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The goal is to always hold a portfolio that has the best potential to bring you large profits.

The odds of a June interest rate increase have now fallen to 47%, from 60% earlier this month. A December rate hike is seen as even less likely, with odds currently at 37%, down from 56%. That’s led to additional gains in bond alternatives like utilities.

NanoString (NSTG), Aerohive (HIVE) and Q2 Holdings (QTWO) reported earnings.

Election season is now in full swing. In less than seven weeks, or only 49 days, the country will select its next president, representatives from all 435 House congressional districts, 35 senators and 12 state governors.

Value is back.
After nearly a decade of extreme underperformance versus growth stocks, overdue value stocks are flipping the script.


The dominance of growth stocks over the last eight years has been about as lopsided as the relative performance has been over the last 100 years.


But things are changing. Inflation is back. And rising interest rates are sure to follow. This economic recovery is shaping up to a lot different that the last one. This recovery is shaping up to be much better for value stocks. In fact, the role reversal is already underway. Value stocks are already outperforming growth stocks by about 15% so far this year. And it is likely just the beginning.


In this issue, I highlight one of the most dominant technology companies in the world. It is one that has stumbled lately and given way to the competition. But the stock is cheap, wallowing near the four-year low, with limited downside. It is also poised ahead of a likely renewed growth phase. The timing could be just right.

Thank you for subscribing to the Cabot Turnaround Letter. We hope you enjoy reading the June 2022 issue.



While the stock market has surged since its pandemic low, shares of many companies have sold off sharply and now trade below their March 23, 2020 level. We touch on several different types of situations behind these sell-offs and highlight five stocks backed by reasonably healthy companies yet trade at attractive valuations. We also mention one additional stock that has significant potential but not under the current value-destroying management.



We delve into the investment management industry and highlight four stocks of companies that look appealing but are not generally on investors’ radar screens. Our featured recommendation this month is investment firm Janus Henderson Group (JHG). The company produces strong free cash flow, has a fortress balance sheet, offers an attractive 5.7% dividend yield and is under pressure from activist investor Trian Partners to improve its results.



We note our recent ratings change of Altria Group (MO) from Buy to a Sell.

From its July high to last Friday’s low, the Nasdaq pulled back almost nearly 9%, which is generally in line with some other “first corrections” in bull moves we’ve seen in the past, and the bounce since then is a good first step. That said, there’s still much more to prove here: At this point, all of the major indexes we track are below their 50-day lines, leadership-type stocks have been hit hard and interest rates remain an issue. Ideally the market begins to get back in gear right quick, but we need to see more than a couple of up days to conclude that. We’ll pull our Market Monitor down to a level 5 while remaining flexible for whatever comes.

This week’s list is a mixed bag, with something for everyone. Our Top Pick is a tech name that’s always had good numbers, and after many starts-and-stops this year, appears as though it’s finally changing character.

There’s been a lot of action of late, mostly on the downside, and this week’s news flow (Fed meeting, jobs report, etc.) is sure to create more. But, really, nothing much has changed with our view: There remain many secondary-type indicators that are at intermediate-term (if not multi-year) extremes, so we’re keeping our eyes open should the buyers show up for more than a day or two. But we have to actually see it to believe it, and to this point, any bounce has been soundly rejected. We’re lowering our Market Monitor to a level 3.



There are still a couple of decent-looking areas, mostly either slow/steady growth firms or special situations. Our Top Pick this week is one of the latter, with an almost hard-to-believe cash flow story.

We write for a pretty well educated investors. But sometimes we forget how common the “other” type of investor is.

We’ve just been through a harrowing period in the stock market and the path forward remains uncertain.

After a rough week, the market is right back in business. Just when stocks appeared on the cusp of a deeper selloff, the S&P 500 started off this week with the best session since June.

Goosehead Insurance (GSHD) and Everbridge (EVBG) Report Q3 Earnings

Value stocks were out of fashion amid the recent bull market run. Now they’re back in vogue, and these three little-known value stocks are leading the way.

This year, Wall Street has been ignoring takeover stocks until it’s too late. Don’t make that mistake! These takeover targets are ripe for the pickings.

It’s changes in perceptions make stocks move. And these perceptions are reflected in the chart.

Options trading education and playing tennis are two of my greatest passions in life. Last weekend, my two passions converged.

Here are five more top Canadian dividend stocks chosen for their dividend histories, earnings expectations and dividend payout ratios.

After banner returns in 2020 despite it being a stock picker’s market, here are our analysts’ three top stock picks for 2021.

There are a variety of reasons stocks fall, and understanding those reasons is key to whether you should consider buy those stocks on the cheap.