Issues
While the market was weak this morning, the bull market remains intact, so I continue to recommend that you be heavily invested in stocks that help achieve your investing goals.
Today’s featured stock is a low-risk dividend payer whose products you have probably bought—and probably never knowing the company’s name. More importantly, Tom Hutchinson says it’s cheap.
As for the current portfolio, most of our stocks look good, so the only changes is an upgrade of Five Below (FIVE) to Buy.
Today’s featured stock is a low-risk dividend payer whose products you have probably bought—and probably never knowing the company’s name. More importantly, Tom Hutchinson says it’s cheap.
As for the current portfolio, most of our stocks look good, so the only changes is an upgrade of Five Below (FIVE) to Buy.
Current Market OutlookLast week was generally one of rotation back out of growth and into the broader market, and today, that trend accelerated, with growth-oriented funds and indexes (like ARKK and IWO) gapping below multi-week support and longer-term moving averages, while many recent leaders tested their 50-day lines. This sets up a key test—if a lot of stocks go down the drain, it’ll clearly be a sign of cut back on growth titles, though if we see a strong bounce from here, it could actually set up some decent pullback/resumption entry points. Meanwhile, we’re seeing an increasing number of setups in the cyclical areas, which are coming to life after two-plus months of rest. Right here, we’re not making any dramatic changes, but be sure to honor your stops. The next few days could be telling.
As for this week’s list, it definitely has more of a turnaround/cyclical feel to it as those stocks find buyers. Our Top Pick is Paylocity (PCTY), a leader in what’s looking like a new group upmove for HRM stocks.
| Stock Name | Price | ||
|---|---|---|---|
| Avis Budget Group (CAR) | 93 | ||
| CPRI (CPRI) | 58 | ||
| Colfax (CFX) | 49 | ||
| Dexcom (DXCM) | 506 | ||
| Five Below (FIVE) | 228 | ||
| HubSpot (HUBS) | 657 | ||
| LTHM (LTHM) | 25 | ||
| Nucor Corporation (NUE) | 124 | ||
| Paylocity (PCTY) | 251 | ||
| Saia Inc. (SAIA) | 247 |
Future Shock
Moral imperatives don’t drive the stock market, but they do drive peoples’ attitudes, which in the long run will move the market. The sixth report of the Intergovernmental Panel on Climate Change came out last week and is a sobering reminder that the world must decarbonize. Global sea level rise is accelerating and is advancing at a higher rate than at any time in the past 3,000 years. There is a growing belief the Amazon rainforest, Arctic ice and Gulf Stream are at tipping points that will worsen the effects of global warming. The most unnerving thought for me reading it: scientists are conservative in public projections like the report.
Stock investing plays its small role in the needed change: by pursuing profits in Greentech we’re putting capital to use supporting publicly traded companies–at the least buying and selling volume help create viable markets for raising additional capital for businesses. For our modest mission this issue, we have one new buy, one intriguing new watch and some ratings and sell-stop shifts in our existing portfolio.
As always, contact me anytime with questions or comments at brendan@cabot.net. Thank you for joining me on the path of climate profits.
All the best,
Brendan Coffey
Chief Analyst, SX Greentech Advisor
Moral imperatives don’t drive the stock market, but they do drive peoples’ attitudes, which in the long run will move the market. The sixth report of the Intergovernmental Panel on Climate Change came out last week and is a sobering reminder that the world must decarbonize. Global sea level rise is accelerating and is advancing at a higher rate than at any time in the past 3,000 years. There is a growing belief the Amazon rainforest, Arctic ice and Gulf Stream are at tipping points that will worsen the effects of global warming. The most unnerving thought for me reading it: scientists are conservative in public projections like the report.
Stock investing plays its small role in the needed change: by pursuing profits in Greentech we’re putting capital to use supporting publicly traded companies–at the least buying and selling volume help create viable markets for raising additional capital for businesses. For our modest mission this issue, we have one new buy, one intriguing new watch and some ratings and sell-stop shifts in our existing portfolio.
As always, contact me anytime with questions or comments at brendan@cabot.net. Thank you for joining me on the path of climate profits.
All the best,
Brendan Coffey
Chief Analyst, SX Greentech Advisor
The chop factor remains in force in the market, with yet another round of rotation this week out of growth and into the broad market. Even so, we see more good than bad out there, with an increasing number of growth stocks having popped out of multi-month ranges and recent dips mostly looking manageable. We added another new name last week, and we could add more depending on how this rotation plays out, but tonight we’ll stand pat with our stocks and 30% in cash.
In tonight’s issue, we write about one sector that’s showing some signs of perking up, some encouraging sentiment readings and go over all of our stocks and many others we’re keeping a close eye on.
In tonight’s issue, we write about one sector that’s showing some signs of perking up, some encouraging sentiment readings and go over all of our stocks and many others we’re keeping a close eye on.
As summer winds down, the markets are not showing any signs of weakness. The Dow Jones Industrial Average passed 35,000 and is treading pretty close to that number, minus a few pullbacks. The outlook for the markets continues bullish, with a bit of belt-tightening, as our barometer depicts.
As long as the economy continues its strengthening, so should the markets. According to FactSet, 89% of the S&P 500 companies have reported second quarter earnings so far, and 88.8% have surpassed their forecasts! In addition to great earnings reports, the employment picture brightened last week, as we saw the unemployment rate drop from 5.7 to 5.4. That’s great news!
In this month’s issue, we begin with our Spotlight Stock, a cell tower provider, who is enjoying the 4G expansion around the world, and is poised to continue its leadership as 5G rolls out. In my Feature article, I further explore the growth of both of those technologies.
Our Growth ideas this month include a flooring retailer, a SPAC for car parts, an automobile dealer, and a pet products manufacturer. More and more companies are paying dividends, and you’ll see a wide variety of them in our Growth & Income section, including an eyecare company, the biggest retailer in the world, a mattress manufacturer, an infrastructure company, a consumer products maker, and a lithium miner.
We offer three Value stocks from the auto dealer, construction, and shoe retailing businesses. As Finance, Healthcare, and Tech stocks are producing big gains this year, our contributors are adding to their portfolios with these banks, pharma, and transaction service companies.
A big category for our advisors this month is Resources, Energy & Utilities, where you’ll find an energy exploration company, a silver miner, two utilities, and a resources land ownership business. In Low-Priced Stocks, we offer an amusement park company and a lithium miner.
Lastly, in our Funds & ETFs section, you’ll find ideas from the contra, small cap, international growth, and covered call arenas.
I hope you’ll join me on Thursday, August 11, 2021, at 1:20 pm - 1:50 pm ET, for my Money Show virtual presentation: Failing to Plan = Planning to Fail: How to Jump-Start Your Retirement with a Simple Stock and ETF Strategy.
And, of course, I hope to see you at our Cabot Smarter Investing, Greater Profits Online Conference next week, August 17-19, 2021. As always, please don’t hesitate to email me with your feedback and questions. My address is nancy@cabotwealth.com.
As long as the economy continues its strengthening, so should the markets. According to FactSet, 89% of the S&P 500 companies have reported second quarter earnings so far, and 88.8% have surpassed their forecasts! In addition to great earnings reports, the employment picture brightened last week, as we saw the unemployment rate drop from 5.7 to 5.4. That’s great news!
In this month’s issue, we begin with our Spotlight Stock, a cell tower provider, who is enjoying the 4G expansion around the world, and is poised to continue its leadership as 5G rolls out. In my Feature article, I further explore the growth of both of those technologies.
Our Growth ideas this month include a flooring retailer, a SPAC for car parts, an automobile dealer, and a pet products manufacturer. More and more companies are paying dividends, and you’ll see a wide variety of them in our Growth & Income section, including an eyecare company, the biggest retailer in the world, a mattress manufacturer, an infrastructure company, a consumer products maker, and a lithium miner.
We offer three Value stocks from the auto dealer, construction, and shoe retailing businesses. As Finance, Healthcare, and Tech stocks are producing big gains this year, our contributors are adding to their portfolios with these banks, pharma, and transaction service companies.
A big category for our advisors this month is Resources, Energy & Utilities, where you’ll find an energy exploration company, a silver miner, two utilities, and a resources land ownership business. In Low-Priced Stocks, we offer an amusement park company and a lithium miner.
Lastly, in our Funds & ETFs section, you’ll find ideas from the contra, small cap, international growth, and covered call arenas.
I hope you’ll join me on Thursday, August 11, 2021, at 1:20 pm - 1:50 pm ET, for my Money Show virtual presentation: Failing to Plan = Planning to Fail: How to Jump-Start Your Retirement with a Simple Stock and ETF Strategy.
And, of course, I hope to see you at our Cabot Smarter Investing, Greater Profits Online Conference next week, August 17-19, 2021. As always, please don’t hesitate to email me with your feedback and questions. My address is nancy@cabotwealth.com.
We’re in the middle of the summer market malaise. These markets tend to do whatever they were doing when investors went on vacation and stopped paying attention. The rubber usually hits the road when investors sober up and take a fresh look at things after Labor Day.
Sure, the market is historically cranky in September. Current fears about the Delta variant and inflation could gain more traction. The market could even sell off a bit. But I believe the current fears are overblown. Cyclical stocks and others that have been held back by recent concerns should shine again in the booming economy this fall.
In this issue, I highlight a stock with a strongly growing business that should thrive over the next several quarters as well as on the other side of the pandemic recovery. Meanwhile, it sells at a cheap valuation while the market is distracted by other things.
Sure, the market is historically cranky in September. Current fears about the Delta variant and inflation could gain more traction. The market could even sell off a bit. But I believe the current fears are overblown. Cyclical stocks and others that have been held back by recent concerns should shine again in the booming economy this fall.
In this issue, I highlight a stock with a strongly growing business that should thrive over the next several quarters as well as on the other side of the pandemic recovery. Meanwhile, it sells at a cheap valuation while the market is distracted by other things.
Before we get into this recommendation, I just wanted to highlight our upcoming annual conference.
9th Annual Smarter Investing, Greater Profits Online Conference
It will take place from August 17-19 and you will hear from many experts (including me!) about opportunities in the market.
Today, we are recommending an energy name with strong momentum and downside protection.
Some additional details:
It’s levered to natural gas which has recovered sharply in 2021.
All the details are inside this month’s Issue. Enjoy!
9th Annual Smarter Investing, Greater Profits Online Conference
It will take place from August 17-19 and you will hear from many experts (including me!) about opportunities in the market.
Today, we are recommending an energy name with strong momentum and downside protection.
Some additional details:
It’s levered to natural gas which has recovered sharply in 2021.
- Strong earnings growth and free cash flow generation.
- Downside protection (no debt and significant cash on its balances sheet).
- Insider ownership (management and board own 25% of shares outstanding) and recent insider buying.
All the details are inside this month’s Issue. Enjoy!
The bulls continued their winning ways last week, but the advance wasn’t without some jostling. Late in the week several leading growth stocks pulled back, but those declines weren’t enough to keep the bulls from another weekly victory.
The S&P 500 gained 0.93%, the Dow advanced 0.78% and the Nasdaq rose 1.11%.
To put this market run into perspective, the current rally has lasted 189 days, basically nine months, without a 5% pullback. Additionally, there have been 43 days of a recorded new high.
So, my stance hasn’t changed too much. I continue to take a cautious but optimistic approach.
The S&P 500 gained 0.93%, the Dow advanced 0.78% and the Nasdaq rose 1.11%.
To put this market run into perspective, the current rally has lasted 189 days, basically nine months, without a 5% pullback. Additionally, there have been 43 days of a recorded new high.
So, my stance hasn’t changed too much. I continue to take a cautious but optimistic approach.
Current Market OutlookWe continue to see more good than bad in the market as an increasing number of growth stocks move into new high ground, many other growth stocks set up nicely and even some cyclical names are getting into the act, rounding out nice launching pads. Still, there’s no question the chop factor is still real, as the vast majority of names that pop higher generally attract sellers for at least a couple of days, with more than a few sinking right back to where they started. Overall, we are encouraged by the rising level of leadership, so we’re nudging our Market Monitor up to a level 7, but the game plan remains generally the same—we favor starting small and/or buying on dips or consolidations, while focusing on stocks showing outsized accumulation.
This week’s list is another chock-full of recent earnings winners and other names showing excellent action. Our Top Pick is Alnylam Pharmaceuticals (ALNY), which has lifted off nicely and has a great story.
| Stock Name | Price | ||
|---|---|---|---|
| Albemarle Corporation (ALB) | 231 | ||
| Alnylam Pharmaceuticals (ALNY) | 200 | ||
| Datadog (DDOG) | 130 | ||
| Goldman Sachs Group, Inc. (GS) | 400 | ||
| Lending Club (LC) | 26 | ||
| Lightspeed POS Inc. (LSPD) | 93 | ||
| ON Semiconductor (ON) | 45 | ||
| Paycom Software (PAYC) | 469 | ||
| Under Armour, Inc. (UAA) | 25 | ||
| ZoomInfo (ZI) | 61 |
The bull market remains intact, so I continue to recommend that you be heavily invested in stocks that help achieve your investing goals.
Today’s featured stock is in the semiconductor industry, which as we all know, is enjoying great demand in a supply-constrained world.
As for the current portfolio, most of our stocks look good, but Progyny (PGNY) is a sell, simply because it is our biggest loser.
Details inside.
Lastly, I hope you’ll join me for the 9th Annual Smarter Investing, Greater Profits Online Conference, August 17-19. We have an incredible line-up of experts ready to share their best picks.
Today’s featured stock is in the semiconductor industry, which as we all know, is enjoying great demand in a supply-constrained world.
As for the current portfolio, most of our stocks look good, but Progyny (PGNY) is a sell, simply because it is our biggest loser.
Details inside.
Lastly, I hope you’ll join me for the 9th Annual Smarter Investing, Greater Profits Online Conference, August 17-19. We have an incredible line-up of experts ready to share their best picks.
Updates
Small caps continue to move higher so keep leaning bullish, but be mindful that we’re near a resistance area and that it’s equally likely we will see some softness as it is that we will see more strength.
The market remains in good shape, though near-term, pullbacks and potholes are possible given the big run and the fact that we’re finally seeing a few leaders hit resistance. Long story short, we think the market will go higher over time, though we’re wading through a bunch of earnings reports on our stocks in the next couple of weeks. We’ll stand pat tonight with our cash position of 24%.
Don’t ever forget about the dividends. A couple months ago we were spiraling into a recession and bear market. Now, things look good. There’s a reason that dividends have accounted for 44% of market returns over the last hundred years.
U.S. stocks continue to defy gravity, with their audacious 2019 year-to-date gains mirroring their equally extreme fourth quarter 2018 descent.
Small caps keep grinding higher. And many of the stocks in our portfolio are trading at, or near, all-time highs.
Our Emerging Markets Timer is still positive and constructive, though the EEM was essentially flat during the last week.
Alerts
This pharmacy company has been under pressure due to the drug industry’s ups and downs.
Coverage of this marijuana stock was also recently initiated at Buckingham and B. Riley, with ‘Buy’ ratings.
This electric car company earned $1.86 per share in its latest quarter, surprising Wall Street and analysts who had forecasted -$.42.
This bank is growing at triple-digit rates and its shares look undervalued.
This space-age company is growing at double-digit rates, readying for its first flights next year.
Marijuana stocks remain under pressure, as year-end tax selling pressures continue, but the marijuana industry is booming, as evidenced not only by recent quarterly reports but also by the growth of MJBizCon, the industry’s leading conference.
Crista has updates on four portfolio stocks.
It’s time for a seasonal trade into copper. Here are two options.
Crista has updates on three portfolio stocks.
This preferred stock is issued by a shopping center REIT.
One of our stocks is down sharply today on big volume following a report by short-sellers Grizzly Reports that accuses the company and insiders of numerous improprieties, ranging from political cronyism and corruption to overvaluation of assets to misrepresentation of financial relationships.
Portfolios
Strategy
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.