Today’s recommendation is a well-known pharmaceutical giant whose stock recently broke out above the high it hit in 2000, 22 years ago! But that’s not why it’s recommended today. Today’s story is all about new drugs and renewed growth.
As for the current portfolio, there are four stocks rated sell!


Details inside.

The market’s evidence improved under the surface for much of February and early March, with the strong rally last month only adding to the good vibes. A pullback wasn’t unexpected, but so far, the way things have retreated hasn’t been encouraging, with a lot of potential leaders taking it on the chin and our nascent Cabot Tides buy signal back on the fence.


To be fair, the decline hasn’t cracked the uptrend in the market or most stocks, and a couple of good days would do wonders. But with few stocks really making headway, we advise going slow, adhering to your stops and holding a good chunk of cash.


Earlier this week, we sold one of our recent buys, and while we have no new sells tonight, we are placing a couple more names on Hold and have relatively tight stops in place in case the selling continues.

Inflation is hot and the Fed just began raising rates. It is expected to hike ten more times by the end of next year.

While yield curve inversion and recession risk is out there, many banks are flush with cash. And consumers are in great shape. As rates go steadily higher, bank stocks are poised to significantly grow earnings.



The most aggressive way to play this is with a bank that’s leveraged to short-term rates. That’s the strategy we’ll take today with a pure-play digital currency bank.



Enjoy!

Greentech remains near-term bullish, an encouraging sign as most subsectors are holding on to gains. Our featured stock is an innovative energy storage venture that has exceptionally encouraging performance since going public in February. It’s not all clear skies however – we tweak some of our holdings this issue to acknowledge specifics with companies.

The first quarter was kind to our stocks, as they rose, on average, +8.8%, while the broad market fell. We comment on the sources of the gains and any recent news on our recommended stocks.

Today, I’m adding Cleveland, Ohio-based company Cleveland Cliffs (CLF), the largest flat-rolled steel producer in North America.

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.

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.

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).

The stock market continues to exhibit a willingness to rise in the near term. I’m seeing constructive price chart patterns on both the S&P 500 index and on many individual stocks.

The S&P 500 paused its recovery over the past week, moving sideways over the past five days. Here is my take on the market.

The S&P 500 has now regained more than half of what it lost in the bear market selloff. We are still in the midst of a six-week rally, although it has leveled off in the past few weeks. What can you expect going forward?

The overall market continues to look good, though this week we’ve seen most growth stocks take hits as money has flowed into the broad market.

The market continues to remain strong in the face of economic data that’s anything but. As we’ve already discussed at great length, this is because the market is forward looking and there’s been enough potential positive news around treatments and the timeline to a vaccine that the path of least resistance has been higher.

Six portfolio stocks reported earnings recently.

Over the past week, marijuana stocks have been particularly strong, with the strongest being the four leading U.S. multi-state operators that we own—and that means it’s time for another brief update on strategy.

Five holdings are in this ETF.

Two portfolio stocks reported earnings, and ratings remain the same.

This small cap stock was recently added as a member of the US Small-Cap Russell 2000® Index.

This instrument company will report earnings on August 5.

This portfolio stock reported last night what can only be described as an outstanding quarter.

Two portfolio stocks reported earnings yesterday and both remain Buys.

This trucking company has been in the acquisition mode and has a current dividend yield of 1.89%, paid quarterly.

Tyler updates four stocks in the Cabot Early Opportunities Portfolio.

We provide the top five holdings in this fund.

This online educator’s price target was just raised by Morgan Stanley, to $83.

A few Cabot Options Trader subscribers have asked me about ways to protect gains in their portfolios, so I thought I would write to everyone with a couple of strategies using options to hedge your portfolio.

A subscriber recently asked me if I keep a journal of my trades. Many traders keep journals so they can look back at their trades and evaluate what they did right and what they did wrong.

Want to know how the big institutional investors use options? Here is an example of how one trader spent $132 million on three technology stocks.

Options trading has its own vernacular. To know how to do it, you need to know what every options term means. Here are some of the basics.

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.