Cabot Weekly Review (Video)
In this week’s video, Tyler Laundon discusses some of the factors that are pushing the major market indices toward their third week of weekly gains. He touches on the underperforming small cap index and what’s needed there for small caps to really take off and make up lost ground. Tyler then covers six small cap ideas, all of which are united with beautiful charts. He gives a high level review before signing off and wishing everybody a Happy Thanksgiving Holiday. Stocks discussed: APPF, CRS, CWCO, DAKT, KTOS
Cabot Street Check (Podcast)
This week on Street Check, Chris and Brad bring on Mike Cintolo of Cabot Growth Investor and Cabot Top Ten Trader and Jacob Mintz of Cabot Options Trader and Cabot Profit Booster to talk all things market-related. They discuss promising signs in the current market rally and what could signal an all-clear for the bulls, option buying by the institutions that move markets, and where they’re seeing the strongest names in the market. Then, they talk about the possible impacts of market seasonality, signs of strength in China and what they’re looking for in the weeks ahead. To sign up for the upcoming Free Investor Event, “Mastering Today’s Market: 4 Experts, 4 Top Picks, and a Wealth of Wisdom,” click here.
Save the Date: Tuesday, November 21 at 12:00 PM ET
Mastering Today’s Market: 4 Experts, 4 Top Picks, and a Wealth of Wisdom
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts from October 18, 2023 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 November 16: The market continues to improve, with our Cabot Tides turning positive earlier this week. Now, not everything is rowing in the same direction, and among growth stocks, the pickings are relatively concentrated, so for now we’re stepping slowly into stocks and building positions rather than cannonballing into the pool—we added a chunk of money earlier this week, and tonight we’re adding one new half-sized stake in a volatile name we’ve been following for a while but has now changed character on the upside.
Elsewhere in tonight’s issue we review all our stocks, dive into many encouraging pieces of secondary evidence and one group that has a history of trending and is showing outsized institutional accumulation right now.
Bi-weekly Update November 9: WHAT TO DO NOW: Remain cautious overall, but if you have a ton of cash, it’s OK to put a little to work. Our market timing indicators have improved, but by our eye, haven’t yet turned up, and while last week was a great first step for the market, there hasn’t been much follow through or expansion of new highs. To be clear, we’re optimistic and a few good days could make all the difference, but right here we’re still going slow and seeing if the market and leadership can truly emerge. In the Model Portfolio, we’ll buy another half of DraftKings (DKNG), leaving us with around 65% in cash. We’re also restoring our Buy rating on Uber (UBER) for those that don’t own any given the stock’s very powerful snapback. If things kick into gear, we’ll likely put money to work quickly, but right now we’re going slow and letting the rally prove itself.
Cabot Top Ten Trader
Weekly Issue November 13: Last week was a split tape, with the big-cap indexes continuing their thrust higher, though the broad market remains a soft spot. Overall, the intermediate-term trend is effectively neutral, and we think what happens from here will tell the tale, with further strength indicating that a year-end rally is underway, though should the broad market infect the leadership, all bets are off. Right now, we’re more optimistic than not, but are simply looking for more confirmation on the upside—we’ll leave our Market Monitor at a level 5.
We think the most bullish thing the market has going for it is the action of individual stocks, a good number of which are beginning to percolate. Our Top Pick definitely quacks like a liquid leading name.
Movers & Shakers November 17: It’s been another constructive week for the market, with the major indexes up and most leading stocks acting appropriately. More important to us is that the broad market kicked into gear, which has turned the intermediate-term trend up for all of the major indexes we follow.
Cabot Value Investor
Monthly Issue November 7: We discuss recent earnings from our companies and move shares of Sensata Technologies (ST) from Buy to Hold given the company’s lower overall quality compared to our initial understanding.
We also include some thoughts on the current stock market and how rising interest rates and other factors have led investors to unload shares of most companies and riskier companies in particular.
Weekly Update November 14: Last week, the Hong Kong Monetary Authority hosted hundreds of bankers including the heads of 90 global financial institutions to discuss the current status and future outlook for the world’s capital markets. Despite the increasingly tight grip that China has on Hong Kong, which is leading to a diminished relevance for the island state, notables including Morgan Stanley CEO James Gorman and Goldman Sachs head David Solomon participated in the in-person meetings. The draw: Hong Kong remains an important gatekeeper for access to mainland China’s financial markets.
Cabot Dividend Investor
Monthly Issue November 8: The market has been highly unpredictable over the last several years. Things are too uncertain to make bets on the current outlook. Timing the market and betting on sector rotation is a riverboat gamble. I’d rather bank on prevailing trends that will transcend short-term market gyrations.
There is a strong prevailing positive trend in the energy industry, particularly American energy.
Clean energy is the future, but not the near future. The world will continue to rely overwhelmingly on fossil fuels for at least the rest of this decade and probably much longer. But the world has underinvested in oil and gas exploration and production over the last decade and a half. Global supplies are straining to meet growing demand. The dynamic will last for some time.
Investors are realizing the value of companies and stocks in a sector that had been neglected for many years until recently. While commodity prices will go up and down based on several circumstances, energy companies should benefit over time going forward.
In this issue, I highlight the largest American oil refiner. The stock has been a stellar performer. And the company will continue to benefit from cheaper American oil and a reduced number of refineries.
Weekly Update November 15: The November rally is alive and well. After the market soared to the highest weekly returns of the year in the first week of the month, the rally sputtered last week. But it has come alive again after a good inflation report.
Cabot Early Opportunities
Monthly Issue November 15: In the November Issue of Cabot Early Opportunities we lean into the strengthening market with a group of companies doing everything from providing security for new AI applications to paving roads in the Sun Belt to making packaged foods for health-conscious consumers, and more.
Cabot Income Advisor
Monthly Issue October 24: The market has been choppy and unpredictable. Optimism about a “soft landing” is being tempered by rising interest rates. Either the strong economy or high interest rates will dominate the market in the months ahead. We’ll see.
But what seems to be quite clear is that the economy is solid for now. Third-quarter GDP is expected to be over 5%. Even if the economy does slow, it will likely take several quarters to slow from here. That means gasoline demand should remain solid. And that should be good news for refiners.
In this issue I highlight one of the best performing large company stocks in the energy sector over the last several years. It is also one of the few plays out there that still has solid momentum, as the stock remains in an uptrend that began three years ago.
Good momentum means high call premiums as more investors are willing to be on higher prices in the future. The refiner stock highlighted in this issue has a great chance of providing the opportunity to sell covered calls in the near future. It should help generate a high income in this uncertain environment.
Weekly Update November 14: This has been a very positive month so far in the market. Will the rally continue?
After three straight down months for the S&P 500 where the index dipped into correction territory (down 10% from the high), the index has turned around and is up over 5% so far in November. The catalyst is the perception that interest rates have peaked.
Cabot Turnaround Letter
Monthly Issue October 25: Much of the art of finding interesting turnaround stocks is looking at catalysts, tracking management changes and searching through lists of out-of-favor companies. Sometimes, however, good ideas can be found closer to home – literally – by looking through the roster of public companies in one’s home state. We discuss five turnarounds underway in our home state of Massachusetts.
Despite near-record gold prices, shares of gold producers remain depressed. We discuss two attractive companies. Our Buy recommendation this month is Agnico Eagle Mines Ltd (AEM), a premier gold mining company selling at a discounted price.
Please feel free to send me your questions and comments. This investment letter is written for you. A great way to get more out of your letter is to let me know what you are looking for.
Weekly Update November 17: This week’s note includes our comments on earnings from Advance Auto Parts (AAP), Macy’s (M), Tyson Foods (TSN) and Vodafone (VOD). The earnings season is winding down, with Kohl’s (KSS) reporting next Tuesday (Nov. 21) and Duluth Holdings (DLTH) reporting on November 30.
Cabot Money Club
Monthly Magazine November: Getting an early head start on a career or trade that you’re passionate about can mean the difference between just punching the clock and doing meaningful work that’s satisfying in its own right. On top of that, you can potentially save hundreds of thousands of dollars on education expenses and make significantly more over the course of your career by tailoring your educational pursuits to match your career goals. This month, we’ll help you outline a blueprint to pursue your dreams while maximizing your earnings, and we’ll discuss the pros and cons of investing in your employer and industry.
Stock of the Month November 9: The markets had a very good week, and so far, we are also seeing momentum in the first couple of trading days this week. These upward moves have taken the Dow Jones Industrial Average to just about where we started at the beginning of 2023.
Last month, inflation edged up to 3.7%, from 3.67%, and the unemployment rate also slightly increased, to 3.9%. The Federal Reserve—for two continuous decisions—kept the Fed Funds rate steady.
ASK THE EXPERTS
Prime Question for Mike: Hi Mike. Still holding both Samsara (IOT) and Shopify (SHOP). I’m now slightly up on both by a couple of percentages points. Wondering if you had any thoughts on those stocks as they stand currently.
Mike: SHOP has gapped and been powerful on the upside, so I’m less willing to ditch that. To be fair, it’s right up into an area of resistance so I’m not against selling if you really want to (or selling some), but the power is noteworthy.
IOT is less impressive. Yes, a couple of good days, but up off its lows. My guess is it could work if the market does, but earnings on December 1 will be important.
All in all, my guess is IF the market has really turned, both could do OK, so I wouldn’t rush out and sell, personally. That said, I get it, and given the run both have had, it’s really more about whether you’re craving the cash or want to move the money elsewhere in the portfolio. I would tend to sell some of both but hold some, too.