Latest Summary
CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Mike Cintolo talks about late-week Middle East-induced selling in the market, which follows a month of very quiet trading -- he thinks, near-term, more volatility is likely, and possibly a general pullback after the recent run, which makes it important to honor your stops, especially on any weaker names. That said, all of the intermediate-term evidence remains bullish, so Mike sees the odds favoring any dip finding support with some fresh leadership leading the way higher over time.
Stocks Discussed: DUOL, RBRK, NET, CRDO, GEV, GH, AS, CCJ, CPNG, WING, STX
Cabot Street Check (Podcast)
This week on Street Check, Chris and Brad discuss the possibility of a pullback in the market now that volatility is in the air, a bullish 20% two-month run-up in the S&P 500 and what that points to going forward, and whether the impending resumption of tariffs might spook the market. Then, they review the latest inflation figures, lay out their expectations for the Fed and talk about silver’s historic discount to gold. For more information about the offer mentioned in this episode, visit cabotwealth.com/street.
Cabot Webinar
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts 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.
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 12: The top-down evidence couldn’t be much better, with our Cabot Trend Lines joining our intermediate-term measures on the bullish side of the fence, while the market’s action over the past two months portends big gains down the road. That said, we’re still waiting for more growth names to liftoff--so far, growth is up but at a moderate pace, and many names are still battling with old resistance. Not to repeat ourselves, but we’re optimistic more names will kick into gear, but we don’t want to get too far in front of our skis before then. We’re doing a tiny add-on buy tonight, but will still be holding 28% in cash and looking for new leaders to hop on board.
Bi-weekly Update June 5: WHAT TO DO NOW: Continue to lean bullish, but pick your spots. Our intermediate-term indicators remain bullish, and the market’s consolidation so far has been tight and quiet, which is a plus. Leadership remains good-not-great, with many names acting well but also plenty of wobbles and some selling on strength, too. All told, we’re content to follow the playbook we’ve been using, adding as names emerge and averaging up if they start well. Tonight, we’ll fill out our position in Snowflake (SNOW), adding another half-sized stake, but we’ll hold 31% or so in cash and see how things go from here.
Cabot Top Ten Trader
Weekly Issue June 9: It was another positive week for the market, with some major indexes nosing to new highs, and while it’s far from 1999 out there, individual stocks are seeing very few breakdowns while the leadership ranks gradually expand. Of course, there remain some headwinds out there, but the intermediate-term evidence remains positive, and we’re now even seeing some longer-term evidence start to point up. Thus, we’ll nudge our Market Monitor up another notch to a level 8.
This week’s list has something for everyone, with some zingers, some steady Eddies and more than a few recent earnings winners. Our Top Pick looks like an emerging blue chip in the cloud software field, and shares emerged from a big consolidation after earnings last week.
Movers & Shakers June 13: The major indexes were having another very quiet (and modestly positive) week before last night, with the Israeli strikes against Iran causing oil prices to spike and the market to take on some water. When looking at the week as a whole, the damage hasn’t been bad (most major indexes are flat to down a bit as of this morning), though obviously what happens from here will be key.
Cabot Options Trader and Cabot Options Trader Pro
Cabot Options Trader Pro Weekly Update
Cabot Options Trader Weekly Update
Cabot Value Investor
Monthly Issue June 5: Most companies that were hit hard by Covid have recovered and then some. Many are faring better than ever. But because of investors’ narrow focus on the Magnificent 7 and a handful of artificial intelligence stocks the last two and a half years, share prices across various sectors have not kept pace with revenue and earnings growth. In recent months, we’ve capitalized on that discrepancy by pouncing on United Airlines (UAL), The Cheesecake Factory (CAKE) and, just last month, Carnival Corp. (CCL), with great success.
This month, we hope to mine another quick double-digit winner from the industrials sector. It’s a company that’s thriving like never before, but there’s been a significant lag between the fundamentals and the share price. We hope our timing in adding it to the portfolio now can produce UAL- or CCL-like rapid returns.
Details inside.
Weekly Update June 12: What a difference two months make!
On April 8, the Nasdaq had plummeted to bear market territory after touching all-time highs just six weeks earlier, and the S&P 500 was on the cusp of joining it. Small caps were faring even worse. Volatility had spiked to multi-year highs. And everyone was certain a recession or high inflation – or both – were imminent.
The reason was tariffs. “Liberation Day,” a week earlier, on which President Donald Trump had imposed sky-high tariffs on more than 100 U.S. trading partners from all over the world, had sent stocks plummeting as economists clutched their pearls and warned of imminent collapse.
Cabot Stock of the Week
Weekly Issue June 9: The market continues to nurse itself back to health, with the S&P 500 back above 6,000 for the first time since February and volatility at a four-month low. Numerous newsy items could derail it, including this week’s inflation reports. But lately, the market has mostly ignored the headlines, and so should you.
So today, we try and capitalize on the strong market in front of us by adding a potential new growth leader with enough momentum that Mike Cintolo tabbed it as his “Top Pick” in last week’s Cabot Top Ten Trader issue.
Details inside.
Cabot Explorer
Bi-weekly Issue May 22: The gold-silver ratio is an intimate relationship. It indicates how many ounces of silver are needed to buy one ounce of gold. In the last century, this ratio reached its lowest point at just under 15:1 at the end of 1979 and peaked at over 110:1 during the COVID crisis.
This year, we passed the 100:1 mark for only the fourth time in a hundred years – a strong signal that silver may be underpriced.
So today, we add an aggressive silver play to the Explorer portfolio as a bet that it will close the gap on gold.
Bi-weekly Update June 12: Markets and Explorer stocks were mixed this week as the U.S.-China talks yielded no significant gains against the backdrop of immigration protests.
Cabot Small-Cap Confidential
Monthly Issue May 1: We’re putting our mining helmets back on today and taking a position in a speculative micro-cap gold and copper exploration company that’s just about to get the drills turning.
This type of stock is intended to scratch the speculator’s itch. It’s not suitable for investing money that you need. That said, if things go well – and I think there’s a good chance they will – the returns could be spectacular.
But please, go in with eyes wide open. This is supposed to be fun.
Weekly Update June 12: The S&P 600 SmallCap Index hit a multi-week high on Tuesday before giving a little back yesterday.
There’s some interesting data that suggests small-cap stocks could be in for a run starting now.
According to data from Evercore ISI, small-cap stocks have done better than large caps 60% of the time in June, dating back to 1990. The odds are even better when small caps enter June underperforming, as they have for a while now.
Cabot Dividend Investor
Monthly Issue June 11: Stocks have made an impressive recovery from the April tariff swoon. The S&P 500 is now within just 2% of the all-time high.
The recent market overreactions have been reversed. The market index is perched near the high. It’s tough to envision a catalyst that will drive a sustained rally anytime soon. Sure, there could be good tariff news. But uncertainty is likely to linger for a while. The economy is okay but not great. A recession is unlikely, but growth is still slowing.
Anything can happen, of course. But it’s time to acknowledge the possibility that the market could go sideways for the rest of the year and even beyond.
Dividends are king during times like this. Dividends roll in no matter what the market is doing or what’s going on in the world. Dividend income has accounted for a substantial portion of total market returns over time, about 34% since 1940. But dividends account for a much higher percentage of returns during periods of flat markets. While overall stock prices are stuck in the mud, the cash register keeps ringing.
In this issue, I highlight one of the very best income stocks on the market. It has a strong recent track record and is poised to thrive in the quarters ahead.
Weekly Update June 4: The market rally has gotten stuck in the mud for now. It will likely take some good news to really get it moving higher again.
Stocks have hugely recovered from the tariff Armageddon selloffs of early April. The index made up all that tariff ground and the S&P came within just a few percent of the high. But the rally has stalled over the past couple of weeks as positive headlines have been in short supply.
Cabot Early Opportunities
Monthly Issue May 21: The stock market has perked up considerably since the Liberation Day turmoil in early April, igniting shares of stocks across the market cap spectrum.
We look under the hood of five names that span the risk spectrum this month, including a couple of old names that might be familiar and a new one that’s been hard to ignore.
Cabot Profit Booster
Weekly Issue June 10: The S&P 500 broke back above the 6,000 level for the first time since February last week as the indexes are now within striking distance of their all-time highs (though they do have some work to do). By week’s end, the S&P 500 had gained 1.5%, the Dow had rallied 1.2% and the Nasdaq had advanced by 2.2%
Cabot Income Advisor
Monthly Issue May 28: It’s been a wild market so far this year. The S&P 500 has gone from the cusp of a bear market to within 5% of the all-time high in just seven weeks.
Uncertainty remains. A negative development could still roil the market on any day. Negotiations will likely take more twists and turns in the weeks and months ahead. But investors appear, at this point, to believe that the tariff situation won’t blow up. The fear of Armageddon is being removed.
But there’s still the economy. It could gain steam or slow toward recession. We are in a place, at least for a while, where anything can happen. It’s tough to pick a horse amid such varying possibilities. Fortunately, there is a trend to bank on that will thrive regardless of the near-term gyrations of the market or economy.
Artificial intelligence is a massive growth catalyst that will endure and thrive in any environment. Investors temporarily forgot all about it. It’s a generational phenomenon that hasn’t gone away. It just took a break. Now, those stocks are soaring back.
In this issue, I highlight a stock that is likely to benefit in the months and years ahead. It is still well off the high with good momentum and has a huge catalyst for growth in the months and years ahead.
Weekly Update June 10: After bouncing around for a few weeks, the S&P is moving higher again. The index is now just about 2% below the high and may rally this month.
The tariff story continues to play out. The market made a huge recovery after the initial fears in April as investors wrote off a disaster scenario. Now, talks are dragging on, and the market still can’t move completely past the issue. But good economic news was a pleasant surprise.
Cabot Turnaround Letter
Monthly Issue May 28: Goodyear Tire & Rubber (GT) is no stranger to veteran subscribers of the Cabot Turnaround Letter. The stock was initially recommended in 2022 and was a long-time holding in the portfolio. I made the decision to sell the stock when I took over as chief analyst last summer, which at the time seemed like a good idea.
Indeed, the stock had been underperforming for quite some time, and management had just warned of “weaker underlying trends in the industry” for the second half of 2024, augmented by lower tire volume and higher costs. The stock dropped 16% to a new 52-week low at that time (early August) and was threatening to break a benchmark “support” level in its long-term chart, while the firm’s debt remained disturbingly high.
Weekly Update June 13: In today’s note, we discuss pertinent developments for some of the stocks in the portfolio, including Agnico Eagle Mines (AEM), Dollar Tree (DLTR), GE Aerospace (GE), Goodyear Tire & Rubber (GT), Intel (INTC), Paramount Global (PARA), SLB Ltd. (SLB) and UiPath (PATH).
Agnico Eagle (AEM) is poised to benefit from a major change in the balance of global reserve assets.
Cabot Cannabis Investor
Monthly Issue May 28: The Senate Judiciary Committee recently approved the nomination of Terrance Cole to lead the Drug Enforcement Administration (DEA).
The full Senate may vote on Cole’s confirmation as soon as early June.
This could be the start of a significant turning point for cannabis stocks. That’s because Cole will address a Biden-era proposal to move cannabis to Schedule III from Schedule I under the Controlled Substances Act (CSA). The change would significantly enhance cannabis company cash flow by neutralizing an IRS rule that bars operating expense deductions against revenue from the sale of Schedule I substances.
Monthly Update June 11: Cannabis companies remain in hunker-down mode as challenges persist. Those include price compression, competition from hemp-based THC product sales, and uncertainty about potential federal reform.
Not all cannabis companies are going to survive. Ayr Wellness (AYRWF) looks like it is about to go under. I’ve only ever kept a very small position in that name, so the company’s demise did not cause too much damage.
Cabot Money Club
Monthly Magazine June: Loading your portfolio with high-flying growth stocks and steady dividend payers can help you generate market-beating returns, but there are also unique, company-specific events that can quickly turn stocks into big winners. This month, we’ll be taking a closer look at stock spin-offs, special dividends, IPOs, mergers, buyouts and more “special situations” that can give you an investing edge.
Stock of the Month June 12: It looks like the president’s tariffs are beginning to show some effect on inflation. The latest CPI report showed that the inflation rate—while lower than the 2.5% economists had expected—crept up to 2.4% from April’s 2.3% rate. Core inflation—excluding food and energy—rose 2.8%, the same as April’s increase.
The number was helped by drops in apparel and automobile prices.
The unemployment rate remained stable at 4.2%. The ADP employment number was just 37,000, the lowest level since March 2023, and less than the 111,000 anticipated.
Ask the Experts
Prime Question for Mike: Mike, do you have a max number of stock position in the portfolio?
Mike: So, there’s not a set max, but realistically given our position sizing (10% for a full position), I don’t think we’ve ever had more than 12-13, and usually it’s like 10-11. So somewhere in that range, ideally with ten 10% positions but the world isn’t that perfect.