April 19, 2023

Sell Another Third of Shift4 Payments (FOUR)

This bulletin concerns Shift4 (FOUR), which has been weakening of late but not cracking – until today, when a short seller effectively questioned the firm’s books, causing the stock to sink on heavy volume so far today.

Frankly, we’d be surprised if Shift4 was up to no good given that most big Wall Street houses follow the stock. It could be more about this washing machine-type market, as sellers swarm and then move on.

We are holding a two-thirds size position, having sold some a couple of months ago. And today we’ll sell one-third of what we have left and then see if today’s unwinding continues, or if the underlying growth story (which we think is intact) attracts investors. SELL ANOTHER THIRD, HOLD THE REST

Mike Cintolo

A growth stock and market timing expert, Michael Cintolo is Chief Investment Strategist of Cabot Wealth Network and Chief Analyst of Cabot Growth Investor and Cabot Top Ten Trader. Since joining Cabot in 1999, Mike has uncovered exceptional growth stocks and helped to create new tools and rules for buying and selling stocks. Perhaps most notable was his development of the proprietary trend-following market timing system, Cabot Tides, which has helped Cabot place among the top handful of market-timing newsletters numerous times.