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The financial media, observers and traders are focused almost exclusively on the path of the Fed’s interest rate tightening policy. How much will they raise rates at the next meeting? How about the meeting after that? Then what? What is the terminal rate (the highest rate of the cycle)? When will the Fed start reducing rates?

Yesterday was Tesla’s annual investor day and it seems it came up a bit short regarding specifics.

Elon Musk started with a big number even by Washington standards, suggesting that realizing the vision for an energy transition could require some $7 trillion of investments in electric-vehicle manufacturing.

Thank you for subscribing to the Cabot Turnaround Letter. We hope you enjoy reading the June 2021 issue.

Good investing ideas can come from anywhere. One useful source is to borrow ideas from some of the best value-oriented investors. Their holdings can be found in the 13F and 13D regulatory filings which are required every quarter. In the letter, we briefly describe these filings, how we use them, and six stocks that look attractive from the many holdings we analyzed.



A slightly shocking source of turnaround ideas can come from the electric utility industry – about the last place that contrarians might look these days. We discuss three with interesting stories and strong upside potential.



Our feature Buy recommendation, Vistra Corporation (VST), comes from this illuminating search through the utility sector. Vistra is the nation’s largest independent power producer with an emerging retail business. Its shares were jolted by the winter storms yet look like an attractive turnaround situation.



We also mention our May 12th move from Buy to Sell on shares of Mohawk Industries (MHK).



Please feel free to send me your questions and comments. This newsletter is written for you. A great way to get more out of your letter is to let me know what you are looking for.



I’m best reachable at Bruce@CabotWealth.com. I’ll do my best to respond as quickly as possible.

Thank goodness; the shutdown is over!

And that agreement (although not really agreeing on much!) has helped the markets to continue their upward momentum, albeit with a few hiccups. All eyes are on the Fed, as I write this, with expectations that it will once again lower rates by a quarter of a point.

In the March Issue of Cabot Early Opportunities we spread things around with a diverse group of mid-caps, plus one large cap from our Watch List that’s one of the biggest stories in MedTech.

As always, there’s something for everybody.

Enjoy!

The market remains under pressure, though the sellers have eased up a bit during the past couple of trading days; it’s possible that, after a sharp plunge at the end of last week we could see a bounce or countertrend rally develop. That said, this remains a news-driven environment, especially as our leaders in Washington begin their posturing to deal with the Fiscal Cliff. Overall, the intermediate-term trend remains down, and while there are some stocks and sectors resisting the decline, it’s best to stick with your generally defensive stance, limiting new buying to small amounts, taking profits (or partial profits) quickly when you get them and holding a good amount of cash on the sideline.

This week’s list is a hodgepodge of names that are doing well, usually because of recent catalysts or great reactions to quarterly results. Our favorite is a lower-priced name that looks like a special situation—Nam Tai Electronics (NTE) is showing exceptional strength, has huge earnings and sales, and even a big dividend, too. It’s a hot potato, but a small position on weakness could work very well.

Stock Name	Price	Buy Range	Loss Limit
AMC Networks (AMCX)	0.00	49-51	-
BE Aerospace (BEAV)	0.00	43-45	-
BioMarin Pharmaceutical (BMRN)	0.00	46-47.5	-
Computer Sciences (CSC)	0.00	34-35	-
Copa Holdings (CPA)	0.00	91-94	-
Lions Gate Entertainment Corp. (LGF)	0.00	15-16	-
Mohawk Industries (MHK)	0.00	82-84.5	-
Nam Tai Electronics (NTE)	0.00	13-14	-
Quanta Services (PWR)	91.45	25-26	-
Thor Industries (THO)	104.76	41-43	-

The market is working its way through significant developments on many fronts – U.S. presidential race, raging pandemic, positive vaccine developments – and information overload is causing some intense action in individual stocks.

It’s an interesting time to be an income investor, to say the least. Interest rates have plummeted post-Brexit, as investors flee to the safety of fixed income just as central bankers are promising more stimulus for shaky markets. The yields on U.S. 10-year and 30-year treasuries are at record lows, while yields on more and more global bonds are going negative.

We’re switching Target (TGT) and ConEd (ED) from Buy to Hold today. The rest of our ratings remain unchanged.

Stock markets started the New Year with a nice pop yesterday, after closing out the last week of 2016 marginally lower. While one day of action isn’t enough to indicate a trend, we’re optimistic that 2017 could bring a strong market rally.

The real short version of what’s going on out there is … we’re officially in a bear market in growth. And it’s been particularly tough going in the super-fast-growing small-cap stock arena.

The market is off to a superb start to 2020 with many growth sectors finding their groove and ripping higher. The S&P 600 Small Cap Index continues to trade above the all-important (my opinion) 1,000 level and we’re seeing participation from a wider breadth of sectors than in the past.

One stock reports third quarter earnings beat and another moves from Hold to Strong Buy.

Retail stocks are pricing in the dual threat of higher tariffs and lower consumer spending, but that creates value investing opportunities should the U.S. economy remain resilient.