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Cabot Weekly Review (Video)

In this week’s video, Mike Cintolo talks about the market’s on the one hand, on the other hand situation -- most indexes and the broad market remain weak, which isn’t something he’ll ignore--but he’s also not going to ignore the resilience of the Nasdaq and many growth stocks, especially after they were wiped out last year. Overall, Mike’s cautious (more than half in cash), but he’s not opposed to some nibbling in strong names.AGL



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Portfolio Updates This Week

Cabot Growth Investor

Bi-weekly Issue March 23: The market has a split tape right now -- on one hand, the broad market is very weak, led lower by the horrid financial sector, but on the other hand, many growth indexes and individual stocks are hanging in there ... with some actually stretching higher. We’re certainly not going to ignore our market timing indicators (Cabot Tides and Two-Second Indicator are negative), but it’s hard to ignore the action in growth, either, especially after last year’s bear and lots of bottoming action. Thus, tonight, we’re adding two half-sized stakes in potential new leaders, but also holding a bit more than half the portfolio in cash.

Bi-weekly Update March 15: WHAT TO DO NOW: After cracking on an intermediate-term basis last week, the market has been unable to find its footing this week despite some steps to secure the banking system. It’s not 2008 out there, and in fact, many growth stocks we own and are watching are still holding up well, but there’s no doubt the selling pressures out there are intense and haven’t let up. Tonight, we’re going to sell one-third of what’s left of our ProShares S&P Fund (SSO) position and our half position in Las Vegas Sands (LVS), which will leave us a cash position of around 66%.

Cabot Top Ten Trader

Weekly Issue March 20: The market remains mostly weak and very news-driven, and because we’re not ones to catch falling knives, we continue to advise a cautious stance. The one meaningful ray of light we’re seeing is the resilience of big-cap indexes in general and many growth stocks in particular, including a bunch of recent Top Ten names—lots of growth titles are holding up in fine fashion, which isn’t normally something you see at the front-end of a sustained decline. That’s encouraging, though it doesn’t outweigh the other factors mentioned: All in all, we’ll keep our Market Monitor at a level 5, holding a good chunk of cash while we look for signs the buyers are stepping up.

Movers & Shakers March 24: This week has been another volatile and news-driven one, with some quiet trading Monday and Tuesday, wild action with the Fed and the Treasury Secretary’s commentary on Wednesday with another wild swing on Thursday (up, then back down) and some selling this morning. Interestingly, though, the major indexes haven’t moved much net-net—as of this morning, the S&P 500 is flat, the Nasdaq is up less than 1% and the broader indexes are off less than 1%.

Cabot Options Trader and Cabot Options Trader Pro

Cabot Options Trader Pro Weekly Update

Cabot Options Trader Weekly Update

Cabot Undervalued Stocks Advisor

Monthly Issue March 7: We discuss how the post-Cold War peace dividend is shifting to a war tax. We provide updates on earnings and change our rating on Organon (OGN) from Buy to Sell. The company is spending more to generate sales growth even as that growth is becoming more difficult. Our thesis is broken, but fortunately, we exit with only a small (~6%) loss.

Weekly Update March 21: We raise our rating on Comcast (CMCSA) from Hold to Buy. Also, some thoughts on poker and the bank stocks.

Cabot Stock of the Week

Weekly Issue March 20: Banking crisis fears have subsided, and while the fallout from Silicon Valley Bank, Silvergate and Signature Bank simultaneously going under is sure to be felt in the market for weeks and months to come, it’s also not looking like 2008 out there, at least not at the moment. Still, we could use some more safety in the portfolio, and today we add it in the form of a large-cap healthcare giant that’s a reliable dividend payer, boasts one of the industry’s best drug pipelines, and has been outperforming the market for years. It’s a favorite of Cabot Dividend Investor Chief Analyst Tom Hutchinson, who recently upgraded the stock to Buy.

Cabot Explorer

Bi-weekly Issue March 23: I think the 0.25% raise by the Fed yesterday will be followed by a pause. Won’t it be nice when stocks fluctuate primarily around company performance rather than actions by the Fed? Elsewhere, Xi and Putin meet in Moscow in a sign of solidarity and challenge to the U.S. and the West. Novo Nordisk (NVO) is up 10 points this week while today we have a new emerging market recommendation from a country with one of the strongest currencies of 2023.

Bi-weekly Update March 16: This was a week to remember. The Explorer does not have any financial stocks, thankfully, though a couple of our small-cap ideas did not have a good week. Federal deposit insurance was introduced 90 years ago during the Great Depression. Ever since then, small depositors within the FDIC limit of coverage have escaped the fear of a bank failure.

Cabot Small-Cap Confidential

Monthly Issue March 2: This month we are going with a small industrial company that is showing how consistent focus on operational improvement can pay dividends. Once thought of as a highly cyclical company with management that tended to drop the ball, execution has improved dramatically. In 2022 revenue was up 14% and EPS was up 41%. With exposure to megatrends like infrastructure and global electrification, I see more upside ahead.

Weekly Update March 23: Yesterday the FOMC decided to move ahead with another 25bps hike, bringing its federal funds target rate to a range of 4.75% to 5%. The statement was missing the phrase, “...ongoing increases in rates would be appropriate,” which was present in the eight previous statements, suggesting the Fed may be done hiking soon.

Cabot Dividend Investor

Monthly Issue March 8: Inflation has come down. But in the past, when inflation stayed this high for this long, it took about a decade to get rid of it. That’s why the inflation rate averaged 7.25% in the decade of the 1970s and 5.82% in the 1980s. Once that inflation genie gets out of the bottle, it has historically been a long ordeal to get it back in. Higher inflation and interest rates may persist for several years to come. That’s a different economic situation than we have faced in a long time. And it is changing the investment landscape.

Weekly Update March 22: Fallout from the bank failures and the Fed meeting tomorrow make this a big week in the market. Let’s deal with the banks first. After the two bank failures this week and the buyout of ailing Credit Suisse (CS) over the weekend, the spotlight is on potentially vulnerable small regional banks. Although Silicon Valley Bank and Credit Suisse are very different banks with different problems, the common denominator is the markets, particularly the bond market.

Cabot Early Opportunities

Monthly Issue March 15: In the March Issue of Cabot Early Opportunities we take a look at what’s been unfolding in the financial system and consider implications for the FOMC’s meeting and subsequent rate hike decision next week. Suffice to say, buying a bunch of stocks into the current uncertainty doesn’t seem like the best idea. We’ll add a few partial positions, but the bulk of this month’s new ideas are going on our Watch List. We’ll take things as they come and consider plucking names off this list as things develop. Never a dull moment!

Alerts March 10: Trimming BCAB, SGHT and NRDS

Cabot Profit Booster

Weekly Issue March 21: Now that was an interesting week, as countless sectors imploded (banks/REITs/airlines/energy) while at the same time money rushed into mega-cap technology. By week’s end the S&P 500 had risen 1.43%, the Dow had fallen 0.15%, and the Nasdaq way outperformed, having gained 4.41%.

Cabot Micro-Cap Insider

Monthly Issue March 8: Today, I’m recommending a micro-cap “thrift” (a type of bank) that is likely to get acquired within the next year or two. Key points:
· Insiders are buying like crazy.
· The stock is buying back its own stock hand-over-fist.
· 70% of thrifts ultimately get acquired, and this thrift will be eligible to be acquired in 12 months.

Weekly Update March 22: This week, all everyone cares about is the banking system, and so I’ve been thinking about it a lot. I continue to believe that this banking crisis is manageable and NOT systemic. Here’s how I see it…

Cabot Income Advisor

Monthly Issue February 21: Stocks have rallied so far this year on optimism that we can get through this inflation and Fed rate hiking cycle without much economic pain. That’s what seems to be happening so far. But this latest “soft landing” rally is facing a formidable foe – history. Rate hikes almost always slow the economy. But there is typically a long lag time. Since 1961, the Fed has embarked on nine inflation-busting, rate-hiking cycles. Eight of those cycles have led to recession. The yield curve has inverted, a phenomenon that has almost always preceded a recession.

Weekly Update March 21: This is a big week in the market. Investors are grappling with the fallout from the banking crisis and the Fed meeting later this week. The failure of two banks last week also turns a spotlight on the vulnerabilities of smaller regional banks. The situation so far has not caused major reverberations in the market, as the government backstopped the fallout so far.

Cabot Turnaround Letter

Monthly Issue February 22: While large restaurant companies cruised through the pandemic, smaller companies struggled. Some, however, are now undertaking promising turnarounds. We highlight four new ideas and provide updates on two previously discussed small-cap restaurants. For struggling companies, free cash flow is their lifeblood. By using free cash flow yield, we can identify undervalued companies with plenty of cash flow that provides a margin of safety. We discuss three interesting stocks.

Weekly Update March 24: Updates on Toshiba (TOSYY), Wells Fargo & Company (WFC), Capital One Financial (COF), Nokia (NOK) and Walgreens Boots Alliance (WBA). Plus, comments on the banking industry stresses, the importance of leadership, and two worthy weekend distractions: errant asteroid to pass between Earth and moon, and trading in NCAA brackets.

Cabot Money Club

Monthly Magazine March: Healthcare spending is a huge chunk of the U.S. economy, and demographic trends mean it’s unlikely to slow down. So, let’s dive into the technology changing medicine, who’s developing it, and how to best invest in it.

Stock of the Month March 9: A new day, and maybe a new term for some of us. That is, “rolling recession.” After expectations of a hard landing, then soft landing, then pushing a possible recession further down the line, economists have now decided we may just be having a rolling recession, which affects just a few industries at a time.

Ask the Experts

Prime Question for Mike: Mike, with all the cash Cabot is holding in the growth portfolio, where are you holding the cash and making a decent return on it while you wait for opportunities?

Mike: Thanks for writing. Well, I am not a cash return guy, but personally I’ve always used Fidelity (most do up in the Northeast, of course) and those money market funds are in the 4% to 4.25% range last I looked. I would assume others would have something similar for both liquidity and a decent return.

That said, my main focus is finding some big winners when the market does turn, but doesn’t hurt to collect a few “free” dollars along the way.

Quarterly Cabot Analyst Meeting

The recording of the Cabot Prime Members Meeting with the Analysts from January 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 Pro member benefits.