July 17, 2023

Sell TKR and SIBN

With the July Issue of Cabot Early Opportunities coming out this Wednesday and the market acting extremely strong, we’re going to be opportunistic and lock in a few modest gains today.

First up is Timken (TKR), a small industrial company that specializes in bearings and other components for energy, auto and other markets. We’re up 7% on the position since we jumped in February. Not a huge gain. But with the stock trading near all-time highs and some fresh ideas coming down the pike, it’s not a bad time to lock in the gain. SELL

Si-Bone (SIBN) is also being sold today for a roughly 7% gain. The stock has acted well lately, and I still like it (in fact I’ll continue to cover SIBN in Cabot Small-Cap Confidential) but the reality is we have some stocks that are acting better right now, and as I look to control the size of our portfolio, something has to go. SIBN has delivered a modest gain since we jumped in May of this year and we’ll lock it in ahead of the upcoming earnings season. SELL

I’m also dropping Shockwave (SWAV) from our Watch List today. It’s a fine company and stock. But it’s not drawing me in right now.

Tyler Laundon

Tyler Laundon is chief analyst of the limited-subscription advisory, Cabot Small-Cap Confidential and grand slam advisory Cabot Early Opportunities. He has spent his entire career managing, consulting and analyzing start-up and small-cap companies. His hands-on experience has taught Tyler that the development of a superior business model is the biggest factor in determining a company’s long-term success. Accordingly, his research focuses on assessing the viability of management’s growth strategies, trends in addressable markets and achievement of major developmental milestones.