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You can do well enough to take control of your retirement, rather than just drifting toward it like a canoe heading for the waterfall.

Cabot will be launching a brand new advisory at the end of January. Cabot Dividend Investor will be aimed at income investors.

Interest rates have been at historically low levels for years now, which makes it easy for companies to raise money by issuing debt (which is supposed to help the economy grow) but makes it hard to live off the income from a portfolio of safe treasury and investment-grade bonds—as many...

One thing that few investing systems really cover is position sizing, however it is one of the most important things to know.

You should have an advisory that will get you out of the market and into cash when the tides turn against you.

Repligen (RGEN) reported Q2 results before the bell today that surpassed expectations and has the stock up nicely (6% at mid-day) and bucking the broader market weakness. Revenue was up 86% to $163 million, beating by nearly $19 million, while adjusted EPS of $0.79 rose by 88% and beat by $0.27. Management raised full-year guidance to a range of $625 million to $645 million (up 71% to 76%), well above consensus estimates of $586 million. Adjusted EPS guidance goes to $2.71 - $2.78, way above consensus of $1.71. Gross margins are up a lot, from 57.9% in the year ago quarter to 62% in Q2.

Current Market Outlook


The Nasdaq and leading stocks had a huge reversal today, with many names that had gone vertical suffering some heavy-volume selling, representing another shot across the bow. Still, as we’ve written before, one day does not a trend make; the trend of the Nasdaq and growth stocks remain up, while the broader indexes and cyclical sectors are positive but mostly range-bound. As has been the case earlier in the rally, what happens from here will be key--continued distribution would be a sign that the current run could be ending, likely followed by a well-deserved digestion phase, but strong support in the near future would likely tell us this was just another brief stumble on the way to higher prices. Stepping back, most of the evidence remains positive, so we’re still bullish, but the next few days will be key.

As opposed to the last two weeks, this week’s list is back to having a leadership, growth-ier feel to it. Our Top Pick is Alibaba (BABA), which has always had the makings of a liquid leader, and is helping to lead the group rally in Chinese stocks as it lifts out of a two-year rest.

Stock Name	Price	Buy Range	Loss Limit
Alibaba (BABA)	254.81	244-254	220-225
Bill.com Holdings (BILL)	88.76	81-85	73-75
Kinross Gold (KGC)	8.19	7.2-7.6	6.5-6.7
Marvell Technology Group (MRVL)	36.88	35-37	31.5-32.5
Pacira Biosiences (PCRX)	54.85	54-56	47.5-49
Redfin (RDFN)	40.40	34.5-36.5	30-31.5
Roku, Inc. (ROKU)	150.46	147-154	128-132
Splunk (SPLK)	207.67	192-198	175-178
Sunrun (RUN)	38.40	27.5-29.5	23.5-24.5
XP Inc. (XP)	44.59	43-46	38-39.5

We’re adding a pure-play security solutions provider to Cabot Small-Cap Confidential to increase our security software exposure. This company is growing revenue well over 20% and is expanding its portfolio of solutions to address large and rapidly growing markets.

There are roughly 200 million commercial vehicles in the world. They’re all trying to get to the right place, at the right time, at the lowest possible cost, without crashing. Managing these fleets probably isn’t as stressful as being an air traffic controller, but it’s right up there!
To help get the job done, fleet managers are increasingly turning to fleet telematics solutions. This specialized hardware and software can improve driver safety records, reduce accidents and theft, and reduce operating costs. Dramatic increases in fleet efficiency boost an organization’s bottom line. The bigger the group is, the bigger the potential opportunity.
All the details are inside this month’s issue of Cabot Small-Cap Confidential. Enjoy!

Even as worries fade over the recent Middle East flare-up, new tariff-related headlines have lately crept back into the news. However, stocks have taken it in stride by ignoring what would normally be “bad” news. In view of this, we’re pleased with the market’s resilience—and it’s also welcome that it hasn’t become overheated with too much enthusiasm yet. We’re still seeing a few flies here and there, with some stocks having trouble breaking above resistance, but a growing number of stocks are joining the parade, with a nice mixture of growthy and cyclical names getting into sync with the general march forward. All told, we like what we’re seeing, and in view of the continued strength, we’re raising our Market Monitor to a level 8.

This week’s list features names across multiple industries, which we view as a sign that categorical strength is building. Our Top Pick is a sporting goods giant that has multiple growth tailwinds and is tightening up as the 25-day line has caught up. We’re fine entering here or (preferably) on a dip.

Getting an early head start on a career or trade that you’re passionate about can mean the difference between just punching the clock and doing meaningful work that’s satisfying in its own right. On top of that, you can potentially save hundreds of thousands of dollars on education expenses and make significantly more over the course of your career by tailoring your educational pursuits to match your career goals. This month, we’ll help you outline a blueprint to pursue your dreams while maximizing your earnings, and we’ll discuss the pros and cons of investing in your employer and industry.

It’s been a bumpy ride these last few months, but analysts are expecting big things from small-cap stocks in 2019.

The downdrafts that ended 2018 have created some small-cap bargains, making it a great time to buy.

On February 13, small-cap expert Tyler Laundon will discuss the rewards of having small caps in your portfolio. He’ll talk about what went right, and not-so-right, in 2018 and give you a preview of what to expect in 2019.

And he’ll conclude with secret stock picks from his new report (which you’ll receive FREE) that you won’t want to miss.

Today I’m removing Delta Air Lines (DAL) from the Growth Portfolio. The company’s earnings outlook has deteriorated to an expectation of EPS declining 1% in 2016, and the price chart has not improved since I put the stock on Hold two months ago.

The market succumbed today to some bad news from Europe, although some buyers did support shares after the early-morning dip. Net-net, today and last Friday were bad, but the major indexes remain range-bound; amazingly, the Nasdaq is now in the midst of its sixth 4% swing up or down since early June, and yet, has made basically no progress during that time. It’s choppy out there! Thus, we see no reason to change our Market Monitor from its neutral position. As for individual stocks, it, too, is a mixed bag—some big leaders broke down last week, but many are still base-building and a couple actually poked into new-high ground after solid quarterly reports. All in all, a little buying is fine, but do your buying on weakness, keep positions smaller than normal and adhere to your stops.

This week’s list is a hodgepodge of stocks from different industries; most are strong for individual reasons (earnings, etc.). Our top pick is PPG Industries (PPG), which isn’t an exciting company, but it delivered a solid earnings report and announced a merger that kicked the stock higher. We think it could do well if bought on pullbacks.

Stock Name	Price	Buy Range	Loss Limit
A.O. SMITH (AOS)	0.00	49-50.5	-
ASML Holding (ASML)	350.01	52.5-54.5	-
DVA (DVA)	0.00	94-97	-
eBay Inc. (EBAY)	0.00	43-45	-
Medivation (MDVN)	0.00	90-94	-
Mellanox Technologies (MLNX)	92.00	84-90	-
PPG Industries (PPG)	0.00	109-112	-
Skyworks Solutions (SWKS)	0.00	27-28	-
USG Corp. (USG)	0.00	18.5-20	-
WOR (WOR)	0.00	21-22	-

The market began correcting in late March, and since then it has tried to get going twice (in late April, and in early June), with both rallies failing. Late last week, though, another rally attempt got underway, and while it’s early, it looks more promising—the upmove last Friday was powerful, and there appears to be less uncertainty surrounding Europe. Plus, potential leading stocks have now had two to three months to rebuild bases, so there are more potential buyable patterns out there. That said, the market remains fragile, and earnings season is dead ahead; our guess is that earnings, not Europe, will likely decide the market’s next big move. We’ll keep our Market Monitor in neutral territory for now, but color us encouraged by the market’s action.

This week’s list has a few good ideas; sector-wise, it’s clear that the housing stocks are performing best. Thus, we’ll keep it simple and name Lennar (LEN), the leading homebuilder in the market, as our Editor’s Choice; the company just came out with a great earnings report, propelling shares to new highs. Try to buy on weakness.

Stock Name	Price	Buy Range	Loss Limit
3D Systems (DDD)	0.00	30-32	-
CPHD (CPHD)	0.00	42-44	-
Cirrus Logic Inc. (CRUS)	0.00	27-28.5	-
Eagle Materials Inc. (EXP)	0.00	35.5-37.5	-
Expedia Group (EXPE)	0.00	46-48	-
Lennar (LEN)	61.85	28.5-30.5	-
Ocwen Financial (OCN)	0.00	17.5-18.5	-
Skechers (SKX)	0.00	19-20.5	-
Ultimate Software (ULTI)	0.00	85-88	-
Western Refining (WNR)	0.00	21-22.5	-

Current Market Outlook


The market had a relatively quiet week, with the major indexes slipping a fraction of a percent on light volume and most leading stocks marking time after solid advances the prior two weeks. So far, this action is totally acceptable, but the key will be what happens from here—a couple of large, high-volume selloffs would put a serious dent in the rally, but upside follow through in the indexes and many leading growth stocks would go a long way toward confirming that the January-May market correction is over. For now, we advise sticking with a “lean bullish” mentality; we’re OK doing some buying, but also picking your spots and holding some cash as we look for follow through. Our Market Monitor remains unchanged.

This week’s list has a ton of strong stocks in a variety of growth-oriented sectors. Our Top Pick is LPL Financial (LPLA), a mid-sized Bull Market stock that is acting very well and recently crushed earnings expectations.

Stock Name	Price	Buy Range	Loss Limit
51job, Inc. (JOBS)	0.00	99-103	92-94
Baozun (BZUN)	44.24	51-53	46.5-47.5
Carvana (CVNA)	82.90	25.5-27.5	23-24.5
Illumina Inc. (ILMN)	289.74	260-270	244-249
Ligand Pharmaceuticals (LGND)	267.14	181-188	169-172
LPL Financial Holdings (LPLA)	85.22	69-72	63-65
Penn National Gaming (PENN)	45.38	33.5-35	30.5-31.5
SolarEdge Technologies Inc. (SEDG)	124.37	64-67	58-60
Supernus Pharmaceuticals (SUPN)	52.50	53-56	48-49.5
WildHorse Resource (WRD)	0.00	25-27	21.5-22.5

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

In this issue, we discuss the most effective and often the only way to reverse the fortunes of a struggling company: a change in leadership. We offer our views on four new CEO situations that are currently attractive and three that are not quite ready yet.

This month’s Buy recommendation, Barnes Group (B), is an aerospace and industrial components maker that is stepping up its efforts to become more valuable, helped by a new CEO and urged on by pressure from a credible activist investor that recently gained several board seats.

The market’s resilience in the face of bad headlines (tariffs, higher inflation, an increasingly cautious Fed, etc.) continues to impress. And with the major indexes currently trading near their 2025 highs despite all the outside attempts to derail them, perhaps the next big market move will be up. With that in mind, today we add to our growth stockpile in the form of a former market (and Cabot) darling that was recently recommended by Mike Cintolo to his Cabot Growth Investor audience. After a rough stretch in mid-2024, the stock is soaring again.

Details inside.