Cabot Prime Pro Week Ending April 23, 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 has a bit of a split decision — on one hand, he’s seeing a lot of potential setups into earnings season (some gap ups could present some juicy buying opportunities), but he’s also still seeing a good amount of selling on strength. Thus, he’s ready to do some buying, but is waiting patiently for the market itself to give the go-ahead. Stocks mentioned include NVDA, YETI, FND, ASML, OKTA, QRVO, FANG, XEC, and GTLS.
UPCOMING CABOT EVENTS:
Cabot Retirement Club Member Call
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3 Power Stocks to Buy Right Now
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Advisory Services
Cabot Growth Investor
Bi-weekly Issue April 22: Two-plus months ago, speculation was running rampant and most growth stocks had made giant moves over the prior six to nine months. So when the sellers finally stepped up and cracked the intermediate-term uptrend in many growth stocks and the Nasdaq itself, our main thought was that time would be needed to wear/scare out the weak hands and re-set these stocks’ longer-term advances.
Special Bulletin April 19: Growth stocks are again under pressure; we never bought much into the recent rally, with 45% cash and today we’ll boost that to near 50% by cutting bait with DraftKings (DKNG). We’re also moving Pinterest (PINS) to Hold given the recent selling.
Bi-weekly Update April 14: Continue to go slow but have your shopping list ready. Growth stocks are gradually improving their standing, with more popping toward their highs, many holding their gains and a few finding some good-volume buying. That said, most potential leaders are still sitting on the runway, so we’re content to stand pat tonight and look for decisive strength to pull us into a heavily invested position. Our cash position stands at 45%. Mike is moving Uber (UBER) back to a Buy.
Cabot Top Ten Trader
Movers & Shakers April 23: It’s been a mild down week for the major indexes, most of which are down in the 0.5% to 1% range, though it felt a bit worse to us for a couple of reasons. First, early in the week, we saw the sellers step up once again in the growth names, causing many to fail at their prior highs or at key resistance (like their 50-day lines). Second, we’re seeing more and more churning and selling among some of the strong broad-market areas like financials, transports and even chip stocks. Mike has three buy recommendations.
Weekly Issue April 19: Growth stocks are still in mostly good shape, which is the good news. And while we see reasons for continued optimism, it’s also hard to be a raging bull right now. There’s quite a bit of rotation underway, and sentiment is still elevated. On top of that, the number of Nasdaq stocks making new lows is more than we’d like to see, which means cross-currents could become a factor in the near term. Mike’s Top Pick Nvidia (NVDA), is an established semiconductor name with a growing presence in the soaring high-performance computing (HPC) market, and which has just broken out to new highs on strong volume.
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 Trade Alert April 23: Sell Half of Existing Position: Sell Half of your Gap (GPS) September 32 Calls for $5 or more.
Cabot Options Trader & Basic Earnings April 21: Freeport McMoRan (FCX) will report earnings tomorrow before the open. Headed into the event Cabot Options Trader’s and Cabot Options Trader Pro’s positions are in great shape.
Cabot Options Trader Basic & Pro Trade Alert April 20: Sell Half of Existing Position: Sell Half of your Draftkings (DKNG) August 70 Calls for $2.25 or more.
Cabot Options Trader Pro Weekly Update April 19: Long positions: FCX, SONO, XLF, PINS, UBER, DKNG, F, GPS, CGC
Cabot Options Trader Weekly Update April 19: To quote a popular Paul Simon tune, market volatility is “slip slidin away” as the Chicago Board of Options Exchange Volatility Index (VIX) fell again last week, it’s sixth weekly loss in the past seven weeks. For the full week the VIX fell 13.8% to finish Friday at 16.25.
Cabot Undervalued Stocks Advisor
Weekly Update April 21: Proxy season is moving into full gear. As a shareholder, you are one of the owners of your companies, so you get to vote on major decisions. Shareholder votes are, of course, much like public government elections, but in most cases your vote has a bigger impact. Public elections are one-person, one-vote, but company elections are one-share, one-vote. Bruce has two portfolio changes: U.S. Bancorp (USB) – Moving from Hold to Sell and JetBlue Airlines (JBLU) – Moving from Hold to Sell.
Monthly Issue April 7: As one might expect in a value-oriented investment advisory, we focus a lot on a company’s valuation. We want to understand what the company is worth, both today and in the foreseeable future, and then buy its shares at some discount to that value. Determining a company’s underlying value is difficult, and more of an art than a science. There are many valuation approaches, including using a price/earnings multiple, discounted cash flow, EV/EBITDA multiple and net asset value. Bruce has one portfolio change: Tyson (TSN) is moving from Buy to Hold.
Cabot Stock of the Week
Weekly Issue April 19: The bull market rolls on—but it’s not a perfect bull market. In fact, it’s showing signs of age, with divergences and rotations that alternately reward and retard various sectors from time to time. Tim’s featured stock Columbia Care (CCHWF), is a vertically integrated multistate operator in the marijuana industry. Tim has four portfolio changes: DraftKings (DKNG) to Sell, QuantumScape (QS) to Sell, Trulieve (TCNNF) to Buy and Uber (UBER) to Buy.
Cabot Explorer
Bi-weekly Update April 22: Wall Street has finally woken up to Southeast Asia’s great promise. The region is more populous than the European Union or North America and western investors are now looking for a chance to invest in this dynamic region that’s home to almost 700 million tech-savvy consumers. Specifically, they are hopeful of finding another Sea (SE), an Explorer recommendation based in Singapore that listed in New York in 2017 and has quintupled in the past year, to a mighty $125 billion market cap. Carl has one portfolio change: Anglo American (NGLOY) moves from Buy to Hold.
Bi-weekly Issue April 15: Markets seem to be pausing a bit, with some stocks losing momentum while a few show surprising strength. Carl’s sense is that the market is looking at numbers with a more skeptical eye these days. Just as they’re beginning to take off in Asia, SPACs (Special Purpose Acquisition Companies) have definitely cooled a bit here, for several reasons. One is that the novelty has worn off a bit. Carl’s new recommendation is Altimeter Growth Corp. (AGC). Carl has two portfolio changes: Atlas Corp. (ATCO) moves from Hold to Sell and QuantumScape (QS) moves from Buy to Sell.
Cabot Small-Cap Confidential
Weekly Update April 22: As we move forward the simple and often repeated narrative of “everything will go back to normal once enough people have been vaccinated” will likely prove to be far from accurate. More likely is that a new normal will emerge, and it will be different from what was expected. As investors we need to keep our eyes open and ears to the ground as we seek out opportunities to participate in what that new normal could be.
Special Bulletin April 19: PRCH is trading right on its 200-day line now, which happens to be almost smack on our entry price. To say that we would not like to see this stock go from having a nice gain to a loss is an understatement. We accept we’ll have the occasional “round trip” stock, and that’s one thing, but going from gain to loss is quite another.
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.
Cabot Dividend Investor
Weekly Update April 21: The market still looks strong. But it’s getting a little harder to figure out. The S&P 500 is within bad breath distance of the all-time high. Another new one was made just a few days ago. But despite the continuing higher trend, there isn’t really any leadership. Technology stocks have been strong since the selloff in February. But every time the sector starts to get some real traction, it gets knocked back. Cyclicals are hot one day, then cold the next. Meanwhile, defensive stocks in the utility and health care sectors have been strong, but not really strong enough to drive the market higher. Tom has one portfolio change: STAG Industrial (STAG) moves from Buy to Hold.
Monthly Issue April 14: This is an unusual environment to say the least. The market is looking ahead to the highest GDP growth in decades as vaccines end the lockdowns and restrictions. And forecasts continue to rise. At the same time, trillions in government stimulus will flood into the economy. Tom’s featured stock AGNC Investment Corp. (AGNC),is a mortgage real estate investment trust (mREIT) that invests predominantly in U.S. Government backed residential mortgages. It pays a high dividend yield, currently 8.4%, and makes dividend payments on a monthly basis.
Cabot Marijuana Investor
Weekly Update April 21: Today Canopy Growth (CGC), announced Southern Glazer’s Wine & Spirits as the distribution partner for its U.S. portfolio of CBD-infused beverages. This partnership announcement follows the recent launch of Quatreau – Canopy’s first line of CBD-infused beverages sold in the U.S market. Southern Glazer’s will distribute Canopy’s CBD beverages, beginning with Quatreau, across seven states, with additional states in the months to come.
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.
Cabot Early Opportunities
Monthly Issue April 21: As investors we need to keep our eyes open and ears to the ground as we seek out opportunities to participate in what that new normal could be. Today’s Issue covers five candidates, all of which have been acting reasonably well. Tyler’s Top Pick AtriCure (ATRC), is a small-cap MedTech company that plays in the atrial fibrillation (AF, or Afib) and left atrial appendage (LAA) management markets, which top 30 million people worldwide and six million in the U.S.
Special Bulletin April 20: It is a stink fest out there in the market today and Fisker (FSR) has looked like a hot pile of garbage for weeks. But today we see another big bank jumping in with a buy rating.
Special Bulletin April 19: The market has hit an air pocket over the last few sessions and SPAC IPOs have been particularly soft for a few weeks now. Today we’re taking partial gains in a few positions and cutting losses short in another. Read bulletin for all recommendations.
Cabot Profit Booster
Weekly Issue April 20: April was another strong month for the Cabot Profit Booster portfolio as we locked in gains ranging from 3.7% to 7.9% on our six positions. With the expiration/sale of these six positions we now only own two covered calls (CLF, GT), which actually works out nicely headed into earnings season. Speaking of earnings, this week’s pick is a recent earnings season winner that busted out to a new high following reporting quarterly results. Jacob’s new stock recommendation is Levi Strauss (LEVI).
April Expiration April 19: Friday afternoon several of the April covered calls that we sold expired worthless, leaving us with “uncovered” stock positions. Today, Jacob is selling the TRIP, SUM, AMKR, AZEK and ZI stock positions, leaving us without a call, or stock position, in all of these stocks.
Cabot Micro-Cap Insider
Weekly Update April 21: Even the S&P 500 is back near all-time highs. So why does it feel like there’s been a pullback in the market? Because there has … if you’re a micro-cap investor. The Russell Micro-cap index has pulled back and has underperformed the S&P 500 by 13% in the past month.
Monthly Issue April 14: Rich’s new recommendation Atento SA (ATTO), is a Latin American customer relationship management (CRM) business that is growing, generating positive free cash flow, and is an acquisition candidate. It’s majority owned by sophisticated private equity investors who are restricted from selling the company until May 2022. At that time, Rich expects a sale of the company for more than 100% above Atento’s current price. It is currently trading at 3.6x forward EBITDA. This is truly a distressed valuation that is usually associated with a company that is on the verge of bankruptcy.
Cabot Income Advisor
Weekly Update April 21: It’s earnings season. So far, it has mainly been just the big banks that have reported. And the results have been largely positive. Earnings come at a time when the market can’t seem to make up its mind. Technology stocks have been strong since selling off last month. But the sector seems to get periodically knocked back before it really gains traction. Cyclical stocks are hot, and then they’re cold. Meanwhile, defensive utilities and healthcare stocks have been stronger.
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 23: There were no ratings or price target changes this past week. Adient (ADNT) is above our price target – we are reviewing this name. Also, Jeld-Wen Holdings (JELD) is above our price target. The company reports next Friday. There is upside potential but we are weighing this against rising lumber costs and slowing housing demand. 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 April 21, 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 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 | ||||||
| AGC | Buy | ||||||
| AGNC | Buy | ||||||
| ARNA | Hold | ||||||
| ATCO | Sold | ||||||
| AVGO | Buy | Buy | |||||
| AVLR | Buy | ||||||
| AVVIY | Buy | ||||||
| BFT | Buy 1/2 | ||||||
| BIP | Buy | Buy 2/3 | |||||
| BLFS | Buy | ||||||
| BMY | Strong Buy | ||||||
| BSCL | Hold | ||||||
| CDLX | Hold | ||||||
| CCHWF | Buy | ||||||
| CGC | See Advisory | ||||||
| CRLBF | See Advisory | ||||||
| CRNC | Hold 3/4 | ||||||
| CSCO | Buy | ||||||
| CURLF | See Advisory | ||||||
| CVX | Buy | ||||||
| DKNG | Sell | Sell | |||||
| DLR | Buy | ||||||
| DOW | Hold | ||||||
| EPD | Buy | ||||||
| EVBG | Buy | ||||||
| FIVE | Buy | Buy | |||||
| FND | Buy a Half | ||||||
| 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 | Buy | ||||||
| JBLU | Sell | ||||||
| JUSHF | See Advisory | Hold 2/3 | |||||
| KO | Buy | Buy | |||||
| KRNT | Buy | ||||||
| LLY | Hold 2/3 | ||||||
| MO | Hold Half | ||||||
| MRK | Buy | ||||||
| MRVL | Buy | ||||||
| NEE | Buy | Buy | |||||
| NET | Hold 1/2 | ||||||
| NGLOY | Hold | ||||||
| NVCR | Buy | ||||||
| O | Buy | ||||||
| PGX | Hold 1/2 | ||||||
| PINS | Hold | Hold | |||||
| PRCH | Buy | ||||||
| QCOM | Hold 2/3 | ||||||
| QS | Sold | Sell | |||||
| QTWO | Buy | ||||||
| RGEN | Buy | ||||||
| RVLV | Buy | ||||||
| SE | Buy 1/2 | Buy | |||||
| SLQT | Buy a Half | Buy | |||||
| SONO | Buy | ||||||
| SPCE | Hold 1/2 | Take Partial Profits | |||||
| SPT | Buy | ||||||
| SSO | Buy | ||||||
| ST | Buy | ||||||
| STAG | Hold | ||||||
| TAP | Hold | Buy | |||||
| TCNNF | See Advisory | Buy | |||||
| TPB | See Advisory | ||||||
| TRSSF | See Advisory | ||||||
| TSLA | Hold | ||||||
| TSM | Buy 1/2 | ||||||
| TSN | Hold | ||||||
| TWLO | Hold 3/4 | ||||||
| UBER | Buy | Buy | |||||
| USB | Sell | Buy | |||||
| VLO | Hold | ||||||
| VZ | Hold | ||||||
| XEL | Buy 2/3 |