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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
This month we’re going with a little-known consulting company that’s growing revenue and EPS in the double digits as it helps organizations adapt to the changing times.

It is growing especially quickly in areas like digital transformation, which is challenging for lumbering organizations in the healthcare and education segments where the firm generates the bulk of its revenue.

With a fresh revenue and profit growth strategy and a plan to return more money to shareholders, this little company’s stock looks great.

Enjoy!
We got into CrowdStrike (CRWD) back in 2019 almost near the stock’s lowest publicly traded price (below 50).
Comparing Microsoft, Bitcoin, and small-cap stocks might seem like comparing apples to bananas to oranges, but if you dig deeper into that comparison you’ll see why I like small-cap stocks.
A quick reminder that Cabot will be closed tomorrow and Friday for Thanksgiving. I hope you have a great holiday and enjoy a break from the market.

As far as our portfolio goes there is very little that’s changed since last week.
Small-cap REITs are among the best performing small-cap stocks these days. Here are three that really stand out.
When a company announces a secondary stock offering, it can be a huge buy signal. That was the case for these three small-cap stocks.
As far as today goes, the S&P 600 Small Cap Index has come up against a wall at 1,230, which is where support was in January and February.
In the November Issue of Cabot Early Opportunities, I take a quick look at some recent earnings reports and continue to spread things out among different industries with our new additions.

This month I cover a premium furniture retailer, a micro-cap biotech, an online finance specialist, an oil refiner and a somewhat speculative space economy stock. There should be something in this Issue for everybody.

Shares of Treace Medical (TMCI) have sold off this morning following the publishing of a short report from Culper Research.
In this week’s video, Tyler Laundon recaps the big news of the week, including the midterm elections, meltdown in the cryptocurrency market and the CPI report.
This morning’s “less bad” CPI report (what a difference 0.2% makes!) is just what the market needed to get off its knees.
This week the cryptocurrency market is in absolute turmoil as one of the biggest exchanges, FTX, is insolvent. This is bleeding into equity markets too.
Treace Medical (TMCI) delivered a Q3 beat after the bell yesterday with revenue of $33.1 million (+53%) beating estimates by $3.03 million and EPS of -$0.22 beating by $0.07.
We’ve had a few earnings reports lately that have been delivered under the cloud of the FOMC meeting and press conference (Wednesday). During that event, Fed Chair Powell opened the door to a slower pace of interest rate hikes starting in December but suggested the terminal rate (how high the Fed goes during this cycle) may be higher than previously expected and last for longer than previously expected.
Procept (PRCT) beat on the top line and missed on the bottom line. Revenue grew 135% to $20.3 million ($3.1 million beat) while EPS of -$0.51 missed by $0.03.
With market jitters returning following the Fed’s meeting yesterday, we’re going back to a segment that’s served us well so far this year – MedTech.

Today’s portfolio addition is another highly specialized company that’s doing things far better than the competition and growing by over 30%.

Enjoy!
Of the many scenarios I considered for Enovix (ENVX) following Q3 earnings, seeing the stock down 40% was way down the list. Clearly the risks are relatively high with a stock like this – not unlike an early-stage biotech company – but so too are the potential rewards.
We’ve had TransMedics (TMDX) for just two months and the stock has traded up 45% - 50% in that time frame, with very little volatility.
In this week’s video, Tyler Laundon recaps the market moving economic and earnings releases from the last week then lays out what investors should expect from the Fed next week, and into December.
I’ve been trying to figure out a way to efficiently share expected earnings dates, consensus earnings expectations and other key data points with you. In that effort, I’ve programmed a spreadsheet to pull data from one of my sources (image below).
A couple of weeks ago the S&P 600 SmallCap Index was trading at a greater than 25% discount to the S&P 500 on a forward PE basis.
Small caps are still trading at a very steep discount that implies very attractive returns in the coming year. The Wall Street Journal had a so-so piece on this earlier in the week.
In the October Issue of Cabot Early Opportunities, we try to interpret some of the latest commentary from Fed officials and look at the future cadence of expected interest rate hikes.

Then we dive into five stocks that seem poised for gains into the end of the year. On balance, we’re still optimistic the worst is behind us. But it’s not (yet) time to be overly aggressive. We try to balance the risks and possible rewards by managing position sizes and continuing to build up our Watch List.
In the October Issue of Cabot Early Opportunities, we try to interpret some of the latest commentary from Fed officials and look at the future cadence of expected interest rate hikes.

Then we dive into five stocks that seem poised for gains into the end of the year. On balance, we’re still optimistic the worst is behind us. But it’s not (yet) time to be overly aggressive. We try to balance the risks and possible rewards by managing position sizes and continuing to build up our Watch List.
With a new Issue of Cabot Early Opportunities dropping tomorrow, tax loss harvesting season in full swing and a market swinging between being up and down significantly day to day (not to mention intra-day), we’re slashing a few positions today.
We’re entering a period where macro factors are going to fade slightly as investors refocus on company specifics. That’s because earnings season kicks off tomorrow with financials.
The current bear market has hit growth stocks particularly hard, and small-cap stocks are now trading at valuations unseen in decades.
The market has been trying to climb off its knees this week as we’re finally getting some solid evidence that both inflation and the job market are cooling.

In a seemingly odd twist, in the short term what’s bad for the economy is probably good for the stock market. While that doesn’t mean we’re out of the woods just yet, I’m going to up our risk profile slightly with a potential big winner in the battery industry.

This company is currently qualifying batteries for wearable technologies and expects to move into more consumer markets, as well as the EV market, in the coming years. All the details are inside the October Issue.

Enjoy!
You may not expect small-cap stocks to outperform in the bear market, but these three companies are shrugging off inflation and thriving.
With the market continuing to have indigestion following the Fed’s 75bps rate hike and higher-for-longer messaging (regarding interest rates), we’re going to trim our position in Toast (TOST) today to reduce the risk of things getting away from us.