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Cabot Prime Plus Week Ending September 2, 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, Mike Cintolo talks about the market’s third down week in a row, which including an erasing of the intermediate-term green light and the breakdown of a couple of potential leaders. He still sees far more strength among individual stocks than the indexes, and to him, there’s plenty of evidence suggesting the past few months represents a bottoming process. Even so, Mike remains cautious, holding north of 60% in cash, though he’s also holding a few resilient names and isn’t having much trouble building his watch list. Stocks discussed include NBIX, WOLF, ON, CMG, UBER, NFLX, ALNY, EQT and CHK.


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Advisory Services

Cabot Growth Investor

Bi-weekly Update September 1: Remain defensive. Most of the intermediate-term and secondary green lights have fallen by the wayside in the past two weeks, including our Cabot Tides, which are again flashing a red light. Thankfully we went slow on the buy side during the rally, and earlier this week, we dumped our stake in ProShares Ultra S&P 500 Fund (SSO) given the market’s reversal. Tonight, we’re placing Celsius (CELH) on Hold, though we’re sitting tight with our four remaining positions—and a cash position of 65%.

Alert August 30: The market’s rally continues to take on water, and while it’s not a wipeout, many of our intermediate-term indicators are back on the fence. Happily, we’re still seeing good action from many emerging and potential leading stocks, including a few we own, so we think the market remains in sort of an in-between phase, but we are taking some action today—in an unusual about-face, we’re going to sell our entire position in ProShares Ultra S&P 500 Fund (SSO) and hold the cash for now, while looking to redeploy into resilient names should the market stabilize. Our cash position will now be around 67%.

Bi-weekly Issue August 25: Most people in the market (and in life) think of a lot of things as black and white, good or bad, bull or bear … and, frankly, for the market anyway, that’s often a good approach. We’re trend followers, after all, and we’ve designed our indicators to mostly be green or red, telling us whether stocks are headed up or down. It’s often best to play things in a decisive manner.

Cabot Top Ten Trader

Movers & Shakers September 2: It’s been another sour week for the major indexes, with all of them coming into Friday down in the 2.5% to 4.5% range. More important to us is that many of the intermediate-term and secondary positives of the past few weeks have vanished—the intermediate-term uptrend has cracked at this point, the number of stocks hitting new lows is elevated and our Aggression Index (growth vs. defensive stocks) is also off its green light.

Weekly Issue August 29: This week’s list reflects the renewed strength we’ve seen in commodity and “old world” names, even as the market has retreated. Our Top Pick is a name we missed a couple weeks back but think this pullback marks a decent entry point.

Cabot Undervalued Stocks Advisor

Weekly Update August 24: We moved shares of The Coca-Cola Company (KO) from Hold to Sell on valuation, and provide our view of Cisco Systems’ (CSCO) recent earnings report. Retailer Big Lots (BIG) reports soon. Who is making the right call on the market: Captain Tyne or crew member Bobby?

Monthly Issue August 3: The earnings deluge is here. We comment on earnings from our recommended companies including Merck (MRK) and Molson Coors (TAP).

Cabot Stock of the Week

Weekly Issue August 29: Renewable natural gas (RNG) is generally the name for captured methane, a natural gas that is 28 to 36 times more potent a greenhouse gas than carbon dioxide. For power generation, burning it is no different from natural gas.

Cabot Explorer

Bi-weekly Issue September 1: This was a tough week and major indexes slid between 4% and 5% in August, their worst monthly performances since June. Nuclear energy play Centrus Energy (LEU) was a standout Explorer stock, up 56% over the last month. Today, we go to Canada for an interesting and speculative maritime robotics play.

Bi-weekly Update August 25: This rise of the U.S. dollar against the yen, euro and pound as well as most other currencies in the world is a mixed blessing for investors. You can take your capital gains and head to Europe or Japan for a trip and imported goods will be cheaper. On the other hand, American companies and stocks will be hurt by their exports being more expensive to overseas buyers and their overseas earnings will be worth less in U.S. dollars when brought back to America.

Cabot Small-Cap Confidential

Monthly Issue September 1: The market has been iffy since Fed Chair Jerome Powell’s “prepare for pain” speech at Jackson Hole last Friday. With interest rates up and (most) stocks down since I’m going with a high-quality name this month.

Weekly Update Aug 25: After bumping up against its 200-day moving average line the S&P 500 has pulled back this week. The S&P 600 Small Cap Index has followed suit.

Cabot Dividend Investor

Weekly Update August 31: The strong 17% market rally is over. The S&P 500 is down 7.4% in the second half of August. And here comes Labor Day. Sobered-up investors start paying attention again after Labor Day. And they can be cranky. That’s why September is historically the worst-performing month. Refocused investors probably won’t like what they see this year.

Monthly Issue August 10: We are likely in a recession. Meanwhile, inflation continues to rage on. That means stocks will have to navigate an environment of both recession and inflation, at least for the rest of the year.

Cabot Early Opportunities

Alert September 1: The market today is like fertilizer for grey hair. In theory, it should be stronger than it has been. After all, this morning’s manufacturing data showed prices continue to come down (i.e., supply/demand balance getting better) while new orders remain stable. We also see oil prices down. So, inflation pressures seem to be easing (still) but growth isn’t tanking (yet).

Monthly Issue August 17: With inflation data showing progress in the right direction (i.e., down), U.S. GDP growth not looking awful (Atlanta Fed model now saying Q3 GDP growth of 1.8%) and expectations for the Fed’s target interest rate topping out at 3.5% to 3.75% (end of this year/beginning of 2023), the market appears to be a firm believer in the “bad to better” trend.

Cabot Profit Booster

Weekly Issue August 23: Today we are adding a recent earnings season winner, though because of the weakness in the market the last two trading days, we are playing it somewhat defensively.

Cabot Micro-Cap Insider

Weekly Update August 24: After quite a strong rip higher the first half of August, U.S. markets have pulled back sharply. The S&P 500 touched its 200-day moving average last week and then immediately started to retreat.

Alert August 17: Sell Dorchester Minerals (DMLP)

Monthly Issue August 10: Is the Bear Market Over? The first half of the year was painful, with the S&P 500 falling ~20%. July was a lot more fun, as the S&P 500 rallied 9%.

Cabot Income Advisor

Monthly Issue August 24: The recent rally caused much consternation on Wall Street. The main question has been this: Is it the end of the bear market or a bear market rally? After the pandemic low, the market took off and never looked back. But that was a very unusual situation. In most bear markets, rallies like we just saw are common. In fact, there were six or seven double-digit rallies during the financial crisis bear market of 2008-09 before the indexes bottomed. The fact that the recent rally seems to be petering out well below the high is raising concern that it was indeed a bear market rally.

Weekly Update August 17: It’s starting to feel like a bull market. But let’s not bank on it just yet. Inflation is moderating, and many see an end to the Fed tightening cycle by early next year. The Fed part is probably true.

Cabot Turnaround Letter

Weekly Update September 2: This note includes our review of earnings from Duluth Holdings (DLTH), the Catalyst Report and a summary of the September edition of the Cabot Turnaround Letter, which was published on Wednesday.

Monthly Issue August 31: One of our more productive methods for finding attractive turnaround stocks is to see what other like-minded investors are holding. We culled the list of hundreds of positions held by our evolving list of 50 or so preferred managers, as reported in the quarterly 13F filings, and discuss three of the most promising.

Cabot Money Club

Monthly Magazine September: remember when most people didn’t give too much thought to health insurance. And if they did, it was in a positive light. For example, my first memory of health insurance was when my sister Pat had her tonsils removed when she was 15. Right after that, my parents bought her a stereo! Of course, I asked why she got a stereo and my brother and I didn’t get anything—it wasn’t even her birthday!

Stock of the Month July 14: Interest rates are still rising, as the Federal Reserve boosted short-term rates by 75 basis points last month, to try to stem the growth of inflation. There are some signs that it may be working. The 30-year mortgage rate actually saw a couple of decreases early last week, but nudged a bit higher on Friday, to a 5.94% average national rate. And gas prices have declined nationwide to $4.66 per gallon, from $4.68 this time last week. I know that’s not much, but, hey, we’ll take what we can get!

Ask the Experts

Cabot Top Ten Trader

Question:Hello Mike, love your weeklies. A have a question for you that I hope you can answer,I’m surprised by the current level of volatility and downtrend of the markets given the full transparency of the Feds. The Fed has been very candid and open about their goal of taming inflation to 2%. Thus, (they) have been aggressively increasing rates which will no doubt impact business growth, therefore the market should have this priced into the stock prices. This is all well known.Here’s the question: Why then is the market acting surprised by the tone of Chairman Powell recently? What has changed that would cause the markets to believe something else is going to happen then get surprised when it obviously does not? Thanks much.

Mike: Thanks for writing, glad you like the content.So, really, it’s a good question, and you’d think a lot of the Fed stuff would be discounted at this point. But really, I try not to really go too deep into the Whys; all that matters is the What, which is the renewed selling.Clearly the market is worried that continued 50-75 bps hikes and balance sheet run-offs will crush the economy and earnings.That said, I think it’s better to think in terms of the market’s process – this being a possible bottoming process – than really get into the Whys, which at day’s end, usually will leave you confused near major turning points.Sorry if that wasn’t a great answer but it’s just how I approach things.

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.