Sell ARIS and Half of SPT
With the market having put on a great show over the last month and a new Issue of Cabot Early Opportunities on deck for tomorrow, let’s take this opportunity to trim our portfolio a little.
Aris Water Solutions (ARIS) is moved to sell. The stock fell after earnings and hasn’t made much upside progress since. While energy stocks could go on a run again any day, the variability in Aris’ business model (as discussed in my Special Bulletin after earnings) could keep bigger investors from piling into this name. Especially when there are a lot of other stocks acting better. SELL
Sprout Social (SPT) has been in our portfolio since early 2020 and we’ve done well (we made 246% on our first half position and are up 211% on our remaining stake). I’m confident the business will do well down the road and think the stock will also (in fact I’m continuing to cover SPT in Cabot Small-Cap Confidential). However, we cover a lot of stocks in this advisory service, and with SPT’s action subdued after reporting earnings a couple weeks ago, I’d like to replace it with a new high-growth name that’s acting a little more constructive right now. SELL REMAINING HALF
Watch List Updates
I’m also going to freshen up our Watch List and that means dropping a few names that aren’t likely to be upgraded to buy in the near term. As such let’s go ahead and drop Kinetik Holdings (KNTK), Palantir (PLTR), and Travere Therapeutics (TVTX).
