It’s too soon to buy new stocks aggressively. But there is a safer place in the meantime to generate a high yield without much downside in the near term.
In this issue, I highlight a stock from the energy sector, the only market sector having a good year. Yet, the stock is not overvalued or overpriced. It provides a high yield without much downside if the market decline continues. And the price is likely to trend higher over the rest of the year.

It’s been a tough year for investors in cannabis stocks, and in the broad market as well, as all major indexes are in downtrends.

Yet prospects for the cannabis industry remain bright, as state-by-state legalization trends continue.



But until trends turn up, there’s no urgency to buy, so our portfolio sits roughly half in cash, waiting for the upturn.



Full details in the issue.



Yours for wealth and wisdom.

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



While the stock market has surged since its pandemic low, shares of many companies have sold off sharply and now trade below their March 23, 2020 level. We touch on several different types of situations behind these sell-offs and highlight five stocks backed by reasonably healthy companies yet trade at attractive valuations. We also mention one additional stock that has significant potential but not under the current value-destroying management.



We delve into the investment management industry and highlight four stocks of companies that look appealing but are not generally on investors’ radar screens. Our featured recommendation this month is investment firm Janus Henderson Group (JHG). The company produces strong free cash flow, has a fortress balance sheet, offers an attractive 5.7% dividend yield and is under pressure from activist investor Trian Partners to improve its results.



We note our recent ratings change of Altria Group (MO) from Buy to a Sell.

Titanium, an under-covered market on Wall Street, has the unlikely distinction of now being one of the top-performing metals.

This metal, along with lithium and steelmaking coal, grabbed the top spots in terms of overall performance and has provided us with a solid performance in an otherwise soft metals broad market.



Elsewhere, steel should strengthen while gold and silver both have a good chance to turn around in the coming weeks.



I continue to recommend that we maintain a mostly defensive stance.

Despite some optimism early last week, the sellers obliterated that hope Wednesday through Friday, as the indexes fell sharply, pushing the S&P 500 into an official bear market (down 20% from its highs).

Welcome to Cabot Options Institute’s Income Trader!

In today’s issue, we aren’t going to do any heavy lifting. No market commentary, just an overview of Income Trader and what to expect going forward. We will have plenty of time to get into the nitty-gritty. Today, I simply want to go over the ins and outs of the service so that you can efficiently and effectively take advantage of all the content provided including details on issues, trade alerts, webinars and more.

Today, I simply want to go over the ins and outs of the service so that you can efficiently and effectively take advantage of all the content provided including details on issues, trade alerts, webinars and more.

That being said, expect to start seeing several trade alerts over the next week. I will begin trickling out positions over the five different portfolios over the next few weeks. So have an understanding of what each portfolio is trying to accomplish.

If you dug into any financial news this weekend, you were likely inundated by tons of bearishness that have arisen due to so many uncertainties, but when it comes to the market, it’s best to just keep it simple and focus on the action itself: The intermediate-term trend of the indexes and vast majority of stocks remains down, with only a few special situation names and some commodity-related titles able to buck the trend. We would say that, just in the past week, far fewer stocks joined the indexes at new correction lows, but we need to see such rays of light lead to real, sustained buying pressures to take action on them. We advise remaining defensive.


Not surprisingly, this week’s list doesn’t have many stocks near new high ground, but we are seeing many that reacted well to earnings and have shown some positive volume clues. Our Top Pick is one of them, a new name in the resilient shipping group.

We are officially in the doldrums between earnings seasons. But an opportunity or two can still be found each week. And while the offseason earnings trades oftentimes lack all of the necessities for an actual trade, it’s still worth taking a look at potential trades as we patiently wait for another upcoming earnings season, if only for educational purposes.

The market remains quite weak, and thus ripe for a major rally at any time. But until we see real strength, continued caution is advised.


In the meantime, you may want to nibble on today’s innovative consumer footwear stock, especially if you’re a customer.


As for the portfolio, we’re selling two stocks, cutting losses short so they don’t grow larger.


Note: next week’s issue will be published on Tuesday, due to the Memorial Day holiday.

In today’s issue, we aren’t going to do any heavy lifting. No market commentary, just an overview of Quant Trader and what to expect going forward. We will have plenty of time to get into the nitty-gritty. Today, I simply want to go over the ins and outs of the service so that you can efficiently and effectively take advantage of all the content provided including details on issues, trade alerts, webinars and more.

My suggestion is take your time to read through everything. Get comfortable with the approach, strategies used and write down questions as you go along. Don’t hesitate to send me emails as you go through all of the content. That’s why I’m here.

The market’s downtrend remains in place, with the trends of the major indexes and growth stocks still solidly down, and just as important, we’re still seeing many blowups among individual names, with retail stocks like Target and Walmart going over the falls this week. Thus, we remain defensive, with north of 80% in cash.
That said, we’re not joining the growing chorus of super-bears out there--there are tons of extremes when it comes to the selling and sentiment that a low could come at any time. We’re not predicting that, but we are spending most of our time hunting for new leaders--and interestingly, we’re seeing a few candidates even after the recent down move, writing about most of them in this issue.

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.

From an investor’s point of view, I will be cautious about owning P&C insurance stocks. We won’t know the cost of all the damage until second and third quarter earnings reports, but you can be sure that profits will suffer.

Why are markets continuing to move upward in the midst of economic and political upheaval? The short answer is don’t fight the Fed, which has made it abundantly clear that it will do anything necessary to keep this economy and market moving.

The S&P 500 is now up over 40% from the bottom in March and less than 10% from the all time high. Forget about a bear market. It’s not even a correction any more.

Remain optimistic. Growth stocks have had a tough week, but the selling hasn’t been abnormal, few (if any) have broken down and today’s stabilization for many is a good sign.

In the market, there seems to be some rotation going on. Or at least that was my sense of things over the first two and a half trading days of the week.

The stock market rally is now more than two months old. The S&P 500 has rallied 35% since March 23 and is now just about 10% below the all-time high.

As you know if you’ve read anything about this deal, these two companies are the “it” players in digital health. Both have business-to-business-to-consumer (B2B2C) business models, meaning they sell to companies, but solutions are used by consumers like you and me.

Two portfolio stocks reported earnings recently and they both are still rated Buy.

This engineering and construction firm is expected to grow by 22.1% next year.

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.

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 Momentum 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 Momentum Trader features.