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BYD (BYDDY) reported great earnings, and Novo Nordisk (NVO) got a lift from the World Health organization this past week – but the big news is that Alibaba (BABA) surprised markets by announcing on Tuesday a plan to split the $220 billion goliath into six standalone units.

Cabot’s proprietary market timing indicators have a new buy signal.

Current Market Outlook


Last Wednesday’s huge decline was a shot across the bow—most indexes threatened the lower end of their three-month trading ranges and even the strong Nasdaq showed some abnormal action. But few leading stocks broke down, and the action since then has been encouraging, with the indexes snapping back toward their highs. Overall, we remain more bullish than not, but given Wednesday’s action and the continued sideways action for most of the market, we’ll nudge our Market Monitor down a notch to level 7 and watch the next few days closely. Another big bout or two of distribution would darken the intermediate-term outlook, but the longer the market can hold up (or advance) from here, the greater the odds that last Wednesday was a news-driven shakeout.

In the meantime, we continue to find a variety of great charts and stories in a few different sectors. We’re sticking with the big-cap theme with our Top Pick this week—Global Payments (GPN) isn’t a barnburner but it has surged out of 13-month base on great earnings.

Stock Name	Price	Buy Range	Loss Limit
Adobe Inc. (ADBE)	315.23	136-139	127.5-129
Boyd Gaming Corporation (BYD)	0.00	24-25	22-23
Deere & Company (DE)	0.00	116-120	110-112
Global Payments Inc. (GPN)	0.00	88-91	82.5-84.5
MiMedx Group (MDXG)	0.00	13.5-14.5	12-12.5
Parexel Corp. (PRXL)	0.00	77-80	72-74
RingCentral (RNG)	238.73	31.5-33.5	29-30
Teladoc, Inc. (TDOC)	127.95	27.5-29.5	24.5-26
Vertex Pharmaceuticals (VRTX)	230.36	114-120	106-1090
Yum China (YUMC)	0.00	34.5-36.5	31.5-33

It’s the beginning of August, high summer in New England, and a bit of summer fatigue is setting in. Summer in New England is short, so we try to pack half a year’s worth of cookouts, beach days, hikes, kayaking, sight-seeing and other outside recreation into three months. It’s fun, but the pace can be a bit frantic, especially as the season enters its third act. Frankly, all I want to do now is lie on a beach somewhere and read a book.

The stock was highlighted in a feature on companies with low price-to-book value.

I think the 0.25% raise by the Fed yesterday will be followed by a pause. Won’t it be nice when stocks fluctuate primarily around company performance rather than actions by the Fed? Elsewhere, Xi and Putin meet in Moscow in a sign of solidarity and challenge to the U.S. and the West. Novo Nordisk (NVO) is up 10 points this week while today we have a new emerging market recommendation from a country with one of the strongest currencies of 2023.

Thank you for subscribing to the Cabot Turnaround Letter. We hope you enjoy reading the March 2024 issue.

In this issue we look into the bear case for the energy sector and discuss why energy stocks might provide some tonic for sober investors in an otherwise tech-intoxicated stock market. We highlight a selection of six energy stocks worthy of at least a sip.

This month’s Buy recommendation, VF Corporation (VFC), is a major apparel and footwear maker whose shares have collapsed 83% and now trade at their 2006 price. The new CEO, an unusual selection from outside the industry, is undertaking a complete overhaul of the company, with some early signs of progress.

The ultimate “fear gauge” isn’t the CBOE Volatility Index (VIX), as financial market pundits often insist. My contention is that it’s actually gold, which arguably is the most historically reliable barometer of how worried the average investor is over various economic, geopolitical and market-related developments.

After a March 1 blastoff to new highs, the major indexes took a cooling dip on Thursday. But the trends are still aggressively up for stocks, and the vast majority of our previous picks are holding up near their highs.

One of our stocks reported results on Thursday and investors didn’t care for the results.

It’s been just over a week since the first Issue of Cabot Early Opportunities became available and I’d first like to thank all of you for jumping in early, and for the loads of positive feedback I’ve received.