The market remains healthy and thus I continue to recommend that you remain fully invested in a diversified portfolio. My last two recommendations were chip companies that consumers can’t really “see,” but this week’s recommendation is a consumer-facing company, so you can easily “kick the tires.”
As for the current portfolio, there are no sales, but four stocks get downgraded to Hold, for various reasons.


Details inside.

From a top-down perspective, there’s really not many stones you can throw at the market given where it was just three weeks ago. However, when looking at individual stocks, it remains a tricky environment—specifically, most stocks that have approached their old highs have either stagnated or been soundly rejected, with the action has thus far been concentrated in the worst performers of the prior few months. To be clear, we see this more as descriptive than predictive, but we’ll have to see the selling-on-strength vibe change if the upmove is going to continue to gather steam.



This week’s list is again a mixed bag, with some growth but a lot of commodities and cyclicals, too. Our Top Pick is a big player in the steel space that just recently emerged from a big rest period.

Becoming a great investor stems from a passion for learning. Learning new things is what gets me up every morning.

In Cabot SX Crypto Advisor, I will always make my best attempt to distill information concisely and clearly to you the audience so that you can make more informed, independent decisions.



This type of character development transcends assets and instead enables us to develop a rigorous, analytical framework. Sound and lucrative investments take conviction and time to compound. Therefore, concrete theses must be built piece by piece from solid research to identify great businesses and the correct holding period.

Explorer stocks had another good week as markets adapt to the Russia-Ukraine conflict’s impact on commodity markets. Oil prices pulled back a bit following plans to release reserves. This week we look back in history at a global giant in agriculture and food that is backing our new-age recommendation hailing from Montana.

It’s been a challenging year for investors in cannabis stocks, but the good news today is that the stock market as a whole is stronger, and cannabis stocks are trending higher as well, especially in Canada, where the stocks were thoroughly oversold.

So I’m adding two new Canadian stocks to the portfolio.



Full details in the issue.

Thank you for subscribing to the Cabot Turnaround Letter. We hope you enjoy reading the April 2022 issue.



All companies are collections of assets. When companies are struggling, a new CEO can redirect how those assets are utilized – a valuable catalyst for a turnaround. We highlight three recent CEO changes and how they might help drive up the value of their companies.



While we have been slow and perhaps reluctant to consider cannabis companies, we find that the time has arrived to look more closely. We summarize our deep-dive into this emerging industry and its major participants, and suggest six companies with impressive growth yet trade at surprisingly low valuations.



Our featured recommendation this month is ZimVie (ZIMV), a company that was recently spun off from medical technology giant Zimmer Biomet. Its shares have been summarily sold by the market, creating what we believe is an attractive turnaround situation.



We note our second price target increase for Marathon Oil (MRO) and our move to sell shares of Baker Hughes (BKR).

Today, I’m adding an American petroleum contract drilling company, Helmerich & Payne, Inc. (HP).

With the market continuing to improve, and chip stocks increasingly in demand, we add another chip stock (a very established one) to the portfolio today.
But we’re selling one stock too (VECO), taking profits and looking to reinvest them in something with greater potential.


Details inside.

In our view, the market still has a good amount of work to do, including when it comes to the intermediate-term trend of the major indexes, the trend of growth funds and for individual stocks, where breakouts to this point remain few and far between. Still, there’s also no question that, after weeks of bottom building, the evidence has certainly improved, with very solid action during the past two weeks among a variety of issues. We’re encouraged, but from here, it’s simply a matter of believing what we see. For now, we continue to favor holding some cash, buying on dips and keeping positions on the small side.


This week’s list is a mix of strong commodity names and some chip and growth titles that have perked up. Our Top Pick is a mid-cap energy name that should thrive in the quarters to come.

The market’s evidence continues to improve, with more bullish breadcrumbs being dropped--last week, it came via a rare, blastoff-type indicator that triggered for just the fifth time since 1970. To be fair, our primary indicators are still iffy, so you shouldn’t throw caution to the wind, but we’re doing a bit more nibbling tonight, and aim to continue buying if the market can prove itself on the upside going forward.

Sure, the rally in the overall market may not last, but this unusual environment is still creating great opportunities in certain pockets if you know where to look. One such opportunity exists in the new and rapidly growing marijuana industry.
The growth in marijuana is undeniable.


While most companies have struggled to make a profit in the young industry, one company has been making money like crazy. It’s a marijuana farm REIT with a superior business plan that has managed to grow profits 600% over the last four years. The stock has been a phenomenal performer. But it sold off recently and appears to have just begun moving higher.


This month I also highlight a call on Global Ship Leasing (GSL), a stock that has bucked the trend and returned 28% YTD.


There are three portfolio stocks that have been upgraded to a BUY this week: U.S. Bancorp (USB), Visa Inc. (V) and One Liberty Properties (OLP). All the stocks have some momentum and strong reasons why the rally may continue.

Today, I’m adding an American company that develops all-flash data storage hardware and software products, Pure Storage (PSTG).

While there are growing signs of risk, the market is, as always, difficult to predict in the near term. If it does selloff, that’s okay. Stocks in this portfolio are well positioned to endure further hardship and thrive beyond this crisis. Another down leg in the market will represent an opportunity to better position ourselves ahead of the ultimate recovery.

There have been so many changes in 2020, it pains me to heap another change onto your laps, and yet it is time for me to do so. I’ve implemented the next phase of my longtime career plan by establishing a U.S. equity hedge fund for which I am the portfolio manager.

The market continues to recover from last week’s short but intense decline. In our portfolio there’s been a dearth of news flow. That’s fine with me. I think we could all use a little less stimulation and step back from our computers and mobile devices a bit more. This has been a crazy spring.

U.S. and global markets continue to be fueled by substantial amounts of liquidity washing over the world. According to Lipper, the amount in American money market funds has reached $4.6 trillion. This is a record going back to 1992.

It’s been another crazy week in pandemic-land. After an interruption last week, the market seems to have resumed its ascent.

The week is representative of the tenuous state of the current market. Continued volatility is a strong possibility. Stocks have had a huge and rapid rebound from the March lows on anticipation of a powerful economic recovery and a booming economy in the third and fourth quarters.

Right now, U.S. stock markets are surging, largely due to the Federal Reserve’s bond-buying binge. As bond prices rise from the increased demand, bond yields fall (and they’re tremendously low).

Remain bullish, but pick your spots. Today was a very brutal day, but it hasn’t changed the evidence, at least not yet—our trend-following measures are still bullish and, along with the recent blastoff indicators, tell us the odds still favor higher prices ahead (though further short-term weakness wouldn’t shock us at all).

We’re finally starting to see signs that investors are realizing that risk actually does exist in the market (I think).

After crashing 34% into bear market territory in record time, it has come almost all the way back in record time. The S&P 500 closed Monday less than 5% from the all time high and in positive territory for 2020.

This shipping company just reported 60% growth in earnings and 13.5% increase in revenues, for the second quarter.

There hasn’t been any real news about our stocks in the past week, but I’ve been watching the charts carefully, trying to decide whether it’s time to put some of our 35% cash back into the market, or to take more out, or to simply stand pat.

This bank beat analysts’ earnings estimates by $0.09 last quarter.

Six analysts have increased their earnings estimates for this ore and nickel producer in the past 30 days.

This consumer products company walloped Wall Street’s earnings estimates, posting EPS of $.059, compared to the $0.23 forecast.

Every so often one of our stocks is the target of a short report that tries to make the case that a company is garbage, a fraud, and/or wildly overvalued.

Earnings estimates are rising, and analysts expect this fuel aggregator to grow by more than 60% next year.

In the past 30 days, 13 analysts have increased their EPS estimates for this auto reseller, and are predicting 37.10% next year.

Fundamentally, the only recent news regarding the marijuana industry is that the U.S. House of Representatives will vote on the MORE Act, which would deschedule marijuana and thereby legalize it federally, the week of September 21. Passage is likely. Getting through the Senate is not.

Our first idea today is a mutual fund with top five holdings.

Our second recommendation is a sale to rebalance the contributor’s portfolio.

The big question on investors’ minds is if this tech stock retreat is a precursor to something larger or a “normal” correction in the context of a bull market.

Our Cabot Top Ten Trader’s market timing system consists of two parts—one based on the action of three select, growth-oriented market indexes, and the other based on the action of the fast-moving stocks Cabot Top Ten features.