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Small caps made no net new progress over the past week but we definitely saw some movement under the surface. This week we’re pulling back just a little given some softening in momentum stocks. A few positions were moved to hold, but for now we’re not cutting anything from the portfolio.

This month we’re going with a small software company serving a resilient industry that has been slow to adopt to cloud technology, but which is coming on strong now.

Despite the tough macro environment this company has been beating expectations for many quarters. Management has been raising revenue guidance too, and a tweak to the business model is starting to pay dividends.

Enjoy!

Sizing up a merger arb opportunity requires more than just garden variety equity analysis. In his famous letter to Berkshire Hathaway shareholders in 1988, Warren Buffett laid out four questions to answer regarding arbitrage situations:

1. How likely is it that the promised event will indeed occur?
2. How long will your money be tied up?
3. What chance is there that something still better will transpire – a competing takeover bid, for example?
4. What will happen if the event does not take place because of anti-trust action, financing glitches, etc.?

Today, we add a new Cabot Turnaround Letter recommendation that we think comes close to answering all four.

Rising global tensions and shifting market dynamics could soon bring an end to low oil prices, which should be bullish for this oilfield services provider.

Genetic testing makes it easier for medical professionals to understand and diagnose diseases since a big portion of health problems have genetic origins. Today’s recommendation specializes in gathering genetic info across every stage of a person’s lifespan, working to consolidate testing into a single low-cost, rapid turnaround service, and it’s making good progress on that front—its efforts have led to test costs dropping from thousands of dollars to as low as $250 today.

Energy stocks have lost nearly two-thirds of their value since the oil price collapse began in 2014. Are they a lost cause, or a buying opportunity?

A big year at the box office has Disney growing like it hasn’t in more than a decade. But Disney+ is the reason DIS stock is my top pick for 2020.

CDW Corp. (CDW) lies at the intersection of the revolutions in IoT, cybersecurity and 5G. As a result, CDW stock should benefit.

Facebook is changing its name to Meta Platforms and going all-in on it, but what is the metaverse and what does it mean for investors?

I believe in expertise. I think people who have lots of knowledge and experience are likely to be more helpful to me in finding reliable information and solving problems.

Many banks in are experiencing rapid growth in developing economies.

While America’s interest and investment in clean energy has rapidly accelerated, it’s lost sight of the infrastructure needed to bring clean energy to homes and businesses. These 3 companies are helping the country meet those needs.

Here’s a comprehensive analysis of one of our holding’s Q1 earnings and some very interesting commentary from management regarding something I speculated about back in mid-January.

Over the past 79 years, small-cap stocks have outperformed large-cap stocks by 165%, and I think their prospects are especially terrific now; historically, they perform best following a bear market. My sense is that the old blue chips will continue to be hobbled (like Ford and General Motors) by their expensive old overhead, while their stocks will continue to be weighed down by institutional investors slowly easing out on rallies to invest in faster-growing small companies with greater potential.

Taking control of your financial life can be very rewarding, if you’re willing to take the responsibility for your own investments. You can make great strides, and at the very least you won’t be just another passenger on a boat that’s being steered toward the falls by a captain you don’t even know. So, resolve to pay the investment charges and management fees to yourself and steer your own course. If you decide to do this, it takes time and effort. You need to do your homework, and it’s good to have an ally in the process.

Cloud software stocks have been among this year’s most profitable small and mid caps. Now that the sector has hit a snag, these three stocks are on sale.

The increase corn production to be used for ethanol as a gasoline additive has caused the price of fertilizer to spike, resulting in inflation, hunger and poverty.