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Last Thursday evening, I was a guest at a friend’s regular poker game. It seemed friendly enough – the regulars were average players (like myself), pleasant to spend time with (no jerks), and the evening included a tasty dinner. Also, favorably to me as the newbie, the stakes were modest.

The games were straightforward: 5-card draw, 7-card stud high-low, while a few others included a small field of common cards similar to Texas Hold’em. Betting was reasonable, with limits on both the size and number of raises. So far, so good.

In this week’s video, Mike Cintolo sees plenty of stocks in a variety of sectors that you can buy or keep on your shopping list.

You don’t need to be independently wealthy in order to invest. Here are some ideas for investing small amounts of money that could pay off nicely over time.

Netflix continues to revolutionize the way people watch movies at home.

This “focus on the simple” brings me to one of my favorite sayings in the stock market, which I got from the book, The Perfect Speculator (I highly recommend it): “It’s hardest to keep things simplest.”

Three more portfolio stocks report good earnings.

For those investors who still feel like doing some buying, Paul looks at a few stocks that are resisting the downtrend of the market.

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

This month we look at post-bankruptcy energy stocks. Companies that have emerged from bankruptcy are generally shunned by investors, as are energy stocks in general in the current market. Combined, these two traits offer some attractive investment opportunities. We discuss four of them.



We also look at tobacco stocks. Shares of these companies have fallen sharply in recent years due to an acceleration in the decline rate of cigarette volumes. However, that trend appears to be moderating, leaving the shares undervalued yet paying high dividend yields. Our feature recommendation, Altria Group (MO), is a stand-out value among the group.



We also include comments on recent price target and rating changes, including our recent Sell recommendations on Trinity Industries (TRN) and ViacomCBS (VIAC).



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.

We comment on earnings from Adient (ADNT), Dril-Quip (DRQ), ESAB Corp (ESAB), Frontier Group Holdings (ULCC), Gannett (GCI), Goodyear Tire (GT), Janus Henderson Group (JHG), Kaman Corporation (KAMN), Warner Bros Discovery (WBD) and Western Digital (WDC).

According to the latest Gallup poll, here are 16 problems Americans consider most pressing.

The big thing on most investors’ minds is whether or not this market can go higher.

Very conservative stocks like utilities have weakened. The utility sector is still up 17% year-to-date, but what goes up must come down, and we’ll be selling half our position in Xcel Energy (XEL) today. I encourage you to reinvest the profits in stocks with stronger growth potential, like fellow Safe Income tier holdings Home Depot (HD), J.M. Smucker (SJM) or UPS (UPS).

Stay bullish. We’ve seen an improvement in the evidence during the past week, with growth stocks acting well and more names hitting new highs. We’re moving one of our positions back to buy and our cash position stands at 27%.

Today’s featured stocks include a new addition to the Growth Portfolio. You’ll also find comparisons between our featured stocks and their peers in the integrated oil, asset management and semiconductor industries.

A new year brings renewed optimism, and boy do we as investors need it after one of the worst years for stocks in recent memory – the fourth-worst in the history of the S&P 500, to be exact. So today, as we enter what is likely to be (though not assured, of course) a better year for stocks – perhaps much better – we try and strike an optimistic tone by adding a promising mid-cap growth stock to the Cabot Stock of the Week portfolio. It’s a brand-new recommendation from Cabot Early Opportunities Chief Analyst Tyler Laundon.

This will be a busy week for Wall Street as analysts speak with the companies within their stock purviews and write updated research reports. I expect to relay lots of changes in consensus earnings estimates in next week’s update.

Many stocks are rising—either toward former highs, or surpassing recent highs—because the companies are growing profits very well. It’s not “Trump,” nor “irrational exuberance,” nor “a lack of other good investment markets.” It’s simply strong earnings growth.

U.S. stock markets continue to suffer, wiping out year-to-date gains that had previously culminated in all-time-high prices on the S&P 500, Dow Jones Industrial Average and NASDAQ indexes. If you’re looking for “the bright side” of this dour news, take heart that none of these market indexes have retraced their early-2018 lows.

Current Market Outlook


The market had been a bit wobbly, but last week brought a bunch of good-looking earnings reactions (not just the mega-cap names on Friday), which has put the sellers back on their heels—the Nasdaq actually kissed new high ground today! Of course, earnings season isn’t over, so it’s possible we see some air pockets emerge, and some of the blemishes we’ve been writing about still exist (the number of new highs continue to dry up a bit even as the Nasdaq pushes ahead). Because of all that, we still think picking your stocks and buy points is important; try to avoid chasing any old thing just because it’s going up. But there’s no question most of the evidence remains bullish, so we advise you to stick with a heavily invested position and buy fresh leaders either on initial pullbacks or powerful earnings moves.

This week’s list has a growth-ier feel as we highlight many of the recent earnings winners. Our Top Pick is Qualcomm (QCOM), which won’t be the fastest horse but just emerged from a huge consolidation and has giant earnings estimates thanks to a huge deal and the 5G boom.

Stock Name	Price	Buy Range	Loss Limit
Advanced Micro Devices (AMD)	82.24	72.5-75.5	63-65
Fortune Brands Home & Security (FBHS)	81.02	74-77	66-68
GenMark Diagnostics (GNMK)	15.47	17-18.5	14.5-15.5
Kirkland Lake Gold (KL)	51.30	49-52	43.5-45.5
Pinduoduo (PDD)	87.53	91-96	78-81
Penn National Gaming (PENN)	45.38	34-36.5	29.5-30.5
Pinterest (PINS)	35.86	33.5-37	28.5-30
QUALCOMM Incorporated (QCOM)	106.36	106-110	94-96
Qorvo (QRVO)	129.47	127-131	114-116
Scotts Miracle-Gro (SMG)	155.72	154-159	139-142

The Chicago Board of Options Exchange Volatility Index (VIX) closed the week at 11.49, marginally higher on the week. This was interesting price action as the market was making new highs and ahead of a long weekend (would have expected new lows).