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Cabot Undervalued Stocks Advisor 420

April 1, 2020

Today’s featured companies are benefiting from the current focus on healthcare, online commerce, dining at home and limited travel behaviors. These companies are Amazon.com (AMZN); Bristol-Myers Squibb (BMY), a new addition to the Growth & Income Portfolio; Mercury General Group (MCY) and Tyson Foods (TSN).

All of the stocks that I follow with any regularity finished falling in March, and began to rebound. I’m glad for that, and happy to be buying low. However, there’s still a dark cloud on the horizon. The longer the quarantine situation lasts in the U.S. and in foreign lands, the uglier the economic situation will become. That’s because many companies are scrambling for cash to pay their employees, rent, utilities, etc. while they’re not actually selling any products that can replenish the cash flow.

There are various stocks in today’s issue that I indicated would be good for traders. “Good for traders” bears no resemblance to “good for buy-and-hold investors”, okay? Please read my recommendations carefully. When in doubt, send me an email with your questions.

Lastly, take your time investing cash positions. Many stocks will be in trading ranges, so watch for opportunities to buy low and sell high within those ranges. To that end, I’ve listed short-term upside price resistance targets on quite a few of the stocks. When the stocks rise to those targets, you’re going to tell yourself “my stock is going to keep rising!” Instead, odds are very strong that your stock will turn down. This will be a trader’s market for much of 2020. If you’ve ever toyed with the idea of buying and selling within a stock’s trading range, this is the year to do it! Best of luck to you!

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Cabot Undervalued Stocks Advisor 320

March 4, 2020

Today’s portfolio changes include one stock joining us with strong earnings growth and a stronger price chart than most stocks during this market correction, and another leaving the portfolio due to frequent downward revisions in earnings estimates.

The stock market will not likely bounce back quickly to its February highs. I’d be completely shocked if any such rebound occurred this month, or even in April. Instead, I expect a significant amount of volatility in the coming days, as buyers and sellers take turns embracing and dumping stocks. Despite the occasional up day in the market, there are many stocks that have not finished falling yet. Most such stocks are companies that will likely be harmed by a pullback in this year’s expected economic growth. After all, when people are quarantined – or just plain staying home and canceling travel and outings – many businesses suffer, not the least of which are travel, restaurant and retail companies.

I know that you will hear some friends or stock market pundits imply that the market will rebound quickly. Please, I beg you not to fall for that rosy prognosis. The market fell nearly 13%. That’s a BIG DROP. It’s going to take quite a few months to recover, and the recovery will most likely be precipitated by news that global economies are recovering from the coronavirus-induced lapse in economic output.

That’s not to say that there won’t be buying opportunities. I will continue to point out growth stocks that have somewhat bullish or tradeable price charts. These will be the ones with which you’ll want to “buy low.”

Lastly, take your time investing your cash. Many stocks will be in trading ranges, so watch for opportunities to buy low and sell high within those ranges

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Cabot Undervalued Stocks Advisor 220

February 5, 2020

Today’s featured stocks are General Motors (GM), which reported fourth quarter results this morning; Goldman Sachs Group (GS), a new addition to the Growth & Income Portfolio; Equitable Holdings (EQH), which could deliver quick capital gains when they report earnings; and Universal Electronics (UEIC), which gave an informative presentation at the recent Needham Growth Conference.

I also discuss the coronavirus, which could easily cause stock market turbulence through April, even if the virus dissipates quickly.

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Cabot Undervalued Stocks Advisor 120

January 8, 2020

Here is the January 2020 issue of Cabot Undervalued Stocks Advisor. Today’s featured stocks are those that I sense are most likely to rise this month: AXA Equitable (EQH), Broadcom (AVGO), LGI Homes (LGIH) and Tyson Foods (TSN).We’ll probably see near-term strength in energy companies, alongside rising oil prices; and insurance companies, as their fourth quarter results include capital gains from investment portfolio performance. Earnings season kicks off this month with banks reporting fourth quarter results. It’s not too late to sell the worst stock in your portfolio and replace it with shares of a high quality, growing company that has a bullish price chart.

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Cabot Undervalued Stocks Advisor 1219

December 3, 2019

Download the new report Cabot’s 10 Best Stocks to Buy and Hold for 2020 (subscribers only)

Here is the December 2019 issue of Cabot Undervalued Stocks Advisor. LGI Homes (LGIH) joins the Buy Low Opportunities Portfolio today and Quanta Services (PWR) rejoins the Growth Portfolio. Additionally, we say goodbye to CIT Group (CIT), which continues to have a slightly-improving price chart, but the 2020 earnings growth prospects are too dismal to remain in the Growth Portfolio.

Open today’s issue to read additional features and changes with Guess?, Inc. (GES), Universal Electronics (UEIC) and Blackstone Group (BX).You’re always welcome to send questions and comments to Crista@CabotWealth.com.

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Cabot Undervalued Stocks Advisor 1119

November 5, 2019

Let’s turn our attention to additional profitable opportunities

In that light, I added four extra stocks at the end of this month’s issue; bonus stocks that won’t permanently join the portfolios, but nevertheless offer excellent money-making opportunities today.

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Cabot Undervalued Stocks Advisor 1019

October 1, 2019

There are five growth stocks in our Cabot Undervalued Stocks Advisor portfolios that offer dividend yields in excess of 5%. That’s crazy! Stocks with rising profits in combination with very large dividend yields are generally uncommon, and can indicate an extreme undervaluation of those companies’ share prices. Dividends can tell you a lot about a company, or about the broader stock market. I cover the dividend topic in more detail in today’s issue.

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Cabot Undervalued Stocks Advisor 919

September 3, 2019

I hope you had an enjoyable and relaxing summer. Wall Street is back to work this week, and Apple (AAPL) is launching a new product or two next week, so get ready for stocks to start moving again.

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Cabot Undervalued Stocks Advisor 819

August 6, 2019

Since we’re in the midst of a sudden stock market correction, I decided to feature three stocks today that seem to offer the best opportunities while their prices are temporarily low.

Be brave! If you saved up portfolio cash with which to buy low at moments like this, now is the time to buy something! You don’t have to spend it all in one day, of course.

If you are new at buying low during stock market corrections, and you’re feeling excited and scared and tentative and unconfident, send me an email. You’re going to be okay, and I’d love to hear about your experience. Learning to buy low is an important step toward increasing your future stock portfolio success.

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Cabot Undervalued Stocks Advisor 719

July 2, 2019

A large number of our portfolio stocks are experiencing bullish price action right now. Unless something ugly hits news headlines in the next few days, we’re probably going to enjoy a strong stock market in the first half of July. I hope you’re not sitting on the sidelines!

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Cabot Undervalued Stocks Advisor 619

June 4, 2019

Within the Growth & Income portfolio, you’ll find a discussion of retail woes. The Buy Low Opportunities Portfolio features a comparison between two of the rare retailers that emerged from first-quarter earnings season unscathed. I was simply focused on retail stores throughout May. Lots of investors own these stocks, and I figured some of you might find the assessment interesting.

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Cabot Undervalued Stocks Advisor 519

May 7, 2019

The stock market isn’t done rising. Nevertheless, it’s certainly okay to begin accumulating cash with which to buy low during the next stock market correction. The way I personally handle that is when I sell a stock, I put half of the proceeds into my brokerage account’s money market fund, and I buy shares of stock with the other half. In that manner, I get to participate in the market’s bull run while also “saving for a rainy day”. The best antidote to a stock market correction is having money available to buy low!

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Cabot Undervalued Stocks Advisor 419

April 2, 2019

Various portfolio companies are in the midst of changes and volatility related to a spin-off, a name change, the Boeing Max 737 problem and the ongoing effects of Midwest flooding. In addition, U.S. stock markets decided that they’re ready to rise again, so I itemized several opportunities in this issue ranging from blue chip stocks to a microcap stock.

I expect 2019 to continue being a year that offers great opportunities for stock traders. While my investment style of identifying undervalued growth stocks is not conducive to day trading, investors will likely find lots of opportunities to achieve capital gains of 10% or more over several-month periods.

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Cabot Undervalued Stocks Advisor 319

March 5, 2019

If you own small or regional Western U.S. energy stocks, make sure to read my comments in the introduction about some pending legislation in Colorado that does not bode well for in-state energy production. I’m sorry to say that the legislation is likely to rapidly move through the legislature, because the minority political party does not have enough votes to block it, and the Governor is likely to sign it. For stock investors, forewarned is forearmed.

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Cabot Undervalued Stocks Advisor 219

February 5, 2019

Today I’m highlighting three different types of trading opportunities: buying stocks in the days leading up to earnings reports, buying stocks when they fall a silly amount on neutral or good news, and putting great stocks on watch as we await pullbacks. There are many changes in Buy recommendations today, reflecting both dramatic changes in year-to-date price action and significant earnings revisions as Wall Street contemplates final 2018 numbers and solidifies their 2019 earnings projections. I’m not trying to be fickle! I’m just trying to stay on top of the facts so that you can have a clear idea of where tomorrow’s profitable opportunities can be found.

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