Search

A stimulus bill looks like it is right around the corner but we need to get through this winter before vaccines are widely available. Facebook faces a real challenge to break it up and accept legal liability for content. An EU-China summit is cancelled after China tried to limit speakers critical of China’s clampdown of Hong Kong. On the Explorer front this past week, MP Materials (MP) and NovoCure (NVCR) were particularly strong as Sea Limited (SE) briefly made a new high at 200. As promised, our new idea this week hails from Brazil and is a monopoly play on the most essential of all resources.

Due to the holidays, the next issue of Cabot Global Stocks Explorer will be published on January 7, 2021.

As we move into a new year, the market shrugs off the chaos engulfing Capitol Hill and the GOP losing its majority in the U.S. Senate. Expect higher federal spending and debt in the next couple years, though it should be mentioned that we have already added $8 trillion to the national debt over the past four years. There were a few bright spots but Explorer stocks in general drifted a bit lower over the last week.

Today we have a new recommendation of a company of at the forefront of the technology revolution.

The market was volatile last week, and we are starting to see signs that the bears are sold out – volume has been unusually light, a few more growth-oriented stocks are acting well, and the major indexes have refused to fall to seriously test their late-January lows. Of course, the buyers aren’t exactly taking control, but the last few weeks of action are enough to warrant a slightly positive shift in our market monitor above. What does that mean for you? If you’ve been sitting on the sidelines the past few weeks, take a couple of small positions in some strong, potentially-leading stocks. If the market improves, you can then put more money to work. This week’s Top Ten has more than a few candidates to choose from; most are from the commodity areas, but three are in the growth camp. Our favorite of the week is Western Digital (WDC), an old company that’s benefitting from a boom in hard drive demand for newer electronic devices. The stock is showing exceptional power and volume; we think it’s worth a nibble around here.

Stock Name	Price	Buy Range	Loss Limit
RRC (RRC)	0.00	57-61	-
WDC (WDC)	0.00	30-33	-
WLT (WLT)	0.00	42-48	-
XEC (XEC)	0.00	47-50	-
AUY (AUY)	0.00	15-17	-
CENX (CENX)	0.00	56-64	-
CMP (CMP)	0.00	50-55	-
CPHD (CPHD)	0.00	29-32	-
CREE (CREE)	0.00	31-33	-
DVN (DVN)	0.00	92-98	-

It was another rocky week for the market as the tone was set by a rotation out of richly valued tech names, worries over whether the Federal Reserve would stay on hold rather than cut interest rates, and the big story was ongoing concerns about the sustainability of the AI-driven rally. By week’s end the S&P 500 and Dow had lost 2%, while the Nasdaq fell 3.2%.

It was another rocky week for the market as the tone was set by a rotation out of richly valued tech names, worries over whether the Federal Reserve would stay on hold rather than cut interest rates, and the big story was ongoing concerns about the sustainability of the AI-driven rally. By week’s end the S&P 500 and Dow had lost 2%, while the Nasdaq fell 3.2%.

The market surged higher yet again last week, and traders are beginning to wonder if a run at new highs is in the cards in 2023. While there is a way to go until we reach those peaks, last week’s gains of 2.4% for the S&P 500, 2.3% for the Dow, and 3.32% for the Nasdaq gives the bulls hope.

The market surged higher yet again last week, and traders are beginning to wonder if a run at new highs is in the cards in 2023. While there is a way to go until we reach those peaks, last week’s gains of 2.4% for the S&P 500, 2.3% for the Dow, and 3.32% for the Nasdaq gives the bulls hope.

The previous weekend’s worry about a crash last Monday proved to be incorrect as the market had some early-week struggles, but those were at least in the short term washed away on Wednesday as the indexes exploded higher. By week’s end the S&P 500 had rallied 5.7%, the Dow had gained 5%, and the Nasdaq had rebounded by 7.3%.

The previous weekend’s worry about a crash last Monday proved to be incorrect as the market had some early-week struggles, but those were at least in the short term washed away on Wednesday as the indexes exploded higher. By week’s end the S&P 500 had rallied 5.7%, the Dow had gained 5%, and the Nasdaq had rebounded by 7.3%.

The industry is the realm of genetic medicine and the stock is Illumina (ILMN), currently trading in the low-60s. Illumina is one of two major public companies that make tools used for genetic medicine. The other is Affymetrix (AFFX). To say that they’ve been competitive would be polite; there have been lawsuits and countersuits about intellectual property in recent years.

There is a doom-and-gloom quality to much of the talk about the subprime crisis. The reasoning is that this wad of bad debt is hanging like an enormous boulder over the stock market highway, and that when it falls, the world as we know it will essentially end. In this regard, it’s a lot like assertions that the U.S. national debt (or current account balance or poor educational system or declining manufacturing base, etc.) will ruin everything forever.

It’s the largest provider of cell phone service in Turkey, with a 60% market share, and it’s named, appropriately enough, Turkcell. The firm’s ADRs (American Depositary Receipts) trade on the NYSE under the symbol TKC. With 32 million subscribers, Turkcell is the third-largest provider of GSM service in Europe. It has $5 billion in annual revenues; it’s expected to grow earnings 42% this year and 21% in 2008; and it pays an annual dividend of 3.8%!

Royal Caribbean, Priceline.com and Winnebago are all Cabot Top Ten Weekly stocks.

MasTec (MTZ) has its hand in growing areas and its chart looks bullish.

My system is simple: buy high-quality stocks when they are undervalued, and sell when the stocks become overvalued.

Today we start with a question. Which industry spent the most money on lobbying in the U.S. last year?

Today we’re featuring a special discount exclusive to Cabot Wealth Advisory readers from our friends at the Value Investing Congress. We’re also including Cabot Benjamin Graham Value Letter Editor J. Royden Ward’s notes from last fall’s fourth annual New York Value Investing Congress to give you a sense of the caliber of the program.

The stock may seem expensive, but it was just recommended as a good buy here.