Latest Summary
CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Mike Cintolo says the evidence hasn’t changed as we wrap up the first half of the year -- most stocks, sectors and indexes are meandering sideways, and there’s plenty of trendless-ness out there. There are many names that could be ready to go if the buying pressures broaden, but right now he remains selective and isn’t pushing it with so much chop out there.
Stocks Discussed: PINS, ASML, TER, NTRA, ALNY, TTD, APPF, NVO
Cabot Street Check (Podcast)
This week on Street Check, Chris and Brad debate whether investors have begun rotating out of the AI theme after months of dominant performance. Then, they discuss Warren Buffett’s big bet on oil and a catastrophic year for Walgreens (WBA) that’s seen them cut the dividend, explore store closures, and has dragged share prices down by more than 50%. For the main segment, they each make 3 predictions for the rest of the year about everything from AI and interest rates to gold and new all-time highs for the market.
Cabot Webinar
June 18, 2024 Webinar
2024 Mid-Year Outlook: Secrets to Profits in Today’s Challenging Market
Join renowned small-cap and early-stage investing expert Mike Cintolo, Chief Analyst of Cabot Growth Investor and Cabot Top Ten Trader, for this exclusive live event.
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 June 27: Outside of a few mega-cap names, the market remains stuck in neutral, with the vast majority of stocks (including growth stocks), sectors and indexes meandering sideways, resulting in plenty of trendless, tedious action. Of course, many areas are within shouting distance of new high ground, so we’re not negative--but while we’d love to put some money to work (a couple of names on our watch list are fairly enticing), we think less is essentially more, at least until the market shows its hand. We’re again standing pat tonight, though remaining flexible for what may come.
Long-term, the market’s picture remains bright, with our most reliable indicator (Cabot Trend Lines) firmly positive, which we write more about in today’s issue, as well as one name that’s probably at the very top of our watch list. All in all, we’re ready to make some moves, but right now, patience is the best course.
Bi-weekly Update June 20: WHAT TO DO NOW: Today is an ugly day for growth stocks, with sellers driving many stocks lower as the Nasdaq and some mega-cap winners wobbled. That said, the evidence is basically the same—very mixed and divergent on an intermediate-term basis, with some names doing well but much of the market chopping sideways. We think holding a good-sized chunk of cash makes sense given that risk is elevated, but we’re also holding on to our stocks and giving them some room to wiggle around. In the Model Portfolio, we’re watching things closely, but will sit tight tonight, holding our 30% cash position.
Cabot Top Ten Trader
Weekly Issue June 24: We have been starting to see signs that the stretched rubber band might be snapping back a bit, with a few strong areas taking on water while the Dow Industrials and the broad market rally. It’s something to watch and, if it gets a head of steam going, could launch some new leadership while denting some popular names. That said, we’ll see how things play out, especially as the end of Q2 (and the first half) is this week, which can often bring some volatile trading. All in all, we remain in our current stance and are taking things on a stock-by-stock basis.
This week’s list has some familiar names, but also a few that have recently come under big accumulation on some sort of news. Our Top Pick has come alive after earnings as the long-term growth plan (buoyed by some industry consolidation) comes into focus. Aim for dips to enter.
Movers & Shakers June 28: It’s been a relatively quiet week in the market, with most indexes up a bit as of this morning, but generally less than 1% (Nasdaq a bit better than that). Interest rates have also been quiet, checking in with their second straight week of little net change (up four basis points total in the past two weeks).
Cabot Value Investor
Monthly Issue June 6: Renewable energy stocks have never lived up to their considerable promise, having peaked more than 16 years ago. And yet, there’s rarely been a bigger gap between the stocks’ value and the industry’s growth in the wake of the Inflation Reduction Act. Renewable energy projects – solar in particular – have taken off since President Biden signed that bit of eco-friendly legislation, in August 2022. Most solar companies are reporting record revenues these days. But the stocks haven’t followed suit, trading at 2018 levels.
That seems like a pretty extreme divergence between the industry and its companies’ share prices. So in this month’s issue of Cabot Value Investor, we add a solar company that’s capitalizing on the global investment in alternative energy, but is still woefully undervalued, trading at a mere 0.18x record sales.
Details inside.
Weekly Update June 27: Editor’s Note: Due to the Fourth of July holiday next Thursday, your July issue of Cabot Value Investor will come out next Friday, July 5. Happy 4th!
Leveraging cyclicality is a good way to squeeze more profits out of value stocks.
That was an idea put forth by Matt Warder, the newest addition to the Cabot analyst team and the successor to Bruce Kaser in Cabot Value Investor’s “sister” value investing advisory, Cabot Turnaround Letter, on the latest edition of the Street Check podcast I host with my colleague Brad Simmerman.
Cabot Stock of the Week
Weekly Issue June 24: Stocks have hit the pause button in the last week. Is summer malaise already setting in? Or is this merely a deep breath before the buyers gain more fodder in the form of dovish Fed speak or the next round of earnings reports? We’ll see. In case it’s the former, today we add a value stock that potentially has an immediate, near-term catalyst. It’s the first contribution from the newest addition to our Cabot team, Matt Warder, a market veteran and cyclicals/commodities expert who has taken over our Cabot Turnaround Letter advisory. I think you’ll enjoy Matt’s unique, outside-the-box perspective.
Details inside.
Cabot Explorer
Bi-weekly Issue June 20: Explorer stocks had a good week led by Super Micro (SMCI) up 20% and Cloudflare (NET), up 9%, as PayPal (PYPL) has struggled a bit as it launches a new, higher-margin digital ad business. The S&P 500 is up 14% so far this year but the 10 biggest stocks recently represented almost 37% of the index’s total value, the highest since September 2000, according to FactSet. Use caution and take partial profits if you have some of these in your portfolio.
We have been discussing some great companies and breakthrough technologies, but it is easy to overlook that energy is the foundation of economic and technological development. It is also at the core of how countries secure and project national power.
So today, we add a U.S. renewable energy company that is a leader in an alternative energy source that’s making a comeback.
Bi-weekly Update June 27: Please note that next Thursday is July 4th and therefore there will not be a Cabot Explorer issue though I will send out an alert if there is any significant news on our stocks.
For Explorer stocks this week, Neo Performance (NOPMF) shares were up 12%, and Super Micro (SMCI) gave back half of last week’s 20% gain.
The dollar rose to its highest level since last year as the Federal Reserve breaks with other central banks by keeping interest rates elevated, giving global investors an incentive to move cash to the U.S. to capture higher bond yields.
Cabot Small-Cap Confidential
Monthly Issue June 6: In 2000 a small company began selling a proprietary surgical adhesive to seal up arteries. Over the next two decades that company would acquire several highly specialized products for patients undergoing heart surgery.
Today, the company is hitting its stride as surgeons and patients (and the FDA) see how much better its solutions are.
This month’s Issue has all the details.
Weekly Update June 27: Just a quick housekeeping note. With the 4th of July holiday next Thursday, I’m going to send out the July Issue one day earlier than normal. Look for it next Wednesday, July 3.
As the second quarter comes to a close, a quick look at the performance of small caps relative to large caps shows just how important stock picking has been this year, and especially once you step away from the influence of the Magnificent 7, which now make up almost 32% of the S&P 500.
Cabot Dividend Investor
Monthly Issue June 12: The market has been terrific. And it will probably finish the year higher than it is now. But there is reason for caution.
Because of sticky inflation, interest rates remain near the highest levels in 20 years and may continue to stay high or go higher, until they drive the economy down. A hugely contentious presidential election is about to take place. And there are two significant global wars going on.
Steep selloffs are common even in markets that rise over time. The S&P 500 doubled over the last five years. But it crashed 30% in record time at the onset of the pandemic in 2020. There was also a bear market in 2022 during which the S&P fell over 20% and the Nasdaq plunged well over 30%. Of course, most stocks were down a lot more than the indexes. If you targeted some of the very best stocks at fire sale prices you could have gotten amazing returns.
In this issue, I highlight a way to target the purchase of the very best stocks at fire sale prices amid market turmoil that may occur from the potentially market-roiling issues this year or next. Most investors don’t buy when the market is crashing because it’s natural not to want to try and catch a falling knife. But there’s a way to take emotion out of the equation and calmly plot a way to fantastic returns.
Weekly Update June 26: The market has been fantastic. But it was driven higher by technology. Now, technology is rolling over. Will the market roll over too, or will the neglected sectors pick up the slack?
Cabot Early Opportunities
Monthly Issue June 20: In the June Issue of Cabot Early Opportunities, we continue to lean into AI themes while taking a swing at a speculative space communications company. We’re also trying to keep things real here on earth with a picks-and-shovels-type infrastructure play, and we pull back the curtain on a real rarity in 2024, a software stock with a nice chart!
As always, there should be something for everybody.
Cabot Profit Booster
Weekly Issue June 25: While the gains/losses in the three major indexes were mostly muted last week, there was some interesting rotation out of the AI/Semiconductor theme and into recent underperformers … though this is hardly anything to write home about as it was just two days of this type of action.
By week’s end, the S&P 500 had gained 0.65%, the Dow had risen by 1.75%, and the Nasdaq had fallen marginally.
Cabot Income Advisor
Monthly Issue June 25: AI is the catalyst driving the technology sector, which is driving the market higher. Over the last month, the tech sector is up 10.42% while the S&P is up 2.95%. Seven of the 11 sectors are negative for the past month.
But technology stocks may be running out of gas. Without the heavy lifting from technology, it’s easy to see the overall market trending sideways or down, at least for a while.
Income is king in markets like this. The register still rings when the market stumbles. There’s also an opportunity right now. With the S&P and many stocks near their 52-week highs, it’s a good time to get high call premiums. Also, you can lock in strong total returns from these stocks if they are called.
Even the best bull markets have ups and downs. We can play the increased likelihood of a flat or down market by priming the income pump to pay us through the rough patch. In this issue, I target another covered call that will enhance the already exquisite income of a monthly dividend stock.
Weekly Update June 18: Just when it looked like the rally was petering out, the market is having a great June so far. The S&P is up about 5% in June after making four consecutive record closes last week. The index is now up 14% so far this year, and it’s not even half over.
Cabot Turnaround Letter
Monthly Issue June 26: In this month’s issue of Cabot Turnaround Letter, I recommend a company I’ve been fond of all the way back to 7th grade. It’s a household name, but one that’s perhaps been forgotten on Wall Street in recent years. But now, it looks primed for a turnaround.
Weekly Update June 21: Earnings season is over, so there were no companies that reported earnings this past week. However, we do have at one last company on a slightly different fiscal schedule reporting next week – Walgreens Boots Alliance (WBA), who will announce results on the 27th.
Cabot Cannabis Investor
Monthly Issue June 26: Cannabis stocks are unloved and in the doldrums.
Typically, in the stock market, that’s the best time to buy.
Neglected stocks offer the best value, as long as there are potential catalysts on the horizon.
I believe that is the case with cannabis. You’ll just have to be patient. I think it is worth being patient for the possibility of 30%-50% gains when a catalyst strikes. There is no guarantee this will happen, but as I discuss below, the odds are good.
Monthly Update June 12: Since Halloween, the last seven times I have made a call in Cabot Cannabis Investor to buy the AdvisorShares MSOS 2X Daily (MSOX) in sector weakness, the exchange-traded fund has gone up 68% on average over the next one to seven weeks.
The last time I made a trading call to buy the cannabis sector was on May 29.
Since that was less than two weeks ago and the maximum time to profit after trading calls is seven weeks, I am not too concerned about the flat performance of cannabis stocks since then.
Cabot Money Club
Monthly Magazine May: Household debt is rising, and consumers are feeling the squeeze of higher interest rates everywhere, from mortgages to auto loans to credit cards. In this month’s issue we’ll share ten warning signs that signal financial trouble ahead and the ten bad financial habits you need to drop now to avoid it.
Stock of the Month May 9: 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.
Ask the Experts
Prime Question for Mike: Hi Mike I’m a new subscriber to Cabot Growth Investor after following your weekend videos for years. I’m curious about Pinduoduo (PDD). The numbers at Yahoo Finance look amazing, the weekly chart is sound, and I’d appreciate your thoughts on this name.
Mike: Thanks for writing, and for giving us a chance.
I agree totally about the numbers, with huge accelerating sales and earnings, but right now I’m more watching than buying for a couple of reasons.
First, most Chinese names are still struggling. PGJ is one ETF I look at and the recent rally has collapsed.
Second, going along with that, the recent breakout attempt failed and now PDD is sort of meandering lower.
I’m watching it, but I’d like to see a more supportive overall market, some strength in Chinese names and to see these last few weeks of action morph into a real launching pad. Thus, good, but not quite there yet.