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Cabot Prime Pro Week Ending May 6, 2022

We are making the first issue of Cabot SX Crypto Advisor available to Prime Pro members with our compliments. You can download your free issue here.

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 says the story remains the same -- there are many signs flashing now that usually flash near major lows, but to this point the market hasn’t responded, which has kept him in a defensive stance. He does review many commodity names, especially in the energy sector, where he sees some potential near-term setups, but for the most part he’s sitting on his hands and practicing patience until the sellers finish up their work.


Cabot Micro-Cap Insider Live Analyst Briefing with Q&A

FREE MEMBER BRIEFING: May 12, 2022 Sign up now.

How to Take Advantage of the Booming Alzheimer’s Market

FREE WEBINAR: May 19, 2022 Sign up now.

Cabot Retirement Club Live Analyst Briefing with Q&A

FREE MEMBER BRIEFING: May 26, 2022 Sign up now.

Advisory Services

Cabot Growth Investor

Bi-weekly Issue May 5: The market has been up and (mostly) down, but not much has changed with our thoughts: The primary evidence remains terrible, though we continue to see more than a few rays of light from some secondary indicators. For now, we’re remaining defensive (we sold two more half positions this week) and are patiently awaiting the bulls to return.

Bi-weekly Update April 28: In the Model Portfolio, we’re now 64% in cash after another partial sale of Devon Energy (DVN) earlier this week; our only change tonight is moving Palo Alto Networks (PANW) to Hold.

Cabot Top Ten Trader

Movers & Shakers May 6: After two straight horrible weeks, the major indexes are actually about unchanged so far this week, but that doesn’t really tell the full story. Markets did stage a nice rebound after a tedious early-Monday-morning dip, rallying even after the Fed’s rate hike on Wednesday, but yesterday’s action brought the market right back down to its lows.

Weekly Issue May 2: There are still a couple of decent-looking areas, mostly either slow/steady growth firms or special situations. Our Top Pick this week is one of the latter, with an almost hard-to-believe cash flow story.

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 Alert May 5: Sell a Third of your OXY September 60/85 Bull Call Spread for $7.50 or more.

Cabot Options Trader Alert May 5: Sell a Third of your OXY September 60 Calls for $10.30 or more.

Cabot Options Trader Basic Update May 5: This morning we locked in profits of 29% for Cabot Options Traders on our OXY calls, and 27% for the Pro members’ spread. As I noted in the trade alert, I think OXY stock looks terrific, but in this wild market, which saw the S&P 500 rally 3% yesterday and fall 2.7% today, we have to continue to “stick and move.”

Cabot Options Trader Basic Weekly Update May 2: It was one of the most challenging weeks we’ve seen in a while for traders, and especially the bulls, as Tuesday saw steep losses, Thursday the market soared higher, and then Friday we witnessed yet another meltdown.

Cabot Options Trader Pro Weekly Update May 2: Long positions: CF, DT, F, MRVL, ONON, OXY, UBER, XLF

Cabot Undervalued Stocks Advisor

Monthly Issue May 4: It seems that most of the pandemic-driven adrenaline rush in speculative stocks has burned off, with literally hundreds of names down 60% or more from their peak prices. And, more than a few highly notable stocks, including Netflix (NFLX) and DocuSign (DOCU), have given up all of their pandemic gains and then some.

Weekly Update April 27: Earnings updates from Dow (DOW), The Coca-Cola Company (KO) and Sensata Technologies (ST) as well as comments on other recommended stocks.

Cabot Stock of the Week

Weekly Issue May 2: Market trends remain down, and while the abundance of bad news tells us there’s got to be a bottom somewhere, I’m not foolish enough to predict that it will be now—though it’s definitely possible! So I continue to recommend a cautious attitude, which means holding cash, and favoring defensive stocks with minimal downside potential—like today’s recommendation.

Cabot Explorer

Bi-weekly Update May 5: The Federal Reserve, America’s central bank, raised its benchmark rate a half percentage point yesterday as assets that investors perceive as safer were among those to rally. While macro issues such as inflation and interest rates are certainly important, in the end it will be company performance relative to expectations that will be decisive.

Bi-weekly Issue April 28: Carl’s new recommendation Sociedad Química y Minera de Chile S.A. (SQM), produces specialty plant nutrients, iodine, lithium, potassium chloride and potassium sulfate, industrial chemicals, and other commodity fertilizers.

Cabot Small-Cap Confidential

Alert May 6: Procept BioRobotics (PRCT) delivered another “beat and raise” quarter after the close yesterday (third since going public) with revenue up 97% to $14.2 million ($2.1 million beat) and GAAP EPS of -$0.39 beating by $0.10. Pretty much everything was good, starting with a $4 million increase to full-year guidance, which now sits at $58 – $62 million (+68% – 80%).

Alert May 5: The shine from the Fed’s press conference yesterday came off early this morning and it’s turned into an ugly day. It’s another one of those days (we’ve had too many this year) where it feels wrong to be a buyer and wrong to be a seller. Classic bear market.

Monthly Issue May 5: The market remains very challenging for high-growth stocks. While I have a list of innovative companies I’m excited to recommend (at some point), for now we’ll continue to diversify our portfolio with more value-oriented names.

Update April 28: It’s hard to put a positive spin on the market’s action over the last week. The bottom line is investor sentiment is the pits and most stocks have been sliding. We owe Microsoft (MSFT) a debt of gratitude for stepping up with a good report and showing that things aren’t actually as bad in tech land as everybody seems to think!

Cabot Dividend Investor

Weekly Update May 4: The Fed meets today and is widely expected to raise the Fed Funds rate by 0.50%. That would be the largest single-meeting rate hike in more than twenty years. It’s necessary because the Central Bank is a million miles behind the curve in countering this high and persistent inflation, currently running at more than 8%.

Monthly Issue April 13: The market situation is changing. Amidst persistent high inflation and concerns about future economic and earnings growth, investors are adjusting. Energy is up nearly 40% YTD as that sector benefits from inflation. Utilities and Consumer Staples are also thriving as investors focus on value, defense, and income in the market uncertainty.

Cabot Early Opportunities

Alert April 22: The market got off to a decent start to the week, but things have deteriorated for many names over the last two days. There are a few stocks that I had anticipated selling relatively soon, hopefully into some strength.

Monthly Issue April 20: In the April Issue of Cabot Early Opportunities, we take a look at the earnings calendar for our current portfolio and spread new research around by covering a diverse group of small-cap companies. We have a newly public (again) pet retailer, a leaner and meaner defense and aerospace company, and a rising star in the fitness studio space. We also upgrade two stocks from our Watch List (and ditch a few others), including a key supplier for the EV market and a rapidly growing IT services company.

Cabot Profit Booster

Weekly Issue May 3: It was one of the most challenging weeks we’ve seen in a while for traders, and especially the bulls, as Tuesday saw steep losses, Thursday the market soared higher, and then Friday we witnessed yet another meltdown.

Alert April 14: Today is the expiration of April options. Because I am on vacation this week I won’t dive deep into the profits, and one potential loss, for these positions until next week. However, most importantly, for today the “headline” is that you don’t need to act on any of our April positions.

Cabot Micro-Cap Insider

Weekly Update May 4: While I’m grateful that the pandemic has faded and everyone is getting back to normal, there is one downside. During the pandemic, my family had a stretch of two years of amazing health. No Covid (luckily!), no flu, and no colds. That has all changed.

Monthly Issue April 13: The company that I’m recommending today is a perfect example. It provides the “picks and shovels” to the massive Alzheimer’s market. It is growing revenue at a 20%+ clip yet trades at only 33x earnings (not revenue!). An opportunity like this would not exist in the large-cap market. With that, with that, let’s dive into my latest idea, Cogstate (COGZF).

Cabot Income Advisor

Weekly Update May 4: It was hoped that earnings could save the floundering market. But it isn’t happening. Inflation and slowing growth are creating a pall over everything. The Fed seems determined to make up for lost time and aggressively hike interest rates. Stocks can’t get much traction as investors look ahead to more inflation, rising interest rates and a weaker economy.

Monthly Issue April 27: Stocks are turning distinctly more bearish in the near term as slower growth in China hits a market that was already teetering in anticipation of a more aggressive Fed.

Cabot Turnaround Letter

Monthly Issue May 4: One of the enduring features of the stock market is that near-term share prices are driven by momentum and narratives. While this may yield huge money-making stocks on the way up, losses can be devastating on the way down. Fortunately for value investors, downturns driven by negative momentum and unfavorable narratives can create impressively attractive opportunities.

Weekly Update April 29: Due to unexpected circumstances, the Cabot Turnaround Letter monthly edition for May will be published on a one-week delay. Also, today’s note will not include the podcast. We apologize for the inconvenience.

Cabot Money Club

Monthly Magazine April 29: Since the market bottom on March 6, 2009—when the Dow Jones Industrial Average sunk to 6,469.95—investors have lined their pockets with lots of coin. Sure, COVID sent the markets reeling—down to 19,173.98 on the Dow in March 2020—but since then, boy, have we recovered! Despite recent volatility—due to rising interest rates and inflation, as well as the war in Ukraine—the Dow is getting close to breaking records again, closing at 35,116.35, as I write this.

Stock of the Month April 14: See-sawing—that’s what these markets bring to mind. And I think we can expect more of the same, due to three factors...

Cabot ETF Strategist

Weekly Update May 3: Investors always like a safe place to salt away some cash, particularly during a period of market volatility. Traditionally, that’s been money market funds, or as part of an asset allocation strategy, many have turned to short-term investment-grade bonds.

Monthly Issue April 12: In this month’s issue, we focus on the smaller, and lesser known ETFs featured in the undiscovered portfolio. While asset allocation is a tried-and-true method for longer-term investing, you can boost your return with ETF trading. That’s what the undiscovered portfolio is designed to do. With market volatility remaining, this portfolio gives you an opportunity to capture excess returns from asset classes outperforming the broader market.

Ask the Experts

Cabot Small-Cap Confidential

Question: Procept BioRobotics (PRCT): since earnings are done, you still suggest trimming position in half?”

Tyler: Totally depends on your risk tolerance, size of position, etc. Theoretically, with that report and the momentum I think PRCT should be “OK”. But ... this market is the pits. I look at +40% (return) in a few months and think I’d be OK taking a little off the table and seeing PRCT walk higher. Would likely enjoy some of a market recovery elsewhere in our portfolio. But if you keep the whole PRCT position and it’s down 20% (or whatever) you would probably be kicking myself. So maybe it’s not half, but something.

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.