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Cabot Prime Plus Week Ending October 28, 2022

Stock Recommendation Tracker

The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any changes to our recommendations over the previous week. We include this table at the bottom of the Weekly Summary, and provide a link here at the top to the Stock Recommendations Tracker.

Cabot Weekly Review (Video)

In this week’s stock market video, Mike Cintolo discusses some of the positive top-down evidence, but he’s also going slow as individual stocks remain tricky, with more accidents than super performers. That said, all of this is more descriptive than predictive–there are areas of the market that look much improved (financials, industrials), and the longer the market can hold in here and ideally advance, the greater the odds some of the stagnant growth names will kick into gear. Stocks included in this video: GFS ON ENPH SHLS NOV SLB CHK GS LULU ASO XBD.


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Advisory Services

Cabot Growth Investor

Bi-weekly Update November 10: After weeks of a bottoming effort, stocks came alive today after a tame inflation report, which turned our Cabot Tides positive. There are definitely still headwinds, but we’re also mostly on the sideline, so tonight we’re going to take three baby steps into the market—buying half-sized stakes in Albemarle (ALB), Enphase Energy (ENPH) and Halozyme (HALO). That will still leave us with 70%-ish in cash, so we’re not getting aggressive, though if the market continues higher, we’ll look to add more names (or average up on stocks we have).

Bi-weekly Issue November 3: The Fed’s latest roundhouse to the market this week has caused another round of selling, but we think more damage was done to sentiment to this point than the evidence; we remain defensive and patient, but we’re also keeping a close eye on things, as a few good days (and some real breakouts from potential leading stocks) could give us something to work with.

Alert October 27: The market has been doing fairly well of late, so much so that our Cabot Tides are on the verge of a green light. That said, individual stocks remain hit or miss at best, with may high profile blowups in recent days. We did have one gap up strongly yesterday, but today, Wolfspeed (WOLF) is disintegrating after earnings—we’re forced to sell our half-sized position today. Details below—and we’ll have far more in tonight’s regular update.

Cabot Top Ten Trader

Movers & Shakers November 18: The indexes are flat-ish this week after this morning’s upmove, which marks a normal consolidation after the strong inflation report-induced rally last week. And, really, nothing has changed with the top-down evidence: The intermediate-term trend remains up, and the indexes are doing a good job shrugging off some hawkish Fed speakers of late (one this week said rates will eventually get over 5%) as well as the ongoing controversy/meltdown in all things FTX and crypto.

Weekly Issue November 14: This week’s list has a nice batch of strong stocks, and our Top Pick is a name that was one of the first to leap to new highs last week.

Cabot Undervalued Stocks Advisor

Weekly Update November 9: Comments on earnings from Barrick Gold (GOLD), Gates Industrial Corp (GTES) andOrganon & Company (OGN). Redux time for “Long the Dow, Short the Nasdaq?”

Monthly Issue November 2: Our letter includes earnings updates from recently recommended Comcast Corporation (CMCSA), as well as from Allison Transmission Holdings (ALSN) and Molson Coors Beverage Company (TAP).

Cabot Stock of the Week

Weekly Issue November 14: Amazing what a slightly better-than-expected inflation rate can do for stocks. After months of coming in a bit higher than economists’ expectations, the October inflation rate bucked the trend, dipping to 7.7%, lower than the projected 7.9% rate. The result? Stocks had their best day since April 2020.

Alert November 10: Sell Montauk Renewables (MNTK), Keep Centrus Energy (LEU)

Cabot Explorer

Bi-weekly Issue November 10: Centrus Energy (LEU) surprised markets on the downside with poor third-quarter numbers while SQM was up 15% and Infineon (IFNNY) was up 16%. Crypto hit heavy turbulence as the stock market slipped rather than soared on the midterm election results of an underwhelming GOP wave, uncertainty, and expected gridlock over the next two years. Elsewhere, the United Nations projects that next week, the world’s population will exceed 8 billion, and this leads to a new Explorer, recession-resistant, agribusiness idea this week.

Bi-weekly Update October 20:While Corporate Earnings are Above Expectations, Chip Stocks Swoon. Explorer stocks were all up this week though it is not clear we are out of the woods yet.

Cabot Small-Cap Confidential

Weekly Update November 10: This week the cryptocurrency market is in absolute turmoil as one of the biggest exchanges, FTX, is insolvent. This is bleeding into equity markets too.

Alert November 9: Treace Medical (TMCI) delivered a Q3 beat after the bell yesterday with revenue of $33.1 million (+53%) beating estimates by $3.03 million and EPS of -$0.22 beating by $0.07. Management boosted full-year guidance by slightly more than the Q3 beat, implying Q4 should also be better than expected. New 2023 revenue guidance is $135 to $138 million (+43% to + 46%).

Monthly Issue November 3: With market jitters returning following the Fed’s meeting yesterday, we’re going back to a segment that’s served us well so far this year – MedTech.

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 2: It’s all about the Fed right now. The recent rally in stocks may continue or abruptly end based on what the Central Bankers say today.

Cabot Early Opportunities

Alert November 4: We’ve had a few earnings reports lately that have been delivered under the cloud of the FOMC meeting and press conference (Wednesday). During that event, Fed Chair Powell opened the door to a slower pace of interest rate hikes starting in December but suggested the terminal rate (how high the Fed goes during this cycle) may be higher than previously expected and last for longer than previously expected.

Monthly Issue October 19: In the October Issue of Cabot Early Opportunities, we try to interpret some of the latest commentary from Fed officials and look at the future cadence of expected interest rate hikes.

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.

Weekly Issue November 15: Before we dive into this week’s idea, I do want to note that we have eight positions expiring this Friday. As always, I will update where we stand with these positions late Thursday afternoon or early Friday morning.

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 2: The biggest news over the past couple of weeks has been the disappointing results from big tech. Even though I’m a micro-cap investor, it’s hard to ignore some of these massive moves.

Cabot Income Advisor

Weekly Update November 9: It’s been a tough market for covered calls. Although the market has rallied off the low, call premiums are subdued because investors are less willing to bet on higher prices in the future with still high inflation, a hawkish Fed, and a looming recession.

Monthly Issue October 26: The market has likely not bottomed yet. The current rally will unlikely be sufficient to drive us out of this bear market ahead of continued high inflation and likely recession in the months ahead.

Cabot Turnaround Letter

Weekly Update November 11: Comments on earnings from Adient (ADNT), Berkshire Hathaway (BRK/B), Brookfield Reinsurance (BAMR), Elanco Animal Health (ELAN), TreeHouse Foods (THS), Viatris (VTRS) andZimVie (ZIMV). Whittling our list of 39 names to under 30. Walgreens Boots Alliance (WBA) announces major deal to accelerate entre into healthcare services. Plus, comments on inflation, (yet another) crypto collapse, congratulations to Houston Astros, and Veteran’s Day.

Monthly Issue October 26: At its most basic, investing is a mental game supplemented by a calculator. We discuss calculator-driven ideas including AMC Networks (AMCX), Comcast (CMCSA), Levi Strauss & Co (LEVI), Six Flags Entertainment (SIX) and T. Rowe Price Group (TROW). We also discuss stocks like Scotts Miracle Gro (SMG), AGNC Corporation (AGNC) and Spirit Airlines (SAVE) that rely more on pure contrarian instincts than a calculator. Our monthly feature recommendation is Capital One Financial (COF). Investors willing to look through the recessionary valley will find a company with a bright long-term future.

Cabot Money Club

Monthly Magazine October: Finding the right time to retire is tough in any market, but today’s volatility, inflation and rising rates make that decision even harder. If you’re considering (or are in) retirement, here’s how to save, how to spend, and, most importantly, how to boost your retirement nest egg.

Stock of the Month October 13: The market roller coaster continued this past month, with inflation worries and rising interest rates leading the charge.

Ask the Experts

Cabot Growth Investor

Question: Got in Enphase Energy (ENPH) around 300 and looks good but I know you are not a fan of averaging down, but is Albemarle (ALB) worth a small buy in the 270s ? Bought initially above 300 and if you think it’s still OK I can really lower my cost basis. Thanks.

Mike: It’s not my style at all – we’re likely to hold (ALB), but below 270 we’re likely out. I doubt it falls 40% or whatever but playing around with losses in a bear market isn’t my thing. That said, if you really want to, of course you can (your money), but be sure to have an exit plan that keeps the risk manageable in case things continue to sag.

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 Plus member benefits.