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Sell Amer Sports (AS) for Modest Gain

Sell Fidelity National Information Services (FIS)

Sell a Quarter Position in Dollar Tree (DLTR)

Just a quick reminder that, as per last week’s Special Bulletin, the March Issue of Cabot Early Opportunities will be published next Wednesday, March 26. Among the reasons for pushing the Issue back a week is that it will allow time for new portfolio additions to reflect today’s Fed decision to hold rates steady and the updated Summary of Economic projections (SEP), which implies a total of two 25-basis-point cuts this year.

Sell a Quarter Position in JetBlue Airways (JBLU)

With a slew of fresh ideas coming in tomorrow’s August Issue and a portfolio that may soon have too many ideas to stay on top of, I’m trimming one position today.

Sell a Half Position in Paramount Global (PARA)

Shares of Byrna (BYRN) are trading modestly higher this morning after the company released preliminary revenue results for Q3.

Hello from Senegal! While there is no regular Cabot Explorer issue this week as I am halfway around the world, I do have two new Sell alerts today.

The first quarter was kind to our stocks, as they rose, on average, +8.8%, while the broad market fell. We comment on the sources of the gains and any recent news on our recommended stocks.

We relate a quote from the movie “Anchorman” to the financial markets and provide updates on our recommended companies.

As the stock market soars ever higher, driven in no small part by the Magnificent Seven mega-cap tech stocks, vitriol again is being heaped upon passive investing. This form of investing, more commonly known as indexing, is considered “passive” because it considers no other traits beyond a stock’s weight in an index. There is no work involved in picking such stocks or setting the weighting – the index passively determines these. The opposite, of course, is “active” investing, in which investors work to select which stocks, and how much, to buy and sell. Active investing can involve a lot of activity.

I frequently get mail from business brokers who want to help me sell my business, and I always throw it away. I consider Cabot to be a family business; we’ve been serving individual investors for 38 years and I expect we’ll keep on doing so for decades to come. But I recently took a phone call from a salesman who invited me to an all-day seminar. I told him that my business was not for sale, but that I might be able to write about the topic for my readers. He said that was fine with him; he’d still like me to come. So I went to the seminar last week, and here’s what I learned.

Good enough.

That was the resounding sentiment on Wall Street after Wednesday morning’s inflation print came in slightly better than expectations … but still stubbornly above 3% year over year. The headline CPI number for May, 3.3% year over year, was just below the 3.4% economists anticipated; the month-over-month increase (0.2%) was also a bit lighter than expected (0.3%).

Last week we sold four stocks from the portfolio, clearing away the weakest stocks and giving us some breathing room (and cash), so this week there is no need for more selling But I do have two downgrades to hold (CSCO and SE).

As for today’s recommendation, it’s a household name whose stock is temporarily on sale—and you get a nice dividend too.



Details inside.

Over the past few weeks, the market has given us a bunch of presents—and now the market is trying to take some of our presents away. But this should come as no surprise. The only “surprise” is what excuse the media finds to pin the blame on, whether it’s China or Russia or Italy or interest rates or Trump or simply an economy that’s too good to last.
I’ll leave the finger-pointing to someone else. Instead, I’ll keep picking high-potential stocks and managing the portfolio to maximize gain and minimize risk.

Thank you for subscribing to the Cabot Undervalued Stocks Advisor. We hope you enjoy reading the April 2023 issue.

We comment on the price of gold and what we see as its primary drivers. Gold is now trading above $2,000/ounce. We also provide updates on our recommended stocks.

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

As we leave behind last week’s market lows—as well as the peak fears of tariff wars—it remains critically important to focus on the action of the market itself, and not be swayed by the news of the day. Which brings me to today’s recommendation, a fast-growing company with a revolutionary product whose stock hit new highs recently and is primed to do so again. You’ll find full details in the issue.

Last week, my unusual options activity scanner spotted an AMC options trade that seemed far-fetched. The result was $124 million in four days.

Costco stock had quite a run earlier this year. But the union between Amazon and Whole Foods has changed the landscape for grocers.