Search

Already the S&P500’s crisp 20% peak-to-trough drop ending on December 24th seems like a distant memory. Since last quarter, over 90% of all S&P500 stocks have advanced. Being contrarians, this prompted us to look at stocks that haven’t fully participated in the upturn.

In this issue, see the seven stocks whose shares remain well below their two-year highs, yet might have latent recovery potential.

In today’s note, we discuss pertinent developments for some of the stocks in the portfolio, including Alcoa (AA), Atlassian (TEAM), Fidelity National Services (FIS), Paramount Global (PARA) and Starbucks (SBUX).

The proposed merger between Union Pacific (UNP) and Norfolk Southern (NSC) throws into sharp relief an accelerating—some would say disturbing—trend of mega-consolidation across a number of key industries.

With a 42% return over the last six months, Chunghwa Telecom is this year’s best-performing Dividend Digest Top Pick so far (based on...

A bull risk reversal trade brought Hewlett Packard Enterprises (HPE) to Jacob’s attention back in June. Bull risk reversals are a favorite tool for hedge funds and are just about the most bullish trade you can execute using options because both components of the trade are bullish.

A bull risk reversal trade brought Hewlett Packard Enterprises (HPE) to Jacob’s attention back in June. Bull risk reversals are a favorite tool for hedge funds and are just about the most bullish trade you can execute using options because both components of the trade are bullish.

The push to invest in automation has led to economic anxiety in the U.S., but this robotics company knows the value of pairing robots with human workers.

Occasionally, we bring you articles from outside sources that we think you will be interested in and benefit from. Today, we have an article from StreetAuthority’s Stock of the Month editor Amy Calistri.

Brendan Coffey, CFTe, chief analyst of Sector Xpress Greentech Advisor, explains why solar has grown from most expensive to cheapest utility-level power in the past decade. He talks about the California rule to have solar on every new house built and expected federal support for it. He also discusses which stocks to play the trend; a solar company, an inverter company and an installer.

Stocks are at all-time highs, continuing to climb a Wall of Worry that’s made of tariff fears, economic worries, political turmoil and overseas conflicts. Eventually, a pullback is probably in order. But for now, the good times are rolling, and we need to keep capitalizing on them. So today, we add a dividend payer that’s really more like a growth stock, a recent recommendation from Cabot Dividend Investor Chief Analyst Tom Hutchinson. The tech stock is getting a major boost from (what else?) AI, but Tom thinks it still has plenty of room to run – even while trading at all-time highs.

Details inside.

In doing this month’s research, I was struck by the preponderance of excellent investment opportunities within the banking industry – so many that I could fairly easily create a mutual fund entirely devoted to bank stocks!

These few companies found in today’s issue are newsworthy, and lots of people are pondering buying and selling these stocks, so let’s get a firm grasp on whether the stocks warrant your attention.

It’s been a highly unusual market environment, with the overall market grinding slightly higher, but with growth stocks generally under pressure as more leaders crack or test key support. We continue to think great things will happen when looking out a few months, but we also have to deal with the here and now and have been shedding names as they act abnormally, giving us a cash position north of 50%. We’d prefer to have that lower, but are holding it tonight, waiting for at least some support to show up before putting some of it back to work.

I was browsing through our Web site archives this week and ran across a Cabot Wealth Advisory written by Brendan Coffey in August of last year. In it, he discussed the concept of buying stocks based on what you know ... and what you like. I took this advice to heart after reading the June 1 issue of Cabot Top Ten Report, which featured on of my favorite stores: J. Crew (JCG). But there is the potential for investors to take this notion too far.

Today I start with a review of the high points of the XM Radio/Sirius Radio saga, which has important lessons for all of us.

While 2017 was one of the least volatile years ever for the market, 2018 has seen volatility return—with a vengeance! Early February brought the greatest point decline in history for the Dow, while yesterday brought the biggest one-day advance since August 2015 for the Dow, S&P 500 and Nasdaq.

Today, my recommendation is outside the U.S., and outside China, too! In fact, my recommendation is in Brazil, where a young airline is enjoying rapid growth and the chart is positive.