Latest Summary
CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Mike Cintolo remains bullish, though he’s being selective on the buy side and sees the wheat separating from the chaff as this rally phase progresses. The market did hiccup some this week and many names are still battling with their prior highs, which bears watching, but most of the evidence remains positive and the best stocks are doing more consolidating than pulling back. Mike rotated some money into stronger situations this week and aims to do more buying if the bulls remain in control.
Stocks Discussed: LLY, ONTO, TSM, IOT, PBR, HOOD, IBKR, BM, SG, WING, FSLR, TAN, PINS, NVT, GE, IBIT, ETHE
Cabot Street Check (Podcast)
On today’s episode of Street Check, with Brad on vacation Cabot’s small-cap investing expert Tyler Laundon joined Chris to talk about Nvidia’s earnings report and some messaging on the call that could have long-lasting reverberations for the market as a whole and other tech infrastructure stocks in particular. Tyler also made a bold prediction about the Fed, discussed small-cap underperformance and the reasons behind it, and Chris revealed his approach to value investing in a growth stock market. To hear more from Tyler and Chris, join them next Thursday, May 30, on their FREE webinar, “Opportunity Knocks: 3 Asset Classes to Profit from NOW”. Click here to register.
Cabot Webinar
May 30, 2024 Webinar
Opportunity Knocks: 3 Asset Classes to Profit from NOW
Join renowned small-cap and early-stage investing expert Tyler Laundon, Chief Analyst of Cabot Early Opportunities and Cabot Small-Cap Confidential, for this exclusive live event
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 Pro 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 May 16: The market has steadily improved its standing since its low three weeks ago, so much so that our Cabot Tides and Two-Second Indicator have returned to bullish territory; that had us start putting money to work last week and we’re doing a bit more buying tonight. Granted, this isn’t the same environment as, say, last November, as buying pressures are still sporadic and growth stocks are good (not exceptional), so we’re moving in steps and want to be “pulled” into a heavily invested position via more strength.
In tonight’s issue, we review all of our stocks, especially our recent buys, and write about one growth area where it appears investor perception has changed for the better in a big, big way.
Bi-weekly Update May 23: WHAT TO DO NOW: Remain optimistic, but continue to pick your spots. Most of the evidence is positive, but the action among growth stocks is good but somewhat mixed, with many names acting great but some hitting air pockets and lots hitting resistance near prior highs. In the Model Portfolio, we’re doing a little reshuffling tonight—we’re going to sell one-half of DraftKings (DKNG) and sell one-quarter of Uber (UBER), but we’re also going to start another half-sized stake in On Holding (ONON). We’re also placing Pulte (PHM) on Hold. We’ll still have about 23% in cash after these moves. Details below.
Cabot Top Ten Trader
Weekly Issue May 20: Quick note: Because next Monday is Memorial Day, our next issue of Top Ten will be published Tuesday after the close, May 28.
The market’s good-looking rebound continued last week, with big-cap indexes notching new highs and most other indexes close to doing so. Granted, a lot of individual stocks are still battling with resistance from their prior highs in February/March and many growth names are set to report earnings during the next couple of weeks. Throw in the fact that sentiment has definitely gotten a bit complacent again and you want to pick your stocks and entry points carefully. Still, right now the intermediate-term trends are up for the market’s major indexes and most leading and potential leading stocks. We’ll keep our Market Monitor at a level 8.
This week’s list has a lot of enticing names, with some showing power and others set up nicely to break out if the bulls remain in control. Our Top Pick is a retail name that appears to be finally getting going after a long, tedious consolidation.
Movers & Shakers May 24: After a few constructive weeks in the market, this one was a bit of a bummer, with the selling pressures picking up in some key names—and the broad market. As of this morning, the big-cap indexes are up or down a smidge on the week, though broader indexes (small- and mid-caps, NYSE Composite) were off 2% or so.
Cabot Options Trader and Cabot Options Trader Pro
Cabot Options Trader Pro Weekly Update
Cabot Options Trader Weekly Update
Cabot Value Investor
Monthly Issue May 2: The dark clouds of persistent inflation and high interest rates continue to hover over the market. But with a record amount of capital on the sidelines and little to no movement in most stocks over the last two-plus years, I’m optimistic that better days are ahead, assuming the inflation/Fed clouds eventually part. Thus, I continue to seek out companies that are essentially growth stocks at value prices. And today, we add another one to our portfolio in the form of a big-name company that’s benefitting greatly from a return to normalcy in a post-Covid world … but whose shares are trading at barely half their pre-pandemic peak.
Enjoy!
Weekly Update May 23: “Markets are never wrong, only opinions are.” – Jesse Livermore
Few quotes related to investing have stuck with me more than that one.
Jesse Livermore, of course, is an investment legend who, in the early 20th century, pioneered day trading and who was the basis of the best-selling Edwin Lefevre book, Reminiscences of a Stock Operator – considered by many to be the investing Bible. Many of his words are relevant to today’s market, nearly 85 years after his death. And I think the above quote is as evergreen as any and is important to remember in bull markets like this one.
Cabot Stock of the Week
Weekly Issue May 20: The market is at all-time highs, and so are many of our Cabot Stock of the Week stocks. Sure, there are potential landmines out there – inflation, the Fed, this Wednesday’s Nvidia (NVDA) earnings report if it fails to meet lofty expectations, etc. – but right now, Wall Street is buying, so we will too. Today, we add one of the market’s best growth stocks so far this year. It’s been sitting in Carl Delfeld’s Cabot Explorer portfolio since late last year – he has a huge gain on it already – and we were reluctant to add it to the Stock of the Week portfolio until it pulled back a bit. Now it’s done so – the stock peaked in mid-March – but it’s building momentum again. It’s one of the best AI plays not named Nvidia or Microsoft.
Details inside.
Cabot Explorer
Bi-weekly Issue May 23: Going back to 1960, nearly 85% of the cumulative total return of the S&P 500 Index can be attributed to reinvested dividends. And that’s why today we’re adding a new high-yield fund to the portfolio that gives us exposure to fast-growing overseas markets.
Bi-weekly Update May 16: Major indexes are at all-time highs as data indicated inflation retreated a bit. And many of our positions are soaring.
That includes new addition Neo Performance (NOPMF), whose shares were up 17% during the stock’s first week as an Explorer recommendation as the company reported a swing to profitability. It wasn’t our only holding to post double-digit performance last week.
Details inside.
Cabot Small-Cap Confidential
Monthly Issue May 2: The digital marketing world has been turned upside down as new privacy measures make it more challenging to track consumers across online and in-app activities.
But one company has been building out a unique opt-in data set and the backend technology to do just that. It sells this information to the biggest companies in the world so they can reach consumers with personalized marketing messages. With the new privacy measures, business is strong.
All the details are inside the May Issue of Cabot Small-Cap Confidential.
Weekly Update May 23: The S&P 600 Small Cap Index has drifted a little lower this week but made a nice move over the last month as interest rates declined. The S&P 600 iShares ETF (IJR) is up 7% over the last five weeks.
The chart inside shows how clear the inverse relationship between the IJR (green line) and the 10-year yield (blue line) is.
Cabot Dividend Investor
Monthly Issue May 8: The market has rallied for more than a year in the happy space between inflation and recession. But that dynamic is unlikely to persist. Amid persistent inflation, it is likely that the market will have to contend with high interest rates or a faltering economy. Each one is problematic.
In a flatter or faltering market, dividends provide a bigger part of total returns. Let’s get ahead of the curve and get a big fat yield.
In this issue, I highlight a stock with a massive dividend yield that has shown good price stability for several years. The company can also thrive amidst inflation and high or rising interest rates and can provide a high income return even if the market struggles through an inflation/recession catch-22.
Weekly Update May 22: The market has regained its footing, and here comes Nvidia (NVDA).
All eyes are on the Nvidia earnings report scheduled to come out after the closing bell on Wednesday. It was an Nvidia earnings report two years ago that featured a massive demand for artificial intelligence products and services that sparked the AI craze and ignited a powerful rally in technology stocks.
Cabot Early Opportunities
Monthly Issue May 15: In the May Issue of Cabot Early Opportunities we dig into prospects across next-gen AI-enabled devices, emerging markets, meal replacement shakes and picks-and-shovels type infrastructure plays.
Cabot Profit Booster
Weekly Issue May 21: Quick note: Because next Monday is Memorial Day, our next issue of Profit Booster issue will be published Wednesday, May 29.
Coming out of May expiration we had five positions close for full profits (noted below), and we are going to exit one position today for a virtual breakeven as PR closed below the strike price that we had sold (totally fine). First, let’s start with the one trade we need to adjust …
Sell your Permian Resources (PR) stock position.
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 May 21: The market dodged a bullet. And the rally forges on.
After a 5% dip from the high, stocks started climbing again in mid-April and have regained all the losses. Last week’s inflation report had the potential to derail the recent rally. But it didn’t. And the good times are continuing.
Cabot Turnaround Letter
Monthly Issue April 24: In twenty years of price forecasting, the most valuable lesson I have learned is that the rate of change tells us everything we need to know about the immediate future. When it accelerates, it tends to continue accelerating. When it decelerates, it tends to continue decelerating. And surprisingly, this tends to be the case no matter what metric we choose to examine.
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 May 24: V.F. Corporation (VFC) reported a 13% revenue decline to $2.4 billion, missing expectations. Sales were down across the company’s brands, with North Face sales down 5%, Vans 26%, Timberland 14%, and Dickies 15%, with all regions seeing declines, led by a 22% drop in the Americas. Adjusted operating margin fell to -2.1%, with EPS at -$0.32 vs. $0.17 a year ago. On a slightly better note, inventory fell $382 million from Q4, and net debt is down to $5.3 billion. While CEO Bracken Darrell emphasized ongoing turnaround plans and leadership rebuilding, analysts downgraded the stock as the company’s $1.7B in debt maturities could lead to potential asset sales and dividend cuts.
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 May 8: Cannabis stocks look buyable in the current weakness.
Cannabis stocks are always buyable when they are down, but there are potential near-term catalysts on the horizon. That is the case now. There are three to expect over the next few months, and possibly as soon as the middle of May.
Cabot Money Club
Monthly Magazine May: Household debt is rising, and consumers are feeling the squeeze of higher interest rates everywhere, from mortgages to auto loans to credit cards. In this month’s issue we’ll share ten warning signs that signal financial trouble ahead and the ten bad financial habits you need to drop now to avoid it.
Stock of the Month May 9: 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.
Ask the Experts
Prime Question for Tyler: Vertiv Holdings (VRT): Is there negative news?
Tyler: I haven’t seen anything major. There was a note regarding a 13F filing that Starboard sold its position of 2.6 million shares. But also, yesterday BofA increased their price target by 15% to 115. I will continue to monitor.