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Cabot Prime Plus Week Ending July 1, 2022

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, Tyler Laundon runs through the performance of the major market indices in the first half of the year and discusses projections for market moving data - including GDP and interest rates - in the coming months. He highlights the ongoing and historical small cap discount then dives into four stocks from different industries that have compelling setups, even in this bear market.


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Cabot Prime Insider Live Analyst Briefing with Q&A: 3rd Quarter 2022

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Advisory Services

Cabot Growth Investor

Bi-weekly Issue June 30: The first half of the year is in the books, and it was a doozy, but we’re glad we’ve been able to sidestep a good chunk of the historic damage. Now the focus is on what’s next, and it’s important to respect the evidence today (we’re remaining highly defensive) but also stay flexible; we have seen some relative strength in some growth areas and we’re open to whatever comes.

Bi-weekly Update June 9: The major indexes are down modestly today after the European Central Bank laid out a plan to tighten policy. As of 215 pm, the Dow was down 157 points and the Nasdaq was off 129 points.

Cabot Top Ten Trader

Movers & Shakers July 1: It’s been a down week thus far for the market with most major indexes down in the 2% to 4% range coming into Friday. Really, nothing has changed from what we wrote last week—the intermediate-term trends are still down for the indexes, for growth funds and for the vast majority of stocks and sectors.

Weekly Issue June 27: It’s about at this point in a bear phase where, after many months, a few false rallies and mountains of bad news, that investors start to throw up their hands, swear off the market and focus on other things—and, to some extent, that’s fine, as the trends definitely remain down despite today’s solid bounce, so more time is needed before the market confirms a fresh uptrend.

Cabot Undervalued Stocks Advisor

Weekly Update June 29: Stock buyers are on strike, and we see no urgency to buy – why not wait a few days to see if the shares get cheaper? Shares of MolsonCoors (TAP) are rising as investors focus on value, while we keep our Hold rating on Merck (MRK) and The Coca-Cola Company (KO) as the approach all-time highs.

Monthly Issue June 1: We’re at the end of the beginning of the post-pandemic era. We moved shares of a healthcare stock from HOLD to SELL as it reached our price target. And, we moved shares of a consumer stock from BUY to HOLD as we want to re-think our outlook and valuation.

Cabot Stock of the Week

Weekly Issue June 27: The market rallied strongly last week, erasing some of the carnage of the previous two weeks, but the main trend is still down and thus caution is still advised. This week’s stock is a growth company that serves the solar power industry, and the stock looks attractive now because it’s basically been treading water for 17 months.

Cabot Explorer

Bi-weekly Update June 30: The S&P 500 is down about 20% so far this year, putting it on pace for the worst first half in five decades. The return of inflation, a weaker Chinese economy and the Ukraine conflict have all hit growth and weighed on stocks.

Bi-weekly Issue June 23: Nio (NIO) was up 22% this week though markets face headwinds of inflation and increasingly loose talk of recession by many including Fed Chairman Jerome Powell. With regret, we let go of Sea (SE) but add another favorite selling at a sharp discount to its high—and in the middle of the unstoppable trend of cybersecurity.

Cabot Small-Cap Confidential

Weekly Update June 30: There are a lot of negatives out there these days. The AAII Sentiment Survey shows optimism is in the tank while pessimism is through the roof.

Monthly Issue June 1: The market continues to be messy, but we’re going to take a partial swing at a profitable software company playing in a big, growth market – cloud services.

Cabot Dividend Investor

Weekly Update June 29: This market has recovered nicely after plunging into bear market territory and beyond the week before last. Unfortunately, the good times probably won’t last.

Monthly Issue June 8: It’s a raging bear market in technology. But technology has been by far the best performing sector for well over a decade for good reasons.

Cabot Early Opportunities

Monthly Issue June 15: In the June issue of Cabot Early Opportunities we add a conservative stock from our Watch List that’s acted well over the last month and also take a partial position in an emerging player in the energy space. We also refresh the Watch List with a pure-play beverage stock, a biotech stock with a big date in November and another emerging energy name.

Alert June 13: The market is taking it on the chin today (again) as interest rates soar (+6% to 3.35% and a new 2022 high) and inflation/recession fears tick up. I had ZoomInfo (ZI) on high alert last week given its proximity to support near 33.8. Today that support level has cracked. Given the move we’ll step aside from ZI now. SELL

Alert June 10: Today’s inflation data (CPI) wasn’t expected to be great but was even a little worse than anticipated as consumer prices rose 8.6%. That’s up from 8.5% in March and 8.3% in April. One can slice and dice the data a lot of ways but if you want to flag the main issues, they are probably energy and food prices.

Cabot Profit Booster

Weekly Issue June 28: It’s often hard for investors to rationalize, but bad economic news is sometimes “just what the doctor ordered” for the market. And that was the case last week as housing numbers again disappointed, consumer sentiment hit a record low, and perhaps for the first time in months, an inflation-related data point may have cooled off.

Alert June 17: Despite many ups and downs, and a trade that went south fast (ZIM), the CPB portfolio held up fairly well during the most recent market rout. Not all trades are winners, but big picture, given the carnage, I’m fairly happy with June expirations trades. Let’s dive in

Cabot Micro-Cap Insider

Weekly Update June 29: There was little news this week, but I wanted to highlight two things that are on my mind. First, small and micro-cap stocks look incredibly cheap. On a P/E basis, small caps are the cheapest they have ever been versus large caps.

Monthly Issue June 8: Today, I’m recommending a company that has grown revenue at a 30% CAGR and EBITDA an 80% CAGR over the past 10 years. Despite this impressive growth, the company trades at just 5.3x EBITDA.

Alert May 27: I originally recommended buying BBX Capital (BBXIA) in October 2020 at a price of 3.17, shortly after its spin-off from Bluegreen Vacation Holdings (BVH).

Cabot Income Advisor

Weekly Update June 29: The market rallied strongly off the lows last week, moving 6% higher on the week. Is the bottom in?

Monthly Issue June 22: There is overwhelming historical evidence that buying good stocks in bear markets is a highly successful long-term strategy. After all, it’s better to buy stocks cheap. And the market always trends higher over time. The truth is that buying stocks in a bear market is the most successful investment strategy ever devised.

Cabot Turnaround Letter

Monthly Issue June 29: The monthly issue was published this week, with updates on our outlook for the stock and high yield bond markets. Our feature recommendation is ESAB Corporation (ESAB). We comment on the sloppy earnings from Walgreens Boots Alliance (WBA), provide updates on General Electric (GE), Toshiba (TOSYY), Wells Fargo (WFC), Credit Suisse (CS), Xerox (XRX) and TreeHouse Foods (THS).

Weekly Update June 24: This week’s Friday Update includes comments on our companies. There were no ratings changes or earnings reports. Look for the July edition of the Cabot Turnaround Letter next week, where we update our semi-annual Equity Market Outlook and our High Yield Bond outlook and offer up our July feature recommendation.

Cabot Money Club

Monthly Magazine June 24: Remember when COVID fees like disinfection charges, personal protection equipment fees, and other miscellaneous charges were added on to restaurant tabs? One of the steepest charges was the “temporary COVID-19 Recovery Charge” of up to 10% of total bills in New York City, approved by the New York City Council. During the pandemic, these fees were life-saving tactics for many businesses—restaurants in particular—that saw their sales drastically erode.

Stock of the Month June 9: Are you tired of turning on your television first thing in the morning and getting heartburn over the market’s gyrations? Yeah, me, too. So, I’m swearing it off. I’m only going to peek at it a couple of times a day, since it doesn’t seem to be finishing the day as it starts, and I just don’t need the angst.

Cabot ETF Strategist

Weekly Update June 28: I am making one change to the four-ETF Undiscovered model. I am selling the Direxion Daily S&P 500 Bear 1X Shares (SPDN), a 20% position, and replacing it with the ALPS Medical Breakthroughs ETF (SBIO) in the 20% portfolio slot.

Monthly Issue June 14: The S&P 500 is now in bear territory, which should not be particularly surprising to anyone. The economy is slowing, inflation is high, war is still raging in Ukraine and China’s economy is not in good shape.

Ask the Experts

Cabot Micro-Cap Insider

Question:Rich, I am a dedicated subscriber to your service and I have a question for you re: NexPoint Diversified Real Estate (NXDT): If no one objects by June 27th, what happens next? How does NXDT convert to a REIT and how long does it take for this to be official? I own the stock and would be grateful for your insight.

Rich: My understanding is as follows:

  • If the SEC hasn’t received a request for a hearing by June 27, 2022, it will issue an order granting the request to de-register, and the transition to REIT will be complete.
  • We are at the mercy of the SEC. I don’t know how quickly the order will be granted. It could be tomorrow or it could be within a month.
  • But my guess is that it happens within the next couple of weeks.
  • After the transition to REIT is official, my best guess is management of the company will start to schedule regular conference calls to share thoughts on strategy and financials.
  • Eventually, I think REIT index funds will start to come in and buy the stock.

Quarterly Cabot Analyst Meeting

The recording of the Cabot Prime Members Meeting with the Analysts from January 12, 2022 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 Pro member benefits.