading Taiwan, controlling TSM, etc. Who knows how little or how much things will get screwed up and affect companies.So... I started looking at companies that you have recommended with respect to supply chain. Didn’t find much direct info because CEOs aren’t yet talking much about supply chain but I did read in LITE’s June quarterly call transcript they have facilities in the U.S. where they can manufacture 800GHZ transceivers whereas COHR has many offices in China and as far as I can tell only manufactures there. As a result, I bought LITE instead of COHR. That has worked out well so far as their last earnings report and market reaction was good.Going forward I’d appreciate any info you have on companies that may have supply chain issues even if they aren’t a factor just yet.
Mike: Thanks for writing. Supply chains will almost surely be something that come up in conference calls starting in Q1 (Q4 reports) and we’ll be looking for it. So far it doesn’t seem to be affecting much of anything as it’s too far out to know. Glad you own LITE, though – looks great, obviously a good report.