Cabot Prime Pro Week Ending October 19, 2018
Cabot Quarterly Market Report and Teleconference
3Q 2018 ReportThe third quarter of 2018 was fun and profitable for most investors, with numerous indexes hitting new highs in August and September, but now we’re just halfway through October and the malaise that affected foreign stocks has spread to U.S. stocks. I suggest you take it all in stride and respect the markets trends which are short-term down, but long-term remaining definitively up. You can listen to the Quarterly Analyst Teleconference here.
Cabot Weekly Review (Video)
In this week’s stock market video, Mike Cintolo talks about the market’s modest bounce this week--a small positive, though with the intermediate-term trend of the major indexes and leading stocks still pointed south, he’s advising a mostly defensive stance and giving things time to build new launching pads. He is beginning to see the wheat separate from the chaff, and highlights some stocks to keep an eye on as earnings season revs up.
Advisory Services
Cabot Growth Investor
Special Bulletin October 19: Today’s afternoon Special Bulletin is in regards to Ligand Pharmaceuticals (LGND), which, like so many stocks, flashed heavy selling during the first two weeks of October, failed to bounce much and has now sunk to lower lows. Mike sold one-third of our shares at much higher prices, and while a bounce is certainly possible, he’s going to sell the rest this afternoon and hold the cash.
Bi-weekly Update October 17: Mike writes that you should remain defensive. The market has been bouncing decently during the past four trading days, but our Cabot Tides remain clearly negative and most growth stocks are still in steep corrections. Longer-term, he’s optimistic this bull market will eventually resume, but right now, it’s best to hold plenty of cash, cut back on new buying and patiently wait for a new uptrend to being. He has no portfolio changes tonight.
Bi-weekly Issue October 10: Mike says to turn defensive. In the Model Portfolio, he’s sold PayPal, Dexcom and Neurocrine since the last issue, while taking partial profits in Ligand, Okta and Teladoc. And tonight he’s cutting the loss in Autodesk (ADSK) leaving us with 61% of the portfolio on the sideline.
Other Stocks of Interest October 12: Follow ups to stocks featured May 9, 2018 (issue 1393) to October 10, 2018 (issue 1404). Since they’re not in the Model Portfolio, you don’t see them followed on a regular basis. However, we are monitoring these stocks, and this listing gives their current momentum status.
Cabot Top Ten Trader
Movers & Shakers Weekly Update October 19: The market has been all over the place this week, but net-net, the indexes are posting modest gains. Mike says the Market Monitor will likely remain at a level 4 (out of 10) in Monday’s issue. Today’s buy ideas are American Outdoor Brands (AOBC), Ciena (CIEN), Intelsat (I) and Spirit Airlines (SAVE). There are three sell ideas today: Allison Transmission (ALSN), Exact Sciences (EXAS) and Ligand Pharm (LGND).
Weekly Issue October 15: This week’s list is a hodgepodge of stocks and sectors, which isn’t surprising given the environment. Mike’s Top Pick is Ulta Beauty (ULTA), which remains resilient and looks ready to be a steady leader once the market correction is over.
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 Stocks on Watch October 18: Two stocks on Jacob’s watch list because of bullish option activity are PayPal (PYPL) and Abbot Laboratories (ABT).
Cabot Options Trader Education October 17: Jacob answers the question: What is a Bull Trap?
Cabot Options Trader Alert October 16: Sell Half of Existing Position: Sell HALF your Xilinx (XLNX) March 80 Calls for $6 or more.
Cabot Options Trader Earnings October 16: Netflix (NFLX) is reporting earnings today after the close.
Cabot Options Trader Stocks on Watch October 15: Carvana (CVNA) is the perfect example of a glamour stock that rocketed higher earlier this year, and then came crashing back over the last three weeks. The stock started the year at 19, traded as high as 72.5 in mid-September, and is now trading at a new recent low of 44.25. Into this recent weakness traders have been buying upside calls. Also, One sector that is attracting heavy put buying today is Steel. Jacob gives you examples of some big bearish trades made in three large steel stocks.
Cabot Options Trader Weekly Market Update October 15: Extreme fear and volatility returned to the market last week as the S&P 500 fell a combined 5.35% Wednesday and Thursday. For the week, the S&P 500 lost 4.1%, the Dow tumbled 4.19% and the Nasdaq dropped 3.74%. The Chicago Board of Options Exchange Volatility Index (VIX) closed the week at 21, or higher by 20%. At the market lows of the day Thursday the VIX traded above 28, its highest level since February.
Cabot Options Trader Pro Weekly Market Update October 15: Jacob has four long positions: PAGS, PSTG, RF and XLNX, one position not impacting his decision making: QQQ Iron Condor and one short position: QQQ.
Cabot Undervalued Stocks Advisor
Special Bulletin October 19: Today, Christa has third-quarter earnings reports from Interpublic Group (IPG), Schlumberger (SLB), Skechers (SKX) and Synchrony Financial (SYF) and DowDuPont (DWDP) reports a large impairment charge.
Special Bulletin October 18: BB&T Corp. (BBT), Blackstone Group (BX) and Comerica (CMA) all reported third-quarter earnings beats.
Weekly Update October 16: This weekly update includes an earnings report from Delta Air Lines (DAL). Today’s Portfolio Changes: Blackstone Group L.P. (BX) moves from Hold to Strong Buy, CIT Group (CIT) moves from Strong Buy to Hold, Commercial Metals (CMC) moves from Strong Buy to Hold, D.R. Horton (DHI) moves from Strong Buy to Hold and Southwest Airlines (LUV) moves from Buy to Strong Buy.
Monthly Issue October 2: Today’s featured stocks include Alexion Pharmaceuticals (ALXN), CIT Group (CIT), and a new addition to the Growth & Income Portfolio: Delta Air Lines (DAL). Today’s portfolio changes are: Blackstone Group LP (BX) moves from Buy to Hold, Delek U.S. Holdings (DK) moves from Strong Buy to Hold and Martin Marietta Materials (MLM) moves from Strong Buy to Hold. Crista also writes about General Electric (GE).
Cabot Stock of the Week
Weekly Issue October 16: Today’s recommendation is Altair Engineering (ALTR), a small-cap stock that pulled back to a great support level and is a very attractive buy now. Tim has one change today: CSX Corp. (CSX) moves from Buy to Hold.
Cabot Emerging Markets Investor
Bi-weekly Issue October 18: The tariff wars and rising interest rates are beginning to have a measurable effect on the economies of the world, with emerging economies taking the biggest hit. Paul is going to keep our cash level as high as necessary to stay away from the giant slalom course that is the emerging markets right now. Tonight’s recommendation is Petrobras (Petróleo Brasileiro S.A.) (PBR), the Brazilian national oil company. Oil prices hit their highest levels since 2014 in October, and even with their recent slip, are at a level to provide huge valuation premiums to owners of large oil reserves, which Petrobras has in spades. It’s rated Buy a Half. Paul has no changes to the portfolio tonight.
Bi-weekly Update October 11: The Cabot Emerging Markets Timer is solidly negative. Paul sold Beigene (BGNE) in a Special Hotline yesterday, and today, are selling half of our position in Alibaba (BABA).
Cabot Small-Cap Confidential
Weekly Update October 19: Tyler says that the big news this week is that we: (1) recovered some of last week’s losses and (2) have a notable acquisition in the small cap cloud software space. He has one change to the Portfolio: Chefs’ Warehouse (CHEF) moves to Buy.
Monthly Issue October 5: Things have deteriorated over the past week and investors are clearly becoming more concerned about a larger correction. So there are two moves to Hold in today’s update: Apptio (APTI) and Q2 Holdings (QTWO). Tyler’s new recommendation is Altair Engineering (ALTR), a $2.8 billion company that develops and sells computer aided engineering (CAE) software to help manufacturing companies innovate across their entire product lifecycle, from concept design, to manufacturing, to in-service operation.
Cabot Dividend Investor
Weekly Update October 17: Chloe writes that most of the higher-risk names in the portfolio are already on Hold, but she’s taking a couple more defensive moves today, moving STAG Industrial (STAG) to Hold and selling half of McGrath RentCo (MGRC), which continues to decline. However, our safe income stocks look great: McCormick (MKC) and UnitedHealth (UNH) just hit new 52-week highs.
Monthly Issue September 26: Today Chloe is adding a little more diversity, increasing her consumer exposure by adding a well-known chain, Dunkin’ Brands Group (DNKN), to the Dividend Growth tier. Also, Community Health Trust (CHCT) moves to Hold.
Cabot Marijuana Investor
Update October 16: Tomorrow’s the day that stores across Canada begin selling marijuana legally, and as Tim has said several times before, he believes the odds are that this will mark an intermediate-term top for many of the stocks in the sector. Thus, he’ll be taking partial profits in all the portfolio’s Canadian producers today (that’s six stocks) by selling half of each position. Aurora Cannabis (ACBFF), Canopy Growth (CGC), Cronos Group (CRON), HEXO Corp. (HYYDF), and Organigram (OGRMF).
Monthly Issue October 4: Marijuana stocks have been relatively calm since Tim’s last update exactly two weeks ago, and this is good, particularly if you can find a good setup. His choice for the portfolio today is MedMen Enterprises (MMNFF), which he profiled in his August 22 report. In the portfolio, he will now take half the cash and invest it in MMNFF. Additionally, he will now take partial profits in Aurora (ACBFF), selling a third of his position, because it’s grown to an oversize share of the portfolio and the stock is extended.
Wall Street’s Best Investments
Daily Alert October 19: OneMain Holdings Inc. (OMF) from AlphaProfit Sector Investors’ Newsletter
Daily Alert October 18: Spotify Technology S.A. (SPOT) from Ian Wyatt’s Million Dollar Portfolio
Monthly Issue October 17: Nancy’s Spotlight Stock is Brookdale Senior Living (BKD), the nation’s largest operator of housing for seniors. In her Feature article, she delves into how the aging of our population is creating vast opportunities in this sector, as well as some of the specifics that are driving the improvements for our Spotlight company.
Daily Alert October 17: Southwest Airlines Co. (LUV) from Sure Dividend
Daily Alert October 16: ArcBest Corporation (ARCB) from Upside
Daily Alert October 15: Sell: Stitch Fix, Inc. (SFIX) from Cabot Stock of the Week
Daily Alert October 15: Sell: DexCom (DXCM) from Cabot Growth Investor
Daily Alert October 15: WNS Holdings Limited (WNS) from Cabot Stock of the Week
Wall Streets Best Dividend Stocks
Daily Alert October 19: Sell: AstraZeneca PLC (AZN) from 2 for 1 Stock Split Newsletter
Daily Alert October 19: National Healthcare Corporation (NHC) from 2 for 1 Stock Split Newsletter
Daily Alert October 18: PepsiCo Inc. (PEP) from Argus Weekly Staff Report
Daily Alert October 17: DNP Select Income Fund Inc. (DNP) from The Wealth Advisory
Daily Alert October 16: Sell: Washington Prime Group (WPG) from Forbes Dividend Investor
Daily Alert October 16: Keurig Dr Pepper Inc. (KDP) from Forbes Dividend Investor
Daily Alert October 15: Cohen & Steers Infrastructure (UTF) from Bob Carlson’s Retirement Watch
Monthly Issue October 10: This month’s Spotlight Stock, Carnival Corporation (CCL), is in one of Nancy’s favorite industries—cruising! The company is the largest in the sector, offering cruises that target all socioeconomic ranges. In her Feature article, she explores the industry, which is seeing unprecedented demand right now.
Ask the Experts
Cabot Options Trader
Question: I see a lot of people talking about the S&P oscillator and was wondering which technical Indicator in E*TRADE or other brokerage platforms this indicator corresponds to.
Wondering if you follow it ? Thanks in advance.
Jacob: I have seen traders mention the S&P Oscillator, but I’m not too familiar with it. I tend to stick with the Cabot signals, the VIX, Option Order Flow, and lastly my trader intuition to give me my best read on the health of the market. If you want to know more about the Cabot signals they come from Mike Cintolo’s Cabot Growth Investor a couple times a week.
Question: Good morning Jacob, I presently have January 2019 TIVO calls. As you know TIVO is rumored to be acquired or will go private so as to increase shareholder value. If they choose to go private, I am guessing they pick a price, does that affect my ability to sell the calls ? Thank you
Jacob: You will have plenty of time to sell your calls if the stock is taken private. For example, if the takeout price is 16, I would expect the stock to trade up to 15.75 approximately. And if that is the case your calls will gain in value, and you will be able to sell for many months before the deal is finalized.
Cabot Growth Investor
Question: Good morning Mike, I’m sure you’re getting a lot of questions over the course the last month so here’s one more: Are you going to be using this bounce to sell off more equity or we still going to be holding tight? Thanks again Mike.
Mike: Thanks for writing. Well, right now, I’m probably content to sit tight as we already have 62% in cash. If we were only at 50%, I might let something go, but having taken partial profits in most everything we still own, I’ll probably sit tight and see how it goes. I do think, however, if you’re craving cash, selling a broken stock or two into this bounce makes sense.
Cabot Undervalued Stocks Advisor
Question: (from a Canadian financial advisor) Would you have any idea what is likely to happen to Blackstone’s dividend yield if they convert from a LP to a Corporation. We like the high yield, but most Canadians don’t want LP’s In their portfolio due to tax reporting issues.
Crista: : The only clue I have toward the situation of Blackstone Group’s (BX) dividend payout following a potential C-corp conversion is to look at what KKR & Co. (KKR) did. KKR converted from an LP to a C-corp in early July 2018. Then in late July, KKR declared its normal quarterly dividend. Importantly, KKR pays a steady (identical) quarterly dividend (as most corporations do), but Blackstone Group pays a quarterly dividend that varies each quarter (as many LPs do). If Blackstone Group converts to a C-corp, it will almost assuredly begin paying a steady (identical) quarterly dividend. I’m sorry that there is not a more definitive answer. If I were advising Canadian clients on whether to own shares of BX, and the client was hesitant about the complicated tax situation, I would tell the client to pass on this particular investment opportunity.
Premium Reports
Cabot’s 10 Best Canadian Small-Cap Stocks
Special ReportAugust 31: One of the generally accepted wisdoms over the past couple of years has been that the U.S. stock market is where the action is. But there are market-beating returns available to investors willing to step abroad too. And one of the easiest places to find them is just over the border with our neighbor to the north, Canada.
10 Monthly Dividend Stocks to Buy for Year-Round Income
Special ReportAugust 9: Dividend-paying stocks are favorites of retirees and other investors who live off income from their investing portfolios. Like bonds, dividend-paying stocks provide a steady income stream that you can spend without eroding your principal. Unlike bonds, many stocks increase their dividends over time, so your income stream can actually rise each year. This report includes profiles of Chloe’s 10 favorite monthly dividend payers, each of which offers a unique mix of yield, capital appreciation and safety. If you’re looking for monthly income, you’re sure to find at least one that’s right for you.
Cabot’s 10 Best REITs to Buy Now
Special ReportJuly 18: Nancy has always loved real estate; in fact, she owns a small real estate franchise. But she loves the idea of a diversified real estate portfolio and REITs fit the bill. They have been excellent investments for her subscribers over the years as they offer the perfect opportunity to buy real estate with very little capital. And she believes the boom cycle in real estate is far from over. With that in mind, she set out to find the 10 Best REITs for today’s economy and market. She looked at growth, valuation, dividend yield, and fundamental and technical strength.
Cabot’s 10 Best Buy and Hold Stocks for 2018
Update July 13, 2018: Today, Crista updates investors on portfolio news and performance of the stocks in Cabot’s 10 Best Buy and Hold Stocks for 2018. In terms of individual stock performance, Supernus Pharmaceuticals (SUPN) is up 34.6% YTD through July 12, while Universal Electronics (UEIC) is down 28.0% YTD. The performance of the remaining stocks ranges between +19.5% and -18.2%.
Update June 12, 2018: On June 11, 2018, USG Corporation (USG) announced that its Board of Directors agreed for the company to be acquired by Gebr. Knauf KG for $44 per share in cash. Crista suggestion is that investors sell USG now, rather than wait for the remaining $0.96 per share to accrue from the special dividend and the remaining potential capital appreciation.
Cabot’s 10 Best Takeover Stocks
Special ReportUpdated August 10: There are a variety of reasons that a corporation might want to purchase another company. They might want to acquire a company’s patents or products to enhance their product lines; access the company’s distribution network and sales relationships; or simply aim to increase their earnings growth rate by purchasing a very profitable company within a related industry. After all, stronger earnings growth leads to better share price appreciation—a topic that boards of directors care very much about. Crista’s investment strategy, which combines both growth and value criteria, inadvertently identifies potential takeover targets. That’s because big companies and she often seek the same thing: stock investments in undervalued, financially thriving companies that can deliver profits to investors. The ten companies are all undervalued growth stocks. What’s more, they’re small enough that big competitors and peers within their sectors could easily finance their acquisitions, often through current cash flow.
Cabot’s 10 Best Covered Calls on Dividend Stocks
Special Report April 12: With interest rates just coming off of historically low levels, income investors have been desperately searching for alternative sources of yield. Dividend stocks are the obvious answer. But there’s an even better way to create yield: by executing a covered call strategy on stocks that pay dividends.
Cabot’s 10 Best Small-Cap Cloud Computing Stocks to Buy Now
Special ReportUpdated August 10: If you’re a growth investor, you need to own cloud software stocks. It’s just that simple. Cloud computing is changing the world. It’s powering massive growth in companies across sectors, empowering digital transformations, enabling new generations of connected technologies and changing how people live their lives. Tyler Laundon lays out the landscape and names his 10 best small-cap cloud computing stocks.
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 Pro
This Guide to Cabot Prime Pro will help you make the best use of your Prime membership to create a strong personal portfolio.