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Early Opportunities
Get in Before the Crowd

March 8, 2023

Ahead of next week’s March issue, I’m going to make a few changes to our portfolio today.

First, we’re going to sell Pinterest (PINS) for a modest profit of about 6% today. While I like the stock long-term, I expect PINS will be rangebound for some time. Upside potential could come from acquisition activity/rumors while downside risk would likely be from broad market weakness (thanks Fed/inflation). The bottom line is we got into PINS at a good price and with the recent earnings report/potential catalyst in the rearview mirror we can take a modest gain and look to come back to the stock later. SELL

Second, we are going to average down in Snowflake (SNOW) today. The stock sold off after the Q4 earnings report but remains very well-liked on Wall Street and a recent $2 billion buyback announcement should provide some downside protection. While nobody is really paying attention let’s fill our second half and see how it goes. BUY SECOND HALF

Lastly, from the Watch List, I’m going to drop InMode (INMD) and Terran Orbital (LLAP). There’s nothing particularly “wrong” with these stocks, but I’ve been watching them for a number of months now and am not compelled to buy them. I’d rather spend my time and energy on stocks I’m more likely to add to our portfolio in the near term.

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.