Both this week and next week’s Weekly Updates will be a little shorter than normal and focused primarily on relevant updates in our positions.
The reason is that this week, we’re holding our annual Summit, so all Cabot analysts and staff are focused on that event for most of the week. Next week I’ll be trying to take a vacation before summer comes to a close. I’ll be in northern Vermont with two kids, no wife, and spotty internet access – not the best setup for writing!
Of course, it’s relatively easy to keep tabs on our positions from a mobile device. But any writing will be quite limited. We’ll get back to our normal schedule in the first week of September when the next Issue of Cabot Small-Cap Confidential will be published.
Thanks for understanding as we focus on the Summit, and I try to unplug a little before summer slips away.
As far as the last week goes our stocks are up an average of 3%, led by Fiverr (FVRR), up 8%, and new additions Accolade (ACCD), up 6%, Repay Holdings (RPAY), up 7% and Palomar (PLMR), up 5%. Karyopharm (KPTI), which was moved to hold last week, was down 3% and remains at hold.
Changes This Week
Cardlytics (CDLX) Moves From Hold to Buy
Updates
Accolade (ACCD) is a digital health care company with a user-friendly platform that helps members navigate the healthcare system, make better decisions for their healthcare and benefits needs, and control costs. The stock’s trend looks solid and it remains at “buy a half” given it’s a new IPO and we could easily see some volatility in the weeks ahead. BUY A HALF
AppFolio (APPF) was up 2% this week on no new news. HOLD
Arena Pharmaceuticals (ARNA) was up 3% this week and is only 3% below its previous high. BUY
Avalara (AVLR) is trading in a tight range 15% off its all-time high. Keeping at hold while it consolidates. HOLD
Cardlytics (CDLX) looks like it’s trying to break out to a fresh multi-month high above 85. This mirrors the emerging strength in stocks like Visa (V) and Mastercard (MC). It’s still highly reliant on an improvement in consumer spending, which is tepid in many of the categories Cardlytics currently has exposure, but the market is beginning to look beyond the next three months. For risk tolerant investors Cardlytics is moving back to buy in anticipation of a breakout. BUY
Everbridge (EVBG) was up 5% this week and is trading right on its 50-day line. It looks like we’re in a consolidation phase in which EVBG will hang out in the 120 to 150 range for a little while. I’ll keep an eye on this and try to get us back into buying mode when EVBG looks poised to move up and out of this zone. HOLD
Everquote (EVER) has suffered a big pullback since reporting based on a sort of messy quarter, but the long-term story remains intact. Keeping at buy. At almost 40% off its high this looks like a good opportunity to snap up shares. BUY
Fiverr (FVRR) is up 8% over the last week and continues to look and act terrific. Expectations remain extremely high so we’ll enjoy the ride but continue to be a cautious. HOLD
Goosehead Insurance (GSHD) has firmed up after a little post-earnings pullback and the ex-dividend date passed. It looks good. Keep holding. HOLD
Inspire (INSP) was moved back to buy last week and the stock continues to look strong. BUY
Karyopharm Therapeutics (KPTI) remains at hold and despite the long-term potential is in danger of being cut due to poor performance. Keeping at hold. HOLD
Palomar (PLMR) is chugging higher. As mentioned previously this is one of those sleeper stocks that doesn’t draw a lot of attention but which could easily destroy the market in the coming years. Keeping at buy. We’re up almost 30% since June 4. BUY
Q2 Holdings (QTWO) is breaking out to all-time highs, surpassing where it was at this time last year and where it was just prior to the market crash in March. It looks good – don’t be thrown off because we’re up over 300% from when I first added the stock. That was back in 2016. The company is still relatively small with a market cap just over $5 billion. Keeping at buy. BUY
Repay Holdings (REPAY) continues to look good and just announced an integration with Sage 500, which builds out the integrations Repay has with Sage. Keeping at buy. BUY
Repligen (RGEN) had a little pullback after the stock’s big earnings-related jump. I’ve had at buy because the long-term trends here remain intact. Shares are up modestly over the past five sessions. BUY
