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Cabot Small Cap Confidential 263

April 1, 2021

The action of high-growth stocks continues to be sloppy despite the strong performance of most underlying businesses.

To help ease our portfolio thorough this period I’ve been evaluating companies with exposure to the reopening economy, and I think I’ve nailed it.

Today’s stock is an online retailer serving younger generations. These consumers should be among the most active spenders as the world opens up again. And this up-and-coming retailer should be a major beneficiary.


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Cabot Small Cap Confidential 262

March 4, 2021

As we march toward spring it appears real-world risks are decreasing (more vaccines, lower case count, etc.) while the market risk for growth stocks has gone up (higher yields, volatility, etc.), at least in the short term.

As I scanned through dozens of charts and evaluated stories for this month’s addition my focus was repeatedly drawn to one stock. The chart is compelling, the story is enticing, and the recent Q4 report and forward guidance illustrate sound fundamentals, supported by long-term demand growth.

The stock appropriately balances the potential risks and rewards in the current market.


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Cabot Small Cap Confidential 261

February 4, 2021

There is no shortage of great stories in the medical technology field. Today we’re jumping in on one that’s been on my radar for some time.

The company has just begun to commercialize a revolutionary technology for treating BPH and prostate cancer, which affects millions of men around the world. Regulatory approval is in hand across three continents, and revenue growth is in the 80% to 100% range.

There are plenty of challenges ahead, but this company appears to be on the path to enormous success.

All the details are inside. Enjoy!

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Cabot Small Cap Confidential 260

January 7, 2021

In the closing days of 2020, when many people were focused on preparing for the holidays, a small software company went public through a SPAC IPO. The event occurred on December 23.

Part customer relationship management (CRM) platform, part lead generation and marketing platform, the company’s software helps home services companies grow and manage their businesses, and it streamlines the move-in and post-move journey for homeowners.

The stock represents a compelling way for investors to gain exposure to evolving consumer and business trends related to the housing market and home services, especially home inspection, moving, insurance and utility services. After a pandemic-affected 2020 growth could top 60% in 2021, then remain well above 30% for the foreseeable future.

All the details are inside. Enjoy!

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Cabot Small Cap Confidential 259

December 3, 2020

This month we’re jumping into a company that specializes in precision medicine for cancer.

It has developed a sequencing platform that is able to analyze over 20,000 genes, far more than most competitor solutions. Even better, this platform allows analysis of both tissue biopsies and liquid biopsies.

Ultimately, the company is going after a roughly $40 billion market. Yet its market cap is a mere $1 billion today.

This company is still unknown, but that’s likely to change as it brings new products to market and continues to transform the market for personalized cancer vaccines and next-gen cancer immunotherapies.

All the details are inside. Enjoy!

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Cabot Small Cap Confidential 258

November 5, 2020

This month we’re jumping into a small MedTech company that represents a picks and shovels play on the cell and gene therapy market. It makes biopreservation media and storage solutions for cutting-edge treatments, including Kite’s (owned by Gilead) CAR T-cell therapies YESCARTA and TECARTUS.

It’s a high growth company with exposure to both clinical trial and commercial-stage therapies. Covid-19 therapies and vaccines are part of the mix too. And there is an M&A angle that’s increasingly relevant.

The stock appears to have huge upside over the coming years. And we’ll get an update from management almost immediately after you read my reports since the company reports Q3 earnings after the close today.

All the details are inside. Enjoy!

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Cabot Small Cap Confidential 257

October 1, 2020

While automobiles have become more consumer-friendly over the last decade there are still a lot of clunky technologies that drivers deal with.

Sometimes mobile devices pair seamlessly, sometimes they don’t. Sometimes, a car’s infotainment system functions so poorly that drivers are more distracted than they were in the good old days of reaching for cassette tapes under the passenger seat.

Today we’re investing in a company that’s developing a digital ecosystem for connected and autonomous vehicles that will make driving safer and more enjoyable for everyone.

It’s an under-the-radar story still, but not for long. Enjoy!

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Cabot Small Cap Confidential 256

September 3, 2020

This month we’re jumping back into the pure-play software space with an up and coming SaaS company that has remained under the radar since going public in December, just a few months before the market tanked.

It specializes in social media management solutions, which are increasingly important as the trend toward digital transformation strategies gets stronger. Organizations increasingly recognize they must market to consumers through social networks.

Revenue growth is hovering around 30% and first profits are still a couple years away, meaning we’re still early to the table.

All the details are inside this month’s Issue. Enjoy!

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Cabot Small Cap Confidential 255

August 6, 2020

This month we’re jumping into a new IPO that’s following in the footsteps of Livongo and Teladoc, bringing an innovative digital health solution to the masses.

As with those firms, this company sells solutions to companies, but it is the end consumer that uses the products, which are aimed at improving engagement and health outcomes while reducing costs.

With limited history as a public company, an earnings report coming next week, and the recent news that Livongo and Teledoc will merge, I expect shares of this company will be somewhat volatile. Please be sure to average in. We are starting with BUY A HALF rating today.

All the details are inside this month’s Issue. Enjoy!

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Cabot Small Cap Confidential 254

July 2, 2020

Digital payments were already a big trend prior to Covid-19. But the pandemic has pulled forward demand for solutions that help businesses pay and get paid whenever, wherever, and however.

Today we’re profiling a small company that specializes in payment processing solutions. It’s relatively new to the public markets and has a market cap well under $2 billion.

While areas of its busieness have been harmed by the pandemic the big-picture story remains great. And management reported record sales activity in both March and April. And the stock’s looking great.

All the details are inside this month’s Issue. Enjoy!

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Cabot Small Cap Confidential 253

June 4, 2020

Today we’re breaking into a familiar market by going back to the insurance industry.

But today’s addition is very different from our other rapid growth insurance companies in a major way (as you’ll soon see!).

The stock is acting strong and the fundamentals remain great, despite COVID-19.

All the details are inside this month’s Issue. Enjoy!

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Cabot Small Cap Confidential 252

May 7, 2020

This month we’re adding a high-growth biotech name that has just begun to commercialize a unique compound for fighting aggressive cancers and other diseases including, potentially, COVID-19.

The company just began booking revenue from its first cancer treatment. That launch significantly de-risks the stock and raises the potential for future approval of the same compound for other indications.

The stock has retreated lately because prescription sales were curbed during the COVID-19 outbreak. This should be a temporary dip as there are many potential stock-moving catalysts coming this year. We’re hoping to sneak in and buy the dip on this high-potential name.

All the details are inside this month’s Issue. Enjoy!

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Cabot Small Cap Confidential 251

April 2, 2020

This month we’re looking past all the current uncertainty in the market at a profitable, young company that should hold its own during this rough patch then accelerate growth into the back half of 2020 (assuming the pandemic eases as we move into the summer months).

The company offers intelligent identity solutions for global enterprises. These solutions are strategic imperatives because they help workers do their job from anywhere and help companies streamline customer experiences.

It’s not the type of stock that’s likely to surge on expectations of an immediate surge in demand, like Zoom Video (ZM) or Teladoc (TDOC). But with 115% net revenue retention the company should grow with current clients in the near-term, then grab its fair share of new business once economic activity picks up again.

We start today with a half position given the market conditions. All the details are inside.

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Cabot Small Cap Confidential 250

March 5, 2020

This month we’re jumping into a software company that’s developed an innovative product for the emerging gig economy. But it’s not another Airbnb, Lyft or Uber. No apartments for rent or cars for hire here.

Rather, just like eBay and Etsy have created online marketplaces for buyers and sellers of physical goods, this company has created a marketplace that matches buyers and sellers of digital services—things like graphic design, writing and web development.

As the gig economy explodes this company is poised to enjoy rapid growth. And while no company is inoculated from the coronavirus, this one has some protection since it’s part of the digital, not physical, economy.

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Cabot Small Cap Confidential 249

February 6, 2020

This month we’re going deep into the world of high-speed sensing and communications with an unknown micro-cap stock specializing in fiber optic technologies.

This isn’t another of those boom-to-bust components manufacturers that crush it when data centers are expanding and fall apart when capex falls. Rather, it’s a company that specializes in fiber optics for industrial, transportation and construction applications, such as in airplanes, vehicles, buildings and space stations.

It’s not a low-risk investment. But the potential is huge – if management can execute on its growth plan.

Zoom into the February Issue for all the high-speed details!

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