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 cuts right to the chase, with a mini-crash in growth stocks in recent days that’s pushed many former leaders more than 50% off their peaks. Interestingly, Mike does highlight many areas and stocks that are holding up well, and even sees some short-term bounce candidates if you want to go after those. But overall, he remains cautious and is mostly biding his time until the next major upmove.
UPCOMING CABOT EVENTS:
Cabot Prime Pro Members Meeting with the Analysts: 1st Quarter 2022
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Cabot Micro-Cap Insider Live Analyst Briefing with Q&A
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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
Special Bulletin January 7: Selling remains intense in growth stocks, with no ability to bounce even after this week’s wipeout. In last night’s update, we had three stocks on tight leashes, and today, we’re going to sell our remaining stake in Ambarella (AMBA), which has hit a new correction low today and looks to have formed a meaningful top. That will lift our cash position to around 55%.
Bi-weekly Update January 6: Stocks failed to even bounce today despite all the selling of late. At day’s end, the Dow was off 171 points and the Nasdaq dropped 19 points. Well, you can put any label you want on it, but what we’ve seen since the start of the year has basically been a follow-on mini-crash in growth stocks—the meltdown in late November and early December was one, and there was a quick retest in mid-December, but this one is even more intense.
Special Bulletin January 5: Growth stocks have started out the year with another vicious leg down, with most names in a variety of sectors down 10%-plus in just three days. In the Model Portfolio, we have a good amount of cash, but we also have a couple of problem children. Today, we’re going to sell half of our stake in Ambarella (AMBA), place Datadog (DDOG) on Hold and keep both on tight leashes in the days ahead. Our cash position will now be just south of 50%.
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.
Cabot Top Ten Trader
Movers & Shakers January 7: Well, the market’s small dose of good action for the second half of December was mauled by the bears this week—all indexes are down at least somewhat, and among growth-oriented titles from a variety of sectors (tech, cybersecurity, solar, software, retail, you name it), it’s been nothing short of a mini-crash, with the Nasdaq down 3.5%, growth-oriented indexes down 5% or more and many individual titles off 15% to 20%.
Weekly Issue January 3: There have been some positive baby steps since the market’s early-December low, including some short-term buying thrusts that generally portend good news and (more important) indicate that the overall intermediate-term trend has turned up. Mike’s Top Pick ZIM Shipping (ZIM), which posting unreal numbers as shipping rates are elevated. Keep it small and expect volatility, but we’re OK nibbling here or on dips.
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 Market Update January 6: After an ugly day for the market yesterday, I got an email from a subscriber asking if it’s time to sell a bunch of positions. As is always the case, I can’t predict if yesterday was the kick-off of a big market decline, or just a bad day in a choppy market.
Cabot Options Trader Basic Position Update January 4: Really quickly I wanted to bring to your attention that Ford (F) is breaking out to a new high above 23 today. This has helped push our June 20 calls, originally purchased for $2.69, to a current value of $4.50, or a potential profit of approximately 70%.
Cabot Options Trader Stocks on Watch January 3: Taiwan Semiconductor (TSM) is a stock long-time Cabot Options Traders are familiar with as we have bought and sold TSM three times in the last couple of years, always triggered by bullish option activity.
Cabot Options Trader Pro Trade Alert January 3: Sell your Cisco (CSCO) January 55/60 Bull Call Spread for $4.60 or more.
Cabot Options Trader Basic Trade Alert January 3: Sell your Cisco (CSCO) January 55 Calls for $7.30 or more.
Cabot Options Trader Pro Weekly Review January 3: Long positions: CF, CSCO, CGC, DVN, FCX, F, JETS, MRVL, UBER, XLV. Bearish Positions: None
Cabot Options Trader Basic Weekly Review January 3: For the week, the S&P 500 gained 0.91%, the Dow rose 1.08%, the Nasdaqdeclined 0.05%, and the VIX fell marginally to close at 17.25.
Cabot Undervalued Stocks Advisor
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.
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.
Cabot Stock of the Week
Weekly Issue January 3: Tim’s featured stock Arista Networks (ANET), works at the edge of the cloud. Arista has always been a leader in this space, with multilayer network switches and software-driven networking solutions for cloud data centers and other (usually big) computing environments.
Cabot Explore
Bi-weekly Issue January 6: Carl’s new recommendation Butterfly Network (BFLY), is a revolutionary medical device powered by artificial intelligence that is already saving lives and will ultimately improve healthcare for Americans and billions more overseas. It addresses the need for the country to improve the efficiency of its medical complex that accounts for an incredible 20% of our economy but still delivers uneven, slow and costly services.
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
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.
Special Bulletin January 4: Two days into 2022 and we’re seeing another round of selling in growth names, especially software, fintech, medical devices and e-commerce. Many names are retesting their November and/or December lows. We have seen a few names crack their 200-day lines, while a few others have begun to rebound intra-day.
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!
Cabot Dividend Investor
Weekly Update January 5: It’s a new year, and a new attitude. Investors tend to sober up after weeks of holiday slacking and refocus on the market. What are they saying? Although the year is in its infancy, the message at this very early stage is loud and clear. Energy and financial stocks are the most desirable. In just two and a half days, the financial sector of the S&P 500 is up over 6%. Energy stocks are up more than 10%.
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 January 4: Two days into 2022 and we’re seeing another round of selling in growth names, especially software, fintech, medical devices and e-commerce. Many names are retesting their November and/or December lows. We have seen a few names crack their 200-day lines, while a few others have begun to rebound intra-day.
Special Bulletin January 3: First off is HubSpot (HUBS), which is a name I love but which has just today broken below its 200-day moving average line. That technical breach has seemed to be tough for other high-growth names to bounce quickly back from lately, so I suspect the pattern could hold for HUBS as well.
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).
Cabot Profit Booster
Weekly Issue January 4: The S&P 500, Dow and Nasdaq closed 2021 up 26.9%, 18.7% and 21.4%, respectively. Moreover, the S&P ended 2021 with its best three-year stretch in over 20 years, up 72.1% cumulatively—an incredible stretch of positive returns, to say the least. Jacob’s new stock recommendation is Jabil (JBL).
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.
Cabot Micro-Cap Insider
Weekly Update January 5: The market finished the year strong, with the S&P 500 up 26.9%. And so far, 2022 is off to a good start. It hit an all-time high on the first trading day of the year, on Monday. That has only happened five times previously, and in those five years, the S&P 500 went on to generate an average return of 11.6%.
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 January 5: So far, so good. Of course, it’s only the second trading day of the year. In two days, the S&P 500 has set two new all-time highs. Last year’s momentum is spilling over so far. But will it last?
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 Small-Cap Confidential
Question: I am trying to understand why we are staying with unprofitable companies, the problem is that the market is not in the mood for companies that trade on high multiples with no income. Shouldn’t it be a time to buy quality small caps that trade in a better valuation? Or not to buy anything?
Tyler: It bears mentioning that we added SSTK and SITM, both of which are profitable, in November and December. While neither is up since being added I do think their financial profiles have helped them hold up somewhat better than non-profitable names. This month I felt like it was time to begin wading back into names like XMTR which aren’t overly expensive in terms of valuation (any more). As an individual you, of course, have the option not to buy anything at all. But I suspect most subscribers expect me to put forth my best idea at the time if they wish to buy. I very much doubt a one stock per month advisory service that says, in essence, “no good ideas come to mind right now” would be well received! It’s a tough market. But we still need to keep plugging along as things will turn around at some point and I think we’re in some very good names.
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.