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CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Mike Cintolo talks about the post-election boom, both for the major indexes (many of which are finally breaking out to new highs) and leading stocks, including many that have gone wild after earnings. He does advise keeping your feet on the ground, as some of these names are extended in the intermediate-term (both in price and time), but Mike’s also definitely bullish and sees a growing list of leaders, including fresher names from a variety of sectors.
Stocks Discussed: TSM, NFLX, PRCT, IBIT, AA, VMC cyclical, COHR ALAB, PODD?, RDDT, TOST, FRPT, XPO
Cabot Street Check (Podcast)
This week on Street Check, discuss the market rally after President-elect Trump’s victory on Tuesday night, the Fed’s latest rate cut and whether their path forward has changed, and Nvidia’s (NVDA) addition to the Dow. Then, they welcome on Mike Cintolo of Cabot Growth Investor and Cabot Top Ten Trader to talk about what he’s seeing under the hood of the market and which stocks and sectors are breaking out.
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 October 31: The big picture for the market and for growth stocks remains very positive in our view, however, some near-term uncertainties and headwinds have kept us from doing much buying of late, and today saw the first real, widespread distribution in growth stocks since early September. Right now, then, we’re focused on managing our portfolio through earnings season, holding our strong names while jettisoning weak ones and looking to accumulate fresh leaders.
Tonight, we are selling one of our smaller positions that keeled over on earnings, and placing on other name on Hold--but we’re also sitting tight with our other strong, profitable names as we see what earnings season will bring.
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 4: It’s fair to say the evidence has taken a small step back in recent days because the intermediate-term trend of the major indexes is essentially on the fence, because the broad market has also faded somewhat, and because we’re finally seeing some earnings-induced dents in strong stocks. Of course, the election has finally (almost) arrived, which could easily cause some hecticness in the days ahead—but also remove some uncertainty. Put it all together and we’re still bullish, but we did pull in our Market Monitor to a level 7 and will take it as it comes in the days ahead.
This week’s list has a pretty solid growth component to it, which we do find encouraging. For our Top Pick, we’ll go with a zinger that has a great story and a powerful chart that we think can go far.
Movers & Shakers November 8: Last week, we saw the market begin to hesitate and leading stocks begin to take on some water on some earnings reports—combined with good-not-great action from the major indexes in the weeks before, that put the overall intermediate-term trend on the fence.
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 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 November 4: It’s election week, and it will be the elephant in the room for investors until a winner is declared. Will that be before the market opens on Wednesday, as in 2016? Will it take until this weekend, like it did in 2020? Or could this toss-up election drag out even longer, a la Bush/Gore in 2000? Either of the two former scenarios probably wouldn’t impact the market much. The latter would, at least for a time. So let’s all hope for a quick result. Sprinkle in the latest round of Fed cuts later in the week, plus more than a handful of earnings reports for Stock of the Week stocks, and it’s an incredibly pivotal week for the market.
With so much up in the air, today we add a relatively “safe” large-cap stock with a decent yield, low beta and impressive earnings growth. It’s been a staple of Tom Hutchinson’s Cabot Dividend Investor portfolio for quite some time.
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 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 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 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 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 5: Today is finally election day, and how the market will react in the days to come is truly anyone’s guess. Because of this uncertainty, today’s covered call is a defensive play on a leading aluminum play that “should” do well under either candidate’s presidency.
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 5: It’s all about the election right now.
The massive political event is sucking all the oxygen away from everything else. It’s worth noting that the Fed will meet and likely cut the Fed Funds rate this week. That will be the focus after the election is resolved, if it’s resolved.
I don’t get into the business of predicting political outcomes. That’s not my horserace. As of now, the markets seem to be leaning toward a Trump victory. That appears to be the more likely bet. But all that stuff favored Hillary even more so in 2016. We’ll see what happens.
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 8: In today’s note, we discuss a number of earnings results and new developments for several of our portfolio positions, including Alcoa (AA), Atlassian (TEAM), Barrick Gold (GOLD), Viatris (VTRS), and Pan American Silver (PAAS).
Continued strong earnings reactions this week bode well for several of our recent portfolio additions.
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 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.