Cabot Prime Pro Week Ending April 2, 2021
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 talks about the improvement in the evidence in recent days — there’s no definitive “go” signal, but the market and many individual stocks have put themselves in a position to get going if all goes well. Mike relays many of the names on his watch list and is ready to act if the bulls truly retake control. Stocks mentioned include FB, SHAK, TXG, DT, ALGN, YETI, FANG, PXD, and PINS.
UPCOMING CABOT EVENTS:
Cabot Micro-Cap Insider Member Call – April 2021
FREE WEBINAR FOR PRIME MEMBERS ONLY: April 15, 2021 Sign up now.
Cabot Prime Members Meeting with the Analysts: 2nd Quarter 2021
FREE WEBINAR FOR PRIME MEMBERS ONLY: April 21, 2021 Sign up now.
3 Micro-Cap Stocks that Could Triple in the Next Year
FREE WEBINAR FOR PRIME MEMBERS ONLY: April 22, 2021 Sign up now.
Advisory Services
Cabot Growth Investor
Bi-weekly Update April 1: The market and growth stocks have found support of late, and we’re also seeing more names building legitimate launching pads, both of which are good to see. We’re open to anything and have our eyes peeled for a change in character, but the market and growth stocks still have work to do to show that the sellers have left the building. Tonight, we’re standing pat with our 55%-ish cash position.
Bi-weekly Issue March 25: Since the last issue we’ve seen some ups, some downs and lots of rotation in and out of sectors, but overall, our main view hasn’t changed much: There’s not any real money being made out there unless you’re a nimble swing trader (we, of course, are position traders, which means intermediate to longer term), with individual stocks and sectors doing a lot of chopping (at best) or declining (at worst). Really, this action isn’t unusual after a big uptrend ends and, ideally, should serve to dampen sentiment and set up some solid launching pads down the road. For now, though, staying mostly on the sideline is key, especially for growth stocks, letting others fight it out while we wait for the buyers to retake control.
Cabot Top Ten Trader
Movers & Shakers April 1: From a top-down perspective, the song continues to remain the same for the market—most major indexes are still in uptrends, albeit very choppy, while the Nasdaq and most growth stocks is in a correction/consolidation. Combined, that argues for a relatively cautious stance. Mike has two buy recommendations: Kulicke & Soffa (KLIC) and SelectQuote (SLQT).
Weekly Issue March 29: the split environment continues, with many major indexes closing last week near new highs, while the Nasdaq is still languishing beneath its 50-day line. Overall, the song remains mostly the same—growth stocks are mired in a correction (including some big winners from last year that can’t get out of their own way), and while many cyclical-related stocks are holding up well, few are really making much upward progress. Mike’s Top Pick is Urban Outfitters (URBN), which staged a longer-term breakout a month ago, with this first pullback likely buyable.
Cabot Options Trader and Cabot Options Trader Pro
Note that the current week’s Weekly Update, earnings updates, position updates and stocks on watch are posted on the website in the Market Update section, which is deleted each week.
Cabot Options Trader Basic & Pro Market Update April 1: The first quarter came to a close yesterday afternoon. Now the question becomes, will the stocks that outperformed in the first quarter (financials, materials, cyclicals) continue to rise, or will the hot money re-rotate into growth stocks that grossly underperformed in the last month.
Cabot Options Trader Basic Weekly Update March 29: The stock market rebound last week helped to push the Chicago Board of Options Exchange Volatility Index (VIX) to its lowest closing level in over a year. For the full week the VIX dropped 9.98% to end Friday at 18.86, the lowest reading since February 2020.
Cabot Options Trader Pro Weekly Update March 29: Long positions: FCX, SONO, XLF, PINS, UBER, DKNG, F
Cabot Undervalued Stocks Advisor
Weekly Update March 31: We recently received a question from a subscriber about using stop-losses. It is a common question, so let’s delve into it briefly here. Stop-losses, or more fully, stop-loss orders, are trading orders that are placed to execute a sale automatically if a stock falls below a specified trigger price. The idea is that these orders can prevent a small loss from becoming a large loss. It can also be used to lock in profits. These orders are often placed at 10% below the current price, providing some leeway for regular market fluctuations but also “tight” enough to prevent a large loss. There is no precise rule for where to place the order. Bruce has no portfolio changes.
Monthly Issue March 3: This wouldn’t be a proper value investing letter without mentioning Berkshire Hathaway’s earnings report and chairman Warren Buffett’s annual shareholder letter, released this past Saturday. The earnings were fine, given the pandemic this year, while the letter seemed shorter than typical and more of a reminiscence of the company’s history than sage advice about investing. This week, Bruce is adding a new name that Buffett may appreciate but almost certainly doesn’t own – Aviva, Plc. This London-based insurance company is undergoing an overhaul, led by the highly capable new CEO Amanda Blanc.
Cabot Stock of the Week
Weekly Issue March 29: The market divergence that has been evolving since early February continues, with the Nasdaq in particular looking weak while the more conservative indexes like the S&P 500 remain near their highs. From here, anything is possible, but Tim’s guess is that the correction spreads (and deepens) and eventually the party atmosphere that has propelled speculative investments like GameStop (GME), EV stocks and SPACs in general fades. Tim’s featured stock QuantumScape (QS), is working on some breakthrough electric vehicle battery technology backed by some heavyweight industrialists as well as Volkswagen (VWAGY). Tim has two portfolio changes: APi Group (APG) to Sell and Progyny (PGNY) to Sell.
Cabot Global Stocks Explorer
Bi-weekly Issue April 1: Semiconductor producers stand to benefit from Biden’s $1.9 trillion infrastructure package that goes beyond fixing roads and bridges to expanding broadband Internet access and boosting funding for research and development. Taiwan Semiconductor Manufacturing (TSM) highlighted this week just how capital intensive this game is as it announced plans to spend $100 billion over the next three years to expand its chip fabrication capacity. Carl’s new recommendation Marvell Technology Group (MRVL), designs, develops and sells a wide variety of semiconductor products that are at the core of 5G-capable networks, processors and devices as they partner with and transition from 4G to 5G. The company’s embedded processors and products are cutting-edge and already generate $3 billion in annual sales
Bi-weekly Update March 25: It has been one year since the S&P 500 hit bottom and since the then the blue-chip index has roared back nearly 75%. Just imagine if we would have had a pile of cash and the guts to jump in. For some tech stocks, the returns have been spectacular. Tesla’s stock, for example, is up more than 650% even after coming back over the last couple of months. Over the last few weeks though, it seems that markets are hitting the pause button. Carl has three portfolio changes: LogiQ (LGIQ) Moves from a Buy to a Sell, Afterpay (APT.AX) Moves from Hold to Sell and Fisker Inc. (FSR) Moves from a Hold to Buy
Cabot Small-Cap Confidential
Special Bulletin April 1: Porch (PRCH) reported its first quarter as a public company this week. The numbers are a little messy due to divestments and acquisitions over the last year, but the bottom line is that the quarter was good and the company is well-positioned for the year ahead. Making all the necessary adjustments, revenue in Q4 was up 34% to $19.5 million and up 28% to $73.2 million for the full year 2020.
Monthly Issue April 1: Tyler’s new recommendation, Revolve (RVLV) is an e-commerce fashion retailer that focuses on Millennial and Gen Z consumers (ages 18 to 39) through two differentiated websites, REVOLVE and FORWARD. The company has a portfolio of 24 owned brands, each of which has unique attributes and is supported by independent marketing and relationships with influencers. Additionally, Revolve continuously finds new brands and designers to feature on its websites. Revenue growth from 2017 through 2019 averaged 25%, with revenue up 21% to $601 million in 2019. Revolve has been consistently profitable; 2019 adjusted EPS rose 14% to $0.50. The pandemic had a negative impact in all quarters of 2020, driving sales to drop 3% to $581 million and a 1% reduction in active customers. Management made operating adjustments to maintain profitability, and EPS rose 58% to $0.79.
Special Bulletin March 29: Sell One-Quarter Position in Cerence (CRNC). The market continues to be extremely challenging for growth-oriented stocks and many of our names are trading near support levels. It’s one of those environments where, with many stocks down 20% to 40% from their highs, it’s an entirely “normal,” albeit significant, correction. In other words, we expect these environments to come along every now and then, pass, and on we go. Maybe not to new highs straight away, but eventually.
Weekly Update March 25: It continues to be a very tough market, and with our exposure to small- and mid-cap growth stocks our portfolio continues to feel pressure. After some signs of stabilization last week the sellers are back in control this week and many names look destined to retest their March lows, or possibly dip a little lower. Tyler has three portfolio changes: Arena Pharmaceuticals (ARNA) moves to HOLD, Avalara (AVLR) moves to HOLD and Profound Medical (PROF) moves to SELL.
Cabot Dividend Investor
Weekly Update March 31: Energy and technology are no longer driving the market higher. As a result, the S&P 500 is kind of moving sideways. That’s fine. Technology has been red hot through this market recovery (not to mention the last ten years) and was due for some sort of pullback or consolidation. Energy stocks soared a lot higher in a short period of time and were due to cool off. Many stocks in this portfolio should be poised to move higher in the weeks ahead. But we’re not giving up on technology positions Qualcomm (QCOM) and Broadcom (AVGO) or energy positions Valero Energy (VLO), Chevron (CVX) or Enterprise Product Partners (EPD). Tom has no portfolio changes.
Monthly Issue March 10: This is a wild market. Yesterday’s perennial losers are today’s big winners. At the same time, long dominant technology stocks are taking a beating. Cyclical or open-up stocks are on fire, and for good reason. The U.S. economy has far exceeded expectations at every phase of the recovery so far. The vaccines promise to end the remaining lockdowns and restrictions, or significantly curtail them. With the shackles removed, the economy will kick into high gear. Even several normally dour economists are predicting the highest GDP growth in decades this year. Tom’s featured stock KKR & Co. (KKR), is a leading global alternative asset manager. The firm manages multiple alternative asset classes including private equity, energy, infrastructure, real estate, credit, as well as hedge funds through strategic partners. It generates revenues from management fees, performance income and investment income with a global reach on five continents.
Cabot Marijuana Investor
Monthly Issue March 31: Fourth quarter results are in for all but one of our companies (Jushi) and they were terrific, showing average revenue growth from the year before of 167%—a number that would be even higher without the presence of Turning Point and Village Farms, two stocks that have brought the portfolio lower-risk diversification. And prospects for growth in the sector remain high, as New Jersey and now New York are working on the details of creating legalized markets—though just as with Covid vaccine rollouts, every state’s got to do it their own way, which takes time. Tim is making one change today, selling our final piece of Village Farms (VFF) and holding the cash.
Weekly Update March 24: The marijuana sector, in general, remains in a correction. The high for the sector was six weeks ago, while the most recent bottom was two and a half weeks ago. Since then, one of our stocks, Trulieve (TCNNF), has hit a new high, while another, TerrAscend (TRSSF), has broken down below its recent low. Going forward, if we see more weakness, we could sell even more from our portfolio, which is now 58% in cash. Alternatively, if the sector strengthens, we could jump back in.
Cabot Early Opportunities
Special Bulletin March 29: Sell DDOG, FROG and CERT. Trading action continues to be sloppy as we move toward the end of the first quarter (ends Wednesday) and toward April. News of the Archegos Capital collapse (a hedge fund) has cast a bit of a shadow over parts of the market as well (financials, some China stocks) as forced liquidations drove huge volatility in stocks (DISCA, TME, SHOP, FTCH and more) late last week. These are the types of events that happen during corrections and can sometimes help explain why stocks are moving irrationally.
Monthly Issue March 17: One year and one day ago, on March 16, 2020 the S&P 500 had one of the worst days in history, falling nearly 12%. Of course, that was just one in a horrible stretch of trading days that slashed the index by 35% over the course of six weeks. This advisory service was relatively new at the time and we were just starting to get into a groove when things went crazy. Tyler’s Top Pick is Eargo (EAR), produces high-quality, small, well-fitting and easy-to-use hearing aids, at a reasonable cost. Eargo’s solution ticks all the boxes. It is nearly invisible (fitting completely in the ear canal) and has a lot of technology (including 16 hours per charge) packed into a small form factor.
Cabot Profit Booster
Weekly Issue March 30: It has been a volatile few weeks for the market, with the Nasdaq under consistent selling pressure and more than 7% off its February high, while the S&P 500 hit new all-time highs last week. The Cabot Profit Booster portfolio has had some ups and downs as well, as weakness in growth stock Dynatrace (DT) has been offset by strength in our cyclical, “reopening” stocks, including Abercrombie & Fitch (ANF), Summit Materials (SUM) and TripAdvisor (TRIP). Jacob’s new stock recommendation is ZoomInfo (ZI).
Cabot Micro-Cap Insider
Weekly Update March 31: The big news this week (completely unrelated to our recommendations) is that a family office called Archegos Capital Management has blown up and caused a mini-meltdown in the market. Archegos is the family office of Bill Hwang, a former protégé of hedge-fund titan Julian Robertson. Archegos used total return swaps to generate big concentrated positions in certain stocks while posting limited funds up front. Swaps allow an investor to generate the total return of a certain portfolio of stocks without actually owning the stocks. Basically, swaps allowed Archegos to take a massive concentrated, levered bet on a portfolio of stocks including Baidu, Discovery, ViacomCBS, and others. Rich has no portfolio changes.
Monthly Issue March 10: Value investors have waited a long time for this. After suffering through one of the worst periods of relative underperformance ever, value is outperforming. Not only is value outperforming, but it feels like some of the froth is being sucked out of the market. Tesla (TSLA) is down 36% from its all-time highs. Nikola (NKLA) is down 49%. Many SPACs are suddenly trading for less than their cash holdings. Rich’s new recommendation Aptevo Therapeutics (APVO), a biotech company with a promising pipeline yet a very low valuation. Tang Capital has an offer outstanding to purchase the company for 50 per share, significantly above where the stock currently trades.
Cabot Income Advisor
Weekly Update March 31: Technology stocks are still foundering, down over 8% from the highs of six weeks ago. Meanwhile, the torrid rally in the energy sector has run out of gas for now. That sector has pulled back about 8% from the recent high. Without either of those two sectors driving the market higher, the S&P 500 has been sort of moving sideways. Market leadership appears to be shifting. It’s interesting to note that utilities have been the top performing market sector over the past month and week. Other safe sectors have been picking up as well. Many stocks that were left out of the cyclical rally over the past several months are gaining strength.
Monthly Issue March 24: Cyclical stocks are hot and technology stocks are not. Wait a minute. Cyclical stocks are moving lower and technology is roaring back. That’s been the story over the past month. Of course, energy stocks are due for a pullback or consolidation after such a huge move higher. It’s normal. And the prognosis for the sector is still good for the rest of the year. It also isn’t clear if technology stocks are finished correcting or not. While those sectors are having all the fun, most S&P 500 sectors haven’t been doing much. Tom’s first featured stock U.S. Bancorp (USB), is the fifth largest bank in the United States and the country’s largest regional bank with over 3,000 bank branches in 25 states in the western and northern U.S. Tom’s second featured stock KKR & Co. (KKR), Formerly Kohlberg Kravis Roberts Co., is a leading global alternative asset manager.
Cabot Turnaround Letter
Weekly Update April 1: Bruce is raising our price target on Mohawk Industries (MHK) from 180 to 220. The company is delivering on the fundamental improvements that we anticipated when we recommended the shares in March 2019. We had reduced the target price during the pandemic, but now return it to its original 220, as Mohawk looks to have side-stepped the downturn.. Click here to listen to the podcast.
Monthly Issue March 31: In the excitement to capture the momentum in post-Covid economic re-opening stocks, investors seem to be leaving aside the defense contractors. These companies produce large-scale weapons and related equipment for the United States and allied governments. Several factors may be behind this neglect, including uncertainty regarding the Biden Administration’s priorities, possible spending limits imposed by the surging federal budget deficit and avoidance by investors who emphasize favorable environmental, social and governance (ESG) traits. Also, the defense industry is generally slow-growth, sending investors elsewhere to look for faster growth. Bruce’s has one buy recommendation: Elanco Animal Health (ELAN) and two sell recommendations: Valero Energy (VLO) and Volkswagen AG (VWAGY).
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts from January 20, 2021 is now available for you to listen to at your convenience—click here for access. This private call with our analysts is one of your exclusive Cabot Prime Pro member benefits.
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 Small-Cap Confidential | Cabot Global Stocks Explorer | Cabot Growth Investor | Cabot Marijuana Investor | Cabot Stock of the Week | Cabot Undervalued Stocks Advisor | Cabot Dividend Investor |
|---|---|---|---|---|---|---|---|
| ABBV | Hold 2/3 | ||||||
| ACCD | Buy | ||||||
| APG | Sell | ||||||
| APT.AX | Sold | ||||||
| ARNA | Hold | ||||||
| ATCO | Buy 1/2 | ||||||
| AVGO | Buy | Buy | |||||
| AVLR | Buy | ||||||
| AVVIY | Buy | ||||||
| BFT | Buy 1/2 | ||||||
| BIP | Buy | Buy 2/3 | |||||
| BLFS | Buy | ||||||
| BMY | Strong Buy | ||||||
| BSCL | Hold | ||||||
| CDLX | Buy | ||||||
| CGC | See Advisory | ||||||
| CRLBF | See Advisory | ||||||
| CRNC | Sell 1/4 | ||||||
| CSCO | Buy | ||||||
| CURLF | See Advisory | ||||||
| CVX | Buy | ||||||
| DKNG | Buy 1/2 | Buy | |||||
| DLR | Buy | ||||||
| DOW | Hold | ||||||
| EPD | Buy | ||||||
| EVBG | Buy | ||||||
| FIVE | Buy | Buy | |||||
| FSR | Buy | ||||||
| FVRR | Hold 1/2 | ||||||
| GM | Hold | Hold | |||||
| GOLD | Buy | Buy | |||||
| GRWG | See Advisory | ||||||
| GSHD | Hold 3/4 | ||||||
| GTBIF | See Advisory | ||||||
| HTHT | Hold | ||||||
| IIPR | See Advisory | ||||||
| IBM | Buy | ||||||
| INSP | Hold | ||||||
| JBLU | Hold | ||||||
| JUSHF | See Advisory | Hold 2/3 | |||||
| KO | Buy | Buy | |||||
| KRNT | Buy | ||||||
| LGIQ | Sold | ||||||
| LLY | Hold 2/3 | ||||||
| MO | Hold | ||||||
| MRK | Buy | ||||||
| MRVL | Buy | ||||||
| NEE | Buy | Buy | |||||
| NET | Hold 1/2 | ||||||
| NGLOY | Buy | ||||||
| NVCR | Buy | ||||||
| O | Buy | ||||||
| PGNY | Sell | ||||||
| PGX | Hold 1/2 | ||||||
| PINS | Hold | Hold | |||||
| PRCH | Buy | ||||||
| PROF | Sold | ||||||
| QCOM | Hold 2/3 | ||||||
| QS | Buy | Buy | |||||
| QTWO | Buy | ||||||
| RGEN | Buy | ||||||
| ROKU | Sold | ||||||
| RVLV | Buy | ||||||
| SE | Buy 1/2 | Buy | |||||
| SPCE | Hold 1/2 | Take Partial Profits | |||||
| SPT | Buy | ||||||
| SSO | Buy | ||||||
| ST | Buy | ||||||
| STAG | Buy | ||||||
| TAP | Hold | Buy | |||||
| TCNNF | See Advisory | Hold | |||||
| TPB | See Advisory | ||||||
| TRSSF | See Advisory | ||||||
| TSLA | Hold | ||||||
| TSM | Buy 1/2 | ||||||
| TSN | Buy | ||||||
| TWLO | Hold 3/4 | ||||||
| UBER | Hold | Hold | |||||
| USB | Buy | Buy | |||||
| VLO | Hold | ||||||
| VZ | Hold | ||||||
| XEL | Buy 2/3 |