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 Turnaround Letter 1021

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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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 Turnaround Letter 921

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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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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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 Small Cap Confidential 266

The Big Idea It used to be that sales and marketing teams relied on conferences, cold calls, mass mailings and in-person networking events to engage with business clients. Then the internet arrived, and a lot of this activity moved online. That was great … for while. But...
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Cabot Turnaround Letter 721

At about the halfway point of 2021, the S&P 500 has returned 14.8% (a good annual return in most years), continuing its remarkable advance from the depths of the pandemic-led sell-off in March 2020.
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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 Small Cap Confidential 265

The Big Idea I’m not the biggest pop culture guy out there. But I do have an affinity for certain movies, shows and sports teams that have struck a chord, or played a special role in my life. This is likely true for everybody out to...
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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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