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Today’s featured companies have sturdy financial conditions and attractive valuations, with appeal to buy-and-hold investors as well as traders.

The markets eked out a positive return for the month of June, with the S&P500 returning 1.99%, capping one of the strongest quarters (+20.5%) on record. In this month’s letter, I describe a bit more about the re-opening and how it might affect the markets.

While emerging markets stocks have been mostly going sideways, there are always opportunities to find stocks on the upswing or high quality companies that have pulled back but present “catch up” potential.

Our new recommendation is from the latter group and is a name most members will know well.

The smooth uptrend of the past four months has run into a trade war roadblock this week, with the major indexes and many stocks taking hits as tariffs look set to rise. Our Cabot Tides are now on the fence, and while we have no changes tonight, we are holding 20% in cash and have at least one name on a tight leash.
We’ll go with whatever happens from here—should this turn into a short-term shakeout, we’ll hold our stocks and could even do some buying. But should the Tides and/or a stock or two crack, we’ll do some work on the sell side.

This month we’re looking past all the current uncertainty in the market at a profitable, young company that should hold its own during this rough patch then accelerate growth into the back half of 2020 (assuming the pandemic eases as we move into the summer months).

The company offers intelligent identity solutions for global enterprises. These solutions are strategic imperatives because they help workers do their job from anywhere and help companies streamline customer experiences.



It’s not the type of stock that’s likely to surge on expectations of an immediate surge in demand, like Zoom Video (ZM) or Teladoc (TDOC). But with 115% net revenue retention the company should grow with current clients in the near-term, then grab its fair share of new business once economic activity picks up again.



We start today with a half position given the market conditions. All the details are inside.

Today, the USPS is the third-largest employer in the United States, after the Department of Defense and Wal-Mart. It’s also the largest civilian operator of motor vehicles. Considering its great size, it’s done a very good job of adapting to changing times. But the growing operating losses (just as at GM) warn us that if bigger changes are not made, the USPS will be next in line for a government bailout. And I think Americans have had enough of bailouts.

Current Market Outlook


A batch of disappointing earnings reports combined with the 2015 overhead resistance areas (around 2,080 to 2,140 on the S&P 500 and 5,000 to 5,200 on the Nasdaq) to bring out the sellers last week, especially in some big, old tech stocks, which drove the Nasdaq below its 50-day line. However, the other indexes are in good shape, and while a few stocks have cracked on earnings, most are holding up just fine. The bottom line is that, to this point, not much has changed—the market still doesn’t have the leadership we’d like to see, but the trend is up and the broad market is in good shape. Thus, you should be holding your top performers (though booking some partial profits here and there is always smart) and using normal retreats in strong stocks as buying opportunities.

This week’s list is a hodgepodge of stocks from all over the map, including some growth, commodities and turnarounds. Our Top Pick is Teck Resources (TCK), a giant turnaround play in the commodity space—the firm remained profitable throughout the bust, and after a great quarterly report, earnings are expected to boom in the quarters ahead.

Stock Name	Price	Buy Range	Loss Limit
United States Steel Corporation (X)	0.00	19-20	17-18
VCA Inc. (WOOF)	0.00	61.5-63	57-58
Teck Resources Limited (TCK)	0.00	11-12	9.5-10
Square, Inc. (SQ)	91.04	13.5-14.5	12.5-13
Monster Beverage Corporation (MNST)	0.00	145-150	134-136
Core Laboratories (CLB)	0.00	125-129	113-115
Boardwalk Pipeline Partners (BWP)	0.00	15-15.5	14-14.5
Boston Scientific (BSX)	0.00	21-22	19.5-20
Banc of California (BANC)	0.00	19-20	17-17.5
Amazon.com (AMZN)	2.00	660-680	605-615

Today will be an important day for our retail apparel stocks.

Healthcare spending is a huge chunk of the U.S. economy, and demographic trends mean it’s unlikely to slow down. So, let’s dive into the technology changing medicine, who’s developing it, and how to best invest in it.

Please note that next Thursday is July 4^th and therefore there will not be a Cabot Explorer issue though I will send out an alert if there is any significant news on our stocks.

For Explorer stocks this week, Neo Performance (NOPMF) shares were up 12%, and Super Micro (SMCI) gave back half of last week’s 20% gain.

The dollar rose to its highest level since last year as the Federal Reserve breaks with other central banks by keeping interest rates elevated, giving global investors an incentive to move cash to the U.S. to capture higher bond yields.

Investment jargon can be annoying and unnecessary. But if you’re a small-cap investor, these five phrases are ones you’ll want to know.

Streaming companies have completely changed the way we watch TV and movies. And these three streaming stocks are set to take charge.

To begin, just a heads up that there will be no Cabot Wealth Explorer issue on November 13 as I will be in transit for a mining and resource conference in Senegal.

Morgan Stanley (MS) notes that stock picking is back, with single-stock activity as opposed to funds and ETFs seeing a significant rise in recent months. This is interesting as there are now more ETFs trading on exchanges than stocks. Blending the two together is the optimal strategy for most.

The S&P 500 Index and the Dow Jones Industrial Average began new run-ups yesterday, while the NASDAQ Composite Index continues its uptrend. I’m glad that investors are continuing to make money during this market rebound.

From an investor’s point of view, I will be cautious about owning P&C insurance stocks. We won’t know the cost of all the damage until second and third quarter earnings reports, but you can be sure that profits will suffer.

A letter from the desk of President & Publisher Ed Coburn on the value of experience and the art of investing in an AI-driven world.

Download the new report Cabot’s 10 Best Stocks to Buy and Hold for 2020 (subscribers only)


A stock joins the Buy Low Opportunities Portfolio today and another one rejoins the Growth Portfolio. Additionally, we say goodbye toone stock, which continues to have a slightly-improving price chart, but the 2020 earnings growth prospects are too dismal to remain in the Growth Portfolio.

Open today’s issue to read additional features and changes with three more stocks.

The market seems to have found its footing this week as the economy reopens amidst some supply shortages and inflationary pressures. Electric vehicle stocks are coming back as Ford announced a big push into EVs and its new F-150 Lightning received 70,000 deposits in just 10 days.

The global trend toward financial technology has made fintech stocks a hot commodity. Here are seven worth your consideration.

This month’s Issue of Cabot Small-Cap Confidential features a newly public company that’s trying to do what seems impossible – make the healthcare system work better.

It’s essentially a big data software company for this highly complex market. But it has a services and consulting segment too that’s central to the growth story because so many clients need help getting organized before they can even implement a software system.

Revenue growth tops 30%. And the story remains relatively unknown. All the details are inside the December Issue of Cabot Small-Cap Confidential.

Current Market Outlook


Our thought that March 23 would prove to be a workable low was correct, and the past three weeks have seen the major indexes recoup 40% to 55% of their crash declines (depend on the index). It’s obviously been good to see, as is the continued constructive action in many stocks; it appears the wheat is separating from the chaff. Still, we think the next week or two will be the key juncture—if the major indexes can ramp from here, the intermediate-term trend would turn up and could coincide with some powerful breakouts. On the flip side, if the sellers reappear, a deeper pullback or a retest of the lows could be on tap. Right now, we’re optimistic, but we never anticipate signals; today, with the trend still down, you should remain defensive.

Happily, we continue to see a lot of stocks that want to go higher if bulls do retake control. Our Top Pick this week is Inphi (IPHI), which is already at new closing highs as demand for its high-speed goods improves. Start small and/or aim for dips.

Stock Name	Price	Buy Range	Loss Limit
Amazon.com (AMZN)	2.00	2070-2130	1890-1920
American Tower Corporation (AMT)	252.32	238-248	220-225
Bilibili (BILI)	28.71	25-27	21-22.5
Chewy (CHWY)	43.92	37.5-40.5	32-33.5
Ciena (CIEN)	44.25	42.5-44	38.5-39.5
Inphi (IPHI)	120.16	87-91	77-79
Veeva Systems (VEEV)	180.23	159-163	144-146
Wheaton Precious Metals (WPM)	34.43	31-32.5	27.5-28.5
Wingstop (WING)	121.52	92-96	81-83
ZTO Express (ZTO)	28.84	26-27.5	23.5-24.5