Latest Summary
CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Mike Cintolo talks about the market’s continued wobbles, this time on two big pieces of news (inflation first, then Iran/Israel potential conflict). Despite the volatility, his stance hasn’t changed, as the market and most leaders are stuck in the middle -- being sold on strength but with few flashing abnormal action on the downside, either. The goal now is to have your plan in place, both in terms of stops should the sellers stay at it -- as well as your watch list, where Mike relays another batch of enticing setups.
Stocks Discussed: LLY, NVO, TOST, ASML, CAVA, WING, WFRD, FCX, CART, IBIT, AXON, DUOL, FRPT
Cabot Street Check (Podcast)
This week on Street Check, Chris and Brad discuss embracing the latest pullback, sticky inflation and the market’s response, and the newest expectations for the Fed. Then, they talk about the Destiny Tech 100 (DXYZ) closed-end fund, the hype around it and its investment in SpaceX, and Brad makes the case for healthy skepticism when it comes to artificial intelligence. In the back half of the show, they’re joined by gold and metals expert Clif Droke to talk about gold’s massive rally, the sister rally in silver, and all the reasons gold shines as an economic hedge.
Cabot Webinar
March 26, 2024 12:00 PM ET
Capitalizing on the Bull Market: 4 Experts & Their Top Picks for April 2024
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 Plus 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 April 4: Most of the evidence remains bullish, so we continue to hold our winners and selectively put money to work — but the fact is that most growth stocks have been chopping sideways overall for a month or two, so we’re OK holding some cash and waiting patiently for the market and leaders to show their near-term hand. Tonight, we’re booking a little more partial profits in one of our winners, but are standing pat otherwise and will follow the lead of the market—and of leaders—going ahead.
Bi-weekly Update March 27: WHAT TO DO NOW: Remain bullish, but continue taking things on a stock-by-stock basis. We’re seeing another round of sharp selling in many leading growth stocks today, though few (if any) have cracked meaningful support. To us, it’s another shot across the bow, not prompting any major moves but putting us on alert with certain names. In the Model Portfolio, we’re making one small move—selling 20% of our stake in CrowdStrike (CRWD)— while doing a quick flip on Celsius (CELH), placing it on Hold after last week’s half-position buy after today’s drop on news. Our cash position will now be 25%, and we’re keeping our eyes on a few names should the selling continue.
Cabot Top Ten Trader
Weekly Issue April 1: It seemed like the post-Fed action from two weeks ago may have paved the way for another leg up in the leadership, but while that’s not off the table, we’re continuing to see a lot of crosscurrents out there as money sloshes around. What does it mean? Not much yet, as the major evidence remains positive, but it’s best to continue to raise and honor your stops, while for new buying, make sure you’re focusing on names that are generally earlier in their moves. We’ll leave our Market Monitor at a level 8, but more than ever, it really depends where you look.
This week’s list has many names that are either just coming into favor or have tightened up nicely after prior runs. For our Top Pick, we’ll go back to the commodity theme, with a stock that’s toying with new highs despite the fact that natural gas is still at very low levels. We’re OK starting small here and adding if the buying continues.
Movers & Shakers April 12: It’s been an interesting week for the market, with the biggest piece of headline news being Wednesday’s worse-than-expected inflation report, which roiled Treasuries (yields up 12 to 18 basis points on the week). Beyond inflation, there have been rumblings of late (including this morning) that Iran is set to attack Israel in some way or another, which is causing some angst this morning.
Cabot Value Investor
Monthly Issue April 4: After years of being either ignored or sold off, value stocks are finally having a moment on Wall Street. The Vanguard S&P 500 Value Index Fund (VOOV) is up 25% in the last five months and is actually outpacing growth titles over the last month. Still, it’s a bull market, and growth stocks are king. How to compete as value investors in a growth-minded market? By seeking growth stocks at value prices.
Today, we do just that, adding a household name that’s been rejuvenated thanks to a shift in industry trends. The stock is up 18% year to date, and yet its shares remain dirt cheap by virtually every measure.
Enjoy!
Weekly Update April 11: Living in Vermont has its perks, and one of them was being in the “path of totality” for Monday’s eclipse. My family and I went to an eclipse-watching party, where for nearly three minutes the moon completely obscured the sun, forming a perfect ring-like orb in the sky that was reminiscent of the Eye of Sauron from Lord of the Rings. It was one of the more incredible sights I’ve ever seen. And the brief period of semi-ominous darkness that ensued reminded me a bit of what inflation is doing to the market these days.
Cabot Stock of the Week
Weekly Issue April 8: Stocks are coming off a rare down week, though the “damage” was mostly limited to last Thursday after a couple rogue Fed members came out with some hawkish quotes (though, in fairness, this happens just about every month). Still, the bull market is very much intact, and it’s a great time to go looking for growth stocks at value prices. As the new Chief Analyst of Cabot Value Investor, I just added such a stock to that portfolio, so today’s new Stock of the Week recommendation comes from yours truly. It’s a giant in the auto industry that is benefitting greatly from Americans’ burgeoning appetite for hybrid cars.
Cabot Explorer
Bi-weekly Issue April 11: Inflation appears stuck at a much higher level than acceptable for the Federal Reserve so lower interest rates are on pause. Gold is one beneficiary.
This means that some high-flyer tech stocks may be vulnerable. Meanwhile, Japanese stocks remain near all-time highs.
Fortunately, we have exposure to both gold and Japan in the Explorer portfolio, and today we add to that exposure.
Bi-weekly Update April 4: The first week in April was quiet for Explorer stocks. Looking at what sectors are doing particularly well through the MSCI World index, technology and other cyclical sectors such as energy have outperformed.
Where are the bargains? Consumer staples, Europe, and perhaps even electric vehicle stocks. The EV slowdown can’t be denied – their first-quarter growth rate was a weak 2.7% vs. last year’s 47%. Hybrids vehicles are clearly preferred by many, and on the rise.
Cabot Small-Cap Confidential
Monthly Issue April 4: There is a growing mental health crisis going on out there.
But it’s starting to be addressed by a tiny, unknown (so far) company with a virtual care platform that’s beginning to make a difference across the U.S. And it’s doing so while growing both the top and bottom lines.
All the details are inside the April Issue of Cabot Small-Cap Confidential.
Weekly Update April 11: The story of the week was yesterday’s slightly hotter-than-expected CPI report, which has shifted the rate cut narrative/speculation to only two cuts this year, down from three, and sent the 10-year yield north of 4.55% (it was below 4.4% last Friday).
While this morning’s better-than-expected PPI number has helped to soften the CPI blow, the debate from here is going to be just how long the Fed is willing to push its luck/try not to rock the boat and keep rates where they are.
Cabot Dividend Investor
Monthly Issue March 13: The rich get richer. Now, you can too.
Growing businesses with big ambitions need large amounts of money to grow and expand to the next level. But these enterprises can’t get the necessary capital from stodgy and risk-averse bankers. And they are still too small to access the capital markets by issuing stock or bonds. Thus, they are forced into the domain of wealthy individuals and institutions that have money and are itching to reap high returns.
These venture capitalists provide desperately needed money to up-and-coming businesses that can’t get it anywhere else. Thus, they are in a position to negotiate very favorable terms for themselves.
As financial markets have grown in sophistication, venture capital investing is no longer the exclusive domain of the wealthy. There is a little-known class of security that enables regular investors to mimic the very same moneymaking strategies employed by the rich and famous. These securities are called Business Development Companies (BDCs).
In this issue, I highlight one of the most successful BDCs on the market. It pays dividends every single month, has a long and consistent track of raising payouts, and has delivered fantastic total returns.
Weekly Update April 3: It was a great first quarter. The S&P closed out March up 10% YTD. The index also rallied an impressive 28% from late October through the first quarter. Is there more upside ahead?
Things have been good. The Fed reiterated its intention to lower the Fed Funds rate three times this year at the March meeting. Meanwhile, inflation is way down and the economy is solid. Manufacturing data was much better than expected and the Fed raised its GDP forecast for 2024 from 1.4% to 2.4%.
Cabot Early Opportunities
Monthly Issue March 20: In the March Issue of Cabot Early Opportunities we spread things around with a diverse group of mid-caps, plus one large cap from our Watch List that’s one of the biggest stories in MedTech.
Cabot Profit Booster
Weekly Issue March 5 : As we plow into March, the overall story remains mostly the same for the market—the primary evidence remains strong, with the trends of the major indexes up, most leading stocks in good shape and with hundreds of stocks hitting new highs.
Cabot Income Advisor
Monthly Issue February 27: The Goldilocks scenario of falling inflation and a still-strong economy is unlikely to last. Interest rates will have to come down before long or the recession that the market is dismissing might be just a little further down the road. But recent higher-than-expected inflation is making lower rates less likely.
Sure, the rally could last for a while. The economy always seems to be more resilient than people expect. But the circumstances behind the rally since October are unlikely to last. This environment will change. For that reason, it doesn’t make sense to chase stocks that have been working so far this year. It’s better to position ahead of a new dynamic that is likely coming.
Change creates opportunity. There are many great income stocks that are not benefiting from this rally. Yet these stocks are selling at historically very cheap valuations with high yields. These stocks also can thrive in a slowing economy. In this issue, I highlight two stocks in particular that are cheap and high-yielding ahead of a period of likely market outperformance.
Weekly Update April 9: It’s still a bull market and a rally. But the S&P has been in a sideways funk since the middle of last month.
April has not had news that the market seems to like. There has been stronger-than-expected economic news. The manufacturing numbers were the highest in about two years, and the Fed upgraded its 2024 GDP forecast from 1.4% to 2.4%. But sometimes good news is bad news.
Cabot Turnaround Letter
Monthly Issue March 27: TThank you for subscribing to the Cabot Turnaround Letter. We hope you enjoy reading the April 2024 issue.
In this issue, we discuss the most effective and often the only way to reverse the fortunes of a struggling company: a change in leadership. We offer our views on four new CEO situations that are currently attractive and three that are not quite ready yet.
This month’s Buy recommendation, Barnes Group (B), is an aerospace and industrial components maker that is stepping up its efforts to become more valuable, helped by a new CEO and urged on by pressure from a credible activist investor that recently gained several board seats.
Weekly Update April 12: Wells Fargo (WFC) kicked off the Cabot Turnaround Letter earnings season today, showing EPS of $1.26/share, which exceeded estimates by 17 cents. WFC also beat top-line revenue estimates by $710M, coming in at $20.86B. Despite the comfortable beats, WFC shares are essentially flat for the day.
Cabot Cannabis Investor
Monthly Issue March 27: Our main Cabot Cannabis Investor portfolio has vastly outperformed this year, with a 38% gain as of the March 26 close. That was 15 percentage points better than the 22.8% gain for the New Cannabis Ventures Global Cannabis Stock Index. We’ve done 31 percentage points better than the 7.1% gains this year in the S&P 500.
Our Cabot Cannabis Plus Insider Portfolio is up 42.6% since I launched it on March 29 last year. That’s more than twice the 16.8% gain in the Russell 2000 index over the same time.
Monthly Update April 10: Cannabis stocks are generally flat since I sent you the March 27 issue of Cabot Cannabis Investor.
Given the potential magnitude of near-term catalysts, I suggest continuing to hold exposure to the group, and accumulating on weakness. If you have zero exposure, consider buying some now. If you have full exposure, consider adding on any substantial weakness of 2%-4% or more in this highly volatile group.
Cabot Money Club
Monthly Magazine April: Artificial intelligence (AI) is everywhere these days, and personal finance is no exception. In this month’s issue we’ll dive into the next generation of personal finance apps, the new tools available to savers and investors, and how to deploy them in your daily lives to optimize your financial wellbeing.
Stock of the Month April 11: 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.
Naturally, the markets had an issue with that.
However, they seem to have absorbed that information and gone back to business.
Ask the Experts
Prime Question for Mike: Mike - hope you are well, friend! It’s been a while. We read all the reports every week and are doing well so far this year. I have a technical question in regards to a stock that dropped off the list a while ago, Abercrombie & Fitch (ANF). I have held it since last November and am up 70-80% in my 10% position for clients. What moving average line/trend can you lean on more when you have such a large cushion/profit?
Mike: So, really, it’s more about how you want to handle it. Me personally, it does look toppy after such a big run (frankly, I think the market looks near-term toppy too – big picture fine), I would take some off the table and then use something like a 30-week line or so, giving the rest more rope.
Another idea is to not let the stock take away more than half your profit – no, that’s not chart-based, but sometimes portfolio management rules can help. So if you had an 80-point profit (making that up), sell at least some if you “only” are up 40 points.
Frankly, though, like I said, I’ve found these things are more about how you want to handle them – I like to sell some or a couple of chunks over time and then sell the rest using a longer-term (30 to 40 weeks) line, but of course if things go wrong that can give back a ton of profit, and that’s usually if I’m up a ton (200% or whatever).