Cabot Prime Week Ending December 13, 2019
Stock Recommendation Tracker
The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any changes to our recommendations over the previous week. We include this table at the bottom of the Weekly Summary, and provide a link here at the top to the Stock Recommendations Tracker.
Cabot Weekly Review (Video)
In this week’s stock market video, Tyler Laundon highlights three conservative growth stocks that should do well in 2020 and could make great gifts for anybody on your shopping list. Highlights of the names include strong recurring revenue and consistent profitability.
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Advisory Services
Cabot Growth Investor
Bi-weekly Update December 12: Remain bullish, while keep your eyes open as some stocks have hit potholes. The market itself is in good shape, though Mike continues to think some news-driven ups and downs are likely in the near term. Individual stocks have turned mixed of late, and he’s keeping his eyes peeled for abnormal action. Tonight, he’s placing Dexcom (DXCM) on Hold due to its recent weakness, but have no other changes. Our cash position is around 24%.
Special Bulletin December 10: The market remains in a normal consolidation phase, and most of our stocks look fine. That said, today, Mike is selling MasTec (MTZ) which has been unable to get off its knees since its unusual decline a couple of weeks back. He’ll sell and hold the cash for now.
Bi-weekly Issue December 5: The market has finally begun to consolidate after a heady eight-week run in the major indexes and leading stocks. It’s never fun to see things retrench, and Mike does think the next couple of weeks (very roughly speaking) could see more choppy, tedious trading. But his focus remains on the intermediate- and longer-term picture, and on that front, the evidence remains bullish, so he remains heavily invested. The Model Portfolio has been steadily putting money to work, including filling out two positions last week. We now have eight stocks and a cash position of around 14%. In tonight’s issue, Mike gives his latest thoughts on all our positions and writes about yet another unique, longer-term bullish occurrence that bodes well going forward.
Other Stocks of Interest November 21: Follow ups to stocks featured July 3, 2019 (issue 1423) to November 21, 2019 (issue 1433). Since many of the stocks written about in Other Stocks of Interest don’t make their way into the Model Portfolio, you won’t see them followed on a regular basis in the issues. However, we are monitoring these stocks, and this listing gives you a quick view of our latest thoughts. Feel free to email me directly (mike@cabotwealth.com) with any questions/comments you have.
Cabot Top Ten Trader
Movers & Shakers December 13: All in all, Mike remains bullish, and ideally, the news flow will subside somewhat and stocks can get back to “normal” action. In the meantime, (a) you should consider keeping new buying light, and (b) take things on a stock-by-stock basis—if a name has shown great power and has consolidated (relatively) calmly for a couple of weeks, take a swing at it. Conversely, if something is sinking, honor your stop. Mike’s buy ideas today are: Fortinet (FTNT) and Inphi (IPHI). He has five sells today: Acadia Pharm (ACAD), InMode (INMD), Lennar (LEN), MasTec (MTZ) and Novocure (NVCR).
Weekly Issue December 9: The good news is that Mike continues to think current pullbacks and consolidations are leading to some good-looking entry points in a variety of leading stocks. All in all, he remains bullish, though it’s still best to be a bit choosier on the buy side at the moment, while giving some stocks that you own breathing room to consolidate if they’ve enjoyed a good run. This week’s list has many leaders that are retreating toward support or are otherwise showing solid setups. His Top Pick is Seattle Genetics (SGEN), which looks like a leader in the biotech field, and the stock is now pulling back for the first time after a big run.
Cabot Undervalued Stocks Advisor
Special Bulletin December 13: Adobe Systems (ADBE) reports good fourth-quarter results. Adobe Systems reported fourth-quarter and full-year results yesterday afternoon (November year end). The company achieved record quarterly and annual revenues of $2.99 billion and $11.17 billion, respectively. Non-GAAP diluted earnings per share came in at $2.29 vs. the $2.26 consensus estimate. The company also reported record cash flow. Also, they repurchased 2.8 million shares of stock during the quarter and 9.9 million shares during full-year 2019. It remains a Buy.
Special Bulletin December 10: Designer Brands (DBI) reported a disappointing third quarter this morning, in which gross margins were impacted by three non-recurring situations. Crista says that dividend investors and growth stock investors who like to buy bargains should buy now.
Weekly Update December 10: A high percentage of stocks that Crista follows are exhibiting bullish price charts right now. Obviously, you already knew that the stock market has been acting well. She simply wants to reiterate that the recent bullishness appears to be sustainable. Enjoy! Watch for earnings reports from Designer Brands (DBI) on Tuesday morning and Adobe Systems (ADBE) on Thursday afternoon. There are three portfolio changes today: Royal Caribbean (RCL) moves from Strong Buy to Sell, Tyson Foods (TSN) joins the Growth Portfolio as a Strong Buy and Universal Electronics (UEIC) moves from Hold to Buy.
Monthly Issue December 3: LGI Homes (LGIH) joins the Buy Low Opportunities Portfolio today and Quanta Services (PWR) rejoins the Growth Portfolio. Additionally, Crista says goodbye to CIT Group (CIT), which continues to have a slightly-improving price chart, but the 2020 earnings growth prospects are too dismal to remain in the Growth Portfolio. Other changes today are: Blackstone Group (BX) moves from Strong Buy to Hold and Universal Electronics (UEIC) moves from the Buy Low Opportunities Portfolio to the Growth Portfolio.
Cabot Stock of the Week
Weekly Issue December 10: The major indexes continue to hit new highs, all Cabot’s market timing indicators remain positive, and the portfolio is solid, overall, with the exception of Designer Brands (DBI), which reported third-quarter earnings this morning; Tim has more on that in the update section. Today’s new recommendation, Virgin Galactic (SPCE), is a brand new business with a familiar name—a high-risk/high-potential investment. It’s not for everyone, and it will be volatile. Tim has one rating change today: Designer Brands Inc. (DBI) moves from Buy to Hold.
Cabot Global Stocks Explorer
Bi-weekly Issue December 12: Because Carl missed an issue on Thanksgiving, today is a “catch-up” issue. The Cabot Global Stocks Explorer portfolio had another positive week led by last week’s recommendation, Virgin Galactic (SPCE), which is up 27% this week. Part of the reason is that Morgan Stanley picked up coverage of the stock with a 2020 price target of 22 – even higher than my price target of 20. Carl’s recommendation today is Freeport-McMoRan (FCX), headquartered in Phoenix, Arizona, it engages in the managing of mineral properties in North America, South America, and Indonesia. The company explores for copper, gold, molybdenum, silver, and other metals primarily in Indonesia as well as in Chile, Peru, New Mexico and Colorado. It is the world’s most significant copper producer. It’s rated Buy a Half.
Bi-weekly Issue December 5: As U.S. trade disputes spread to Latin America, Europe and a China deal may be pushed into 2020, markets struggled early in the week but rebounded yesterday. Hong Kong retail sales were hammered in October but China’s manufacturing finally turned upward. Our emerging market signal is positive with EEM trading just above its 50-day moving average. Carl will continue to diversify the portfolio and today rise above worldly concerns with a new recommendation that just may capture your imagination and make you money in 2020. Today’s featured stock is, Virgin Galactic (SPCE), a company that has been at the forefront of commercial space activity and produced the first private space vehicle to put humans into space. Carl has one portfolio change today: Huya (HUYA) moves from Hold a Half to Sell.
Cabot Dividend Investor
Weekly Update December 11: Tom likes the way the Cabot Dividend Investor portfolio is positioned right now. It has several REITs and Utilities that continue to benefit in the current environment, value stocks that offer bargains and new found momentum, and opportunities to benefit from strong growth where it is still powerful. He has one portfolio change today: Alexandria Real Estate Equities moves from Buy to Hold.
Monthly Issue November 26: The portfolio is still well positioned. It has a combination of defensive plays with renewed momentum as well as value stocks that are awakening. Since the last monthly issue, three weeks ago, the REIT and Utility sectors have regained their footing. The sectors had been the worst in the market over the past month as the renewed “risk on” mood shunned the more defensive plays. It remained a question whether the pullback was an overdue consolidation or a more meaningful correction. Recent behavior is indicating the latter. The notable exception to the value stock resurgence has been energy. Tom’s featured stock today is Qualcomm (QCOM), the world’s largest supplier of chips for mobile devices.
Cabot Marijuana Investor
Update December 11: The good news is that 2020 will bring great new opportunities for the industry, as Cannabis 2.0 kicks off in Canada and increasing numbers of U.S. operators take advantage of scale and experience to post real and growing earnings. The bad news is that the U.S. Federal government remains woefully behind the times, so true national operations are still a dream. But what we can do is invest in the greatest prospects, focusing on stocks that are not only above their mid-November lows but actually revealing true buying power, and if we don’t finish 2019 with a profit (it’s still very possible), the odds are quite good that—coming off this sector low—there will be big profits in 2020.
Monthly Issue November 27: The cannabis sector remains in a correction, with Canadian stocks in particular still struggling—even as Cannabis 2.0 promises new retail opportunities. But the fundamentals of the industry remain bright, and investors are now beginning to discriminate between the winners and the losers—with the best stocks showing substantial increases in buying volume recently. The portfolio remains more than a third in cash, waiting for the sector’s main trend to turn up, and Tim has just two small adjustments today. The portfolio will sell half its position in Cresco Labs (CRLBF) and double its position in Innovative Industrial Properties (IIPR).
Cabot Early Opportunities
Special Bulletin November 27: Small caps have been lagging, and have failed to return to their 2018 highs, for too long. If the asset class can get back in gear, Tyler will have more things working in the market for early-stage investors. Concurrently, he is seeing more strength in the IPO market too. The average gain across currently covered positions is 8%. That performance is twice what the broad market has delivered since we launched Cabot Early Opportunities in mid-September. So far, so good!
Monthly Issue November 20: In this Month’s Issue of Cabot Early Opportunities Tyler reveals a few tips to help you buy into IPOs at reasonable prices and he looks at some compelling data that suggests the 150 to 180 day period after IPO just might be one of the ideal times to buy. This month’s Top Pick is Livongo (LVGO), a $2.4 billion market cap company that specializes in Type 2 diabetes digital health management.
Bonus Report:
3 Cloud Software Stocks to Buy NowBonus Report:
3 Canadian Small-Cap Stocks to Buy NowBonus Report: Secrets To Early-Stage Stock Profits
Bonus Report:
Cabot Profit Booster
Weekly Issue December 10: The Stock — Splunk (SPLK) Big data is big and growing bigger. The market is forecast to reach $103 billion by 2022, with every person generating 1.7 megabytes of data every second, with internet users as a whole expected to generate some 2.5 quintillion bytes of data each day. Suffice it to say, all this data has to be corralled and massaged into something useful, which is where Splunk makes its hay.
Bonus Report:
Best-Kept Hedge Fund Secrets to Explode Your WealthBonus Report:
5 Easy Stock-Picking Secrets That Make it Ridiculously Easy to Profit.Bonus Report:
The Simple Technique that Brings in 5%-15% Each Month.Wall Street’s Best Investments
Daily Alert December 13: LGI Homes, Inc. (LGIH) Cabot Undervalued Stocks Advisor
Daily Alert December 12: Voya Financial, Inc. (VOYA-PB) Income Securities Investor
Daily Alert December 11: Nutanix, Inc. (NTNX) Pivotal Point
Daily Alert December 10: iShares Core Dividend Growth ETF (DGRO) Internet Wealth Builder
Daily Alert December 9: TopBuild Corp. (BLD) Upside
Monthly Issue November 20: So far, November’s markets have been a nice respite from the volatility of October, and the Dow Jones Industrial Average actually gained about 900 points. Investors—for the most part—seem to be ignoring China tariffs, impeachment hearings, and Brexit. And why not? After all, the economy remains strong and sentiment—as you’ll see in our Advisor Sentiment Barometer as well as in our Market Views—remains very bullish. Nancy begins this issue with CDW Corporation (CDW), a tech company that has successfully navigated the ever-changing technology world by adding new products—internally and by acquisition. Her feature article further explores the potential for this company to grab even more market share.
Ask the Experts
Cabot Dividend Investor
Question: I met you at the conference this summer. By the way I enjoyed your presentations and the delivery of same. I wanted your opinion on brk.b. Just hasn’t moved with the market and tons of cash. Thought it might be a sleeper out there.
Tom: Nice to hear from you. I hope all is well. The stock tends to mimic the moves of the overall market with less volatility. It plays it safer and has a ton of cash to invest in a down market, which makes it a good choice with the market at all time highs very late in the cycle. The drawbacks are that it is probably too big to deliver impressive returns and the stock will take a hit when Buffet leaves. In all, it’s not a bad pick but it won’t be great. Hope this helps.
Premium Reports
Quarterly Cabot Analyst Meeting
The recording of the quarterly Cabot Analyst Meeting from October 23, 2019 is now available for you to listen to at your convenience—click here for access. This quarterly private call with our analysts is one of your exclusive Cabot Prime member benefits.
A Richer Retirement
Special Report This handbook is designed to help you secure a better, longer, richer retirement for yourself by making the most of your savings both before and during retirement.
Guide to Cabot Prime
This Guide to Cabot Prime will help you make the best use of your Prime membership to create a strong personal portfolio.
Stock Recommendations Tracker
The table below lists all of the stocks held in any Cabot portfolio.
Updated or revised recommendations from the past week are in purple text.
Stocks added to a portfolio are highlighted in green text.
Closed stock positions in the past week are highlighted in red text.
| Stock | Cabot Global Stocks Explorer | Cabot Growth Investor | Cabot Marijuana Investor | Cabot Stock of the Week | Cabot Undervalued Stocks Advisor | Cabot Dividend Investor |
|---|---|---|---|---|---|---|
| ABBV | Buy | |||||
| ACB | See Advisory | |||||
| ADBE | Buy | |||||
| ALXN | Strong Buy | |||||
| AMZN | Strong Buy | |||||
| ANF | Buy | |||||
| APHA | See Advisory | |||||
| APPS | Hold | |||||
| ARE | Buy | Hold | ||||
| BABA | Buy | |||||
| BAND | Hold | |||||
| BIP | Hold | Hold | ||||
| BKR | Buy | |||||
| BLD | Buy | |||||
| BMY | Hold | |||||
| BSCJ | Buy 1/2 | |||||
| BSCL | Buy 1/2 | |||||
| BX | Hold | |||||
| C | Buy | Buy | ||||
| CCI | Buy | |||||
| CF | Strong Buy | |||||
| CGC | See Advisory | |||||
| CHCT | Hold 1/3 | |||||
| CQP | Sold | |||||
| CRAK | Strong Buy | |||||
| CRLBF | See Advisory | |||||
| CRON | See Advisory | |||||
| CTVA | Buy | Buy | ||||
| CURLF | See Advisory | |||||
| DBI | Hold | Strong Buy | ||||
| DBSDY | Buy 1/2 | |||||
| DOCU | Buy | |||||
| DOW | Buy | |||||
| DXCM | Hold | |||||
| EPD | Buy | Buy | ||||
| EQH | Strong Buy | |||||
| FCX | Buy 1/2 | |||||
| GES | Strong Buy | |||||
| GTBIF | See Advisory | |||||
| HTHT | Hold | |||||
| HUYA | Sold | |||||
| IBN | Buy 1/2 | |||||
| IIPR | See Advisory | |||||
| IPHI | Buy | Buy | ||||
| LGIH | Strong Buy | |||||
| LK | Buy 1/2 | Buy | ||||
| MCY | Buy | |||||
| MEDIF | See Advisory | |||||
| MO | Buy | |||||
| MOS | Hold | |||||
| MPC | Strong Buy | |||||
| MRVL | Buy 1/2 | |||||
| MTH | Sold | |||||
| MTZ | Sell | |||||
| NEE | Hold | Hold 1/2 | ||||
| NVCR | Buy 1/2 | |||||
| OGI | See Advisory | |||||
| OKTA | Hold | |||||
| PDD | Hold | |||||
| PGX | Buy 1/2 | |||||
| PWR | Strong Buy | |||||
| QCOM | Buy | |||||
| QRVO | Buy | Buy | ||||
| RCL | Sell | |||||
| RIO | Buy | |||||
| RKUNY | Buy 1/2 | |||||
| RNG | Hold | |||||
| SE | Buy 1/2 | |||||
| SLB | Buy | |||||
| SNAP | Hold | |||||
| SPCE | Buy a Half | Buy | ||||
| SSO | Buy | |||||
| STAG | Hold | |||||
| TCNNF | See Advisory | Buy | ||||
| TDOC | Buy | |||||
| TOT | Buy | |||||
| TPB | See Advisory | |||||
| TSLA | Hold | |||||
| TSN | Strong Buy | |||||
| TV | Buy 1/2 | |||||
| UEIC | Buy | |||||
| VLO | Buy | |||||
| VOYA | Strong Buy | |||||
| VRTX | Buy | |||||
| XEL | Hold 2/3 |