First, Happy Thanksgiving! I hope you have a nice long weekend planned wherever you are, and with whomever you will spend it.
Second, today’s update is short and sweet.
Other than price changes not much has happened with our stocks since I wrote last week. With our offices closed tomorrow and Friday we’ll all be taking a short break before gearing up for the last month of the year. Next week is also when the next issue of Cabot Small-Cap Confidential will be released.
As far as our current portfolio, I want to highlight the action in a few stocks. We’re also dropping one position today.
First up, the stock we’re letting go. Surprisingly, Palomar (PLMR) has fallen below our get out level over the last two days. I won’t argue with investors that wanted to hold on as I do think the stock will eventually come back. But I can’t ignore the weakness now and risk a larger decline. Palomar will go back on the watch list. SELL
Second, check out the chart for Cardlytics (CDLX). The stock has shot to a new all-time high on economic recovery hopes. It will remain at hold for now. This action is incredibly rewarding to see as we held on to the position through a devastating 75% retreat in February and March!
Next up is Cerence (CRNC), which has also hit fresh highs and is now up over 70% from where we entered the position on October 1. A lot of auto stocks have been red hot and Cerence is likely benefitting from some of the increased attention in the space. Continue to buy but ratchet down new position sizes and look to buy on any weakness.
Finally, Accolade (ACCD) has blasted off to new highs. The stock’s furious run from 38 to 50 is likely tied to economic recovery hopes and potential for airline clients to maintain workforces. Still, this stock is likely to be volatile, so we’re not filling the second half of our position just yet.
That’s it for this week guys. Take care of yourselves over the holiday and thank you for your continued support.
