Cabot Weekly Review (Video)
In this week’s video, Mike Cintolo is, frankly, very optimistic -- the market upmove this week was not only big but broad, and it comes on the heels of a very good setup in recent weeks (with secondary indicators at levels near market lows). Now, he’s not plowing in as his indicators haven’t clicked just yet and earnings season remains tricky, but they could next week and Mike reviews a ton of stocks that are showing intriguing action. Stocks discussed: ANET, PLTR, NOW, UBER, DKNG, SHOP, DASH, NE, PHM/TREX, HWM, AXON
Cabot Street Check (Podcast)
This week on Street Check, Chris and Brad discuss the recent impressive performance of the major indices, the latest Fed meeting and what that could mean for the economy going forward, and what’s behind this year’s rally in Bitcoin. Then, they welcome on gold and metals investing expert Clif Droke to talk about gold trading near all-time highs, increased safe-haven demand in an era of global conflict, EV inputs and “Dr. Copper” showing signs of an economic slowdown, and whether uranium deserves a place in your portfolio.
Save the Date: Thursday, November 9 at 2:00 PM ET
Dividend Growth & Megatrends: 2 Ways to Win the Long Game in Uncertain Markets
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 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 November 2: Nothing has officially changed with our market timing indicators, so we remain in a very cautious stance, but the wear-you-out bear phase of the past couple of years (and the sharp declines of the past three months) has had many secondary indicator (breadth, sentiment, etc.) in high-reward positions, and this week’s strength is certainly intriguing. We’re not jumping the gun in any major way, but we are adding one half-sized position in a strong actor and have our antennae up to see if this rally can finally be the real deal.
In tonight’s issue, we review our remaining positions (most of which have popped nicely), our overall market thoughts (including some rays of light from our Two-Second Indicator) and go over many high-potential stocks should the bulls continue to press forward.
Bi-weekly Update October 26: WHAT TO DO NOW: The market cave-in continues, with some sacred cows and resilient stocks catching up on the downside now. The trend clearly remains down, and while we’re not craving more cash (69% coming into today), have only smaller positions and see some legitimate oversold signs out there, we’re also not going to just hold and hope with things that are caving in. Tonight, then, we’ll sell the rest of our ProShares S&P 500 Fund (SSO) and one-third of what we have left in Uber (UBER), which will leave us with just over three-quarters of the portfolio on the sideline. Details below.
Cabot Top Ten Trader
Weekly Issue October 30: There’s not much new to say when it comes to the market—just about all of the primary evidence remains bearish, and interest rates are still in a firm uptrend, too. There are a growing number of secondary measures that are flashing green, effectively saying a solid bounce (and maybe more) should be coming soon. Thus, we’re staying alert and keeping a list of resilient stocks and sectors, but at the risk of repeating ourselves, we have to see the buyers show up for more than a few hours to start thinking investor perception is truly changing for the better. We’re leaving our Market Monitor at a level 4.
This week’s list has more than a few familiar names, including some initial earnings winners. Our Top Pick is a steady performer that also is showing great growth thanks to both of its top-selling brands—and the stock just emerged from nearly three months of chopping lower on its report. Try to buy on dips.
Movers & Shakers November 3: The market has been a horror show for the most part in recent weeks, but we have felt that if something went right in the world, the many positive secondary factors (breadth, sentiment, etc.) could get the market moving in a hurry. This week, we may be seeing that—following the Fed meeting and this morning’s jobs report, Treasury rates are down about 30 basis points across the board, with some (especially the five-year note) slicing through the 50-day line, which had contained the entire rate advance since mid-May.
Cabot Value Investor
Monthly Issue October 3: We include brief updates from investor day presentations by Philip Morris International (PM) and Sensata (ST), as well as comments on our other recommended names. We also share a view on how streaming services are changing the sports viewing experience, along with a thought on why Comcast (CMCSA) should be fine.
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 October 31: Comments on earnings from Comcast (CMCSA), Allison Transmission (ALSN) and NOV, Inc (NOV). Despite strong earnings reports, our companies’ shares have been sloppy. What’s going on?
Cabot Stock of the Week
Weekly Issue October 30: The indexes are hovering perilously above their May lows, with the S&P 500 and the Nasdaq entering correction territory (-10%) last week. And this week, we’ll hear from the Fed again (gulp), the October jobs report comes in, and we’re still in the heart of earnings season, with Apple (AAPL) being the headliner. Spooky season indeed!
To prepare for all scenarios, this week we’re selling out of a couple laggards and adding a well-known retailer that’s actually in an uptrend. Mike Cintolo recommended this retailer in Cabot Top Ten Trader last week, in fact.
Bi-weekly Issue November 2: The Federal Reserve yesterday maintained its benchmark interest rate while leaving the door open for further action as officials work to bring inflation back to the central bank’s 2% target. This makes sense, though markets are still a bit on edge as further increases are a possibility.
But today, we take a big swing with an aggressive stock that combines biotech with artificial intelligence - and is trading well off its highs.
Bi-weekly Update October 26: Over the past month Tesla (TSLA) has struggled as continued price cuts have boosted sales but narrowed profit margins. It is also failing to live up to its brand as more than just a maker of electric cars (EVs).
Higher interest rates are eating into EV demand. Competition is catching up as Tesla last launched a new passenger vehicle in 2020. In October, BYD (BYDDY) outsold Tesla for the first time.
Cabot Small-Cap Confidential
Monthly Issue November 2: This month we’re adding a small company that specializes in the opaque and inefficient market for selling surplus and salvaged goods.
The company has a market cap of just $580 million and is growing revenue and EPS by double digits. It’s an interesting setup, especially as government agencies and corporations increasingly look to save money and achieve sustainability goals.
Weekly Update October 26: It’s said that the market climbs a wall of worry. It’s been a slippery wall lately, and this was the week when the bear case for the stock market really seemed to gather momentum.
The short list of bear case arguments includes the following:
The war between Israel and Hamas could easily expand into a broader conflict and draw the U.S. (and Iran, among others) deeper into a situation with no clear exit ...
Cabot Dividend Investor
Monthly Issue October 11: It’s a confusing market, to say the least. Six months from now we could be in an environment of high rates and sticky inflation, or we could be spiraling toward recession, or anything in between. And stock sector performance is highly dependent on which situation unfolds.
Forget trying to predict the near-term market gyrations, or the Fed, or GDP. Instead, let’s focus on the bigger picture and what we do know. For example, know for a fact the population is aging at warp speed. The population is older than it has ever been all over the world. And the trend is accelerating.
We are in the midst of a tectonic shift in the human population that will have a profound effect on the market and economy. Companies that benefit from this megatrend will have a huge advantage. It’s not an accident that pharmaceutical stocks Eli Lilly (LLY) and AbbVie Inc. (ABBV) are the best performing stocks in the portfolio.
In this issue I highlight the stock of a company that serves a vital role in the pharmaceutical supply chain. It operates a near monopoly that grows every year. Performance has been spectacular and there is every reason to believe the good times will continue.
Weekly Update November 1: The market officially entered a “correction” last week when the S&P fell 10% from the 52-week high on a closing basis. Now, it’s largely up to the Fed to determine where the market goes next.
The Fed meets on Wednesday and will decide on the Fed Funds rate. They are widely expected to leave the rate unchanged and then indicate they might raise it in the future. But the main event isn’t the Fed Funds rate. It’s the benchmark 10-year Treasury yield.
Cabot Early Opportunities
Monthly Issue October 18: In the October Issue of Cabot Early Opportunities, I dig into a group of software companies that have upside potential from AI, automation and security. I also feature a diversified bioprocessing and advanced materials company that’s drawing attention right now and go deeper into a very small industrial company that few investors have ever heard of.
Cabot Profit Booster
Weekly Issue October 31: There is no sugarcoating it, the market had a very bad week as the S&P 500 fell 2.5%, the Dow lost 2.14% and the Nasdaq declined by 2.6%. This week there are a handful of important earnings reports, a Federal Reserve meeting, the October Jobs Report, and much more. Buckle up!
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 October 31: It’s officially a correction. The S&P 500 fell 10% below the 52-week high on a closing basis last week. Now what?
As usual, all eyes are on the Fed. The Central Bank will decide on interest rates on Wednesday. Also, this week are earnings from Apple (AAPL) and several other large companies and another jobs report on Friday. But the Fed should be the main event.
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 3: Comments on earnings from Gannett (GCI), Kaman Corp (KAMN), Janus Henderson Group (JHG), Newell Brands (NWL), Six Flags Entertainment (SIX) and Western Digital (WDC). Amazon is abandoning physical retail stores. Higher interest rates and incremental risk aversion have hammered turnaround stocks but a rebound may be underway.
Cabot Cannabis Investor
Monthly Issue October 25: Cannabis stocks are trading like a group in need of a catalyst.
* The AdvisorShares Pure U.S. Cannabis (MSOS) exchange traded fund (ETF) has fallen 28% from the peak of the rally caused by last summer’s news of federal government progress on rescheduling.
* The AdvisorShares MSOS 2x Daily (MSOX) ETF is down 38%.
Will the group see a catalyst soon? I put odds at much higher than 50%. This makes cannabis stocks a buy in the current retreat, both for a trade but also as a medium-term, multiyear position.
Monthly Update October 31: Cannabis stocks are astonishingly weak following the nomination of Rep. Mike Johnson (R-LA) as House speaker. He has always opposed cannabis legislation. So, the fear is that Secure and Fair Enforcement Regulation (SAFER) Banking Act reform (allowing banks to serve cannabis companies) cannot get out of the House. This is probably true. However, Senate leaders could put the reform in must-pass legislation, and the House may well accept it, given how many current House members have approved the bill in the past.
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 October 12: Investors weren’t surprised by the Federal Reserve’s decision to hold rates steady, but they also didn’t react by ramping up their stock purchases—too much uncertainty what with the election rhetoric heating up and the turmoil in Congress, after Kevin McCarthy was unceremoniously ousted as Speaker. And now, we have the war in Israel.
Ask the Experts
Prime Question for Mike: Mike, any logic to this market?? Are you adding any positions to the portfolio or standing pat?
Mike: Well, the market looks 6-9 months ahead – I wouldn’t try to apply too much logic to it in the near-term.
I am very encouraged by the rally, partly because of all the negativity. That said, the trends haven’t turned up yet.
I have an issue coming tonight and am making one minor change – but nothing bigger until we get some confirmation from the market (more than 4 days up, etc.).