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Cabot Prime Pro Week Ending January 28, 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 discusses the ongoing downtrend, and says that if you’re already defensive, there’s not much to really do. That’s not to say he’s expecting huge further declines--he talks about the fact that Monday could be a workable low given many extremes seen, but he has to see the market rally for a few days before concluding a low is in. In the meantime, he’s keeping an eye on many strong cyclical stocks, but is mostly interested in building a watch list of future leaders that should show themselves if the market begins to repair the damage.


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Advisory Services

Cabot Growth Investor

Bi-weekly Issue January 27: The market remains under pressure, with our Cabot Tides and the “Growth Tides” (see more in this issue) negative, and even our longer-term Cabot Trend Lines on the verge of a sell signal. To be fair, we are starting to see some “real” extremes in terms of some sentiment and oversold measures, so we’re hopeful a bounce could get underway soon; we’re not ruling out some nibbling or re-jiggering in the Model Portfolio.

Bi-weekly Update January 20 :The market in general and growth stocks in particular are certainly “oversold” enough to bounce, but so far, every rebound of a few hours or couple of days leads to more selling. We’re still holding lots of cash, and while we are sitting our four remaining positions, but two are on tight leashes. Our only changes tonight are putting Arista Networks (ANET) and ProShares Ultra S&P 500 Fund (SSO) on Hold, but we’ll be on the horn if we have any other changes. Our cash position stands near 60%.

Cabot Top Ten Trader

Movers & Shakers January 28: Stocks started off somewhat promisingly this week, with a huge plunge Monday morning followed by a massive reversal that afternoon. But stocks haven’t been able to build on that at all, with numerous intraday rally failures and with some indexes already probing lower lows, especially broader and growth-oriented indexes and funds.

Weekly Issue January 24: When it comes to the market’s action, there’s not much to say—the crash-like action seen in growth stocks since the start of the year has spread out to most every nook and cranny of the market. Mike’s Top Pick Schlumberger (SLB), which released excellent earnings last week, whose group is strong and has pulled back normally during the recent selling wave.

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 Stocks on Watch January 27: The rollercoaster ride that is the stock market has continued to violently move the last 24 hours. To recap … Yesterday ahead of the Fed announcement the S&P 500 traded higher by 2%. After the Fed announcement the market gave up those gains and closed marginally lower on the day.

Cabot Options Trader Earnings Update January 25: Tomorrow before the open, Freeport McMoRan (FCX) will report earnings. Headed into the event we are holding half of a position, having sold the first half for a profit.

Cabot Options Trader Pro Weekly Review January 24: Long positions: CF, CGC, DT, FCX, F, JETS, UBER.

Cabot Options Trader Basic Weekly Review January 24: Losses continue to mount in early 2022 as the market suffered its worst week since October 2020. The Dow fell 4.6%, the S&P 500 lost 5.7% and the tech-heavy Nasdaq pulled back 7.6%.

Cabot Undervalued Stocks Advisor

Weekly Update January 26: We discuss the Fed’s Dilemma and offer a quote from Jim Rogers and provide updates on Barrick Gold’s encouraging production outlook and our other stocks. There were no earnings updates this week.

Monthly Issue January 5: We comment on the abrupt shift in market sentiment in the past two weeks that is boosting the prices of our undervalued stocks, like Arcos Dorados (ARCO), up 17%, and Coca-Cola (KO) and Sensata Technologies (ST), which are reaching new all-time highs, relative to expensive hyper-growth stocks, as investors find that their healthy fundamentals haven’t been fully reflected in their share prices.

Cabot Stock of the Week

Weekly Issue January 24: Tim’s featured stock Pioneer Natural Resources (PXD), is now the largest pure play in the high-margin Midland basin area. Moreover, the firm has been busy reducing debt and shoring up its balance sheet for a while, and this deal effectively put the icing on the cake—after the deal was finalized in late December, Pioneer’s net debt position (cash less debt outstanding) was reduced to less than 0.5 times annual free cash flow, and by year-end, that figure will likely be zero.

Cabot Explore

Bi-weekly Update January 27: Stocks hopefully have settled down after facing a rough market in recent weeks fed by expectations that the Fed soon will embark on raising interest rates. This has led to sharp pullbacks for growth stocks with high valuations and no earnings. Quality and value are beating risk right now.

Bi-weekly Issue January 20: Carl’s new recommendation Exscientia (EXAI), is using artificial intelligence (AI) to develop new medicines and is attracting high quality partners. And the company is turning this into explosive growth.

Cabot Small-Cap Confidential

Weekly Update January 27: The real short version of what’s going on out there is … we’re officially in a bear market in growth. And it’s been particularly tough going in the super-fast-growing small-cap stock arena.

Monthly Issue January 6: Tyler’s new recommendation Xometry (XMTR) operates a digital marketplace that addresses many buyer and seller pain points in the archaic $260 billion industrial manufacturing industry. The AI-powered platform allows manufacturers to visit Xometry’s website, upload a 3D design (i.e., a CAD file) and retrieve an instant quote for the necessary parts from Xometry’s supplier network. Front door delivery and product quality are guaranteed.

Cabot Dividend Investor

Weekly Update January 26: All eyes are on the Fed. After a wild couple of weeks where technology stocks corrected, down 10% or more from the high, and the S&P 500 fell 10% on an intraday basis, investors nervously await the Fed this afternoon. The chairman will show us the way. He knows everything.

Monthly Issue January 12: Tom’s featured stock Global Ship Leasing (GSL) owns and charters containerships under fixed-rate charters to container shipping companies. The company deals in mid-size and smaller container ships, which are the workhorses of the main global containerized trade routes. Global is based in the Marshal Islands, with offices in London and Athens, and the stock trades on the New York Stock Exchange.

Cabot Early Opportunities

Monthly Issue January 20: We’re officially in a bear market in growth. Stocks of good companies have consistently failed to hold at expected support zones and trading patterns have completely disconnected from company-specific factors. It’s all about Omicron/Covid, interest rates, inflation and the potential market impacts of a dozen other risks. Tyler’s top pick is Airbnb (ABNB).

Cabot Profit Booster

Weekly Issue January 25: Before diving into this week’s covered call idea, let’s address our stock positions coming out of January expiration. On Friday the GT January 22 call that we sold for $0.65 expired worthless. And while the market looks suspect, GT has held up reasonably well. For that reason, this morning I am going to Sell to Open the February 22 call (exp. 2/18) for $1 (approximately). Jacob’s new stock recommendation is AbbVie (ABBV).

Alert January 21: 2022 has gotten off to a rough start for the bulls as growth stocks have gone through a mini-crash, and of late the selling has moved to the rest of the market. Whether this is the start of a real market correction, or simply a normal pullback, is anyone’s guess. Regardless, because we are selling calls to lower our breakeven on our stock purchases, the Profit Booster portfolio has held up much better than the overall market.

Cabot Micro-Cap Insider

Weekly Update January 26: Last week, we talked about the pullback in growth stocks. This week, the pullback has expanded to all stocks. The S&P 500 has pulled back ~9% and is on the verge of a correction (defined as a 10% pullback from its recent high). While this doesn’t feel good, it’s helpful to remember that pullbacks are completely normal and not a reason for panic.

Monthly Issue January 12: Rich’s new recommendation NexPoint Diversified Real Estate Trust (NXDT), is a closed end fund that is transitioning into a real estate investment trust (REIT). It trades at a 40% discount to NAV and is significantly below where it traded pre-pandemic. Once the transition to REIT is complete, it will be eligible for many more investors to own including funds and ETFs. This will likely drive indiscriminate buying pressure.

Cabot Income Advisor

Monthly Issue January 26: The S&P 500 is on the cusp of a correction, down 10%. The technology- laden NASDAQ is already well beyond a correction. Energy is the only S&P 500 sector in positive territory YTD. The problem is inflation and the Fed raising rates to combat it. There is a realization that inflation can’t be handled seamlessly.

Weekly Update January 19: The indexes plummeted on rising rate worries and disappointing Goldman Sachs (GS) earnings. The benchmark 10-year Treasury rate soared to 1.85 on Tuesday. That’s the highest level since the pandemic began and up from 1.34% as recently as last month.

Cabot Turnaround Letter

Weekly Update January 28: We update earnings from six recommended companies, summarize our ideas from the February Cabot Turnaround Letter, and provide comments on news from Mattel (MAT) and Molson Coors (TAP). Also, check out this month’s Catalyst Report which lists important and potentially value-creating changes at undervalued companies.

Monthly Issue January 26: We discuss high-quality small caps with beaten-down shares, including Circor (CIR), DistributionNOW (DNOW), Marcus Corp (MCS) and Unifi Corp (UFI). Amidst the IPO rubble, we discuss three worthwhile companies whose shares trade below their offering price: Krispy Kreme (DNUT), Petco (WOOF) and Weber (WEBR). Our featured recommendation this month is Polaris (PII) – shares of this powersports equipment make are significantly undervalued.

Ask the Experts

Cabot Turnaround Letter

Question: Any Idea why NOK has been declining , especially this week?

Bruce: Much of Nokia stock’s recent weakness is due to the broad weakness in all tech-related stocks. Many investors treat NOK like any regular tech stock, and it is likely held in many tech and non-tech mutual funds, ETFs and such.
Fundamentally, Nokia as a company is in good shape and continues to improve. They recently provided an encouraging update on 2022, supporting our thesis. The valuation remains quite attractive. Our favorable view on Nokia has not wavered at all.

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.