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Early Opportunities
Get in Before the Crowd

March 8, 2024

Spotting a “top” in in high-flying stocks is impossible but sticking to a system of taking partial profits on a very fast-moving stock is pretty darn easy, if you can manage your emotions.

Sell Half Vertiv (VRT). Rivian (RIVN) Moves to Buy

Spotting a “top” in high-flying stocks is impossible but sticking to a system of taking partial profits on a very fast-moving stock is pretty darn easy, if you can manage your emotions.

Let’s try and do just that today and sell half our stake in Vertiv (VRT). The stock, which is an AI infrastructure play, has risen more than 40% in the seven weeks since we’ve owned it and is up 20% since the little dip after earnings just over two weeks ago. I can’t tell you if we’re close to a near-term top for VRT, or if the stock will be up another 100% six months from now (or down 30%), but I do know this is an environment where it’s felt super easy to make money and that typically means taking some profits is a good call. Sell half your VRT stake for a 40%+ gain and hold the rest. SELL HALF, HOLD HALF

Moving onto Rivian (RIVN), this is an exception to the “easy money” reference I just made. It’s been a very tough slog. But management came out yesterday with news that it’s hitting the pause button on the new and expensive Georgia plant and will get the R2 model (midsized SUV) into production in Normal, Illinois (where the R1 is currently made) instead. The R2 pricing begins at $45K which puts it squarely into the mass-market category, where Rivian’s current lineup doesn’t fit at all. Granted, the R2 won’t hit the road until early 2026 but this eventual launch, plus the more conservative CapEx plan, helps the Rivian story. Management also announced the R3 crossover vehicle, which wasn’t expected, with expected launch in 2026-27. If you’re not a fan of Rivian vehicles, the stock probably isn’t for you, and I won’t pretend it doesn’t look like garbage. But if you like the brand and think it’s one of the most viable pure EV manufacturers out there, as I do, then it’s likely worth picking up some shares. Moving to buy. BUY

Below is an updated table of returns, and recently closed positions.


Company NameTickerDate CoveredRef Price3/8/24Current GainNotesCurrent Rating
Cadre HoldingsCDRE2/21/2435.738.37%Top PickBuy
CrocsCROX12/20/23103.7126.122%Top PickBuy
ElasticESTC10/18/2382.5106.629%Hold 1/4
Leonardo DRSDRS2/21/2420.723.513%Buy
MicrosoftMSFT2/15/23268.540852%Top PickBuy
NetflixNFLX2/21/24571.6608.46%Buy 1/2
PinterestPINS12/20/2337.635.6-5%Buy 1/2
RivianRIVN10/19/22 & 5/22/2322.512.8-43%Top PickBuy
Soleno TherapeuticsSLNO1/17/2444.743.2-3%Top PickBuy 1/2
VaronisVRNS11/15/2338.149.731%Top PickHold 1/2
Vertiv HoldingsVRT1/17/2449.470.944%Hold 1/2
BellRing BrandsBRBR11/15/23-61.4-Watch
Intuitive SurgicalISRG2/21/24-395.6-Watch
Joby AviationJOBY2/21/24-5.4-Watch


Company NameTickerDate CoveredReference Price^Date SoldPrice Sold^Gain/lossNotes
Krystal BiotechKRYS9/20/23119.71/17/24124.384%Top Pick
Construction PartnersROAD12/20/2344.32/5/2447.587%
ElasticESTC10/18/2382.53/5/24107.3330%Bought 1/2, Sold 1/4
Gen DigitalGEN1/17/2422.83/5/2421.37-6%
ShopifySHOP6/21/2363.43/5/2473.8217%Top Pick, Bought 1/2, Sold 1/2
Vertiv HoldingsVRT1/17/2449.43/8/2470.9 (est.)44% (est.)Sold 1/2

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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.