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Hindenburg Research released a short report on Roblox (RBLX) stock that, while certainly well-researched, fails to see the forest for the trees.

Being a contrarian investor often means buying stocks that are outside of the current zeitgeist. Many investors would look at a list of new buys in a contrarian’s portfolio and wonder just what, exactly, the contrarian was thinking. “Why don’t you just buy these stocks that are working” is a common thought which is also frequently shared in such examinations.

Shares of Soleno Therapeutics (SLNO) are rallying today after the FDA granted the company’s lead drug candidate (DCCR) Breakthrough Therapy Designation for the treatment of adults and children ages four years and older with Prader-Willi syndrome (PWS). The award was based on data from the Phase 3 program and it means accelerated review of DCCR. Recall that we are awaiting submission of an NDA for DCCR in mid-2024, and eventual FDA approval (which is now expected to happen more quickly) would mean Soleno can begin selling the therapy. Like most biotech stocks, SLNO can move around a lot. Today’s action shows why frustrating drawdowns on no news (like the one over the last three months) can “not really matter” when good news strikes. Will keep SLNO at hold and look for follow-through. HOLD

WHAT TO DO NOW: Last week’s market action was disappointing, though it didn’t change any of our key indicators. Even so, we’re seeing some selling on strength appear, so we’re focused on managing our portfolio. Today we’re going to sell one-third of our solid profit in Palantir (PLTR), leaving us with 23% in cash.

Today, a whopping eight Profit Booster positions will expire. Most are “slam-dunk,” full-profit trades, while others will go down to the wire.

The big takeaway, before we dive in, is we are going to let the situation play itself out, and come Monday/Tuesday of next week we will revisit our profits, as well as how we will manage the remaining positions.

Today, a whopping eight Profit Booster positions will expire. Most are “slam-dunk,” full-profit trades, while others will go down to the wire.

The big takeaway, before we dive in, is we are going to let the situation play itself out, and come Monday/Tuesday of next week we will revisit our profits, as well as how we will manage the remaining positions.

Today, a whopping eight Profit Booster positions will expire. Most are “slam-dunk,” full-profit trades, while others will go down to the wire.

The big takeaway, before we dive in, is we are going to let the situation play itself out, and come Monday/Tuesday of next week we will revisit our profits, as well as how we will manage the remaining positions.

I hope you’ve had a wonderful holiday season and are looking forward to a healthy and profitable 2025. I know I am.

Sell BBB Foods (TBBB). Sell MakeMyTrip (MMYT)

Soleno Pharma (SLNO) Pops 40% on FDA Approval

A number of stocks that were doing well have seen momentum fade and/or turn negative lately, and this morning’s slightly hotter-than-expected CPI print and rising chatter about no rate cuts in 2024 isn’t helping.

Cannabis stocks look attractive in the current weakness. While there will likely be more general market downside, a negative for cannabis since the group gets sold when sentiment shifts to “risk off,” two potential catalysts loom.

Today’s addition to our portfolio is different from the rest in a number of ways. It’s not a pure-play cloud software stock, though it has a software division that generates 26% of revenue. It’s not a pure-play medical device stock, though it has a medical division that generates 33% of revenue. It’s not even based in the U.S.!

While Cabot Top Ten Report is often seen as being for more aggressive investors, some of its picks have turned out to be great longer-term investments. The key is finding stocks that have appeared multiple times in the Report, often as Editor’s Choice.

The Chinese company Renren (RENN), tagged with the catchy “Facebook of China” label, came public yesterday.

Last week we bemoaned the fact that the market had not yet decisively broken out to the upside, and indeed, most major indexes were below resistance and close to their longer-term 200-day moving averages. However, last week, leading stocks separated themselves from the pack—even during days the indexes were flat, the best stocks cranked out solid gains. We know that a pullback or correction could occur at a moment’s notice, yet we remain optimistic the best is yet to come. This week’s Top Ten reflects the broad bullish action among leading stocks last week, as we have a good mix of growth and commodity, big and small. Our favorite of the week is MasterCard (MA), a big-cap leader of this market advance that reacted very well to earnings last month, and has since quieted down beautifully. You can start a position in this area, and don’t worry about the high share price—just buy fewer shares.

Stock Name	Price	Buy Range	Loss Limit
ARG (ARG)	0.00	54-58	-
CLR (CLR)	0.00	47-52	-
EGLE (EGLE)	0.00	30-32	-
FLR (FLR)	0.00	185-195	-
GU (GU)	0.00	15-17	-
MA (MA)	0.00	270-290	-
MTL (MTL)	0.00	155-165	-
PXD (PXD)	0.00	64-68	-
UNT (UNT)	0.00	69-73	-
WTI (WTI)	0.00	46-50	-

MLPs (short for master limited partnership) are exempt from U.S. corporate taxes in exchange for passing on most of their income to investors, who are called unitholders. As a result of this unusual situation, unitholders accept the tax burden on the distributions they receive from the MLP.

Several readers have asked about what effect tomorrow’s election might have on marijuana stocks, in part because four states have measures on the ballot that would increase legality.

The energy sector is one of the market’s few bright spots now - and could be for a while. Here are the five best energy stocks to buy now.