Analysts Center | Tyler Laundon


Below are some excerpts from Cabot Small-Cap Confidential, which features little-known stocks with big potential. It offers a limited number of subscribers the opportunity to discover overlooked, low-priced stocks that have the potential to skyrocket. This advisory is best suited to experienced investors who embrace volatility.

Get Ready for Small-Cap Earnings

It’s fair to assume this earnings season will largely dictate the index’s direction through the end of the year. The Presidential election is another big factor. »

Still Potential for Strategic Moves

One of our stocks rallied on news of a major acquisition. The event was perfectly timed as it shows there's still potential for value-adding strategic moves, even when the big board is showing a sea of red.»

Small Cap Market Continues to Show Strength

I like the long-term growth and profit potential of technology, biotech and consumer stocks much, much more than notoriously impossible to forecast commoditiies.»

Watching Carefully

I am watching all of our stocks closely for any signs that a significant decline could reduce our gains in the short-term.»

Recent Move Looks Similar to Brexit Shakeout

The market's recent move lower looks very similar to the late-June Brexit shakeout (which cracked the 50-day moving average line), with one notable exception. »

Small Caps Look Good for the Year Ahead

Small caps resumed their upward trajectory over the past week, rising by 1.3%. Our portfolio did a little better, rising by an average of 2.6%. »

Small Caps Look Good

The overall backdrop for earnings growth across the market looks healthy, but small caps should grow much faster and lead the market higher. »

Small Caps Have Been the Place to Be

Small caps added another five points this week as the grind higher continues, and the strength is creating a sense of greater confidence in the sustainability of the market’s uptrend. »

0.8% rise in the S&P 600 Small Cap Index

Given the recent break-out to all-time highs, a little follow-on strength across the board suggests the market could be setting up for another run higher. »

Look for Q2 Earnings Momentum

Look for small-cap stocks that should keep delivering earnings and revenue growth. Second-quarter earnings momentum is extremely important. »

Pokemon GO Shows Stocks Are the Place to Be

Every now and then, a company does something that is completely unexpected that totally blows your mind. And usually, the stock explodes higher.»

Sideways is Pretty Good

All things considered, sideways is pretty good—small caps remain above both their 50- and 200-day moving averages, and 3.6% below their 52-week high.»

Repercussions from Brexit

This is not going to be a good Friday folks. As I stated last week, not one of the stocks in our portfolio is either a play on, or against, a Brexit. But clearly the markets were not expecting this, and we're in for a tumultuous period.»

Being More Patient

I still think the S&P 600 can reach 730 this year, which implies almost 4% upside from here.»

Small Caps Heading to 52-Week High

A healthy pullback in small caps in early May set the stage for a burst through resistance, and we’re now sitting just 2.7% below the 52-week high set in late June 2015. »

Small Caps Crack 710-Barrier

The S&P 600 Small Cap Index cracked the 710-barrier yesterday to close at 713, and the asset class looks poised to close out another week of gains. »

Cautiously Optimistic on Small Caps

Last Friday, I wrote that I wouldn’t be surprised if the S&P 600 Small Cap Index fell into a trading range in the 660 to 710 range for a while. That scenario looks like it began to play out this week.»

Culprits Behind the Small-Cap Retreat

Over the last week, our asset class fell by 2.1% (large caps were down by 1.2%), as seven out of nine sectors retreated. The main culprits leading the decline were energy, materials and health care.»

Hoping for a Pause before Small Caps Overheat

I would like to see a bit of a pause here before things get overheated. My sense is that we’ll get that pause next week. So don’t chase stocks that are rallying but haven’t reported anything to substantiate the move.»

Robust Recovery in Small Caps is an Understatement

Small caps are still performing well, and if not for a mild pullback yesterday, the S&P 600 Small Cap Index would have closed above 700 for the first time since early December 2015.»

Reprieve Will Help Small Caps

Provided this retreat doesn’t drift into full-blown correction mode, I welcome it. We need a little reprieve here so small caps don’t get overextended.»

A Two Steps Forward Week

The small-cap pattern of two steps forward, one step back continued this week. I continue to like the pattern, and I think new money is best directed at stocks that haven’t made big moves higher over the last month.»

A Different Pattern in Small Caps

I think there is potential for an upside surprise to earnings, which could provide the fundamental backbone for small caps to re-test their 2015 high.»

General Stock Market Trend Remains Up

If market trends continue to improve, I’ll consider taking on more risk in the portfolio—but only if I think we’ll be well compensated for it.»

Modest Gains

Another week of modest gains has investors moving back into stocks, and the major indices are around breakeven for the year. Over the last week small cap energy added almost 10% and all other sectors, save healthcare, jumped between 1% and 4%. »

Subdued Week in the Market

As compared to the last month, this was a relatively subdued week. Stocks fell modestly, with large caps giving back a mere 0.1% and small caps giving back 0.7%.»

Rally in Small Caps

Let’s call it a “ram” market—they say to hell with attacking from above (bear) or below (bull), and just come in head-on and at full speed.»

Market Still Serving Up Surprises

The stock market is still serving up its fair share of surprises, both to the upside and to the downside.»

Still Dicey

The window of opportunity to buy great companies at great prices often comes during market corrections such as this. »

Market Firming Up

The broad market firmed up this week as oil moved above $33 and earnings season brought a number of positive results. Facebook (FB) and Microsoft (MSFT) gave investors reason to stay long those stocks, while Under Armour (UA) showed that there’s still growth in apparel.»

Is it Time to Be a Selective Buyer?

If companies meet expectations and maintain guidance (at least) for the rest of the year, then this will be a tremendous buying opportunity.»

Bears Are Firmly in Control

We need to work through this volatility by trying to stick with what works and avoiding what doesn’t. »

More Conservative in Sideways Market

I'm being somewhat more conservative than I would be in a rampant bull market. This month’s addition is far from the most aggressive stock on my watch list. »

Bullish on Small-Caps

Stocks, including small caps, did very little over the course of 2015. But my stance on small caps remains bullish for the year ahead. »

Why I Like the Fed Move

This small move signals that the Fed believes the financial system and economy are strong enough to handle all the money movement that will accompany a hiking cycle.»

Times for Sticking Closer to Quality

The time will come again when money can be made in lower quality, unproven businesses—and when it does, we will capitalize. But this is not that time.»

Opportunities in the Internet of Things

I’m taking a break from broad market discussions this week to talk more specifically about a big trend that we’re building exposure to in Cabot Small-Cap Confidential.»

IT Stocks Looking Good

Our significant exposure to information tech (IT) is a plus. And I expect continued strength based on stellar results from large-cap IT yesterday.»

The Market Feels Warmer

The market feels much the same this week as last, like the recovery from the August decline is becoming more established. Investors have five toes in the water now, and it feels pretty warm. »

More Near-Term Upside Potential

With the S&P 600 Small Cap still 5% below its 52-week high, implying more near-term upside potential. That’s good for us. »

Small-Cap Outlook is Improving

The outlook for stocks has improved considerably over the past couple of weeks, pushing large-cap and small-cap indexes back above their 50-day moving averages. »

Moderately Positive on Small Caps

My view of small caps right now is still moderately positive. I’m not pounding the table to buy everything out there, but pick your spots and your stocks carefully and you should do just fine.»

Small Caps, Hillary and Bloomberg

Look to pick up stocks in which the fundamentals look good and the chart is showing a window of opportunity, or where the trend is just so darn intact that you know you’ll be kicking yourself in a year if you don’t act.»

Stock Picks


This stock could rise 50% before becoming fairly valued.

This hot technology company is growing like a weed, thanks to products that speed up cloud communications.

This stock is somewhat well known, but far from well loved.

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