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CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Mike Cintolo talks about the still-strong market--the most bullish thing a market can do is go up and hit new highs, and that’s what’s been happening of late. Near-term, there are a couple of yellow flags Mike goes over, which means it’s a good time to pick your spots on the buy side, but Mike remains bullish and sees many names that look enticing.
Cabot Street Check (Podcast)
This week on Street Check, Chris and Brad discuss Nvdia’s (NVDA) earnings no longer driving the market, Target’s (TGT) tumble on a weak third quarter, MicroStrategy (MSTR) falling 20% on a Tweet from Citron Research and Spirit Airlines’ (SAVEQ) bankruptcy filing and what it means for shareholders. Then, Nancy Zambell of Cabot Money Club joins to talk all about the state of the housing market, REITs, and the sectors she’s most bullish on heading into 2025.
https://www.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 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 November 27: Today brought some selling in growth stocks, mostly egged on by weakness in some “old” leading groups, but the evidence (both market-wide and among leading stocks) is still bullish, so we are, too, though we continue to keep our feet on the ground and manage our portfolio given things are a bit euphoric. Today, we’re filling out one of our positions, leaving us with 13% cash.
Elsewhere in today’s issue, we go over some intriguing new ideas (including one peer of a name we own that looks terrific), and answer some of the barrage of questions we’ve been getting, with some talk about the weakness seen in the formerly strong chip group.
Bi-weekly Update November 21: WHAT TO DO NOW: Remain bullish, but again, be sure to keep your feet on the ground. The pullback last week was tedious, and our Two-Second Indicator is looking iffy, but the market’s trends have remained up and growth stocks are still very strong. We sold one-third of our Palatir (PLTR) position earlier this week, booking partial profits in a good winner, and tonight we’re going to average up in Samsara (IOT), buying another 5% stake, which will leave us with around 19% in cash. Details below.
Cabot Top Ten Trader
Weekly Issue November 25: As for the market, the top-down action since the election has been volatile and somewhat disjointed due to crosscurrents, but the trends have remained up, and leading titles (especially on the growth side of the equation) have posted stunning gains. To be clear, the action remains very hot and heavy, with near-term sentiment elevated and many stocks extended to the upside, all of which is a reason to pick your spots on the buy side and to consider partial profits on some names that have gone wild. We’ll keep our Market Monitor at a level 8.
This week’s list has something for everyone, with names from a variety of sectors and themes showing strength. Our Top Pick is finally changing character with a powerful breakout last week.
Movers & Shakers November 27: As we wrote on Monday, our offices will be closed on Friday for the long Thanksgiving weekend, but we wanted to shoot out a barebones Movers & Shakers today with some updated stops on our positions. There will be no issue of Top Ten next week (one of our two weeks off all year), but we will be back at it on Monday if you have any questions and will send out the normal Movers & Shakers next Friday (December 6). Have a great Thanksgiving!
Cabot Options Trader and Cabot Options Trader Pro
Cabot Options Trader Pro Weekly Update
Cabot Options Trader Weekly Update
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 21: Tesla (TSLA) is getting lots of headlines these days, and for good reason.
Their CEO and founder, Elon Musk, was tabbed by President-elect Donald Trump to head up something called the Department of Government Efficiency (along with Vivek Ramaswamy); their stock price is up 57% in the last month; and the company is coming off its first truly encouraging quarterly earnings report in a year. Anyone who invested in TSLA a year ago, five years ago, or 13 years ago, when our Mike Cintolo first recommended the stock in his Cabot Top Ten Trader advisory, has made a LOT of money.
But another company has surpassed Tesla as the biggest EV seller in the world. And today, we add it to the Cabot Value Investor portfolio.
Cabot Stock of the Week
Weekly Issue November 18: In our last issue before the holiday shopping season hopefully kicks off the next leg of the bull market, today we subtract two underperforming overseas positions and add a mid-cap defense stock recommended by Cabot Explorer Chief Analyst Carl Delfeld. We also put a bow on Q3 earnings season (minus this week’s Nvidia report, of course), which was mostly a force for good among the stocks in our portfolio.
Details inside.
Cabot Explorer
Bi-weekly Issue November 21: Europe’s stock market has underperformed the U.S. by the most in almost three decades.
While the S&P 500 index is up about 25% so far this year to record highs, Europe’s benchmark Stoxx 600 is only up 5%. That underperformance in returns is the biggest since 1995, according to Bloomberg. The other side of the coin is that the S&P 500 is now trading at 22.5 times forward earnings and is at a record high 70% premium to the Stoxx 600. The European Union (EU) bloc is the world’s third-largest economy, with a market of 450 million consumers, and controls the world’s second-most-used currency, the euro.
So today, we go to Europe (literally!) to add a new stock to the Explorer portfolio that looks poised to outperform.
Bi-weekly Update November 27: Centrus Energy (LEU) shares jumped almost 19% this past week and are up 70% in the last six months. Dutch Bros (BROS) shares gained 6.3% this week following weekly gains of 10.6% and 36%.
Tariffs took center stage this week as the incoming Trump administration indicated day-one 25% tariffs on Canada and Mexico and some more for China as well.
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 27: Small-cap stocks continue to act extremely well, and we have a new all-time high for the S&P 600 SmallCap Index. It hit 1,520 on an intra-day basis on Monday, then closed at 1,545. Both levels surpass the previous all-time high of 1,477 from November 2021.
The index is hanging tight to those levels today too, trading near 1,537.
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 27: After a brief dip following the post-election euphoria, the market is right back to a new high.
So far, the promise of stronger economic growth is more than offsetting the likelihood of higher interest rates for longer. As a result, new sectors have emerged as market leaders. Cyclical sectors have taken off. The financial, energy, and consumer discretionary sectors are leading the market. Those sectors are up 9.3%, 5.7%, and 8.6% respectively in the three weeks since the election.
Cabot Early Opportunities
Monthly Issue November 22: In the November Issue of Cabot Early Opportunities, we jump into a crazy semiconductor growth story, an electrification name and an international travel story. We also kick the tires on a new company focused on acquiring outdoorsy brands as well as another playing in the healthy and alternative food space.
As always, there should be something for everyone!
Cabot Profit Booster
Weekly Issue November 26: Please note, next week is one of our two scheduled weeks off for the year. Have a great Thanksgiving!
Moving on …
Despite some early-morning sell-offs nearly every day last week, the bulls stepped up each time and by week’s end the S&P 500 had gained 1.6%, the Dow had rallied 2%, and the Nasdaq had added 1.55%.
Cabot Income Advisor
Monthly Issue November 26: The election is changing things.
The difference is the expectation of stronger economic growth. As a result, new sectors have emerged as market leaders. Cyclical sectors have taken off. Financial, energy, and consumer discretionary sectors are leading the market. And this changing dynamic is likely just in the very early stages.
In this issue, I will focus on an opportunity in the financial sector.
Financial stocks, of which banks make up a big part, generally make profits from the spread between the cost of funds, mostly short-term rates, and what they charge for loans. Higher spreads mean more profits.
The Fed has begun a rate cutting cycle that will likely last for two years. Banks also need a good economy with strong loan demand. The better economic prognosis after the election is bullish. Plus, there is likely to be a much friendlier regulatory environment for banks and financial companies in the new administration.
In this issue, I highlight one of the highest-growth major financial companies that will surely benefit from the improving dynamic going forward. It is the leading all-digital bank in the country. Unlike many other industry-leading stocks, it is still well below the high because of a recent temporary stumble, and a price spike should be ahead.
Weekly Update November 19: The market leveled off last week after the huge election surge. Stocks are trying to find a more sober post-election footing.
The S&P 500 was down very slightly last week after soaring 5% in the three days following the election. The initial reaction to the Trump victory was higher growth expectations and a surge in cyclical stocks countered by a spike in interest rates. We’ll see if those trends continue after the market fully digests the election.
Cabot Turnaround Letter
Monthly Issue November 27: With the approach of the Christmas shopping season, we’re heading into what’s regarded as prime “restaurant season,” as the holidays typically see more foot traffic than any other time of the year, and with December historically the highest-selling month for U.S. restaurants.
Today, we introduce a stock that’s poised to take advantage of the holiday shopping boom - and the ongoing post-Covid recovery in the trillion-dollar industry.
Weekly Update November 22: In today’s note, we discuss a number of earnings results and new developments for several of our portfolio positions, including Alcoa (AA), Brookfield Wealth Solutions (BNT), Intel (INTC) and Starbucks (SBUX).
Cabot Cannabis Investor
Monthly Issue November 27: Cannabis stocks are now trading like the group is no longer a viable sector.
I do not believe that is the case. True, companies continue to face pressure from price wars and unbridled issuance of permits for new stores in New Jersey and elsewhere.
But ultimately, the fate of cannabis businesses lies in the hands of politicians.
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 December: Stocks may be trading at all-time highs, but economists and analysts are looking for even more gains going into 2025. So, with meaningful catalysts still on the horizon, here are the strategies you can use and the steps you can take right now to take advantage of the continuing bull market.
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 Tyler: Hi Tyler. In September you recommended Klaviyo (KVYO) and today’s report showed a gain of about 1 percent since (the stock was added to the Cabot Early Opportunities portfolio). I am curious as to your thoughts about this one going forward. It seems to have a difficult time breaking out. I am holding on to it now, but have been tempted to sell out of it and move the money into one of the newer recommendations or add to ones I have in the portfolio.
Tyler: I share your feelings toward KVYO the stock. But I think I’m willing to be somewhat patient with it as a company because of the research I do into these marketing technology platforms. They just provide such a critical function for businesses as they try to reach potential customers. For Klaviyo, the tie-in to Shopify and the rapid pace of Klaviyo’s growth, with profits, is also pretty attractive from my perspective. And, it’s “software,” which is doing relatively well so there’s that benefit as well.I would never try to talk somebody into holding something they are a little bored with. But in my view it’s worth being a little more patient with KVYO. I don’t love the weakness since earnings, but on the other hand, it’s not broken by any stretch.That’s just my 2 cents. I would feel differently very quickly if the stock sold off back toward 32. And if it went below that, I’d probably ditch it. Which, of course, would make me feel a little silly for not having sold here near 35.