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Cabot Prime Pro Week Ending December 31, 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 discusses a handful of bullish baby steps the market has taken since early December, including a green light from his intermediate-term trend model. There are still many iffy pieces of evidence, but Mike is putting a little money to work to respect the improvement, but holding most of his dry powder to see if the bulls can continue to step up as the calendar flips.


Cabot Prime Pro 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 Issue December 30: 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.

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”.

Cabot Top Ten Trader

Movers & Shakers December 30: The market’s snapback from its mid-December low has been solid—the S&P 500 being at new highs is never a bad thing, and by our measures, the market’s overall intermediate-term trend has turned back up. Of course, the indexes have been thrashing around, so we can’t rule out another dip, but just going with what we see, the picture has improved.

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 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 Pro Weekly Review December 27: Long positions: CF, CSCO, CGC, DVN, FCX, F, JETS, MRVL, UBER, XLV. Bearish Positions: None

Cabot Options Trader Basic Weekly Review December 27: After a steep market sell-off the previous week, and another ugly day Monday, the bulls stepped up Tuesday and bought the dip, and never let their foot off the gas through the end of the week. Some say it was the seasonal Santa effect, some say it was positive economic numbers, or perhaps Pfizer’s new Covid pill.

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 27: Tim’s featured stock Devon Energy (DVN), is cranking out ridiculous amounts of free cash flow (after all CapEx). In Q1, the figure came in around 38 cents per share. In Q2, it lifted to 87 cents. And then in Q3, the firm produced $1.66 of free cash flow! And a lot of that is being returned to shareholders; Devon pays an 11-cent fixed dividend, but has been returning about half of the rest, too.

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 Small-Cap Confidential

Weekly Update December 30: Tyler has been trying to think of some clever way to summarize the past year that incorporates everything we’ve been through as investors. There have been so many nuances to every major factor affecting the market that this guy is more than happy to kiss 2021 good-bye!

Special Bulletin December 13: Shares of Arena (ARNA) are up over 80% today to around 92 on news that Pfizer (PFE) is seeking to acquire the company for $6.7 billion in cash. The implied takeout price is 100 a share.

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

Weekly Update December 29: There may be more turbulence in the weeks ahead as the virus runs its course. But portfolio positions Valero Energy (VLO), Chevron (CVX), ONEOK (OKE) and Enterprise Product Partners (EPD) as well as KKR & Co. (KKR), U.S. Bancorp (USB), and Visa (V) look increasingly attractive heading into 2022.

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

Monthly Issue December 29: This issue has all the stocks of the U.S. multistate operators rated buy, because Tim sees a good chance for a January rally, so feel free to buy a little here. But don’t go crazy; until we see real trends, we won’t know where we should focus our efforts. Tim does have one new addition, tailored for conservative investors; it’s ScottsMiracle-Gro (SMG), which we’ll take a 5% position in.

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.

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 Micro-Cap Insider

Weekly Update December 29: The only item that I did want to highlight was that Howard Dvorkin, FlexShopper’s Chairman of the Board, continues to buy FPAY relentlessly in the open market. Although the stock has struggled this year, the conviction of his buys is impressive and bodes well for future performance.

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.

Cabot Income Advisor

Weekly Update December 29: It’s the end of remarkable year. With just two more full market days left, the S&P 500 is up 28% for 2021. That’s about three times the historical average annual market return, after a terrific year in 2020. These are good times indeed. Apparently, coronavirus was one of the best things that ever happened to stocks.

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

Monthly Issue December 29: This month’s issue includes our Top Five Stocks for 2022, our annual market review and outlook for 2022, as well as our update on the bankruptcy and high-yield bond markets. We add Brookfield Asset Management Reinsurance Partners Ltd (BAMR), an under-appreciated recent spin-off, as a new Buy.

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.

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 Pro member benefits.