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tyler-laundon

Tyler Laundon

Chief Analyst, Cabot Small-Cap Confidential and Cabot Early Opportunities

Tyler Laundon is chief analyst of the limited-subscription advisory, Cabot Small-Cap Confidential and grand slam advisory Cabot Early Opportunities. He has spent his entire career managing, consulting and analyzing start-up and small-cap companies. His hands-on experience has taught Tyler that the development of a superior business model is the biggest factor in determining a company’s long-term success. Accordingly, his research focuses on assessing the viability of management’s growth strategies, trends in addressable markets and achievement of major developmental milestones.

Tyler’s small-cap portfolios favor a high allocation to stable, high growth companies, upon which he layers strategic purchases of higher risk, event-driven investments. He first began publishing his analysis of small-cap opportunities in 2009. Since 2012, he has led his subscribers into 10 doubles. Between 2012 and September, 2015 his small-cap recommendations generated cumulative returns of over 2,300%, including both winners and losers, and outperformed the Russell 2000 Index by an average of 28% per year.

Prior to joining Cabot, Tyler founded and operated a small business for 15 years. He then worked as a consultant for start-up technology companies, as well as Vermont’s largest health care institution. From 2009 to 2015, he was the chief analyst of growth stocks at Wyatt Investment Research, where his research spanned the full spectrum of the growth stock universe, from micro-cap start-ups to multi-national mega-caps.

Tyler holds a B.S. and MBA from The University of Vermont, where he graduated Valedictorian. He has been a long-time contributor to the Wall Street’s Best Investments, has been quoted by U.S. News & World Report, and has presented investing ideas and strategies for The Money Show and Bloomberg Markets LiveINSIGHTS.

From this author
With the Juneteenth Holiday this week and our last update just three business days ago (and right after the FOMC meeting), there is very little to talk about today. So, I’ll keep things short and sweet and we’ll jump right into company-specific updates, of which there are hardly any.

In other words, enjoy a break in the action! They rarely last long.
In the June Issue of Cabot Early Opportunities, we continue to lean into AI themes while taking a swing at a speculative space communications company. We’re also trying to keep things real here on earth with a picks-and-shovels-type infrastructure play, and we pull back the curtain on a real rarity in 2024, a software stock with a nice chart!

As always, there should be something for everybody.
Sell Second Quarter of EverQuote (EVER)
The shine seems to have come off gold and gold miners recently so we’re going to step aside from Alamos Gold (AGI) at just a hair above our entry price.
Small caps are off ever so slightly over the last five sessions, though yesterday’s CPI data and Jerome Powell’s press conference/FOMC meeting helped the asset class bounce back from what was a fairly ugly looking four-day slide. The big-picture takeaway here is that the asset class is suffering from the same type of bad breadth malaise that’s keeping a lid on much of the broader market.
Small caps have been trailing the broader market since last May, but looking forward, the case for them is attractive. So are small caps a buy, sell or hold right now?
In 2000 a small company began selling a proprietary surgical adhesive to seal up arteries. Over the next two decades that company would acquire several highly specialized products for patients undergoing heart surgery.

Today, the company is hitting its stride as surgeons and patients (and the FDA) see how much better its solutions are.

This month’s Issue has all the details.
With gold prices rising, gold stocks are rising even faster, and long-term macro conditions may be signaling even higher prices in the future.
It’s been another week of small caps getting pulled around by moves in the 10-year yield, which is largely a function of Fed speaker commentary.

First it was Neel Kashkari (non-voter) sounding off with hawkish comments (yields up, small caps down), though it’s the inverse today after Raphael Bostic (voter) said he still thinks the Fed will be in position to cut rates in Q4.

Next up are NY Fed President John Williams (12:05 ET) while Dallas Fed President Lorie Logan speaks after the close today.
Cava Grill (CAVA) Reports. FTAI Aviation (FTAI) Update
Yesterday Alphatec (ATEC) fell below support near 10.5.
The S&P 600 Small Cap Index has drifted a little lower this week but made a nice move over the last month as interest rates declined. The S&P 600 iShares ETF (IJR) is up 7% over the last five weeks.

The chart inside shows how clear the inverse relationship between the IJR (green line) and the 10-year yield (blue line) is.
Stocks of companies that came public over the last two years are moving higher while the IPO market continues to pick up steam. Early-stage investors rejoice!
We’ve been able to enjoy a break in the earnings action this week (finally), and without a lot of company-specific updates, we’ll keep things short and sweet today.

The main message is that the broad market continues to rise on the back of rate cut expectations and a falling 10-year yield (down to 4.35% from over 4.7% a couple weeks ago).
In the May Issue of Cabot Early Opportunities we dig into prospects across next-gen AI-enabled devices, emerging markets, meal replacement shakes and picks-and-shovels type infrastructure plays.

As always, there should be something for everybody.

Enjoy!
Intuitive Surgical (ISRG) has a great story (next-gen Da Vinci 5 platform) but shares have been irresponsive to the potential and failed to make any sustained progress after the March 18 earnings report.
Soleno (SLNO) gave a business update/reported Q1 results after the close yesterday. Not much new to talk about given the recent (April 29) announcement (covered in a Special Bulletin that day) that the FDA granted the company’s lead drug candidate (DCCR) Breakthrough Therapy Designation for the treatment of adults and children ages 4 years and older with Prader-Willi syndrome (PWS).
Shares of Docebo (DCBO) opened lower this morning after the company delivered a Q1 beat after the close yesterday but lowered full-year guidance.
When it comes to small appliances, SharkNinja (SN) is one of the more innovative players out there, and the company’s mass-market appeal and expansion into new categories continue to deliver impressive results.
Earnings reports have been on the menu this week. Some have gone our way, with Zeta (ZETA) and EverQuote (EVER) having fantastic reactions. We’ve taken a few punches too, and Talkspace (TALK) was cut on weakness while Alphatec (ATEC) is down but not yet out of the portfolio.

I’ve upgraded Intapp (INTA) this week as that stock looks like it could move significantly higher. We also add to our Weave (WEAV) position today in anticipation of a rebound in the share price.
Rivian (RIVN) has been our dog in the portfolio but I’ve held on because I think the potential for shares to come back and ultimately work well is still there. Yesterday’s first-quarter results don’t suggest that will happen right away, but there are certainly some bright spots.
Shares of Intapp (INTA) should open higher today after the company beat Q3 fiscal 2024 expectations after the close yesterday. Revenue grew 20.2% to $110.6 million, beating by $2.4 million (2.3%), while EPS of $0.14 was up from a penny in the year-ago quarter and beat by $0.07.
New kid on the block Zeta (ZETA) is starting the week off with a bang after the Q1 report yesterday sailed past expectations.
Shares of GoDaddy (GDDY) are trading about flat today as the stock digests yesterday’s slightly better-than-expected Q1 report. The story here remains intact as we look forward to the full launch of Airo, the company’s new AI-powered solution for website creation and management, a significant pain point/roadblock for creators.
The digital marketing world has been turned upside down as new privacy measures make it more challenging to track consumers across online and in-app activities.

But one company has been building out a unique opt-in data set and the backend technology to do just that. It sells this information to the biggest companies in the world so they can reach consumers with personalized marketing messages. With the new privacy measures, business is strong.

All the details are inside the May Issue of Cabot Small-Cap Confidential.
Enovix (ENVX) Up On Q1 Results and Development Agreement, Weave Communications (WEAV) Dips After Q1 Report
Shares of Leonardo DRS (DRS) are trading down today despite Q1 results that came in ahead of expectations across the company as a whole, but with results in the legacy Advanced Sensing & Computing (ASC) segment just coming in as expected. It was the Integrated Mission Systems (IMS), which includes electric power and propulsion, doing the heavy lifting.

Shares of TransMedics (TMDX) are indicated to open nicely higher this morning (+10% to 15%) after the company smashed Q1 expectations.