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Ulta Salon (ULTA) has been recommended several times in Cabot newletters in recent months.

I’m playing things cautiously for the moment. On the buy side, I’m looking for stocks that are (a) acting calmly despite the choppy action and (b) are near support, so I can use tight loss limits to limit risk if things go awry.

Today we start with a question. Which industry spent the most money on lobbying in the U.S. last year?

Today’s update is brief, but it does include a couple of important observations about the behavior of cannabis stocks in recent weeks, as well as updates on all the portfolio stocks.

Here are earnings updates on two of our stocks.

Ammo Inc (POWW) beat on revenue of $40.42M but its EPS of $0.01 per share missed expectations by $0.03. The company experienced sequential revenue growth in the ammunition segment and maintained robust margins in the GunBroker marketplace, but total revenues and gross profit margin were both down year-on-year, influenced by a shift in sales mix and macroeconomic pressures. The year ended with substantial operational cash flow and an improved net working capital position including $55.6M in cash, positioning the company for future growth.

The S&P 600 SmallCap Index hit a multi-week high on Tuesday before giving a little back yesterday.

There’s some interesting data that suggests small-cap stocks could be in for a run starting now.

According to data from Evercore ISI, small-cap stocks have done better than large caps 60% of the time in June, dating back to 1990. The odds are even better when small caps enter June underperforming, as they have for a while now.

This month we’re venturing into the services sector with a stock that fits the Growth at a Reasonable Price (GARP) strategy that’s come back into favor recently. This isn’t a high-flying stock with a new widget or software solution. It’s a pretty basic business really. In all likelihood, it’s insulated from trade wars, and even recessions too.

This little nugget is helping rebuild America’s infrastructure, one road at a time. With funding for road construction and repairs going up, and a long list of acquisition targets to roll into its business, this young company has a bright future.

All the details are inside the November Issue of Cabot Small-Cap Confidential.

Stocks are already at all-time highs, and now it appears the Fed is (finally) prepared to give them an extra nudge in the form of interest rate cuts this week. When that happens, it’s typically bullish for stocks, even if there are some bumps along the way. So today, we continue to try and capitalize on a growth-friendly market by adding a fast-expanding biotech play to the Stock of the Week portfolio. It’s a new recommendation from Mike Cintolo in his momentum-based Cabot Top Ten Trader newsletter. And it’s been on a tear for the last month.

Details inside.

Small caps continue to trend sideways as they have since the beginning of 2017. In the S&P 600 Small Cap Index, this means trading mostly in the 820 to 860 range with a few spikes above and a few below. There’s no doubt the market rally has lost momentum as the small cap index has traded mostly below its intermediate trend line over the last five weeks.

The marijuana sector peaked in February, bottomed from late March to mid-April, and since then has been building a base, preparing for a resumption of the big advance.

Fundamentals in the industry remain terrific, and the trend toward legalization in the U.S. continues, so it’s only a matter of time before these stocks enjoy their next upwave—perhaps as second quarter reports begin to be released next week.



In the portfolio today the one small change is that we’ll sell half our position in TerrAscend (TRSSF) and move the proceeds into Innovative Industrial Properties (IIPR).



Full details in the issue.

Today’s new addition is a consumer-oriented stock with a range of shooting devices that are quickly becoming the must-haves among sportsmen and those looking for a less lethal self-defense option.

Revenue growth and profitability are on the rise, buoyed by new retail partnerships, domestic manufacturing and the launch of the company’s newest device.

All the details are inside this month’s Issue.

Enjoy!

A rumored Coca-Cola-Aurora Cannabis deal is the latest evidence that the marijuana industry has Wall Street’s full attention.

There are two types of stock splits that you may encounter with your investments. Here’s what you should worry about – and what to ignore.

With markets near all-time highs, it’s hard to find value these days. Look for catalyst-driven value stocks. Here are three that I like.

There are some potential signs that signal that illness has set into your stock. Here are the ways to recognize the bad and the ugly stocks.

Sinclair Broadcast Group is a little-known mid-cap stock that has risen 350% in the last five years. More big gains could be ahead after a recent buyout.