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Cabot Prime Pro Week Ending April 7, 2023

Latest Summary

Cabot Weekly Review (Video)

In this week’s video, Mike Cintolo talks about the disappointing--but not decisive--action, with defensive stocks ramping and growth stocks being rotated out of. That said, even among names that have taken on water, few have cracked key support, and Mike runs through a bunch that are sitting near key levels -- solid upside from here would be intriguing, though if the selling continues, it would be telling. In the meantime, he’s still playing things halfway (about half in cash and half in potential leaders) while he waits for the market to show its hand.



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Portfolio Updates This Week

Cabot Growth Investor

Bi-weekly Issue April 6: This week’s action has been a disappointment, with growth stocks suffering selling while defensive names have picked up steam. Still, nothing much has changed--the top-down evidence is mixed, and growth stocks, while taking on water, haven’t suffered anything abnormal to this point. Thus, given that we’re about half in cash, we’re mostly standing pat in the Model Portfolio tonight.

Bi-weekly Update March 30: WHAT TO DO NOW: The market remains stuck in the middle—on one hand, growth stocks and big-cap indexes are holding up very well considering the recent banking and economic fears, but on the other, the broad market is still weak, financial stocks are a mess and a couple of our key indicators are negative. All in all, then, we’re following the market’s split personality, holding about half in cash but also holding and nibbling on some resilient growth names. Tonight, we’re going to buy a half-sized stake in Axon Enterprises (AXON), though that will still leave us with 48% on the sideline.

Cabot Top Ten Trader

Weekly Issue April 3: The market put on a constructive show last week, though today was a bit sloppy, as the surprise OPEC supply cut hiked oil prices brought some rotation ... and provided a reminder we’re still in a very news-driven environment. All in all the story remains mostly the same: There are positives, especially among growth titles, but the market is bifurcated and tricky, with a lot of stocks still in the doghouse.

Movers & Shakers April 6: The market’s on-again, off-again style remains in place, as after a couple of constructive bounce-back weeks led mostly by growth stocks, we saw a reversal of that in recent days, with the major indexes slipping, financial stocks becoming ragged again and many potential leaders getting hit hard.

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 April 4: We comment on the price of gold and what we see as its primary drivers. Gold is now trading above $2,000/ounce. We also provide updates on our recommended stocks.

Weekly Update March 28: This past week, among the 1,000 largest companies by market cap, the average percentage share price change was zero. Half of the stocks had moves of no more than +/- 1%. And, only 14 stocks had share price movements of +/- 10% or greater.

Cabot Stock of the Week

Weekly Issue April 3: The market is arguably the healthiest it’s been since 2021 – remarkable considering all the economic and sociopolitical hand grenades tossed at investors in the first quarter of 2023. So, this week we lean into the recent strength by adding another growth stock in the form of a small-cap semiconductor play with strong ties to Apple. It’s a stock recently recommended by Cabot Early Opportunities Chief Analyst Tyler Laundon, and one that has plenty of momentum – up 35% year to date.

Cabot Explorer

Bi-weekly Issue April 6: More than $15 trillion in assets are linked to the performance of the S&P 500 index in some way, according to S&P Dow Jones. Apple, at about $2.4 trillion, and Microsoft, at $2.1 trillion, are so large that, taken together, the two companies would be the third-largest sector of the index, behind tech and health care. This share is trending lower as other companies rise.

Bi-weekly Update March 30: BYD (BYDDY) reported great earnings, and Novo Nordisk (NVO) got a lift from the World Health organization this past week – but the big news is that Alibaba (BABA) surprised markets by announcing on Tuesday a plan to split the $220 billion goliath into six standalone units.

Cabot Small-Cap Confidential

Monthly Issue April 6: We’re digging into another compelling MedTech story this month. The company in focus is a spine specialist. It’s been grabbing market share from larger players by growing a portfolio that covers the full spectrum of spine care, from imaging and surgery planning to surgical tools and implants.

Weekly Update March 30: Small-cap stocks have underperformed their larger-cap peers by a wide margin since Jerome Powell’s Congressional Testimony just over three weeks ago. Part of that is because of the hawkish tone he struck. But mostly it’s because of the fallout of the SVB debacle, concerns over a 2023 financial crisis and what the spillover effects could be on the broader economy.

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 April 5: The market was impressive last week. The S&P 500 moved 3.5% higher for the week, accounting for nearly half of the better than 7% YTD return. Hopefully the rally has further to go.

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!

Cabot Profit Booster

Weekly Issue April 4: Despite the banking worries of last month, the S&P 500, Dow and Nasdaq have strung together three straight weeks of gains.

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 April 5: The big news this week is that OPEC+, including Russia, made the decision on Sunday to cut oil production by 1.16MM barrels per day from May through the end of the year. It appears that OPEC+ wants to keep oil in the $80-$90/barrel range.

Cabot Income Advisor

Monthly Issue March 28: The banking situation has changed the Fed. The damage done by previous rate hikes is making the Central Bank far less hawkish. The risk is shifting from the Inflation/Fed cycle to recession. The end of this cycle may have been expedited. And stocks could rally out of this bear market sooner than thought. Of course, the banking issues might not be over yet. And the timing and severity of a possible recession is still unknown. Things may get worse in the market before they get better. For now, defensive stocks that can maintain earnings growth in a worsening economy or recession are better places to be.

Weekly Update April 4: Things are looking up in the market. The S&P 500 soared 3.5% last week and is now more than 7% higher YTD. Investors love that the banking issues have had the benefit of tempering the Fed with no apparent offsetting crisis, so far.

Cabot Turnaround Letter

Monthly Issue March 29: This issue focuses exclusively on the banking industry. Given the recent turmoil and the second- and third-largest bank failures in U.S. history, we examine the question on the minds of value and contrarian investors: is it time to jump back into bank stocks? Our feature recommendation this month is First Horizon Corp (FHN), a relatively plain mid-sized regional bank that provides an appealing way to exploit the bank sell-off: merger arbitrage. Due to regulatory delays, the bank’s shares trade at a 33% discount to the $25/share all-cash offer from TD Bank Group, a large and well-capitalized Canadian bank. We believe that the deal will close at the $25 price, providing an attractive return, even as the shares’ discounted valuation offers considerable downside protection.

Weekly Update April 6: This holiday-shortened week was relatively light on news, as investors digested signs of a weakening economy in front of what likely will be a fascinating earnings season.

Cabot Money Club

Monthly Magazine April: Bonds or bond funds should be part of most investors’ portfolios or retirement plans because of the predictable income they generate. But with interest rates vacillating wildly, let’s take some time to explore how that impacts bond investors and some strategies you can employ to optimize your fixed-income returns.

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 Jacob: Do we continue to sell positions as there are clearly issues in the banking system, or do we ignore those worries and take the lead from stocks like AAPL/AMD/NVDA/MSFT all of which are within striking distance of recent highs?

Jacob: To be honest, this is as confusing of a situation as I can remember. What I mean is I have countless candidates for new buys based on stock strength, but I could also see these banking/real estate worries leading to a test of the S&P 500 2022 lows, or worse. Or, perhaps the banks will lead this week and the mega-caps which have been working will then soften.

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.