Cabot Weekly Review (Video)
In this week’s stock market video, Mike Cintolo talks about the market’s under-the-surface improvement that he’s seeing; no indicators have changed, which will need to happen for him to extend his line in a big way, but there’s no question most stuff has seen improvement and more stocks are beginning to act properly. Mike did a little buying this week and is hoping to add more should the market be able to build on the recent action.
Stocks discussed include:
ENPH PODD AXON FIVE CELH FOUR ASML INSP ASO ETSY CROX PDD ALNY
UPCOMING CABOT EVENTS:
The 3 Cabot Stocks You Should Buy for 2023
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Cabot Growth Investor
Bi-weekly Issue Not much has officially changed with the market since our last issue, with the Cabot Tides positive, but the other indicators still down and with most growth stocks still having trouble making any real progress. That said, we are seeing a gradual improvement in the evidence, with other indicators closing in on green lights and, even among individual stocks, some better, more proper action.
Bi-weekly Update November 23: Hold firm, at least for now. Not much has changed with our viewpoint of the market—our Cabot Tides remain positive, but our Trend Lines and Two-Second Indicator are bearish, and there’s no doubt growth stocks continue to struggle, whether looking at indicators (our Aggression Index is testing new lows) or just watching individual stocks. With all that said, given our 80% cash hoard, we could put a bit more money to work if the market holds up for another few sessions, but we’re not in a rush to do any big buying until the environment for growth stocks truly kicks into gear. We have no changes tonight.
Alert November 14: The market is pulling in today, though given the rally last week, the action among the indexes is still normal. On the market timing front, the Cabot Tides green light is still in effect, though our Cabot Trend Lines remain bearish, as does our Aggression Index. The Two-Second Indicator did record “only” 35 new lows on Friday, so we’ll see if that continues.
Cabot Top Ten Trader
Movers & Shakers December 2: The major indexes have been up and down this week, with this morning’s better-than-expected jobs report likely to offset a chunk of Wednesday’s post-Fed gains. We’ll see how it plays out, but nothing has changed with the evidence, at least from a black-or-white perspective. The intermediate-term trend is still up, which is definitely a good thing, but the long-term trend is down and the broad market is still unhealthy. Plus, of course, most growth-oriented stocks are having trouble letting loose on the upside, though there are some other areas of strength.
Weekly Issue November 21: Nothing much changed with the market last week: The major indexes were down, but not severely, and the intermediate-term trend continues to point up. That said, under the surface, it remains a very mixed bag—some areas look great, but there are as many (or more) wobbly names out there compared to names in solid uptrends. We’ll keep our Market Monitor at a level 5 this week, though we’d like to individual stocks act better soon.
Cabot Undervalued Stocks Advisor
Weekly Update November 30: Another event with consequences is the earnings report for recommended name Big Lots (BIG), scheduled for pre-market release on December 1.
Monthly Issue November 2: While sharp declines in hyper-growth tech stocks to below their pre-pandemic prices may seem like the proverbial “end of days” has arrived, the fall-off is more a return to normal following a period of vast excesses.
Cabot Stock of the Week
Weekly Issue November 28: With one month left to go in this miserable year, the stock market picture is the brightest it’s been in some time. The S&P 500 is up 11% since its mid-October bottom, volatility is way down, and December is traditionally (though not always) one of the better months on the calendar for investors. The next Fed meeting or inflation data point could throw cold water on all that, but for now the water is at least lukewarm, which means it’s time to take a chance and dive in head-first with a new small-cap financial recommendation courtesy of Cabot Early Opportunities Chief Analyst Tyler Laundon.
Alert November 10: Sell Montauk Renewables (MNTK), Keep Centrus Energy (LEU)
Bi-weekly Issue December 1: Centrus Energy (LEU) shares were largely unchanged as the company is well positioned to benefit from growth in next-generation nuclear technology, helping provide reliable and carbon-free electricity. This is still a buy for aggressive investors.
Bi-weekly Update November 17: Centrus Energy (LEU) shares recovered five points this week to reach 35 as the Department of Energy announced that it and Centrus Energy’s American Centrifuge Operating, LLC will share the $150 million cost 50-50 to demonstrate production of a fuel called high assay low enriched uranium. This is still a buy for aggressive investors.
Cabot Small-Cap Confidential
Weekly Update November 23: 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.
Alert November 15: Shares of Treace Medi)al (TMCI) have sold off this morning following the publishing of a short report from Culper Research.
Monthly Issue December 1: 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.
Cabot Dividend Investor
Monthly Issue November 9: The Fed has raised the Fed Funds rate six times this year to combat inflation and the last four times at a 0.75% clip. The current 4% rate is the highest in well over a decade. But inflation hasn’t budged even after the rate hikes, a shrinking GDP, and a bear market.
Weekly Update November 30: The recent market rally has leveled off and is wavering. The next few days may determine whether the market rally continues, or the indexes retreat once again.
The latest upturn has been stoked by optimism over retreating inflation and a softer, gentler Fed. The Central Bank is widely expected to raise the Fed Funds rate at a slower 0.50% pace, versus the last four hikes of 0.75%, at the December meeting in two weeks. But Chairman Powell is giving a speech today. Any indication of a higher-than-expected hike will undo the major reason for the recent rally.
Cabot Early Opportunities
Alert November 30: We got into CrowdStrike (CRWD) back in 2019 almost near the stock’s lowest publicly traded price (below 50).
Monthly Issue November 16: In the Noovember Issue of Cabot Early Opportunitses, 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.
Cabot Profit Booster
Alert November 18: Today, a whopping eight Profit Booster positions will expire. Most are “slam-dunk,” full-profit trades, while others will go down to the wire.
The big takeaway, before we dive in, is we are going to let the situation play itself out, and come Monday/Tuesday of next week we will revisit our profits, as well as how we will manage the remaining positions.
Weekly Issue November 22: Today we are going to keep the profits rolling by selling a defensive covered call in a recent earnings winner.
Cabot Micro-Cap Insider
Monthly Issue November 9: Today, I’m recommending a financial that is taking advantage of a special opportunity that is only available to small community banks.
Weekly Update November 30: The market performed well during the holiday-shortened week.
The S&P 500 is brushing up against its 200-day moving average, and if I had to guess, I would expect it to reverse from here.
While I’m not a technical analyst I wouldn’t be surprised if we saw some weakness, similar to what happened in August after the index brushed the 200-day moving average.
Cabot Income Advisor
Weekly Update November 30: The rally sputtered. But it hasn’t reversed. That’s because there are reasons for both optimism and caution.
There is a growing perception that the problems responsible for this bear market have peaked. Inflation has been receding and the Fed might be less aggressive going forward. The market tends to anticipate six to nine months into the future, and it sees lower inflation and the Fed done hiking rates.
Monthly Issue November 23: The recent rally has lifted call premiums to the highest levels in many months as more investors are willing to bet on higher prices going forward. But unless this current rally leads us to the next bull market, it’s probably nearly over. It’s a great time to lock in a high income while premiums are fat, and stocks may be close to a near-term high.
The current market is creating a golden opportunity to get a high income in an otherwise crummy market. Let’s grab it. In this issue, I highlight two call-writing opportunities in stocks that have rallied strongly since being added to the portfolio. While I like the prospects of these stocks over the next year, it’s time to err on the side of income.
Cabot Turnaround Letter
Weekly Update December 2: This note includes the Catalyst Report, a summary of the December edition of the Cabot Turnaround Letter, which was published on Wednesday, and earnings from Duluth Holdings (DLTH).
Monthly Issue November 30: While investment losses are everywhere this year, we highlight two ways to harvest these losses and discuss seven stocks that have strong appeal as year-end bounce trades.
We also highlight four attractive stocks held by highly-regarded long-term value investment funds that we found in our analysis of the recent 13F regulatory filings.
Our feature recommendation this month is theme park operator Six Flags Entertainment (SIX). This company is aggressively working to improve its profit structure under a completely new leadership team but the turnaround is taking longer than investors would prefer, leaving its shares overly depressed. For patient long-term investors, the shares offer an attractive, asymmetric potential return.
Cabot Money Club
Monthly Magazine December: Here is how you can reduce your tax liabilities at the end of the year—some you will know about, and some you may not be familiar with.
Stock of the Month November 10: The market had a nice run in October, with the Dow Jones Industrial Average gaining 14% for the month.
The economy continues to look pretty good, with manufacturing steady, construction spending up, and employment still healthy, despite a 200-basis point increase in the unemployment rate, now 3.7%.
Ask the Experts
Cabot Growth Investor
Question: Mike, you’ve got enough on your plate without asking for more, but I am surprised you gave a thumbs down to defense stocks. I think a case can be made that now is a real opportunity (China, Ukraine). Also note that 9 of the top 10 ITA stocks are up on a 1-year return basis.
Mike: Maybe I should have been clearer. To me, aerospace is more commercial stuff – the TDGs and SPRs of the world. I view LMT/NOC as different (defense/war) – and yes, those are acting better.Thus, two different areas/drivers of business in my book – one is long upgrade cycles as global air travel increases (and returns to normal post-Covid), the other is more politics/war.
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts from October 19, 2022 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 Pro member benefits.