UPCOMING CABOT EVENTS:
Cabot Weekly Review (Video)
In this week’s video, Mike Cintolo is once again cautious -- but he’s definitely not complacent. The market remains extremely narrow, with wide swaths of the market still acting iffy ... but there are also more and more names acting well (even outside AI), and if more breakouts from leaders stick, Mike will likely be putting money to work. As it is, he goes over all he’s seeing in detail and a ton of stocks that are setting up and probing higher -- you don’t want to miss this video.
Stocks Discussed: ASML, NOW, MDB, INSP, HUBS, UBER, CELH, ITCI, SHAK, PANW, XPO, NXT, TTWO, NFLX
How I Won 87.5% of My Trades in the Last 12 Months
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Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts from April 26, 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 Pro 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 18: We continue to keep things simple, and when you do that, you see that the overall market remains mixed (strong big-cap indexes, weak broad market, etc.) and individual stocks are extremely tricky ... though there remain many setups and it’s not hard to fill up our watch list. Still, we remain cautious overall, holding lots of cash and a few small positions, while waiting patiently for the next big move to start. We are encouraged by the action of the past two days, but it’s far too soon to tell if it’s the real McCoy. In the Model Portfolio, we’ve sold two small positions since the last issue, though we’re adding one new one tonight (a familiar name that we think is finally ready to perk up). We’ll remain flexible going ahead, willing to jump in or stay mostly on the sideline (68% cash) depending what comes. Elsewhere in tonight’s issue, we write about a bunch of new ideas, a sector that’s reasserting itself after a two-month rest and remind you to think big -- yes, right now, the news is bad and the market is tedious, but when things get going, there should be big profits to be had.
Bi-weekly Update May 25: Remain cautious but stay tuned. The market remains very narrow, with a few powerful stocks but the vast, vast majority of names either in no man’s land or acting poorly. For potential leaders, we see many that had been perking up before running into a wall this week—but not (yet) selling off abnormally. If these names can hold soon and resume their upmoves, we’ll like to add at least a couple (maybe more) to the Model Portfolio. Tonight, though, given the extreme narrowness of the advance, we’ll grit our teeth and sit tight, holding about three-quarters in cash and see if these potential leaders can get moving.
Cabot Top Ten Trader
Weekly Issue May 22: It’s still a narrow rally at this point, but we are seeing more names begin to pop higher, whether on earnings or some other news, with some shakeouts-and-recoveries, some earnings gaps that see immediate follow-through and more names setting up. (We don’t hate the selloff in defensive stocks, either.) It’s not definitive yet, but we will nudge the Market Monitor up to a level 5 and see how it goes.
Growth names make another good showing this week, with a variety of sectors (outside of retail, which has been rough) represented. Our Top Pick is a big-cap chip name that has stormed back after a spring correction.
Movers & Shakers May 26: It’s been a very interesting week, with a lot of news and movement, though not a ton of progress in either direction. Coming into today, the Nasdaq was up about a half percent on the week, but that was the only thing in the black—every other major index was off 1% to 2% or more, even including the equal-weight Nasdaq 100, which was down 1% coming into Friday, and the equal-weight S&P 500, which was off 2%.
Cabot Options Trader and Cabot Options Trader Pro
Cabot Options Trader Pro Weekly Update
Cabot Options Trader Weekly Update
Cabot Value Investor
Monthly Issue May 2: Thank you for subscribing to the Cabot Value Investor. The new name for the former Cabot Undervalued Stocks Advisor more clearly and broadly describes our mission to serve value-oriented investors. We hope you enjoy reading the May 2023 issue.
Fitting for a value investment newsletter, your chief analyst will be making the pilgrimage to the Berkshire Hathaway Annual Shareholders Meeting this coming weekend.
In this month’s letter, we include our recent new Buy recommendation: NOV, Inc. (NOV). This high quality mid-cap company ($7.3 billion market cap) appears to be in front of an upshift in demand for sophisticated drilling equipment even as its shares trade at a modest valuation.
We also cover earnings reports and provide other relevant updates on our recommended companies.
Please feel free to send me your questions and comments. This newsletter is written for you and the best way to get more out of the letter is to let me know what you are looking for.
Weekly Update May 23: Comments on earnings from Cisco Systems (CSCO). Raised Comcast (CMCSA) price target to 46 and changed rating from Hold to Buy. Our view on lopsided surge in a few mega-cap tech stocks.
Cabot Stock of the Week
Weekly Issue May 22: Stocks had a good week, but dark debt-ceiling clouds are gathering. The closer we get to the early-June deadline without a deal, the more likely we are to see some selling, at least if 2011 is any guide. To prepare for such a scenario, today we add a bit of safety in the form of a master limited partnership (MLP)-adjacent play on America’s infrastructure boom. It’s a recommendation from Cabot Income Advisor Chief Analyst Tom Hutchinson, and it’s hitting new 2023 highs as I write this.
Bi-weekly Issue May 18: Explorer stocks were steady or slightly down this week but don’t get discouraged. It is likely that Fed interest rate hikes have ended and, combined with a debt ceiling deal, could ignite a rally. Next week I will give an update on our three Explorer ETF positions.
The unemployment rate for Chinese people agesd from 16 to 24, rose to a record of 20.4% last month. The rate of youth unemployment in China has consistently been two or three times higher than the general population. Not a good sign.
Bi-weekly Update May 25: The Explorer had a good week with Butterfly (BFLY) up 15% and Solid Power (SLDP) up 10% this week. The S&P 500 has risen 8% in 2023 but the market gains are very narrow and concentrated, with the top five stocks accounting for most of the gains.
Cabot Small-Cap Confidential
Monthly Issue May 4: For the second month in a row we’re going where the growth appears most resilient. Which means MedTech.
This month it’s another company focused on the spine. But a very specific area. The company specializes in implants for sacroiliac joint (SI) fusion. It already reported Q1 results (beat expectations) and the stock is acting well.
Weekly Update May 25: The market was looking pretty good through last week. Then this week, with no meaningful progress on the debt ceiling, momentum has deteriorated.
Yesterday afternoon U.S. House Speaker McCarthy was on a roll, saying that things are going a little better, that he won’t put a bill on the floor that spends more than last year and that the President is realizing he has to spend less.
JPMorgan says they put the odds of no debt ceiling deal by early June at around 25% and rising.
Cabot Dividend Investor
Monthly Issue May 10: Energy stocks have been by far the best-performing market sector over the last couple of years. They went from worst to first in dramatic fashion. And the good times may be just beginning. The industry has had very low capital spending and expansion in recent years. Crude oil inventories have fallen below the five-year average and are likely headed far lower. OPEC has pledged dramatic production cuts to push prices higher. There is also a high degree of geopolitical risk. In fact, Goldman Sachs analysts are forecasting oil prices to get back to $95 per barrel before the end of this year.
Weekly Update May 24: The market is near the highest level since last summer and up over 9% YTD. But it hasn’t made a sustained up or down move since the beginning of April.
It’s been more sideways action for most of the last week. The big obsession now is with the debt limit. No agreement has been reached and the crucial, as laid out by Treasury Secretary Janet Yellen, June 1 deadline is fast approaching. The market can’t seem to move higher until the issue is resolved. But it doesn’t really fall because investors expect the usual last-minute deal.
Cabot Early Opportunities
Monthly Issue May 17: In the May Issue of Cabot Early Opportunities, I profile a potential turnaround story in a well-known stock that is returning to its roots. We also take a closer look at one of the highest-end luxury brands in the world, an unknown green tech company, an emerging MedTech star and a construction materials specialist that’s spreading across the U.S. Enjoy!
Cabot Profit Booster
Weekly Issue May 23: Before we jump into this week’s covered call idea, I wanted to address our May covered calls, five of which expired for full profits, and others that we need to adjust today.
Cabot Micro-Cap Insider
Monthly Issue May 10: Today, I’m recommending a “buy when there’s blood in the streets” type of stock:
- The company owns valuable real estate in Manhattan and Brooklyn.
- The underlying asset value implies 7x upside to the stock’s current price.
- Insiders have been buying aggressively over the past year.
All the details are inside this month’s Issue. Enjoy!
Weekly Update May 24: This week, I wanted to share a couple good charts to show why I continue to be bullish on energy stocks.
First, energy still represents a very small weight in the S&P 500.
Energy as a percentage of the S&P 500 reached as high as 16% in 2009. Today it’s under 5%.
Cabot Income Advisor
Monthly Issue May 23: This is a tough one. The overwhelming majority of the time the market goes up in the year following a down year. The S&P 500 is up over 9% YTD. That’s a better than 20% annual pace.
Of course, much of that YTD return has to do with the strong performance of the large technology stocks that comprise more than 25% of the index. Nevertheless, stocks have climbed a wall of worry and shown impressive resilience so far.
Weekly Update May 16: The market is up for the year. That’s promising after last year’s debacle. But stocks have been going sideways since the beginning of April and can’t seem to decide on the next decisive direction.
On the one hand, the market has shown inspiring resilience amid the troubling
headlines. On the other hand, there is a strong chance that the next significant move is lower after stocks have rallied 20% from the October low.
Cabot Turnaround Letter
Monthly Issue May 3: We highlight three cash-rich companies that have real products and services whose shares are out-of-favor. We also discuss six additional companies that have both promising turnarounds ahead yet also discounted share prices. Our feature recommendation this month is Frontier Group Holdings (ULCC), a major ultra-low-cost airline focused on leisure travel. Its shares have fallen 50% from its IPO price due to investor concerns about demand, pricing and costs. We think these worries are overblown, leaving ULCC shares ready for take-off.
Weekly Update May 26: Comments on earnings from Kohl’s (KSS). Monthly edition of the Cabot Turnaround Letter will be published on Wednesday, May 31. Moved shares of Ironwood Pharmaceuticals (IRWD) from Buy to Sell. More bad news for Walgreens Boots Alliance (WBA). Interesting memo from Howard Marks. How the Hollywood writers’ strike is a gift to streaming companies.
Cabot Cannabis Investor
Monthly Issue April 26: After another month of dramatic declines in March, cannabis stocks showed a little more stability in April.
This is encouraging, even though it is never really possible to “call the bottom” in out-of-favor groups.
How out of favor is cannabis? I’ve invested through three bear markets, and I don’t think I have ever seen a group as unloved as cannabis is now. Remember, this is a good thing if you are a contrarian investor looking for bargains, as long as the group in question is not a value trap. (Like the declining newspaper industry years ago, a value trap that Warren Buffett got caught in.)
Monthly Update May 10: Cannabis stocks rose sharply in early May on news that Congress is getting serious again about allowing banks to serve cannabis companies. The Senate banking committee will hold hearings on the favorable bank reform May 11.
The reform bill, called the Secure and Fair Enforcement (SAFE) Banking Act, was recently refiled by a bipartisan group of lawmakers in both branches of Congress. The co-sponsors were: Sens. Jeff Merkley (D-OR) and Steve Daines (R-MT), and Reps. David Joyce (R-OH) and Earl Blumenauer (D-OR).
Cabot Money Club
Monthly Magazine June: Teaching your children basic financial literacy pays serious dividends throughout their lives. It helps them avoid debt, practice responsible budgeting and can even help them pay for college and retirement. In this month’s issue, we’ll explore the best ages to teach your children important financial skills, the best apps and tools for learning about money, and even the best games to make financial learning less of a chore.
Stock of the Month May 11: The markets traded sideways through most of April. But since then, the choppiness has returned—along with worries about the uncertainty regarding the debt ceiling, the expiration of the immigration-limiting legislation, and ongoing debate about the possibility of a recession.
Yet, economically speaking, the trends are still healthy. Manufacturing has held up, employment continues to rise, and job openings are still underutilized (as you can tell if you’ve been in a restaurant lately!).
Ask the Experts
Prime Question for Mike: Mike, I remember during the Friday video a few weeks ago that you showed a chart of Boeing (BA). Not exactly a super-growth stock but it might be a good long-term play. The stock seemed to find support right where I think it should (horizontal), right about 198. I’m impressed by their backlog. Any insight?
Mike: Yep – I like the free cash flow story (their official guide is $3B to $5B this year with a goal of getting to $10B down the road). They have had repeated execution issues (or some suppliers have) but overall, good.I agree the stock has held support, but I guess my big thing is the stock is just stuck in a range.
I could see a nibble here with a stop under the recent range (high 180s?) and then aim to buy more if it can get through 220 in a real way. I wouldn’t be plowing in just yet – but I do have it on sort of a distant watch list and if I see any solid accumulation (big day or two or three) I would be more intrigued.
Overall, like it, but like many things, waiting for launch.