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Embattled healthcare company Kenvue (KVUE) just received a buyout offer from Kimberly-Clark (KMB); does that make shares of the company behind Tylenol a buy, hold or sell?

Despite a quiet tone for much of last week, markets ended on a modestly upbeat note as interest rate-cut optimism firmed. Tech and growth names helped push the market higher on hopes the Federal Reserve will ease soon, while small caps and cyclicals got a lift on improving sentiment.

By week’s end, the S&P 500 had risen +0.3%, the Dow Jones Industrial Average had gained +0.5%, the Nasdaq Composite had climbed +0.9%, and the Russell 2000 had advanced +0.8%.

Artificial intelligence is a massive growth catalyst that will endure and thrive in any environment, and it’s a trend to bank on regardless of market gyrations.

Searching for yield? North of the Border is a good place to look. Here are three Canadian stocks that offer high yields, according to Sure Dividend’s Bob Ciura.

EZ-Chip (EZCH) is a small stock in a booming industry.

Yesterday’s strong market triggered a technical indicator, a follow-through signal that tells us buyers are lurking. Of course, today’s big decline so far isn’t good to see, but nevertheless, this and other measures (awful sentiment, etc.) tell us there should be support on weakness.

Even though investing is not a game or sport, there are several analogies that can be applied.

This week’s Friday Update is brief, with no earnings reports. As next Friday is a Christmas holiday, we will be publishing our Friday note and podcast next Thursday, December 23.

This week we are adding leading energy player Devon Energy (DVN). Please note, we will VERY likely collect the $1.55 quarterly dividend in the coming weeks, though I won’t include that in the profit and loss equations as it’s not a certainty.

Sustained successful investing requires a foundation of strong planning, education and research. This is our approach.

Monthly dividend stocks are a great way to generate steady income. Here are three of the best options, according to Sure Dividend.

Before we dive into this week’s idea, we need to clean up our February positions that expired on Friday. First off, both our NET and HOOD positions closed for their full profits.

However, RBRK and GH stocks closed below their strike prices, which means the calls we sold expired worthless, and we are left with the stock positions, which we are going to sell today.

An energy-friendly Trump administration in the White House should help make midstream energy stocks the best place for dividends in 2025.

With the turn of the calendar only a few days ahead, just about every investor is mapping out their market views for the coming year. Some do this formally, like Wall Street brokerage firms who publish their opinions on where the S&P 500 and interest rates will finish next year and their outlooks for all sorts of economic and financial indicators. Others will informally develop their views and expectations for the coming year.

Thank you for subscribing to the Cabot Turnaround Letter. We hope you enjoy reading the January 2022 issue.

This issue includes our Top Five Stocks for 2022, our annual market review and outlook for 2022, as well as our update on the bankruptcy and high-yield bond markets.



Our featured recommendation this month is Brookfield Asset Management Reinsurance Partners Ltd (BAMR). This recent spin-off has received little market attention yet offers considerable long term potential.



We note our recent ratings change that moved shares of GCP Applied Technologies (GCP) to a Sell with a +77% total return.



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.

Current Market Outlook


Last week was a solid one for the market, not necessarily in the major indexes but in the action of leading stocks, many of which bounced nicely off key intermediate-term support. Looking at the evidence, the vast majority of it is bullish, so we are, too—we’re bumping our Market Monitor up to a level 8 in tonight’s issue. That said, earnings season is just getting underway for most stocks, which will obviously be important. There will surely be the usual ups and downs, but we’ll be looking to see if any new leadership emerges or, conversely, if some of the leading stocks that have had good moves show abnormal weakness.

In the meantime, we’re just following the system, looking for strong stocks that are relatively early in their overall runs. Our Top Pick this week is Okta (OKTA), which looks to be resuming its run after a seven-week rest.

Stock Name	Price	Buy Range	Loss Limit
Armstrong World (AWI)	88.01	80.5-83.5	73.5-75.5
Avalara (AVLR)	102.00	52.5-55.5	48.5-50
The Walt Disney Company (DIS)	144.76	128-132	117-120
Heico (HEI)	134.84	96-99	91-92.5
Marvell Technology Group (MRVL)	36.88	22-23.5	20-21
Nexstar Media Group (NXST)	105.68	111-115	101-103
Okta, Inc. (OKTA)	148.41	92.5-95.5	82.5-84.5
Yeti Holdings (YETI)	42.80	29.5-32	26-27.5
Yext Inc. (YEXT)	21.32	20.5-21.5	19-19.5
Zscaler (ZS)	126.22	63.5-67	57-59

In the July Issue of Cabot Early Opportunities, we continue to lean into the strong market and focus our attention on the small end of the market cap curve.

We have small and mid-cap players in the software, semiconductor, green energy, industrial tech and AdTech spheres, each of which has compelling reasons propelling shares higher.

As always, there should be something for everybody.

The market has recovered remarkably quickly from last Monday’s sharp selloff. Thus, the long bull market remains intact and I continue to recommend that you be heavily invested.

Today’s featured stock is another conservative one, with a good yield, and in an industry that’s truly unloved. And that means its valuation is dirt cheap.



As for the current portfolio, I am selling our biggest loser, DocuSign (DOCU), and downgrading Tesla (TSLA) to Hold.



Details inside.

Note: Because of the Martin Luther King, Jr., holiday, next week’s issue will be published on Tuesday, January 18.



While the S&P 500 hit a record high just last week, the market is being hit hard today, and thus I have two sell recommendations, AMBA and FND.



But I also have a new recommendation, which has the potential to be a big winner as the world increasingly values what this little company produces.



Details inside.

Today I’m leaning back toward the low-risk end of the spectrum with a recommendation of a stock that is a potential takeover candidate; I think you’ll like the story.