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This morning, GCP Applied Technologies (GCP) announced a definitive agreement to be acquired by French construction materials company St. Gobain for $32/share in cash. This price is 14% above our $28 price target.

On to the market, we’re in a good old-fashioned correction for growth stocks. The action in a lot of individual names is as ugly as we’ve seen in a while, with some stocks looking just downright awful. This is a broad move – very few stocks are being left out of it. I suspect the selling has been exacerbated by this being a holiday week.

The market has entered a rough patch, especially for tech and stocks that have not been demonstrating relative strength. Explorer stocks are all over the map, with Coupa (COUP) and Cloudflare (NET) showing some weakness, many positions holding steady, and Novonix (NVNXF) up 25% in the last week.

This week’s Friday Update includes our comments on earnings from Macy’s (M), Toshiba (TOSYY), and Vodafone (VOD).

SentinelOne (S) is one of our newer positions and has been hit hard during the recent market retreat. Part of this is because it is a recent IPO, part is because the broader group of security stocks has sold off (NET, ZS, OKTA, CRWD, etc.).

Shares of DLocal (DLO) are getting hammered today (-20%, roughly) after the company released formal Q3 results. Recall, preliminary results were released in October at the time of the secondary offering (priced at 52.25, versus stock at roughly 37 mid-day today).

Sell Freshpet (FRPT). Freshpet (FRPT) reported yesterday afternoon and the stock has been under pressure today.

I just wanted to drop a quick note about what we’re seeing in our portfolio; other than that the high-level action is mostly in line with the broad market (i.e., across the board weak).

Bring it on. Persistent high inflation, a rapid Fed tightening cycle, and the explosion of Omicron have barely mussed the bull’s hair.

SELL: AVTR and TIXT. Moving to HOLD: APP

Everything was going so well. And then things turned sour on a dime. The party pooper virus is up to its old tricks again.

This week’s Update is being published on Wednesday due to the Thanksgiving holiday in the United States. The December edition of the Cabot Turnaround Letter will be published next Wednesday, December 1.

This week’s Friday Update is brief, with no earnings or ratings changes. Despite the uncertainty in the broad stock market, there wasn’t much news on our recommended companies.