Latest Summary
CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Mike Cintolo is still cautious, but he goes into why he sees this past week as a very encouraging one -- and why, if things go well, it wouldn’t take many weeks to turn the trend of most stocks up. Right now, given the minefield that most stocks are still walking through, Mike’s holding plenty of cash, but he makes it clear his antennae are up should this week’s strength follow through -- and broaden out to more potential leading names.
Stocks Discussed: ACLS, ASML, LRCX, RMBS, DT, NFLX, DKNG, DASH/UBER, BA/TDG, ITCI/SRPT/EXAS/BIIB, ARRY/NXT, CRWD
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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.
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 May 18: We continue to keep things simple, and when you do that, you see that the overall market remains mixed (strong big-cap indexes, weak broad market, etc.) and individual stocks are extremely tricky ... though there remain many setups and it’s not hard to fill up our watch list. Still, we remain cautious overall, holding lots of cash and a few small positions, while waiting patiently for the next big move to start. We are encouraged by the action of the past two days, but it’s far too soon to tell if it’s the real McCoy. In the Model Portfolio, we’ve sold two small positions since the last issue, though we’re adding one new one tonight (a familiar name that we think is finally ready to perk up). We’ll remain flexible going ahead, willing to jump in or stay mostly on the sideline (68% cash) depending what comes. Elsewhere in tonight’s issue, we write about a bunch of new ideas, a sector that’s reasserting itself after a two-month rest and remind you to think big -- yes, right now, the news is bad and the market is tedious, but when things get going, there should be big profits to be had.
Bi-weekly Update May 19: Officially, nothing much has changed with the overall evidence—the major indexes are a split verdict, with the Nasdaq hitting nine-month highs and the S&P 500 testing breakout levels, while the broader indexes remain mostly stuck in the mud while lagging groups (like financials) bounce into resistance. As for individual names, there remain plenty of air pockets, too.
Cabot Top Ten Trader
Weekly Issue May 15: Big picture, the factors that have been in place for the past few weeks are still hanging around, but we’re also starting to see more names give it a go on the upside—after a rough start to earnings season, more and more are starting to react well and push through some resistance, with others that did get hit snapping back impressively. (Indeed, today’s list is as growth-y as we’ve seen it in a while.) Is it enough to change our stance? No, as we’re leaving our Market Monitor at a level 4, but we’re keeping our antennae up in case the buying pressures spread and more real leaders emerge. This week’s list has a bunch of strong names with solid numbers and stories, from a variety of industries, too. Our Top Pick is toyed with new highs a couple of times in recent months and now looks to have decisively broken through.
Movers & Shakers May 12: The story remains mostly the same once again—coming into today, the big-cap indexes are relatively flat, but anything with exposure to names outside of a few mega-caps is down in the 1.5% range. (Even within the S&P 500, the index is down 0.14% coming into Friday, while the equal-weight S&P 500 is down 1.12%.)
Cabot Options Trader and Cabot Options Trader Pro
Cabot Options Trader Pro Weekly Update
Cabot Options Trader Weekly Update
Cabot Value Investor
Monthly Issue May 2: Thank you for subscribing to the Cabot Value Investor. The new name for the former Cabot Undervalued Stocks Advisor more clearly and broadly describes our mission to serve value-oriented investors. We hope you enjoy reading the May 2023 issue.
Fitting for a value investment newsletter, your chief analyst will be making the pilgrimage to the Berkshire Hathaway Annual Shareholders Meeting this coming weekend.
In this month’s letter, we include our recent new Buy recommendation: NOV, Inc. (NOV). This high quality mid-cap company ($7.3 billion market cap) appears to be in front of an upshift in demand for sophisticated drilling equipment even as its shares trade at a modest valuation.
We also cover earnings reports and provide other relevant updates on our recommended companies.
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 May 16: Nearly impossible to ignore in the financial and mainstream media are updates about the ongoing negotiations to avoid a default on its obligations by the U.S. federal government. Accompanying the news is the countdown to the X Date, the unofficial date when the government will run out of authority to make further payments because it will exceed the $31.4 trillion statutory debt ceiling.
Cabot Stock of the Week
Weekly Issue May 15: It’s tough to make money in a sideways market like this one. But soon enough, a breakout is coming – history tells us that this bear market (18 months old in the Nasdaq) is on borrowed time. When it does, it will happen fast, and that’s when the real money is made – at the onset of a new bull
market. To be prepared for its eventual arrival, we maintain a full 20-stock
portfolio. And today, we add a familiar growth stock that got pummeled last
year but is on the fast track to recovery in 2023. It’s a new recommendation
from Mike Cintolo in his Cabot Top Ten Trader advisory.
Cabot Explorer
Bi-weekly Issue May 18: Explorer stocks were steady or slightly down this week but don’t get discouraged. It is likely that Fed interest rate hikes have ended and, combined with a debt ceiling deal, could ignite a rally. Next week I will give an update on our three Explorer ETF positions.
The unemployment rate for Chinese people agesd from 16 to 24, rose to a record of 20.4% last month. The rate of youth unemployment in China has consistently been two or three times higher than the general population. Not a good sign.
Bi-weekly Update May 11: Consumer prices in April showed inflation pressures remain high but backed off a bit. The consumer price index came in at 4.9%, slightly less than the 5% from March. Not a big deal but a step in the right direction as the below graph highlights.
Electric vehicle (EV) prices and profits are also going down for the most part. Tesla reported $2.5 billion of profits in the first quarter, down from $3.7 billion in the last three months of last year, and $3.3 billion in the first quarter of 2022.
Cabot Small-Cap Confidential
Monthly Issue May 4: For the second month in a row we’re going where the growth appears most resilient. Which means MedTech.
This month it’s another company focused on the spine. But a very specific area. The company specializes in implants for sacroiliac joint (SI) fusion. It already reported Q1 results (beat expectations) and the stock is acting well.
Weekly Update May 18: No banks imploded this week, and there are rumors that the folks in Washington are making progress on a debt deal. Plus, we think the Fed may just pause for a bit, if not be done hiking rates.
Add it all up and the broad market is inching higher.
So far, the small-cap index is being left behind. That’s because of the high weight of financials and energy, and those two sectors look terrible in small-cap land.
Cabot Dividend Investor
Monthly Issue May 10: Energy stocks have been by far the best-performing market sector over the last couple of years. They went from worst to first in dramatic fashion. And the good times may be just beginning. The industry has had very low capital spending and expansion in recent years. Crude oil inventories have fallen below the five-year average and are likely headed far lower. OPEC has pledged dramatic production cuts to push prices higher. There is also a high degree of geopolitical risk. In fact, Goldman Sachs analysts are forecasting oil prices to get back to $95 per barrel before the end of this year.
Weekly Update May 17: Although the market is up over 7% this year, it has been moving sideways for the last six weeks. It can’t seem to decide whether it will go higher or lower. But it will have to choose eventually, and probably soon. The resilience has been impressive. Despite a plethora of troubling issues and headlines, stocks have been hanging tough near this year’s high. While anything can happen, the next significant move is more likely to be lower than higher at this point.
Cabot Early Opportunities
Monthly Issue In the May Issue of Cabot Early Opportunities, I profile a potential turnaround story in a well-known stock that is returning to its roots. We also take a closer look at one of the highest-end luxury brands in the world, an unknown green tech company, an emerging MedTech star and a construction materials specialist that’s spreading across the U.S. Enjoy!
Cabot Profit Booster
Weekly Issue May 19: This week is the expiration of eight of our positions. Expect to hear from me on how we will manage these trades Thursday afternoon or Friday morning.
Cabot Micro-Cap Insider
Monthly Issue May 10: Today, I’m recommending a “buy when there’s blood in the streets” type of stock:
Key points:
- The company owns valuable real estate in Manhattan and Brooklyn.
- The underlying asset value implies 7x upside to the stock’s current price.
- Insiders have been buying aggressively over the past year.
All the details are inside this month’s Issue. Enjoy!
Weekly Update May 17: These days everyone is talking about the U.S. Debt Ceiling and whether it will be raised again.
The U.S. debt ceiling currently stands at $31.4 trillion, and if it isn’t raised, the U.S. could default on its obligations. U.S. Treasury Secretary Janet Yellen said in January the government could pay its bills through early June without increasing the debt limit.
Cabot Income Advisor
Monthly Issue April 25: In the middle of an earnings recession and a slowing economy, defensive stocks are probably the best places to be. These companies can maintain earnings growth while most companies are sliding and remain consistent even as the economy deteriorates further.
Defense is king right now. But defensive stocks are even better when they offer growth as well. In such uncertain times, it makes sense to bank on things that are more certain. Stocks poised in front of a megatrend are the best bet. A megatrend acts as a powerful tailwind for a stock that can make a mediocre pick very good and a good pick great.
In this issue, I highlight a defensive stock that is also one of the world’s largest producers of alternative energy. At the same time, it is also one of the best traditional regulated utilities in the country. It offers defense as well as growth and can thrive in any kind of market.
Weekly Update May 16: The market is up for the year. That’s promising after last year’s debacle. But stocks have been going sideways since the beginning of April and can’t seem to decide on the next decisive direction.
On the one hand, the market has shown inspiring resilience amid the troubling
headlines. On the other hand, there is a strong chance that the next significant move is lower after stocks have rallied 20% from the October low.
Cabot Turnaround Letter
Monthly Issue May 3: We highlight three cash-rich companies that have real products and services whose shares are out-of-favor. We also discuss six additional companies that have both promising turnarounds ahead yet also discounted share prices. Our feature recommendation this month is Frontier Group Holdings (ULCC), a major ultra-low-cost airline focused on leisure travel. Its shares have fallen 50% from its IPO price due to investor concerns about demand, pricing and costs. We think these worries are overblown, leaving ULCC shares ready for take-off.
Weekly Update May 19: This week’s note includes our comments on earnings from Vodafone (VOD). Next week, Kohl’s (KSS) reports, with Macy’s (M) and Duluth Holdings (DLTH) reporting on June 1. Yesterday, we moved shares of M/I Homes (MHO) from Buy to Sell, as the shares reached our recently raised 73 price target. The shares have benefitted from being significantly undervalued at our recommendation date combined with strong earnings and resilient housing demand. The shares now trade at about 1.0x tangible book value, compared to .68x at our recommendation date. Industry conditions remain favorable, but the risk/reward has moved to neutral at best due to the valuation. The shares have generated a 66% total return, compared to a roughly zero total return for the S&P 500, since our initial recommendation in late April 2022, at 44.28.
Cabot Money Club
Monthly Magazine May: Online scams are already more common than ever and unlikely to slow down anytime soon. Let’s look at the most common types of scams, red flags to avoid, steps to take if you’re worried you’ve been a target or victim, and what you can do to help keep your friends and relatives safe online.
Stock of the Month May 11: The markets traded sideways through most of April. But since then, the choppiness has returned—along with worries about the uncertainty regarding the debt ceiling, the expiration of the immigration-limiting legislation, and ongoing debate about the possibility of a recession.
Yet, economically speaking, the trends are still healthy. Manufacturing has held up, employment continues to rise, and job openings are still underutilized (as you can tell if you’ve been in a restaurant lately!).
Ask the Experts
Prime Question for Tyler: Tyler, should I buy Intapp (INTA) on the pullback?
Tyler: I wouldn’t argue with anybody snapping up a few shares of INTA here. That said, my official rating on it is HOLD. Just want to see how this secondary is digested before advising our entire subscriber base to load up. Almost 10% of shares hitting the market (about 3% dilution) is material. Should be a floor in the mid-37 area short-term. Will just have to see what develops after that.