June 17, 2022

This week’s Friday Update includes comments on our companies. There were no ratings changes or earnings reports.

Friday, June 17, 2022, 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 10½ minutes and covers:

Comments on other recommended companies:

• Mattel (MAT) – hired a Disney executive to help monetize its immensely valuable brand portfolio.
• As value/contrarian investors, we want to buy, rather than sell, shares of recommended companies that fall in price as it means we get even better bargains. Dividend yields on shares of Xerox Holdings (XRX), Vodafone (VOD), Janus Henderson Group (JHG) and Western Union (WU) exceed 6% and yields on shares of Newell Brands (NWL), Holcim (HCMLY), Walgreens Boots Alliance (WBA) Viatris (VTRS) and Kraft Heinz (KHC) exceed 4%. While measuring dividend sustainability can be a bit of a murky adventure, we see that all of these companies’ dividends, with the possible exceptions of Xerox, Western Union and Viatris, look solid.
• Shares of ZimVie (ZIMV) looks heavily oversold.
• Shares of M/I Homes (MHO) are being sold aggressively but perhaps not sensibly and offer a wide margin of valuation safety.

Elsewhere in the market:

• Asset price moves across the board have been sharp and large and seem likely to create a financial market crisis.
• We share a mental perspective we are increasingly using to help us control profit-destroying emotions and thus allow us to maintain a “detached observer” orientation, helping boost our profits and preserve the value of our asset base.

Final note:

• This Sunday is Father’s Day. As the proud father of three teenage boys, and as an investor participating in the market burndown, I sometimes look to this cartoon, below, to help keep it all in perspective. It is one of my all-time favorites:

Please know that I personally own shares of all Cabot Turnaround Letter recommended stocks, including the stocks mentioned in this note.

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.

Please know that I personally own shares of all Cabot Turnaround Letter recommended stocks, including the stocks mentioned in this note.

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.