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Cisco Systems (CSCO) announced a huge $28 billion deal for security software specialist Splunk (SPLK). Regardless of concerns over the economy, rising interest rates, the incipient tech-driven Cold War II, rising government focus on anti-trust and other macro issues, there will always be blockbuster deals. We dig into the deal in our comments below on Cisco.

In the December Issue of Cabot Early Opportunities we look at five companies growing nicely and with share prices that have held up reasonably well in recent months.

Our top pick this month is a small-cap biopharma stock that just made a timely acquisition this week. I also feature a potential biotech superstar, an emerging MedTech name, a solar energy specialist and an online retailer that we’ve seen before.

As always, there should be something for everyone in this month’s Issue!

Editor’s Note: Due to the Fourth of July holiday next Thursday, your July issue of Cabot Value Investor will come out next Friday, July 5. Happy 4^th!

Leveraging cyclicality is a good way to squeeze more profits out of value stocks.

That was an idea put forth by Matt Warder, the newest addition to the Cabot analyst team and the successor to Bruce Kaser in Cabot Value Investor’s “sister” value investing advisory, Cabot Turnaround Letter, on the latest edition of the Street Check podcast I host with my colleague Brad Simmerman.

The end of the year is a time for friends, family, holidays, and celebrations of all stripes. It’s also (unfortunately) a time to do some year-end clean up of your portfolio, harvest some tax losses, and get started on planning for 2024. So, to give you a head start before you have to meet your accountant, this month we’re exploring tax credits, including some you may have never heard of, and the most important numbers you need to know when planning for the year ahead. Plus, we’ll highlight some tax-efficient investments to save you money next year.

A Fed rate cut was offset by Mideast uncertainty but our portfolio soldiered on having another positive week. The Emerging Market Signal is just short of turning positive due to the lack of a clear uptrend but we have a new recommendation at the heart of “The Internet of Things”.

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

This month we look at the oil refining industry. Unlike many technology stocks, this group is the opposite of “priced for perfection.” The industry’s products will remain relevant for a long time, despite investors’ enthusiasm for a shift to electric-powered vehicles. Also, the pandemic will eventually pass and demand for refined products (gasoline, diesel, heating oil and jet fuel) will return, lifting these company’s earnings and stock prices. We acknowledge the tax and regulatory risks but see real value in the higher quality and better-financed refinery companies.



We also look at technology turnarounds. Successful tech turnarounds are rare, so our discussion briefly explores why this is the case and identifies six that have interesting turnaround potential.



Our feature recommendation is the oil refining company Valero Energy (VLO), offering what we see as the best risk/reward traits among a group with strong cyclical turnaround potential.



The letter also includes a summary of our recent sale of Amplify Energy (AMPY) and our change to a Sell rating on Consolidated Communications (CNSL), as well as the full roster of our current recommendations.



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.

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Learning How to Make Money in Education Stocks

These Beer Stocks are Anything But Flat

Timing Isn’t Everything

Hot Market Sectors for Investors

Expert Tips for Buying Low When the Market is Off

Investing for the Future: Think Global

Invest Like a Hedge Fund

REIT Investing for Retirement

Everything You’ve Wanted to Know About Ex-Dividend Dates

There is a curve when you’re learning how to start trading stocks, but with a few simple guidelines, you can start making money right away.

The Equinox hack was the latest act of cyber terrorism propping up cybersecurity stocks. In an increasingly crowded sector, here are five that stand out.

EBAY may actually be the best investment leveraged to mobile payments at this time; the stock is strong.

Before leaving my house, I always look in my purse to make sure I have three things: phone, wallet and keys. Thousands of people do the same thing every day. Some day soon, though, my checklist may be one thing shorter, as “wallet” becomes just another function of my phone...

My advice is to take account of the volatility differences to tilt a little toward a risk level you’re comfortable with.

Sprout Social (SPT) reported Q4 results yesterday that surpassed expectations. Revenue was up 32.6% to $37.3 million (beating by $1.4 million) while adjusted EPS of -$0.06 beat by $0.05. Guidance for 2021 looks solid with management calling for 2021 revenue of $172.5 million (up 30%), modestly ahead of estimates for $170 million.

Enovix Warrant (ENVXW) Follow Up. Exercise Enovix Warrants (ENVXW)

The market put in a solid show last week, with the indexes finally getting off their knees. However, as you can see from our new market monitor above, the field is still tilted toward the bears – eight days of rallying doesn’t undo the 15% to 20% decline seen from mid-December to mid-January. If a new bull market is starting, there will be plenty of time and opportunities, but for now, you should stay defensive, holding cash, and buying only small amounts of certain stocks. OptiMo’s pickings remain somewhat slim, as much of the market’s recent strength has come from the most beaten-down sectors (financials, homebuilders, transports), which aren’t high-odds setups. But we believe there are some emerging leaders in today’s Top Ten, led byInteractive Brokers (IBKR), a newly-public market maker and brokerage firm for professional investors. Its business depends on the market’s action; if a new bull market unfolds, it should drive earnings and the stock much higher.

Stock Name	Price	Buy Range	Loss Limit
ACI (ACI)	0.00	44-48	-
ACOR (ACOR)	0.00	22-26	-
CALM (CALM)	0.00	28-32	-
IBKR (IBKR)	0.00	33-35	-
NITE (NITE)	0.00	14-16	-
OI (OI)	0.00	46-52	-
RATE (RATE)	0.00	50-54	-
SID (SID)	0.00	88-95	-
TNE (TNE)	0.00	56-62	-
WMS (WMS)	0.00	35 1/2 - 39	-

A year ago, college kids laid out the case for a Trump’s victory. And they did it with a mess of disparate data in just 20 hours, using a data prep platform by the little-known company that I’m recommending today.

This week’s market recap is a familiar story—the major big-cap market indices are doing great! But the small cap index is still wallowing in the mud.

Today’s addition is a small-cap networking company on the cusp of a potential multi-year growth cycle.

The big-picture growth catalyst? Emerging AI and cloud computing technologies that place new strategic importance on network infrastructure and security for data centers, hyperscalers and global enterprises.

All the details are inside this month’s Issue.

Enjoy!

This month we’re digging into an emerging software star that specializes in helping brands communicate with consumers like you and me.

The details behind the technology are a bit technical. But if you’ve noticed an uptick in personalized emails and text messages letting you know it’s a good night to get takeout, or that those shoes you’ve been pining for are back in stock, you get the picture. Enjoy!

According to Gallup, having enough money for retirement is the most common financial concern in the U.S. In the 2014 survey, Gallup found that 59% of Americans are worried about not having enough money for retirement. That’s actually down from a few years ago, when over 66% of Americans were concerned about funding their retirements.