Cabot Prime Week Ending December 6, 2019
*** NEW ADVISORY SERVICE ***
We are pleased to announce that on Tuesday, December 10 we will launch Cabot Profit Booster. This new weekly advisory will feature the experience and skill of two veteran Cabot analysts – Mike Cintolo and Jacob Mintz. Each Tuesday morning Jacob will select one of the stocks from Mike’s Cabot Top Ten Trader with strong fundamentals and charts. Jacob will then make a covered call recommendation to lay on top of that stock. We expect that you will be able to make this one trade each week in about 15 minutes and that these covered calls can provide a 3%-15% profit boost which will accumulate nicely over the course of the year.
As a Cabot Prime member you will have immediate access to this new advisory service at no cost.
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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, Mike Cintolo discusses the market’s run-of-the-mill pullback earlier this week, shares his shorter-term thoughts (don’t be surprised to see more news-driven action) and reiterates his bullish big-picture stance on the market. He also gives some pointers on how to handle older winners that may be setting up and, as always, reviews many leaders that are beginning to set up.
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Advisory Services
Cabot Growth Investor
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.
Bi-weekly Update November 27: Remain bullish. The market and leading stocks continue to act well, and while a pullback, shakeout or some other potholes could occur in the short-term, the odds continue to favor higher prices over time. In the Model Portfolio, Mike is going to fill out both Dexcom (DXCM) and Qorvo (QRVO) by purchasing another half-sized position in each. That will leave us with around 14% in cash.
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 6: Profit taking finally set in earlier this week, though this morning’s jobs-inspired pop has erased the losses for the major indexes. The early-week selling wasn’t totally unexpected following eight solid weeks on the upside, and we still think the odds favor some near-term ups and downs based on the news of the day. Mike’s buy ideas today are: Advanced Micro Devices (AMD), Crocs (CROX), Murphy USA (MUSA) and Seattle Genetics (SGEN). For outright sells, Mike has just two today—Quanta Services (PWR) and Valero (VLO).
Movers & Shakers December 2: Right now, it’s probably best to be choosier on the buy side, whether that means targeting weakness or starting with small positions. If and when we do get some selling pressure, that should provide meatier opportunities. As for the stuff you own, don’t forget to ring the register every now and then (taking partial profits), but Mike advises holding at least some of your best performers, giving them a chance to turn into bigger winners.
Weekly Issue November 25: As has been the case since the early-October lows, that weakness was tame (most dips were calm and controlled), with today’s burst of buying pushing many back up. (Encouragingly, even the lagging small-cap indexes are now trying to break out of multi-month ranges.) There’s still some shorter-term yellow flags, so Mike wouldn’t throw caution to the wind here (don’t forget to take some partial profits!), especially if you’ve put a bunch of money to work in recent weeks. But the fact that most stocks and indexes haven’t been able to retreat much despite those yellow flags is yet another stone in the bullish wall. He remains bullish. This week’s list includes a broad mix of names, from old winners coming back to life to new names perking up to recently strong performers that have eased to good entry points. His Top Pick is Axon Enterprise (AAXN), which has come back to life after a year-long rest.
Cabot Undervalued Stocks Advisor
Special Bulletin December 6: Elliott Management urges Alexion Pharmaceuticals’ (ALXN) to pursue a sale of the company. Crista continues to believe ALXN is greatly undervalued. Buy ALXN now. Strong Buy.
Special Bulletin December 5: Alexion Pharmaceuticals (ALXN) shares are down 7% as investors worry about a potential pharmaceutical competitor. ALXN is an undervalued growth stock. Crista’s guess is that the shares could drop to short-term price support at 106, and that they would soon recover. Buy ALXN now. Strong 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.
Weekly Update November 26: Today will be an important day for our retail apparel stocks, with Abercrombie & Fitch (ANF) reporting third-quarter results in the morning, and Guess? (GES) reporting in the afternoon. Designer Brands (DBI) will bring up the rear with third-quarter results on December 10. Crista is expecting good results and a bullish outlook for all three companies. There are two portfolio changes today: Citigroup (C) moves from Hold to Buy and Mosaic (MOS) moves from Buy to Hold.
Cabot Stock of the Week
Weekly Issue December 3: The broad market remains strong (despite today’s action), and all Cabot’s market timing indicators are currently positive, so the path to the end of the year looks smooth—but of course there will be potholes. Tim has one sale from the portfolio today, of a stock that’s gone the wrong way (Meritage Homes—MTH). As to the new addition, Qorvo (QRVO), it’s a 5G stock, which should be catnip to that segment of readers who always want to be invested in the latest technology. The stock was originally recommended by Mike Cintolo in both Cabot Top Ten Trader and Cabot Growth Investor and it looks like it’s at a good entry point today. Here are today’s rating changes: Citigroup (C) moves from Hold to Buy, Luckin Coffee (LK) from Hold to Buy and Pinduoduo (PDD) from Buy to Hold.
Cabot Global Stocks Explorer
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.
Bi-weekly Update November 21: The Cabot Global Stocks Explorer portfolio is doing well in 2019 and a number of recommendations have recently surged on the strength of impressive earnings and an improving environment for emerging and international stocks. Sea Limited (SE) has been the top performer, and has over the last two weeks gotten back to its 2019 high, and is up more than 300% so far in 2019. Over the past two weeks, Luckin Coffee (LK) has soared 49% on the back of a strong third quarter and investors are taking note of strong institutional support for the stock. Carl has one portfolio change today: Huya (HUYA) moves from Buy a Half to Hold a Half.
Cabot Dividend Investor
Weekly Update December 4: This has been a good year for the market. With only weeks left in 2019, the S&P 500 is more than 23% higher for the year. Some of that is the undoing of the overselling at the end of last year. But the market has trended consistently higher all year and is close to the all-time high. Today Tom is selling a recently added position, Cheniere Energy Partners (CQP). The stock is down about 10% since September and the news is not positive going forward.
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 4: Not a lot has changed since last week’s issue—overall, the cannabis sector remains in a correction—but there are a few stocks worthy of an update. Cresco Labs (CRLBF) is one of these stocks. We sold half our position in Cresco last week, as the stock looked vulnerable in a cash crunch, and yesterday the company announced a new dilutive equity distribution agreement. We’ve now taken profits in the stock three times this year, so we can afford to hang on a little longer and wait for a year-end bounce, but if you’re not in the same boat, selling may be the best course. Another stock hitting new lows is MariMed (MRMD), the lowest-priced stock in the portfolio and our biggest loss today. Sure, it’s tempting to hang on for a year-end bounce, but experience says selling and moving on is wiser. SELL.
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:
The 240% Early-Stage Growth StockWall Street’s Best Investments
Daily Alert December 6: eBay Inc. (EBAY) Argus Weekly Staff Report
Daily Alert December 5: Total S.A. (TOT) The Prudent Speculator
Daily Alert December 5: Sell: AVX Corporation (AVX) The Prudent Speculator
Daily Alert December 4: DexCom, Inc. (DXCM) Cabot Growth Investor
Daily Alert December 3: Bank of America Corporation (BAC-PM) Income Securities Investor
Daily Alert December 2: HMS Holdings Corp. (HMSY) Canaccord Genuity Research
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 Marijuana Investor
Question: I’m a subscriber to the marijuana investor, and appreciate your support helping me understand it better. I own medmen and wondered if you thought it was heading towards bankruptcy. I bought it at 2.5,and 1.44. i hate to sell at this point....what do you think
Tim: Thanks for asking. Many companies in the cannabis industry are finding themselves low on cash, and bankruptcy is only one of the possibilities. But instead of focusing on the minutia of financial data and what might happen, it’s simpler to focus on the message of the stock, whose action tells you what other investors have already concluded. And the message from MMNFF is not good. I understand totally that the prospect of taking a large loss is unappetizing, especially if the stock rebounds soon after. But experience shows that it’s usually best to take the loss on move on. Put the money in a stock with better prospects.
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 | Buy | ||||
| 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 | |||||
| CIT | Retired | |||||
| CQP | Sell | |||||
| CRAK | Strong Buy | |||||
| CRLBF | See Advisory | |||||
| CRON | See Advisory | |||||
| CTVA | Buy | Buy | ||||
| CURLF | See Advisory | |||||
| DBI | Buy | Strong Buy | ||||
| DBSDY | Buy 1/2 | |||||
| DOCU | Buy | |||||
| DOW | Buy | |||||
| DXCM | Buy | |||||
| EPD | Buy | Buy | ||||
| EQH | Strong Buy | |||||
| GES | Strong Buy | |||||
| GTBIF | See Advisory | |||||
| HTHT | Hold | |||||
| HUYA | Sell | |||||
| 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 | |||||
| MRMD | See Advisory | |||||
| MRVL | Buy 1/2 | |||||
| MTH | Sell | |||||
| MTZ | Hold | |||||
| 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 | Strong Buy | |||||
| RIO | Buy | |||||
| RKUNY | Buy 1/2 | |||||
| RNG | Hold | |||||
| SE | Buy 1/2 | |||||
| SLB | Buy | |||||
| SNAP | Hold | |||||
| SPCE | Buy a Half | |||||
| SSO | Buy | |||||
| STAG | Hold | |||||
| TCNNF | See Advisory | Buy | ||||
| TDOC | Buy | |||||
| TOT | Buy | |||||
| TPB | See Advisory | |||||
| TSLA | Hold | |||||
| TV | Buy 1/2 | |||||
| UEIC | Hold | |||||
| VLO | Buy | |||||
| VOYA | Strong Buy | |||||
| VRTX | Buy | |||||
| XEL | Hold 2/3 |