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There are many reasons to invest in emerging blue chips, and they have some very powerful advantages. Here are seven of those reasons.

It’s time to start investing for the post-coronavirus market. The following two high-yield stocks are well positioned for big gains as the economy recovers.

In the April Issue of Cabot Early Opportunities, we take a look at the earnings calendar for our current portfolio and spread new research around by covering a diverse group of small-cap companies.
We have a newly public (again) pet retailer, a leaner and meaner defense and aerospace company, and a rising star in the fitness studio space. We also upgrade two stocks from our Watch List (and ditch a few others), including a key supplier for the EV market and a rapidly growing IT services company.


Enjoy!

Trouble usually comes from where investors least expect it, and it’s fair to say that Cyprus was not on most radar screens before this weekend. The much-publicized shock brought up fears of a 2008-style bank run, but it’s important to keep your feet on the ground and stick with the evidence. Right now, the trend is still up, and most stocks are in good shape; we did see some churning among the most extended stocks last week, so they might need a break, but we haven’t seen much abnormal action that occurs when the sellers take control. If that changes, we’ll let you know, but right here we’re keeping our Market Monitor in bullish territory—further short-term weakness could be in store, but the odds continue to favor higher prices in the weeks ahead.

This week’s list has a bunch of charts that look very strong and most are not overly extended to the upside. Our top pick is from the energy patch—Tesoro (TSO) is part of the very strong refining group, and the stock has eased back to support after a powerful run in February. We think it’s a good buy around here.

Stock Name	Price	Buy Range	Loss Limit
Tesoro (TSO)	0.00	54-56	-
Parexel Corp. (PRXL)	0.00	36-38	-
ServiceNow (NOW)	341.86	35-36	-
Netflix, Inc. (NFLX)	423.92	176-190	-
Lions Gate Entertainment Corp. (LGF)	0.00	21-22.5	-
Delta Air Lines (DAL)	54.28	14.5-15.5	-
Cabot Oil & Gas (COG)	0.00	63-66	-
Celgene (CELG)	0.00	109-113	-
Citigroup Inc. (C)	0.00	44-46	-
Aruba Networks (ARUN)	0.00	24.5-26	-

This week’s volatility has been a bit unnerving but below the drama some good things are happening. The majority of our stocks finished the week higher and Sea Limited (SE) hit an all-time high after reporting another great quarter, confirming our view that this
could be an enduring growth story. No surprise that our emerging market timer is mixed, in a very modest uptrend but still below 50- and 200-day moving averages

Today, we have a new recommendation for you as we follow Warren Buffett to a financial technology play in Brazil

The nature of this newsletter is that 90% of our focus is centered on finding early-stage opportunities and vetting them. But to have investing success – in any type of stocks – over the long haul we must follow some basic portfolio management strategies.

This month I’m laying out five simple tips that you should follow when investing in the stock I feature in these pages. There is nothing that’s super innovative or worth discussing at a cocktail party here. No hedging or options trading techniques. Just solid, basic, common sense tips that will help you reduce risk, increase your probability of success, and sleep better at night.

After a better than 30% plunge at record speed, the market has staged an epic rally from the bottom. The S&P 500 has moved more than 20% higher from the lows in late March. It is likely sensing an end to the economic shutdown sooner rather than later.
That’s good news, and the market usually gets it right. But even if the economy opens back up in May and June, there is a good chance of more trouble ahead. Terrible earnings and economic reports will come and consumers will be wounded for a while.


While I believe the economy and the markets will recover, there is a good chance of another down leg in the market. In this issue, I seek to take advantage of that possibility by targeting great companies to buy and below current prices. These are fantastic companies to own that are only ever cheap in bear markets like this.


The market will come back, but probably not yet. Taking advantage of another down move is a fantastic way to profit from the market’s eventual recovery.

Any stock that can deliver a ten-bagger in less than two years is bound for the Hall of Fame, and that’s exactly what Weibo stock did for my subscribers.

“If you’ve been reading Cabot China & Emerging Markets Report for a while, you know that our stock- selection discipline uses the acronym SNaC, which stands for story, numbers and chart. The idea is that our ideal stock presents an attractive combination of 1) a great story (business proposition, including...

In a tough week for markets, Explorer stocks held their own. Banco Santander (SAN) shares are up 50% so far in 2025, significantly outperforming bank and European indexes. Luckin Coffee (LKNCY) was up 10% this week and Sea Limited (SE) shares have risen 25% rise so far this year. All our dominating stocks held firm this week.

It was interesting to be in Tokyo and meeting for lunch today with a former Japan Ministry of Finance official as new tariffs of 24% on Japan were announced.

Explorer stocks gained ground this week as market sentiment improved along with the odds of a Fed rate cut this fall.

I’ve been encouraging you to lighten up on some of the Magnificent Seven stocks over the last month or so. In just the last two weeks, these stocks have lost over $1.6 trillion in market value as market enthusiasm has waned and insiders have sold some stock.

What’s behind this trend?

Here are three possible reasons why big tech is facing a tough market.

While Nvidia (NVDA) has pulled back more than 20% over the past two weeks, our conservative AI play IBM (IBM) has tacked on 40 points over the same period- hitting an all-time high early this week.

Cloudflare (NET) shares were up again this week and are now up 28% in 2025 to reach 140.

Dutch Bros (BROS) shares rose 8.5% this week and have surged 23% so far in 2025.

This week I’m in Cebu, Philippines. While in a shopping mall I spent a couple of hours analyzing a fascinating situation whereby Samsung, Apple and Huawei stores were right next to each other.

I’m not technically proficient enough to tell you which company and product offer the best value, but Huawei’s lower end smartphone was only $450 and seemed to offer everything anyone would need. Its high-end leader was just slightly cheaper relative to Apple’s most recent model, with all the bells and whistles. The store was very polished and in no way seemed to be of lesser quality to Apple or Samsung.

At face value, it’s admittedly a challenge to build a bullish case for the long-term viability of satellite radio. Indeed, as the popularity and reach of digital streaming platforms grow, satellite as a communications medium looks antiquated by comparison.

That said, a case can also be made that reports of satellite radio’s demise are decidedly premature. When researching for this month’s issue of CTL, for instance, I came across an article under the following headline: “Satellite Radio is Dead.” It went on to explain, “Satellite radio will come crashing down to Earth within the next two years. The newly merged Sirius XM Radio is already living on borrowed time—and borrowed money—and simply will not and cannot survive.”

The big news this week is that Amazon will no longer screen most job applicants for marijuana use. Plus, the giant is supporting federal marijuana legalization. That’s one more step in the right direction.

As we approach the end of May, the S&P 500 is still up 10% for the year, including a 4.6% gain so far in May. But the market was off yesterday as bond yields creep upwards. It was a lackluster week for Explorer stocks as well.

U.S. stocks trade at a P/E ratio over 21x earnings while European stocks trade at a cheaper 14x earnings on average. U.K. stocks look even more compelling at just 12x earnings.

The Federal Reserve held interest rates steady and signaled it is open to cutting later this year, especially if economic growth and employment slow in an election year. Big tech earnings so far are a mixed bag and below elevated expectations.

But cybersecurity companies have been resilient due to ever-growing demand. And today, we add a familiar cybersecurity name to the Explorer portfolio.

Markets remain on edge after Monday’s big selloff, Tuesday’s recovery, and yesterday’s down day. Some disruptive Explorer stocks were hit rather hard leading to Nio (NIO) being removed from the recommended list today while Super Micro (SMCI) is upgraded to a buy.

On Monday, trading in 401(k)s was more than eight times the daily average, the highest since 2020. My guess is that most of this activity was selling rather than buying.

Explorer stocks had a good week, but I wanted to highlight that recently, Warren Buffett sold almost 400 million of Apple (AAPL) stock during the second quarter. The Oracle of Omaha sold about 390 million shares of Apple stock, reducing Berkshire Hathaway’s ownership to roughly 400 million shares.

Granted, Berkshire booked some giant investment gains during the second quarter, with Apple accounting for a big share of those winnings. This is nothing to sneeze at, but why did Buffett and company decide to sell the shares, thereby missing out on some big capital gains? Forbes notes that Apple’s average closing price in the second quarter was 186, which is well below the 226 at which the stock closed on August 20.

This was a rather tough week for stocks though the financial media always goes overboard calling a 2% drop in the Nasdaq index a “plummet.”

For many analysts, copper prices have long been considered a better leading indicator regarding the health of the global economy. Bloomberg reports that Goldman Sachs has exited a long-term bullish position on copper while slashing its price forecast for 2025 by almost $5,000 a ton. The bank has been one of the biggest supporters of the industrial strategic metal, but the increasingly weak Chinese economy has crimped demand, plus excess inventories overhang supply resulting in copper prices being down almost 20% since May.