Latest Summary
CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Mike Cintolo talks about the increasingly encouraging top-down evidence, including the late-week green light from his intermediate-term trend indicator; he continues to think the lows are very likely in and, when looking out many months, the odds favor the market being nicely higher. That said, from a bottoms-up perspective, it’s still a waiting game in terms of leadership, with many stocks seeing selling on strength and relatively few breakouts. As a growth investor, Mike is still going slow, but is ready to get aggressive if individual stocks kick into gear.
Stocks Discussed: CRS, ATI, PLTR, TOST, PODD, GEV, UBER, RBLX, BMI, IBIT, WING, TWLO, NOW
Cabot Street Check (Podcast)
This week on Street Check, Brad runs through the news of a trade deal with the U.K., the latest Fed meeting, and Warren Buffett’s retirement announcement. Then, he’s joined by Tyler Laundon, who takes a look under the hood of the market, breaks down his bullish stance on gold (and how to play it) and highlights the areas of strength he’s currently seeing in small-cap stocks. For more information on this week’s special offer, visit cabotwealth.com/street.
Cabot Webinar
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts 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 May 1: The evidence has improved during the past couple of weeks, with our Two-Second Indicator looking much better and, importantly, a Three Day Thrust signal (one of our Blastoff Indicators) flashing green last week, both of which prompted us to put a little money to work last week. Still, while that’s definitely a feather in the bulls’ cap, the primary evidence remains negative, so we’re continuing to hold plenty of cash while setting our sights on next week: If our Tides turn positive and many potential leaders gap on earnings (there are tons of names reporting next week), we’ll definitely be putting a good chunk of money to work ... but as always, we’ll take it as it comes, which today means going slow but staying flexible should the market’s recent good vibes accelerate.
Bi-weekly Update May 8: WHAT TO DO NOW: From a top-down perspective, there’s plenty of good news from the secondary evidence and our Cabot Tides is very likely to turn positive tomorrow, which is another good sign. That said, individual stocks remain very tricky, with lots of selling on strength and poor earnings reactions among names we own or have been watching—that’s not a reason to be bearish, but we advise going slow until we see more real breakouts. In the Model Portfolio tonight, we’re jettisoning our small stake in Argenx (ARGX), which has fallen apart this week pre- and post-earnings, but we’ll add two new half-sized positions: Halozyme (HALO) and GE Aerospace (GE). That will leave us with around 70% in cash—we’d like to put more cash to work but will wait for names to emerge instead of forcing the issue.
Cabot Top Ten Trader
Weekly Issue May 5: Given where we stood a month ago, you couldn’t have asked for much better action from the market—now it’s a matter of following through: The intermediate-term trend is on the fence, and many individual stocks have been (possibly temporarily) rejected near obvious resistance levels. Thus, if we see further strength this week, turning the trend up for many indexes and allowing some fresh leaders to take off, we’ll look to extend our line—but if the sellers dig in, more patience will be needed. Right now, we’re sticking with our Market Monitor at a level 5, and we’ll adjust if need be in the days ahead.
This week’s list has a lot of strong names, including a few that have recently reacted well to earnings. Our Top Pick is one of the stronger names in one of the strongest growth areas (cybersecurity). We’re OK starting small here.
Movers & Shakers May 9: It’s been a fairly quiet few days for the major indexes, with most down less than 1% on the week after the recent sharp recovery, which seems normal enough.
More important to us is that our intermediate-term trend model (called Cabot Tides) has turned positive today—essentially, after a decline like we saw, a green light happens when most major indexes are above where they were five weeks ago (the 25-day moving average starts to trend up). That’s happening today, as five weeks ago was the early-April crash, and of course the indexes have had a good rally of late.
Cabot Value Investor
Monthly Issue May 1: Few industries were more negatively impacted by Covid than the cruise industry. And few have come roaring back faster in Covid’s wake. And yet, share prices haven’t kept up with the record sales and passenger numbers. So today, we recommend a major cruise-industry stock that has the largest disparity between sales and earnings growth and share price growth. We also have updates on all our existing stocks as investors mercifully put a historically choppy April for the market in the rear-view mirror and flip the calendar to what will hopefully be a far more fruitful May.
Details inside. Enjoy!
Weekly Update May 8: Warren Buffett isn’t concerned about the market’s slow start this year. “What’s happened in the last 30, 45 days is really nothing,” the Oracle of Omaha said at Berkshire Hathaway’s annual shareholder meeting last weekend. In the grand scheme of market history, he’s right.
Cabot Dividend Investor
April 9: The S&P crashed more than 5% on consecutive days last week for the first time since the onset of the pandemic. The index came within a whisker of a bear market, down 20% from the high on a closing basis.
It’s easy to get spooked out of the market these days. Few people believe the market has hit bottom when it does. Unheeded warnings play over in your mind as Judgement Day seems to have arrived. Stocks were overvalued. The trade war will cause a global recession. Excesses of the last several decades are being called. It’s time to get out of the market and save yourself.
Markets are emotionally driven in the short term. Fear and greed tend to be the dominant forces. But over time, emotions take a back seat to money and profits. When the market tanks, our emotions tell us to run for the hills. But history tells us it’s the best time to invest.
There are some truly stellar stocks in the portfolio that have generated returns comparable to the most successful stocks on the market. The problem is that these stocks are rarely cheap. But the recent market has put these phenomenal investments back within reach.
The recent panic has provided a rare entry point. Even if prices fall further before they rise, these stocks can easily make up for lost time when they move higher again. In this issue, I highlight two of the best stocks in the market to own at valuations not seen in years.
Weekly Update May 7: The market just had a big leg higher. Last Friday the S&P 500 concluded an epic nine-day run of positive gains, the longest such streak in more than 20 years. The index rose by more than 10% during the streak. What’s going on?
Cabot Early Opportunities
Monthly Issue April 16: Despite the crazy market, there are still stocks out there that are acting extremely well.
This month’s Issue covers five standout performers in the sports betting, gold mining, natural foods, insurance and pharma markets.
Cabot Income Advisor
Monthly Issue April 22: It’s been a tough market. The S&P started this week down about 6% for the month of April, over 10% YTD, and over 14% from the high. And that was before Monday’s selloff. It is entirely possible that the market falls back to a new low and an official bear market.
The tariff uncertainty is continuing, and it could get worse. A bad headline could roil the market any day. We’re not out of the woods yet. The market could get worse before it gets better. But it will get better at some point.
Weekly Update May 6: Things are certainly looking up in the market. The S&P 500 had an epic nine-day run of positive gains, the longest such streak in more than twenty years. The index rose over 10% during the streak. What’s going on?
The rally began after President Trump indicated a de-escalation of the trade war with China. There are ongoing negotiations with the other trading partners during the 90-day pause initiated on April 9th. A perception is building that the worst of the tariff uncertainty is behind. Stocks also got a boost from earnings and economic news.
Cabot Turnaround Letter
Monthly Issue April 30: “What’s that got to do with the price of eggs?” is an adage that was once commonly used to question the relevance of a particular subject introduced to a conversation. But in light of current economic conditions—and as it pertains to this month’s stock recommendation—that question is entirely relevant.
Indeed, the price of eggs is just one of many concerns for millions of Americans today as inflation remains a thorn for the economy and for policymakers. Record-high egg prices have become emblematic of the larger question of inflation’s persistence, particularly for retail food costs.
Weekly Update May 9: In today’s note, we discuss pertinent developments for some of the stocks in the portfolio, including Berkshire Hathaway (BRK.B), Intel (INTC), Pan American Silver (PAAS), Sirius XM Holdings (SIRI) and SLB Ltd. (SLB).
Consensus assumptions for the energy sector this year are mostly bearish, but several factors argue in favor of a contrarian bullish view.
Cabot Money Club
Monthly Magazine May: Artificial intelligence is everywhere these days, from your email spam filters to customer service chatbots to phone systems, but does it belong in your portfolio? This month, we’ll learn more about the growing use of AI in day-to-day life, how it operates, how companies are leveraging artificial intelligence to manage investments, and whether you should trust these automated tools to make (or help you make) investing decisions.
Stock of the Month May 8: While the volatility continues, the markets made some upward progress since our last issue, with all the broad indexes rising—although both Growth and Value stocks are still negative, year to date.
Sector-wise, all sectors— except for Energy (-6.02%), Technology (-7.34%) and Consumer Discretionary (-11.17%)—are in the black, led by Utilities (+5.10%), Consumer Staples (+3.66%), and Real Estate (+2.98%).
ASK THE EXPERTS
Prime Question for Mike: Hi Mike. If it is OK, just writing my 2 cents’ worth here. In early March we experienced the drastic down in the market - the huge sell-off that occurs every so often on an event/news happening, where you can clearly see a bottom, where (when) the correction ends, then zig-zags up (think the end of February to mid-March 2020 covid drop as well). This is just a vote for gobbling up very undervalued leaders at that time, (like) the leaders you had recommended in past issues like Palantir (PLTR) - went down into the 60s, now over 100 again - or Robinhood (HOOD), etc. I know that sometimes you need to wait for the best leaders to reveal themselves thereafter, but this is a vote for “getting in” then.
At least if you buy up what you think will do well, you can always sell the ones that don’t move quickly to recover or show great strength/momentum shortly thereafter. Then at least you would own some really great leaders/stocks at fire-sale prices. I think investors would be miles ahead, i.e. get rich opportunities with those leaders/long-term holds (until the market dictates otherwise). I am not saying this is what you should recommend, just sharing my viewpoint that is best for myself (not that I did this for other reasons (although I wanted to), but what I thought would logically happen at the time). I’m personally looking forward to the next huge drop in the market to have the opportunity for some quick returns on long-term holds.
But meanwhile, I need to make a decision on what to buy in the next little while. I look forward to reading the email you just sent out.
Mike: So, it’s a fair point, and I hear what you’re saying – and many times that will work.However, first, as you said, you’re not really sure which stocks are the leaders.But second and more importantly, you’re making it sound way too obvious that we’ve hit a low point. Basically, what works often in the market tends not to work over time as the times it doesn’t work, it crushes you.That said, taking a stab at some SPY or QQQ or whatever if you’re heavy in cash, I can see that, when the market is very, very oversold. But many names looked “cheap” in early 2008 or even early 2022 and then fell another 50%. To each their own, though, you just have to be aware of the risks is all.