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Cabot Prime Plus Week Ending September 16, 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 horrid week, though really, he’s not changing his advice at all -- he remains cautious as most stocks, sectors and indexes are trending down, but most of the resilient names he’s watching are still holding up well. That doesn’t mean he’s not raising stops, but in the context of holding plenty of cash (65% in Cabot Growth Investor’s Model Portfolio) he’s OK holding some strong potential leaders, too. Stocks discussed include: UBER, CHK, CHRD, REGN, WING, ON, FSLR, STEM, FOUR.


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Advisory Services

Cabot Growth Investor

Bi-weekly Update September 15: Remain cautious but continue to keep your eyes open. This week’s inflation-induced plunge is obviously a negative, but nothing has really changed with our overall view—the market’s trends are mostly down, and the broad market is unhealthy, so we’re holding lots of cash, but there remain many stocks/sectors that are holding their own, too. In the Model Portfolio, we’re again standing pat with around 65% in cash and four stocks. Details below.

Bi-weekly Issue September 8: There’s little doubt the market’s evidence has worsened of late, with our Cabot Tides and Two-Second Indicator re-joining the Cabot Trend Lines on the bearish side of the fence; thankfully, we went slow on the buy side in July and early August, and today, stand with about 65% in cash. But we’re also not completely in the storm cellar, as we still see signs the market could be in a bottoming effort (and in-between phase between bear and bull), so we’re happy to hold onto some resilient stocks and aim to nibble on potential leaders if the market can find its footing.

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%.

Cabot Top Ten Trader

Movers & Shakers September 16: The minor positive vibes from last week were taken out and shot this week, with Tuesday’s inflation report causing a huge selloff, and last night’s FedEx earnings warning throwing fuel on the fire. As of this morning, the major indexes are all down in the 5% to 6% range on the week.

Weekly Issue September 12: This week’s list has a few more turnaround and steady Eddie-type names despite the market’s rally. Our Top Pick is a cheap name near the top of a huge launching pad that also has a decent long-term cookie-cutter story, too.

Cabot Undervalued Stocks Advisor

Weekly Update September 14: Wondering if Captain Tyne had the right perspective on the stock market. Would that bring an 8% yield on the 10-year Treasury?

Monthly Issue September 7: Our commentary includes some perspective on forecasting from Warren Buffett and baseball legend Yogi Berra. The earnings report from Big Lots (BIG) last week was awful but better than dour expectations, and we are keeping our Hold rating.

Cabot Stock of the Week

Weekly Issue September 12: The bulls came out swinging after Labor Day, putting at least a brief half to all the late-summer selling. Whether the mini-rally lasts another week (or longer) may depend on the new inflation data, due out tomorrow morning before the opening bell. For now, the bear market remains, but it was a good week for stocks – and an even better week for the Stock of the Week portfolio, with several of our stocks up double-digit percentages since we last spoke. And today we add a new stock that’s poised to lead the next true market rally – whenever it arrives – but in the meantime is faring quite well in its own specific niche.

Cabot Explorer

Bi-weekly Issue September 15: Explorer stocks held up pretty well during this turbulent week as almost all were steady or up, with Chile’s SQM up five points. Stocks stabilized yesterday after a sharp pullback on Tuesday. While prices of gasoline are down, prices of most of other things like food, rent, and medical care are still rising. This week we dive into semiconductor stocks with a return to Taiwan for a new recommendation.

Bi-weekly Update September 8: Markets continue to at best tread water. Yesterday, markets performed better as the Nasdaq Composite ended a seven-session streak of declines. Kraken Robotics (KRKNF) shares were up 20% in their first week as an Explorer recommendation as the company signed a follow-on contract to supply additional KATFISH™ for the NATO Navy’s new mine hunting vessels.

Cabot Small-Cap Confidential

Weekly Update September 15: Tuesday’s CPI report served up a 0.02% miss, which sent the market into a tailspin. The Nasdaq fell more than 5%, its worst day since 2020. The S&P 500 Index fell 4.3%. And small caps? The S&P 600 fell 3.9%

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.

Cabot Dividend Investor

Weekly Update September 14: In this issue, I highlight a company in one of the most defensive and recession-resistant industries on the market that currently pays a massive 8% yield. The stock is already cheap and likely near the trough of its own bear market with far more upside than downside over time to complement the high dividend.

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 September 13: Coming off three straight weeks of losses, the bulls staged a rebound last week as the S&P 500 gained 3.65%, the Dow rose 2.66% and the Nasdaq rebounded by 4.1%. Though of note, the market is down across the board this morning following a “hot” inflation report. The expiration of our September covered calls is this Friday. Expect to hear from me Thursday afternoon or Friday morning on how we will manage these positions.

Cabot Micro-Cap Insider

Monthly Issue September 14: This month, I pulled the plug on Dorchester Minerals (DMLP). I still love the business model and hope to be able to buy it at another time, but it didn’t seem like an obvious opportunity (like it did in 2020).

Weekly Update September 7: This week, we had limited news but there was one update that I wanted to highlight: RediShred (RDCPD) completed a reverse split on August 18th. For every five shares that you previously owned, you now own one share. The stock price adjusted up to account for the reverse split. The reverse split has no economic impact on RediShred. You still own the same percentage of the company.

Alert August 17: Sell Dorchester Minerals (DMLP)

Cabot Income Advisor

Weekly Update September 14: The market turned ugly again fast yesterday. It was the worst single-day selloff in years after reality crushed the pipedream that inflation is plunging and the Fed will stop being hawkish by early next year.

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.

Cabot Turnaround Letter

Weekly Update September 16: Updates on several names including Shell plc (SHEL), Western Digital (WDC), General Electric (GE), Elanco Animal Health (ELAN), Wells Fargo (WFC), Warner Bros Discovery (WBD) and Western Union (WU). Risk management questions: is an 8.5% yield on 10-year US Treasury realistic? what is ahead for Russia/Putin? A useful perspective from Goldman Sachs Tech Conference.

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

Stock of the Month September 15: The market has continued its volatility since mid-August, rising above 34,000 on the DJIA, then contracting, just to bolt upward again at the end of last week. Economic uncertainty and fears of a recession, although recently economists have been decreasing their likelihood for a 2022 recession, effectively pushing that into 2023.

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!

Ask the Experts

Cabot Top Ten Trader

Question: Mike, with Europe now needing U.S. fertilizer as Russia cuts off gas, is CF Industries (CF) a good prospect?

Mike: Good question, but honestly, I’m sort of thinking the opposite, as crazy-high natural gas prices over there could crimp margins, as nat gas is a big input cost. After a big move the stock is looking iffy short-term to me.

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.