Latest Summary
CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Tyler Laundon sees a lot of extended tech stocks but also continued excitement and prioritization for tech infrastructure and hardware spending, especially as compared to software investments. Tyler also serves up some compelling data for how the market tends to do in July, as well as reveals why a strong market doesn’t necessarily mean the Fed won’t cut. Tyler wraps things up with a brief review of Apples jump into AI and what it could mean for iPhone sales over the next three years.
Stocks Discussed: SFM, CAVA, CROX, AA, FCX, FLS, SMH, WCLD, CRM, WDAY, HUBS, DELL, HPQ, HPE, LOGI, GLW, NVMI, ANET, AMAT, ARM, AAPL
Cabot Street Check (Podcast)
This week on Street Check, Chris and Brad discuss Nvidia (NVDA) briefly becoming the largest publicly traded company in the world and its rocky end to the week before looking at the latest retail sales figures and some of the economic reports on tap for the week ahead. Then, they talk AST SpaceMobile (ASTS), its impressive returns since mid-May and the company’s space-based cellular offerings. In the main segment, they welcome on Matt Warder, Chief Analyst of Cabot Turnaround Letter, to explore cyclicality in stocks, his background in commodities, and the opportunities he sees in the months ahead. To read more insights from Matt in Cabot Turnaround Letter, click here.
Cabot Webinar
June 18, 2024 Webinar
2024 Mid-Year Outlook: Secrets to Profits in Today’s Challenging Market
Join renowned small-cap and early-stage investing expert Mike Cintolo, Chief Analyst of Cabot Growth Investor and Cabot Top Ten Trader, for this exclusive live event.
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts from January 24, 2024 is now available for you to listen to at your convenience—click here for access. This private call with our analysts is one of your exclusive Cabot Prime Core member benefits.
RECENT BUY AND SELL ACTIVITY
This table lists stocks bought or sold in the most recent Issues or Updates.
PORTFOLIO UPDATES THIS WEEK
Cabot Growth Investor
Bi-weekly Issue June 13: The market remains a mixed bag, with some big-cap indexes moving up, but just about everything else still stuck in a trading range, while leading growth stocks remain hit or miss. That said, there are some encouraging signs, including some fresher leadership and resilient action among a bunch of names we’re watching and own, so we continue to play things in the middle--we’re holding some strong names and actually averaging up on one of our stocks tonight, but we’re also holding a chunk of cash and being selective.
Bi-weekly Update June 20: WHAT TO DO NOW: Today is an ugly day for growth stocks, with sellers driving many stocks lower as the Nasdaq and some mega-cap winners wobbled. That said, the evidence is basically the same—very mixed and divergent on an intermediate-term basis, with some names doing well but much of the market chopping sideways. We think holding a good-sized chunk of cash makes sense given that risk is elevated, but we’re also holding on to our stocks and giving them some room to wiggle around. In the Model Portfolio, we’re watching things closely, but will sit tight tonight, holding our 30% cash position.
Cabot Top Ten Trader
Weekly Issue June 17: On the one hand, there are still a decent number of stocks that act well and are generally advancing, but on the other hand, more and more names across a variety of areas are hitting air pockets or simply falling by the wayside. To us, the divergence tells us the risk of a big character change is elevated, and that’s why we continue to advise holding a decent chunk of cash—but with plenty of stocks still acting well, we’re also OK with selective buying in names that are under strong accumulation. We’ll again leave our Market Monitor at a level 7, though we remain flexible and will adjust exposure if need be.
This week’s list is another eclectic one, with an increasing number of turnaround-type stories. Our Top Pick is a bigger outfit that’s very cheap but is starting to see some AI benefits—and the stock has shown exceptional power of late.
Movers & Shakers June 21: It started as a relatively quiet week as summer gets going and Wednesday was off. But the past two days have brought a good-sized rotation, with a lot of elevated, strong names deflating in a hurry even as the major indexes don’t move too much.
Cabot Value Investor
Monthly Issue June 6: Renewable energy stocks have never lived up to their considerable promise, having peaked more than 16 years ago. And yet, there’s rarely been a bigger gap between the stocks’ value and the industry’s growth in the wake of the Inflation Reduction Act. Renewable energy projects – solar in particular – have taken off since President Biden signed that bit of eco-friendly legislation, in August 2022. Most solar companies are reporting record revenues these days. But the stocks haven’t followed suit, trading at 2018 levels.
That seems like a pretty extreme divergence between the industry and its companies’ share prices. So in this month’s issue of Cabot Value Investor, we add a solar company that’s capitalizing on the global investment in alternative energy, but is still woefully undervalued, trading at a mere 0.18x record sales.
Details inside.
Weekly Update June 20: The market is at all-time highs. But most stocks are undervalued.
That’s the strange but true reality in today’s Magnificent 7/AI-centric bull market. Yes, if you’ve invested in the seven largest mega-caps or a handful of artificial intelligence-related stocks (Broadcom (AVGO), Palantir (PLTR), Super Micro Computer (SMCI), Taiwan Semiconductor (TSM), etc.), you’ve done quite well. But most other sectors have lagged.
Cabot Dividend Investor
Monthly Issue June 12: The market has been terrific. And it will probably finish the year higher than it is now. But there is reason for caution.
Because of sticky inflation, interest rates remain near the highest levels in 20 years and may continue to stay high or go higher, until they drive the economy down. A hugely contentious presidential election is about to take place. And there are two significant global wars going on.
Steep selloffs are common even in markets that rise over time. The S&P 500 doubled over the last five years. But it crashed 30% in record time at the onset of the pandemic in 2020. There was also a bear market in 2022 during which the S&P fell over 20% and the Nasdaq plunged well over 30%. Of course, most stocks were down a lot more than the indexes. If you targeted some of the very best stocks at fire sale prices you could have gotten amazing returns.
In this issue, I highlight a way to target the purchase of the very best stocks at fire sale prices amid market turmoil that may occur from the potentially market-roiling issues this year or next. Most investors don’t buy when the market is crashing because it’s natural not to want to try and catch a falling knife. But there’s a way to take emotion out of the equation and calmly plot a way to fantastic returns.
Weekly Update June 20: This market just continues to forge ever higher. The S&P 500 closed at new all-time highs four times last week. The index is now up 15% YTD, and we’re not even at the halfway point.
Cabot Early Opportunities
Monthly Issue June 20: 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.
Cabot Income Advisor
Monthly Issue May 28: It’s a great time for income. The market is at an all-time high. The May through November period is historically a more lackluster period for stocks. Income generation is an ideal way to generate positive returns when stocks aren’t rising. But not if the stocks generating the income get knocked down by rising rates.
There is a great answer: midstream energy stocks. These are companies that transport and store oil and gas for a fee. The subsector is among the highest yielding of all income-generating stocks. And unlike many dividend stocks, they have thrived over the last few years of rising interest rates. For the most part, these stocks are not interest rate sensitive and can endure inflation or recession. They have proven to be the perfect sector to generate a high income in this market environment.
In this issue I highlight a stock that has been the very best income generator in the Cabot Income Advisor portfolio. It has been held profitably in the portfolio on three past occasions. Each time it delivered a positive total return along with several covered calls for huge income. It’s a tested and true income-generating superstar.
Weekly Update June 18: Just when it looked like the rally was petering out, the market is having a great June so far. The S&P is up about 5% in June after making four consecutive record closes last week. The index is now up 14% so far this year, and it’s not even half over.
Cabot Turnaround Letter
Monthly Issue May 29: Sizing up a merger arb opportunity requires more than just garden variety equity analysis. In his famous letter to Berkshire Hathaway shareholders in 1988, Warren Buffett laid out four questions to answer regarding arbitrage situations:
- How likely is it that the promised event will indeed occur?
- How long will your money be tied up?
- What chance is there that something still better will transpire – a competing takeover bid, for example?
- What will happen if the event does not take place because of anti-trust action, financing glitches, etc.?
Today, we add a new Cabot Turnaround Letter recommendation that we think comes close to answering all four.
Weekly Update June 21: Earnings season is over, so there were no companies that reported earnings this past week. However, we do have at one last company on a slightly different fiscal schedule reporting next week – Walgreens Boots Alliance (WBA), who will announce results on the 27th.
Cabot Money Club
Monthly Magazine May: Household debt is rising, and consumers are feeling the squeeze of higher interest rates everywhere, from mortgages to auto loans to credit cards. In this month’s issue we’ll share ten warning signs that signal financial trouble ahead and the ten bad financial habits you need to drop now to avoid it.
Stock of the Month May 9: It was more of the same for the markets this past month—some momentum, but ultimately, we ended up in just about the same place.
Investors are a little gun-shy as most were expecting Fed rate cuts to begin in the latter half of the year. But as the inflation beast is proving harder to tame than expected, Fed Chair Powell has indicated it may take longer before we see a rate cut.
ASK THE EXPERTS
Prime Question for Mike: Great webinar, Mike - always appreciate your insight. Can you share the Cabot Tides screen?
Mike: Well, Cabot Tides is our market timing indicator so it’s not a screen. Basically, we look at five major indexes vs. their 25-day and 50-day lines. Basically, if it’s above the lower of those two, and that moving average itself is advancing, then the index is trending up – and we want to see 3 of the 5 in that boat. Right now, in our view, most are still sideways.