Cabot Micro-Cap Insider 1021

Time for a Rocket This week, I was tempted to recommend another cyclical energy name as I tend to believe we are in the early innings of an energy crisis. Soaring commodity prices and low equity valuations should result in some explosive returns. But we have...
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Cabot Micro-Cap Insider 921

Back to School My daughter started kindergarten last week while my son will be starting his second year of pre-school next week. School starts with half days, but by next week, we will be on to full days and back in the swing of things. While is...
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Cabot Micro-Cap Insider 821

“Trades” vs. “Core Positions” My favorite stock to recommend is a growth-at-a-value-price name like Performant Financial (PFMT), my recommendation last week. These companies are great because they can grow revenue and earnings significantly, and also benefit from a valuation multiple re-rating. This is what can generate or...
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Cabot Micro-Cap Insider 721

Growth at a Value Price If you’ve been a subscriber for a while, you’ve heard me say it before. I love micro-caps because you can buy growth stocks at value prices. In large-cap land, you can buy growth stocks for growth (expensive) prices and value stocks value...
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Cabot Micro-Cap Insider 621

“Nothing is Cheap Anymore” Every Friday, a bunch of families in my neighborhood gather at a local park to have pizza, drink some beer, and let our kids run around. It’s a great way to unwind after the week, and the kids usually sleep well Friday...
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Cabot Micro-Cap Insider 521

Pent-Up Demand I recently stumbled upon the below chart showing that savings rates in 2020 were 50% to 500% higher than the previous 20 years. What is the takeaway? There is plenty of pent-up demand around the world. In other words, people have money burning hole...
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Cabot Micro-Cap Insider 321

Value is Pulling Away From Growth Value investors have waited a long time for this. After suffering through one of the worst periods of relative underperformance ever, value is outperforming. Not only is value outperforming, but it feels like some of the froth is being sucked of...
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Cabot Micro-Cap Insider 221

The Market is Expensive But Don’t Fight the Tape Depending on who you follow to get your financial news, you may be aware that the U.S. stock market is quite expensive and there are several warning signs that prospective returns could be weak. For example, S&P...
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Cabot Micro-Cap Insider 121

How I Pick Micro-Caps It’s been a while since I’ve explained my process for picking micro-cap stocks so I figured it would be worthwhile to review. It can be extremely profitable to invest in growth companies, as any Tesla or Amazon shareholder will tell you. But is...
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Cabot Micro-Cap Insider 1220

Focus on the Fundamentals Sentiment indicators continue to suggest the market may be due for a pullback. The Citi Panic/Euphoria model suggests sentiment is high right now. Historically speaking, when this model sees “euphoria” in the market, 12-month forward returns look poor. Another interesting sentiment data point S&P...
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Cabot Micro-Cap Insider 1120

Full Steam Ahead Well, it took an additional four days after election day for a winner to be declared, but on Saturday, Joe Biden was officially projected to be the 46th U.S. President. The race was a lot closer than many anticipated, and President Trump challenging...
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Cabot Micro-Cap Insider 1020

Going Contrarian Ideally, I like to look for companies that are operating in industries with secular tailwinds and long runways for growth (think Liberated Syndication or P10 Holdings). I usually don’t like to invest in overly cyclical industries because a lot is out of the control. However,...
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Cabot Dividend Investor 919

Profit from the American Energy Export Boom One of the constants in life is change. The winds of change seem to swoop in and disrupt things we mistakenly consider permanent. Understanding exactly when and where such events occur is crucial to successful investing. One such change...
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