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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.

We went into the TransMedics (TMDX) Q3 earnings report yesterday afternoon with a quarter of our original position and lingering questions about the underlying trends in the business.

We’re going to kick off 2026 by locking in profits with Argan (AGX), an engineering, procurement and construction company that specializes in gas-fired power plants, biomass projects and solar facilities.

Sell Apple (AAPL) and LandBridge (LB)

This has been a difficult month with high levels of uncertainty.

The concurrent declines in the U.S. dollar and S&P 500 are part of a trend that has swept markets since the broad and steep tariffs were announced.

Astera Labs (ALAB) Delivers

If there’s a stock that’s looking particularly bad, you can always buy an option instead and use LEAPs to cash in. Keep reading to learn more

It had to happen sooner or later, but the broad market is showing increased signs of stress as a result of what some have described as a case of “too much participation” from retail investors.

However, the good news is that this week’s increase in selling pressure across the formerly high-flying segments of the market serves to relieve some of that excess heat, particularly in the high-tech stocks. More importantly for our purposes, it also throws into sharp relief the usefulness of embracing the contrarian approach to investing that turnaround investors typically rely on.

If there was a dominant investment theme for the Cabot Turnaround Letter in 2025, it was the focus on defensiveness, in which we showed a penchant for companies in the consumer staples arena. This, I believe, was—and still is, from a long-term perspective—justified in view of the many headwinds faced by the U.S. economy over the last 12 months.

Now that we’re about to enter a new year, however, the economic winds have started to shift in a more favorable direction. With the Fed’s embrace of a looser monetary policy, sectors that were out of favor or not very strong in 2025 are poised to become better performers in 2026. I’m referring particularly to some of the more economically sensitive industries within the broader consumer discretionary sector.

In today’s note, we discuss pertinent developments for some of the stocks in the portfolio, including Alcoa (AA), American Airlines (AAL), Berkshire Hathaway (BRKB), Sirius XM (SIRI) and SLB Ltd. (SLB).

Overall market liquidity remains ample, yet small-cap stocks have lagged in recent months, suggesting money availability isn’t as profuse as it was last year.

We continue to see more and more setups among growth stocks, but overall, the market remains in a spin cycle, with few stocks letting loose on the upside and incessant rotation among stocks and sectors. With the recent rally running into trouble, we cut bait with DraftKings (DKNG) earlier this week, but are willing to give the rest of our names some rope as we head into earnings season. Get all our latest thoughts on our stocks and our latest watch list in tonight’s issue.

After a well-deserved pullback during the past two weeks, the strong action this week from most major indexes and leading stocks is a good sign. Short-term, further wobbles are certainly possible after the strong nine-week advance off the market’s major bottom, but big picture, we remain very bullish and heavily invested.
In tonight’s issue, we write about a couple of simple tips for handling some off-the-bottom names in last year’s high-fliers, as well as reviewing our nine stocks and a couple others that look tempting.

The U.S.-China rivalry is closer than it’s ever been. How it evolves in the coming years will shape the global economy - and your portfolio.

There were no earnings reports or ratings changes this week. Due to the holidays, we will not be publishing a Friday note or podcast next week. The Cabot Turnaround Letter will be published next Wednesday, and our Friday note and podcast will resume on January 5, 2024.

As Warren Buffett said, “Long ago, Ben Graham taught me that ‘Price is what you pay; value is what you get.’ Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.” Two stocks that I think Mr. Buffett should own are Johnson Controls and Whirlpool.

The fourth company on my list of stocks that share growth and value characteristics is Gilead Sciences.

Apple (AAPL), Baidu (BIDU), Google (GOOG) and Netflix (NFLX) are overviewed by the editor.

The market has been doing OK, though it’s more about addition by subtraction—the fact that growth stocks have avoided any major selling wave after the recent upmove is a plus, but we’re still seeing lots of selling on strength and rotational action that changes by the day.