Cabot Small-Cap Confidential Weekly Update
The big recent developments since I wrote last Thursday are the rise in Covid cases in Europe, and that Jerome Powell got the nod for another term leading the Fed.
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small cap sector Archives
Cabot Small-Cap Confidential Weekly Update
On to the market. It was a funkier week than last week, though big picture nothing has changed. We are moving into the tail end of earnings season so we may see a more moderate amount of investor interest over the next two weeks.
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Cabot Small-Cap Confidential Weekly Update
It’s been sort of an odd week because, while the focus has been on individual companies, there’s been some macro stuff driving erratic trading action.
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Cabot Micro-Cap Insider 1121
Choose the Game Carefully
This weekend, my friend was over with his kid for a playdate with my 3-year-old, and we were shooting the breeze.
We laughed about Elon Musk’s Twitter poll.
In case you missed it, Musk posted the following poll:
My friend said, “Tesla (TSLA) to...
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Cabot Small-Cap Confidential 270
The Big Idea
In the late 1990s Matt and Andy Wisdom were living in New Orleans, producing 3D animation for TV commercials. On a project for a company named Radiophone they needed animated cellphones playing basketball. They spent $15,000 out of a $25,000 budget design...
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Cabot Small-Cap Confidential Weekly Update
This week has been all about earnings, even though we’ve only heard from one company in our portfolio. That company is Repligen (RGEN), which reported this morning (the stock is reacting well). Notes on that report are below.
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Cabot Small-Cap Confidential Weekly Update
As we move closer to earnings season for our portfolio holdings (really gets underway the week after next) we see many small-cap growth names (and growth stocks in general) recovering nicely from the drawdowns in late September.
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Cabot Small-Cap Confidential Weekly Update
The biggest stories this week weren’t all that different from last week, namely supply chains, interest rates/inflation, and Covid. But this week has a decidedly different feel to it, possibly because we’ve added earnings season into the mix and, so far, that’s going well...
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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 Small Cap Confidential 269
The Big Idea
If given a choice between taking a drug via pill or needle, how often would you choose the needle?
If you said never, congrats. You’re human.
Nobody in their right mind says, “I’ll just take the shot doc.” Unfortunately, there are still tons medications...
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Cabot Small-Cap Confidential Weekly Update
After a delayed rection to last week’s Fed commentary Treasury yields have shot up (though they are still very low). To put it in mortgage rate terms a 30-yr. refi has gone from around 2.875% to 3.0% over the last week.
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Cabot Small-Cap Confidential Weekly Update
The big developments over the last week have been the situation with the potential failure of Evergrande (Chinese property developer) and interest rates. As of mid-morning Thursday, we appear to be moving past these potential issues.
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Cabot Small-Cap Confidential Weekly Update
The S&P 500 has finally failed to make a new high every day lately and is 2% below the high-water mark! That doesn’t seem like it should be news but in this market it’s worth noting.
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Cabot Small-Cap Confidential Weekly Update
Despite more grumblings out there about how “we are due for a pullback,” stocks continue to hold up. In fact, many growth stocks have done far better than that and are jumping higher on almost a daily basis.
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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 Small Cap Confidential 268
The Big Idea
Whenever a lawsuit is filed the first thing that happens is lawyers on both sides go through a discovery process.
This means searching for relevant information, facts, and evidence. It requires sifting through tons of materials – emails, documents, financial statements, mail, etc...
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Cabot Small-Cap Confidential Weekly Update
We’ve seen a nice little rally as we head into the waning weeks of summer. The S&P 500 has been incredibly strong and even the S&P 600 Index, which hasn’t made any net new progress since March, popped off last week’s low and back...
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Cabot Small-Cap Confidential Weekly Update
With economic data pouring in amid a slew of earnings reports there is a lot going on out there. The resulting stock price movements often drive a combination of heartache and exhilaration, and that has certainly been the case for us over the two...
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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 Small Cap Confidential 267
The Big Idea
Covid-19 has changed the way we live and work, what we do for activities, and how we interact with friends and family. Some changes will be transient, while others will hang around for a while.
Two notable trends that should have staying are...
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