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Insider buying is all well and good, but it shouldn’t be treated like a primary buy signal because big funds, not CEOs, move markets.

The overall market continues to be, well, wobbly. After a 2.1% loss last Monday, the sharpest decline in roughly 10 months, the bulls took charge at the opening bell last Tuesday and have yet to give up. Last week, the S&P 500 climbed 1.92%, the Dow advanced 1.07% and the Nasdaq surged 2.76%.

Most of the stocks in our Cabot Dividend Investor portfolio are behaving quite well; two stocks streaked to new highs in the last few days. I have no changes to the portfolio this week.

With the market near record highs, many stocks are trading well above the $1,000/share price level. Investors tend to dismiss stocks with basement-level prices, so we explored this maligned group in search of neglected value.

In this issue, we look at the several of our recommended stocks in this range.

NanoString (NSTG), Aerohive (HIVE) and Q2 Holdings (QTWO) reported earnings.

The iShares EM Fund has been trading sideways since July 19, but is holding well above its rising moving averages, so our Buy signal is in good shape. We have one portfolio move tonight.

The Emerging Markets Timer is in great shape, as the iShares EM Fund has pushed out to new highs in recent days. We’re holding on tight to our winners, but we are downgrading one stock to Hold tonight.

The S&P 500 remains in a correction, and investors are on edge due to news-related uncertainty. These are the technical signals to watch to start buying stocks again.

Mortgage rates have eased slightly in the last month but remain near 20-year highs. Should prospective homebuyers buy mortgage points to save on monthly housing expenses?

There have been so many changes in 2020, it pains me to heap another change onto your laps, and yet it is time for me to do so. I’ve implemented the next phase of my longtime career plan by establishing a U.S. equity hedge fund for which I am the portfolio manager.

As to this week’s stock, once again I’m trying to buy low, with a recommendation of Crista Huff that should soon see improved earnings thanks to last year’s huge merger.

The indexes are hovering perilously above their May lows, with the S&P 500 and the Nasdaq entering correction territory (-10%) last week. And this week, we’ll hear from the Fed again (gulp), the October jobs report comes in, and we’re still in the heart of earnings season, with Apple (AAPL) being the headliner. Spooky season indeed!

To prepare for all scenarios, this week we’re selling out of a couple laggards and adding a well-known retailer that’s actually in an uptrend. Mike Cintolo recommended this retailer in Cabot Top Ten Trader last week, in fact.

Details inside.

We update earnings from six recommended companies, summarize our ideas from the February Cabot Turnaround Letter, and provide comments on news from other recommended stocks. Also, check out this month’s Catalyst Report which lists important and potentially value-creating changes at undervalued companies.

This month we’re jumping into a little-known company that makes and sells pop culture products.

It’s sort of an odd duck, but when you dig below the surface you find compelling products and interesting market exposures, including to the nascent Non-Fungible Token (NFT) market, which has exploded in trading value over the last year.



Revenue growth is above 30%, and the chart is strong.



Enjoy!