This holiday-shortened week was relatively light on news, as investors digested signs of a weakening economy in front of what likely will be a fascinating earnings season.
Next Friday, Wells Fargo (WFC) kicks off our earnings season, likely providing at least some insights, along with those provided by several other major banks that report that day, into the banking industry’s current stresses. Our other banks report later, with First Horizon (FHN) on April 18 and Capital One Financial (COF) on April 27.
The deluge starts the week of April 24, with 12 companies reporting.
There were no ratings changes this past week.
Later this month is spring vacation for our kids. This will mean a lighter publication schedule, with brief Friday notes (to include earnings) and no podcast on Friday, April 14 and Friday, April 21. Also, the monthly letter will be pushed back a week to Wednesday, May 3. We’ll continue to monitor the holdings list and provide any Alerts if necessary.
Thursday, April 6, 2023 Subscribers-Only Podcast:
Covering recent news and analysis for our portfolio companies and other topics relevant to value/contrarian investors.
Today’s podcast is about 5 minutes and covers:
- Comments on other recommended companies
- Vodafone (VOD) – Received offers of as much as $4 billion for its Spanish telecom operations.
- Mattel (MAT) – Impressive person, Noreena Hertz, added to the board.
- Elsewhere in the markets
- Investment manager Harding Loevner has excellent risk control phrase.
- Final note
- Capitalism and evolution: differences described by a surprising source.
| Market Cap | Recommendation | Symbol | Rec. Issue | Price at Rec. | 4/5/23 | Current Yield | Rating and Price Target |
| Small cap | Gannett Company | GCI | Aug 2017 | 9.22 | 1.65 | - | Buy (9) |
| Small cap | Duluth Holdings | DLTH | Feb 2020 | 8.68 | 6.24 | - | Buy (20) |
| Small cap | Dril-Quip | DRQ | May 2021 | 28.28 | 28.25 | - | Buy (44) |
| Mid cap | Mattel | MAT | May 2015 | 28.43 | 17.64 | - | Buy (38) |
| Mid cap | Adient plc | ADNT | Oct 2018 | 39.77 | 38.36 | - | Buy (55) |
| Mid cap | Xerox Holdings | XRX | Dec 2020 | 21.91 | 14.38 | 7.0% | Buy (33) |
| Mid cap | Ironwood Pharmaceuticals | IRWD | Jan 2021 | 12.02 | 10.55 | - | Buy (19) |
| Mid cap | Viatris | VTRS | Feb 2021 | 17.43 | 9.80 | 4.9% | Buy (26) |
| Mid cap | TreeHouse Foods | THS | Oct 2021 | 39.43 | 51.69 | - | Buy (60) |
| Mid cap | Kaman Corporation | KAMN | Nov 2021 | 37.41 | 22.11 | 3.6% | Buy (57) |
| Mid cap | The Western Union Co. | WU | Dec 2021 | 16.40 | 10.87 | 8.6% | Buy (25) |
| Mid cap | Brookfield Re | BNRE | Jan 2022 | 61.32 | 31.57 | 1.8% | Buy (93) |
| Mid cap | Polaris | PII | Feb 2022 | 105.78 | 103.46 | - | Buy (160) |
| Mid cap | Goodyear Tire & Rubber | GT | Mar 2022 | 16.01 | 10.30 | - | Buy (24.50) |
| Mid cap | M/I Homes | MHO | May 2022 | 44.28 | 61.13 | - | Buy (67) |
| Mid cap | Janus Henderson Group | JHG | Jun 2022 | 27.17 | 25.54 | 6.1% | Buy (67) |
| Mid cap | ESAB Corp | ESAB | Jul 2022 | 45.64 | 55.52 | - | Buy (68) |
| Mid cap | Six Flags Entertainment | SIX | Dec 2022 | 22.60 | 25.48 | - | Buy (35) |
| Mid cap | Kohl’s Corporation | KSS | Mar 2023 | 32.43 | 22.60 | 8.8% | Buy (50) |
| Mid cap | First Horizon Corp | FHN | Apr 2023 | 16.76 | 17.63 | 3.4% | Buy (24) |
| Large cap | General Electric | GE | Jul 2007 | 304.96 | 94.25 | 0.3% | Buy (160) |
| Large cap | Nokia Corporation | NOK | Mar 2015 | 8.02 | 4.90 | 1.9% | Buy (12) |
| Large cap | Macy’s | M | Jul 2016 | 33.61 | 18.35 | 3.6% | Buy (25) |
| Large cap | Toshiba Corporation | TOSYY | Nov 2017 | 14.49 | 16.70 | 6.2% | Buy (28) |
| Large cap | Holcim Ltd. | HCMLY | Apr 2018 | 10.92 | 12.17 | 3.6% | Buy (16) |
| Large cap | Newell Brands | NWL | Jun 2018 | 24.78 | 12.04 | 7.6% | Buy (39) |
| Large cap | Vodafone Group plc | VOD | Dec 2018 | 21.24 | 11.17 | 9.1% | Buy (32) |
| Large cap | Molson Coors | TAP | Jul 2019 | 54.96 | 52.50 | 2.9% | Buy (69) |
| Large cap | Berkshire Hathaway | BRK.B | Apr 2020 | 183.18 | 310.39 | - | HOLD |
| Large cap | Wells Fargo & Company | WFC | Jun 2020 | 27.22 | 36.89 | 3.3% | Buy (64) |
| Large cap | Western Digital Corporation | WDC | Oct 2020 | 38.47 | 35.06 | - | Buy (78) |
| Large cap | Elanco Animal Health | ELAN | Apr 2021 | 27.85 | 8.80 | - | Buy (44) |
| Large cap | Walgreens Boots Alliance | WBA | Aug 2021 | 46.53 | 36.12 | 5.3% | Buy (70) |
| Large cap | Volkswagen AG | VWAGY | Aug 2022 | 19.76 | 16.78 | 5.5% | Buy (70) |
| Large cap | Warner Bros Discovery | WBD | Sep 2022 | 13.13 | 14.79 | - | Buy (20) |
| Large cap | Capital One Financial | COF | Nov 2022 | 96.25 | 94.84 | 2.5% | Buy (150) |
| Large cap | Bayer AG | BAYRY | Feb 2023 | 15.41 | 16.26 | 3.3% | Buy (24) |
Disclosure: The chief analyst of the Cabot Turnaround Letter personally holds shares of every Rated recommendation. The chief analyst may purchase securities discussed in the “Purchase Recommendation” section or sell securities discussed in the “Sell Recommendation” section but not before the fourth day after the recommendation has been emailed to subscribers. However, the chief analyst may purchase or sell securities mentioned in other parts of the Cabot Turnaround Letter at any time.Please feel free to share your ideas and suggestions for the podcast and the letter with an email to either me at bruce@cabotwealth.com or to our friendly customer support team at support@cabotwealth.com. Due to the time and space limits we may not be able to cover every topic, but we will work to cover as much as possible or respond by email.
