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Cabot Prime Pro Week Ending December 10, 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, Tyler Laundon talks about the market trying to move past Omicron-related concerns and refocus on big picture themes including inflation, interest rates and supply chains. He flags monetary policy meetings next week as something investors should be on the lookout for. Turning to stocks, Tyler sorts through a mixed bag of names that are doing well right now, then wraps things up with a number of beaten down growth names for investors that like to buy on pullbacks.


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Advisory Services

Cabot Growth Investor

Bi-weekly Update December 9: After a solid three-day rally, stocks sold off again today—the Dow was actually up a point but the Nasdaq fell 270 points (1.7%) and most growth stocks were down in the 3% to 5% range.

Bi-weekly Issue December 2: Growth stocks had been wobbly since early November, and the one-two punch of the new virus variant and hawkish words from the Federal Reserve have sent them (and the broad market) reeling. Of course, we’re less interested in the “why” than the “what,” but the action has led us to pare back and raise cash in the past two weeks.

Special Bulletin December 2: The relentless selling continued yesterday—while the major indexes were up, growth stocks continued to decline as the broad market remained weak. In the Model Portfolio, we’re doing more selling today: We’ll sell one-third of our remaining shares of Cloudflare (NET), and we’ll cut bait with our half-sized stake of Dexcom (DXCM). That will put our cash position in the high 50% range.

Cabot Top Ten Trader

Movers & Shakers December 10: It’s been a very impressive week for the market from a few angles. First, of course, was the snapback of the major indexes—the big-cap indexes, which never got taken apart, have recouped something like 80% of their pullbacks, and while the broader indexes haven’t bounced as much, (a) they did gain back more than half their declines, and (b) they actually perked above their 50-day lines earlier this week (the overall intermediate-term trend remains down, but bears watching).

Weekly Issue December 6: You can analyze omicron’s spike protein, slice and dice the words of the Fed chairman or do a deep dive into last week’s jobs report all you want. Mike’s Top Pick is Martin Marietta Materials (MLM), which certainly won’t be your fastest horse, but has a clean outlook and a resilient chart.

Cabot Options Trader and Cabot Options Trader Pro

Note that the current week’s Weekly Update, earnings updates, position updates and stocks on watch are posted on the website in the Market Update section, which is deleted each week.

Cabot Options Trader Basic & Pro Position Update December 8: Today is the day where we will find out if the Devon Energy (DVN) December 43 call that we sold a couple weeks ago, will be exercised by the owner of the call, for the purpose of receiving the dividend. And I have to say it’s going to be super interesting to see how this situation plays out.

Cabot Options Trader Basic & Pro Trade Alert November 7: Buy the Ford (F) June 20 Call (exp. 6/17/2022) for $2.85 or less.

Cabot Options Trader Pro Weekly Review December 6: Long positions: CSCO, CGC, DVN, FCX, JETS, MRVL, UBER, XLV. Bearish Positions: None

Cabot Options Trader Basic Weekly Review December 6: As traders returned from the holiday-shortened week they were greeted with a brutal attack by the bears. Every attempt by the bulls to rally the market and individual stocks was quickly met by selling pressure.

Cabot Undervalued Stocks Advisor

Weekly Update December 8: Interest rates are still near zero but inflation is at 5%. The two rates should converge, but when and how? We ask more questions about the market’s earnings growth and valuation, as the current mix seems to make little sense. We also include comments on the new capital distribution plan by ConocoPhillips (COP), and 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 6: Tim’s featured stock WillScotMobile (WSC), is the hands-down leader in the industry of leasing modular workspace and portable storage solutions. Picture the mobile, temporary workspaces you’ll often see at construction sites, along with those huge containers (like seen on container ships) to store equipment and the like.

Cabot Explorer

Bi-weekly Issue December 9: Carl’s new recommendation Nu Holdings (NU), a financial services and payment company, claims more than 48 million customers in a country and region where fintech is flourishing. Fintech should be seen across all the business it impacts such as transportation, food service, retail and telecommunication industries as well as financial services.

Bi-weekly Update December 2: The market has entered a rough patch, especially for tech and stocks that have not been demonstrating relative strength. Explorer stocks are all over the map, with Coupa (COUP) and Cloudflare (NET) showing some weakness, many positions holding steady, and Novonix (NVNXF) up 25% in the last week.

Cabot Small-Cap Confidential

Weekly Update December 9: Despite another dip in the Nasdaq today higher growth stocks have mostly come up off of last week’s lows as early indications suggest the Omicron variant can be held at bay with vaccinations (especially booster shots).

Special Bulletin December 3: Suffice to say it’s been a tough week. As we head into a weekend that can’t come quickly enough, the main market indices are down over 2.5% and many, many stocks are 20%, 30% or 40% off their highs (some are better, some are worse).

Special Bulletin December 3: JOANN (JOAN) reported Q3 fiscal 2022 results after the close yesterday. This quarter was for the period ending on October 30. Revenue missed expectations slightly but adjusted EBITDA and adjusted EPS surpassed expectations. The high-level take away is that supply-chain challenges persist (no surprise there) but JOANN is doing what it can and appears to have the pricing power necessary to maintain a strong underlying business and pursue the growth strategy it has embarked upon to extend its lead in the arts and crafts retail market.

Monthly Issue December 2: Tyler’s new recommendation SiTime Corporation (SITM), is a fabless semiconductor company that provides MEMS (micro-electro-mechanical systems) and silicon-based timing systems. The product portfolio encompasses oscillators, clock ICs and resonators. The company is winning business hand over fist because of its expertise designing MEMS resonators and analog mixed-signal circuits and putting the technologies together into an advanced system-level solution that solves customers’ complex timing problems.

Cabot Dividend Investor

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.

Weekly Update December 1: Not only does the new virus strain add a wildcard to the market, but it also directly counters the narrative that had been unfolding. Inflation is gaining momentum as a force and a market theme. The Fed this week officially retired the “transitory” phrase because inflation is clearly a bigger problem than initially perceived. The Chairman also said the central bank could curtail its stimulus at a faster pace to fight inflation.

Cabot Marijuana Investor

Update December 1: As we enter the final month of the year, market volatility has increased, and with it, investor anxiety. But the main trend of the market remains up, so I remain confident that intelligent investors who follow proven investing disciples can make money—which brings me to an email I received from a reader just today.

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 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.).

Special Bulletin December 3: The basic premise of the rolling crash is that it – no surprise – rolls through the market hitting different groups of stocks at different times. It’s very unpredictable, and only comes into focus after the process is well underway, as is the case now.

Monthly Issue November 17: Same as last month, we’re leaning bullish but keeping an ear to the ground as there are plenty of potholes out there that could trip up the market. Our efforts to manage our portfolio size are working as we’ve been able lock in several profitable positions over the last month, while keeping most of our strongest performers. Tyler’s top pick is Coinbase (COIN).

Cabot Profit Booster

Weekly Issue December 7: As traders returned from the holiday-shortened week they were greeted with a brutal attack by the bears. Every attempt by the bulls to rally the market and individual stocks was quickly met by selling pressure. Jacob’s new stock recommendation is Pure Storage (PSTG).

Cabot Micro-Cap Insider

Monthly Issue December 8: Rich’s new recommendation Truxton Corp (TRUX) is a rapidly growing bank and wealth management business based in Nashville, Tennessee. Since its initial public offering nine years ago, revenue is up 325% while the stock has generated a 587% total return, beating the S&P 500 by more than 200%. Despite this impressive performance, the stock trades at just 13x earnings given its low liquidity. I expect strong performance to continue in the future and anticipate significant upside in the years ahead.

Weekly Update December 1: Market volatility has picked up, but the new COVID variant doesn’t seem too concerning to me. From early data, it looks like symptoms are very mild (although it does spread quickly).

Cabot Income Advisor

Weekly Update December 8: Things were going fine and on track for a strong finish to the year. Then the new Omicron virus strain sent the market reeling. But those fears are abating as preliminary information indicates this strain is milder than the previous Delta strain. Markets rallied strongly earlier this week and the indexes are about back to where they were before news of the new strain first came out.

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 10: The note and 8 minute podcast provide updates on GCP Applied Technologies (GCP), TreeHouse Foods (THS), Macy’s (M) and Walgreens Boots Alliance (WBA). Peak private equity is here, and we mention our sort-of tongue-in-cheek article, “Holiday Guide to Becoming A Crypto Billionaire.”

Special Bulletin December 6: This morning, GCP Applied Technologies (GCP) 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.

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 Growth Investor

Question: Oil prices seem (to be) bottoming out. Do you think we can now increase the position in Devon Energy (DVN) given the market volatility moving price?

Mike: Thanks for writing. Hmm, not sure I see them bottoming out yet. Actually, I am impressed with the resilience of DVN and some other energy names given the huge oil price declines, and I do think that could bode well. But no, if you already own some, we’d just hang on here and see how it plays out. This market correction is getting broader and deeper and until it ends it’ll be hard for anything to really make much progress. Hold if you own some, but I wouldn’t add on.

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 Pro member benefits.