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Cabot Prime Plus Week Ending December 24, 2021

Stock Recommendation Tracker

The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any changes to our recommendations over the previous week. We include this table at the bottom of the Weekly Summary, and provide a link here at the top to the Stock Recommendations Tracker.

Cabot Weekly Review (Video)

In this week’s stock market video, Mike Cintolo is still playing things cautiously, but also talks about three encouraging things he’s seeing from the market, as well as reviewing most of the stocks on his watch list. He’s not pulling the trigger in a major way, but if stocks can build on their recent action, he might be starting to put money back to work in resilient growth names.


Cabot Prime Members Meeting with the Analysts: 1st Quarter 2022

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What to Expect from the Market in 2022 - and 3 Stocks that Could Lead the Next Bull Run

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Advisory Services

Cabot Growth Investor

Bi-weekly Update December 22: There’s been a lot of movement since our issue last week, first down and then back up, but the indexes find themselves in pretty much the same stance—longer-term, the market’s trend remains up (Cabot Trend Lines positive), but the intermediate-term trend is still down (Cabot Tides negative) and most stocks are having issues; even on the higher-quality NYSE, 53.4% of stocks came into today below their 200-day lines.

New Report December 21: Download your copy of Cabot’s 10 Favorite Low-Priced Stocks for 2022 Report - a subscriber-exclusive benefit. You can find it in the right column, under “Special Reports”.

Bi-weekly Issue December 16: The rally after the early-December low has clearly come under pressure, especially with growth stocks, most of which are in shambles; our Cabot Tides remain negative and we’re remaining cautious in the Model Portfolio, with 50%-ish cash for the past three weeks.

Cabot Top Ten Trader

Movers & Shakers December 22: The market seems to have found some support after its latest nasty leg down—Monday morning saw most indexes in free fall while many stocks dipped below early-December lows, but the snapback since then has been encouraging. Ideally the Monday morning drop was a shakeout that paves the way for something more than a one-or two-day bounce.

Weekly Issue December 20: After an encouraging bounce, the sellers immediately came back to the well last week, first punishing growth stocks, and on Friday and today, coming around for most other areas, too. Mike’s Top Pick Silicon Labs (SLAB), a rare growth-oriented name that acts great.

Cabot Undervalued Stocks Advisor

Weekly Update December 22: Undervalued stocks may not be as exciting as hyper-growth stocks, but they are providing positive returns in the market’s current volatility. We raise our price target for Cisco System (CSCO) to 66, discuss what may be weighing on Citigroup (C) shares, and provide updates on other recommended stocks.

Monthly Issue December 1: A week ago, we wrote how the stock market appeared to be shifting to a post-Covid economy. This economy would feature slower/normalized/sustainable growth following the bulge from the pandemic stimulus programs and pent-up demand, along with the effects of higher interest rates and a relenting of supply-chain issues. The emergence of the Covid Omicron variant has temporarily upended this view, for now.

Cabot Stock of the Week

Weekly Issue December 13: Tim’s featured stock Visa (V), is a global payments technology company that provides a digital currency instead of cash and checks to individuals and businesses in more than 200 countries and over 160 currencies. It is the largest payment processor in the world. Its systems can process 65,000 transactions per second.

Cabot Explorer

Bi-weekly Issue December 23: Carl’s new recommendation Grab Holdings (GRAB), Southeast Asia’s ride hailing and food-delivery giant, is now trading at levels that should deliver solid returns. Grab’s roughly $40 billion valuation was pricey, but now the company is now worth a more reasonable $27 billion, up since the company was valued in private markets at $16 billion in 2020.

Bi-weekly Update December 16: It’s been a challenging week for growth investors as the stocks that climbed the fastest are getting hit the hardest, such as our Cloudflare (NET) position, despite still posting strong numbers. On the other hand, Oracle (ORCL), where expectations are more modest, jumped from 89 to 104 this week on earnings that beat expectations.

Cabot Dividend Investor

Weekly Update December 22: Bring it on. Persistent high inflation, a rapid Fed tightening cycle, and the explosion of Omicron have barely mussed the bull’s hair. Despite the recent blitzkrieg of party-pooper issues, the S&P 500 is hovering within bad breath distance of the all-time high. I guess it will take a lot more than just pestilence and an inflationary spiral to stop this bull market.

Monthly Issue December 8: Tom’s featured stock Visa (V), is a global payments technology company that provides a digital currency instead of cash and checks to individuals and business in more than 200 countries and over 160 currencies. It is the largest payment processor in the world. Its systems can process 65,000 transactions per second.

Cabot Marijuana Investor

Update December 15: We own all the leading companies in the industry. Revenues at our companies grew an average of 64% from the previous year in the latest quarter. And increasing numbers of our companies are reporting real profits, as economies of scale kick in.

Monthly Issue November 17: The chatter at the moment is centered on South Carolina Republican Representative Nancy Mace, who this week introduced the States Reform Act, which would remove marijuana from the Controlled Substances Act while ensuring that businesses in states where marijuana is currently legal can continue to operate unimpeded by changing federal rules, and would establish a federal tax rate of 3%, down from 3.75% in an earlier version, and significantly lower than competing Democratic proposals.

Cabot Early Opportunities

Special Bulletin December 17: Rivian (RIVN) reported its first quarter as a public company yesterday. Adjusted EBITDA loss was -$727 million, slightly below consensus of -$690 million, while revenue of $1 million was slightly above consensus. The company ended Q3 with $5.2 billion, but we need to add $13.5 billion from the IPO to get a more accurate balance. Minus cash burn since the close of Q3 Rivian probably has around $16 billion now.

Monthly Issue December 15: While there is a lot we could talk about this month – the relative outperformance of mega-cap tech (MSFT, AAPL, GOOGL, NVDA), thus far a “normal” correction in software stocks (happens once or twice a year) and seemingly positive data around vaccine effectiveness against Omicron – in the immediate term investors are most focused on interest rates. Tyler’s top pick is Allbirds (BIRD).

Special Bulletin December 14: It’s another ugly day out there as the market remains in wait-and-hear mode pending commentary from Fed Chairman Jerome Powell, who will update us on his latest thinking tomorrow.

Special Bulletin December 8: SentinelOne (S) is one of our newer positions and has been hit hard during the recent market retreat. Part of this is because it is a recent IPO, part is because the broader group of security stocks has sold off (NET, ZS, OKTA, CRWD, etc.).

Cabot Profit Booster

Update December 22: Last Friday the Goodyear Tire (GT) December 23 call that we sold in late November for $1.17 expired worthless, leaving us with a stock position, and without a new call sale. Today, as market conditions are improving (maybe) I am going to sell a new call against our GT stock holding to create even more yield.

Weekly Issue December 21: This past week was another up/down/down/down type of week as the indexes continue to be wild day-to-day, but big picture have been losing some ground. And while the losses in the leading indexes haven’t been dramatic, as has been the case since Thanksgiving the majority of individual stocks continue to fall. Jacob’s new stock recommendation is Alcoa (AA).

Cabot Income Advisor

Weekly Update December 22: Cyclical stocks have been getting clobbered over the past month amidst virus concerns. But I think the recent action is creating an opportunity. The inflation and Fed contraction issues, which are good for energy and financial stocks, will outlast this latest virus strain.

Monthly Issue November 24: This great and epoch market recovery might be finally running out of gas. The S&P 500 is up over 100% since the bottom in March 2020. That means the market has gained as much value since that bottom as it had accumulated from the beginning of time until March of last year. It’s also up about 40% from the high before the pandemic and 10% just since early October. Such returns simply cannot continue.

Cabot Turnaround Letter

Weekly Update December 23: Friday Note and 7-minute podcast: brief update on oil and natural gas prices, comments on Toshiba (TOSYY), Lamb Weston (LW), Viatris (VTRS), Organon (OGN), Royal Dutch Shell (RDS/B) and Holcim (HCMLY). Next week we publish our monthly letter that includes our 2021 review, 2022 market outlook, bankruptcy market review and Top Five Stocks for 2022. Our next note and podcast, with the Catalyst Report, is on January 7.

Special Bulletin December 16: We are moving shares of GCP Applied Technologies (GCP) to a Sell. Earlier this month, the company announced a definitive agreement to be acquired by French construction materials company St. Gobain for $32/share in cash. This price is 14% above our $28 price target. Activist investor Starboard Value’s sizeable ownership stake and oversight of GCP drove the auction process and successful sale.

Monthly Issue December 1: Our featured recommendation this month is The Western Union Company (WU). Shares of this global money transfer company have remained unchanged (actually, down 10%) since their spin-off in 2006. The company has sizeable challenges as it faces strong fintech competitors, but it continues to have stable/rising revenues, generate sizeable free cash flow and is backed by a healthy balance sheet.

Ask the Experts

Cabot Top Ten Trader

Question: Home Builder prospects look good, and you mentioned Toll Brothers (TOL) in your latest issue. How is Builders FirstSource (BLDR)? Can you compare BLDR and TOL?

Mike: Thanks for asking. BLDR looks fine, and it’s a housing supplier (not a builder per se). So that’s the difference. I think we favor (maybe) the builders because they’re fresher – possibly just getting going from multi-month bases, whereas BLDR has been running for a while. But I have nothing against BLDR either.

Quarterly Cabot Analyst Meeting

The recording of the Cabot Prime Members Meeting with the Analysts from October 13, 2021 is now available for you to listen to at your convenience—click here for access. This private call with our analysts is one of your exclusive Cabot Prime member benefits.