A few weeks ago, at the annual Morningstar Investment Conference in Chicago, two investing icons debated the merits of value versus growth. On the value side was Rob Arnott, founder and head of Research Affiliates, with Cathie Wood, founder and head of ARK Management,...
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It gets a bad rap, but a reverse stock split can change the fortunes of a public company. Here are four reasons why more companies should do it.
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The good news is that the marijuana industry is growing rapidly, with the leading companies continuing with their programs of store openings and acquisitions.
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Last week, we wrote about how lower quality, in both home appliances and tangible money, debases value and is a form of inflation. Today’s note includes some of our current views on inflation and capital markets, and what investors can do to help inflation’s...
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In my 35 years with Cabot, there have been five stocks that changed my life. Here they are - plus three more that I like today.
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Across almost the entire length of the yield curve, interest rates are ticking up. The benchmark 10-year Treasury yield reached 1.53% and may be headed back toward its December 2019 rate of about 1.90%. In an economy that is showing rapid growth, with well...
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Transportation is a fundamental component of human existence, and like all industries, innovations that improve relevance while reducing costs mean the difference between prosperity and oblivion.
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Monday’s big, sharp market pullback was shocking to some investors, and scary enough to cause many to sell stocks in the fear that the correction would go deeper. It certainly might—the September/October period often brings major corrections—and maybe it should, though should is word...
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It’s not news that the stock market has been sloppy lately. After the steady march upward to a doubling of the S&P 500 from the early 2020 low, and a 33% increase from year-end 2019 before the pandemic, one can hardly be disappointed the...
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After a stunningly strong market so far this year, with the S&P 500 producing a 20% total return through Monday, the slow grind-down of most stocks since early September has seemed interminable. The 1,100 largest stocks in our 3,000-stock database have declined only in...
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Fundamentally, all is well in the marijuana sector as the industry’s leaders continue to grow, both organically and by acquisition. The average rate of revenue growth for the plant-touching companies in our portfolio in the most recent quarter was an amazing 132% from previous...
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This week, we are rolling forward our valuation comments – generally dropping our valuation based on 2021 estimates, where appropriate, while adding commentary based on estimates for 2023. Most analysts project that all of their companies will have higher earnings in future years, we...
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There has been a flurry of reverse stock splits of late. Are they good for investors? Traditionally no. But there are exceptions.
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While the stock market continues to set new record highs, investors continue to bypass the energy sector. One indicator: the sector’s weight within the S&P 500 has collapsed from nearly 16% in 2009 to only 2.4% today, making it the smallest in the index.
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The Cabot Undervalued Stocks Advisor is on vacation this week, recharging the batteries for what could be a very interesting September and fourth quarter in the financial markets. As such, this week’s edition will be abbreviated in length, although we include our Cisco earnings commentary full...
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Do you avoid reverse stock splits, or are you intrigued by them? Here's some insight on the wins and the losses.
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Some time ago, there was a television show with the above title that pulled viewers back into the 1970s. It used that earlier era to create a somewhat unique vibe that inadvertently highlighted how much has changed in our world over the decades.
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Most of our stocks continue to build bases, so I remain patient, waiting for a renewed advance by the sector. The standout stock in our portfolio is Innovative Industrial Properties (IIPR), which broke out to a new high last week after a great report.
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Just reading those words, “climate change,” is almost certain to light up emotions. Regardless of one’s opinions on the degree of urgency and which of a very wide range of proposed policies and actions should be taken, how could words about the end the...
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Looking at the charts of our portfolio stocks today, there’s been no real change since last week, so I have no changes. But there have been a few relevant news items.
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