Cabot Prime Week Ending March 5, 2021

Cabot Prime Week Ending March 5, 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 meltdown in growth stocks and his increasingly cautious stance—there will be another uptrend down the road for growth, but right now, he’s focused more on capital preservation. Meanwhile, he does see some potential opportunities in non-growth areas (especially financials and energy) if we see pullbacks, and he relays his top thoughts and ideas. Stocks mentioned include SHAK, AMAT, LRCX, DT, GS, LPLA, DKNG, XEC, FANG, and PXD.

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Cabot Growth Investor

Special Bulletin March 5: Growth stocks remain under the gun, and while we’re already relatively defensive in the Model Portfolio, we’re going to do a little more trimming now, selling one-quarter of our remaining shares of both Roku (ROKU) and Twilio (TWLO). That will leave us with 57% in cash.

Bi-weekly Update March 4: Growth stocks have turned tail in a big way starting two weeks ago, with most leaders having now cracked intermediate-term support. This is still a bull market overall (our Cabot Tides are technically still positive, though they’re close to the fence), but the action among individual growth stocks has forced us to sell three names during the past two weeks and we’re now holding a cash position north of 50%. Mike is placing ProShares Ultra S&P 500 Fund (SSO) on Hold.

Special Bulletin March 3: Growth stocks continue to bleed today, with many down 4% to 10% even as money rotates into cyclical areas. Our trend-following indicators are still positive, so we’re not selling wholesale, but as growth investors, we are turning cautious—we came into this week with 41% in cash, and tonight, Mike is going to cut bait in Halozyme (HALO), which will leave us with a bit over 50% on the sideline.

Bi-weekly Issue February 25: Now, to be clear, much of the broad market is still in decent shape and has avoided this week’s wobbles. Our Cabot Tides are still clearly positive, and broader indexes like the NYSE Composite and S&P 400 MidCap haven’t even touched their 25-day lines during all of the commotion. Thus, at least among growth stocks, there’s little doubt that more and more names are cracking. To us, the wild action and myriad potholes among individual stocks in the past month have one clear interpretation: The environment is getting choppier and more challenging, with a few weeks of gains often given back in a few days and a good number of extended leaders succumbing to selling pressure. Mike has one portfolio change: NovoCure (NVCR) moves to a Sell.

Cabot Top Ten Trader

Movers & Shakers March 5: The iffy up-down-up-down action in leading growth names starting in late January led to some key breakdowns last week, and this week, growth stocks have been routed—the Nasdaq is down nearly 4%, but most leading names are off much more than that, with many coming completely unraveled. Mike has three buy recommendations: Goldman Sachs (GS), LPL Financial (LPLA) and Cimarex Energy (XEC).

Weekly Issue March 1: The market staged a nice-looking rebound today, especially given that both the S&P 500 and Nasdaq were hanging around their 50-day lines coming into today. Up is definitely good, but when examining the evidence, we see a tale of two markets. Growth stocks still look ragged, as many cracked key support last week and have been extraordinarily choppy during the past month (a sign bulls and bears are fighting it out after big runs). Mike’s Top Pick is Kulicke & Soffa (KLIC), which staged a long-term breakout in November, has huge growth and has been unaffected by the market’s wobbles.

Cabot Undervalued Stocks Advisor

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.

Weekly Update February 24: In the current raging bull market that we have been dealt, holding stocks is easy. They all seem to go up. The hard part is knowing when to fold ‘em. Our process uses price targets to help guide our sell timing. Sometimes we get the timing right, and sometimes we’re plain wrong. Our process now tells us that it is time to fold ‘em on ViacomCBS (VIAC), so we moved our rating to Sell on Tuesday, February 23. The stock has been a huge winner. Recently we decided to fold ‘em with Terminix (TMX) shares – this was a small winner that we didn’t want to become a loser. Bruce has one portfolio change: JetBlue (JBLU) – moving from Buy to Hold.

Cabot Stock of the Week

Weekly Issue March 1: While some segments of the broad market have experienced a sharp correction over the past month (growth stocks in particular), the broad market has not fallen apart; in fact, many indexes hit new highs just last week. And, of course, today’s big jump was rather impressive. Tim’s featured stock Five Below (FIVE), has carved out a space in between the true dollar stores and mid-tier retailers to offer a variety of goods (mostly for teens and pre-teens) in tons of categories: toys and games, beauty, party gear, technology, arts and crafts, sports, games, décor and much more.Tim has seven portfolio changes this week.

Cabot Global Stocks Explorer

Bi-weekly Issue March 4: The market is hitting a little turbulence, which is natural as it feels its way across the timing of the pandemic economic recovery, concern over debt, interest rates, and inflation – and the big issue that will not go away for the balance of this decade: the U.S.-China rivalry. Carl’s new recommendation Atlas Corp. (ATCO), operates as an independent charter owner and manager of containerships. The company charters its containerships to various container liner companies. It operates a fleet of 118 containerships and also provides fast-track mobile turbine power to various industries. In addition, the company plans, finances, and constructs permanent power plants. Carl has two portfolio changes: ElectraMeccanica (SOLO) moves from Hold to Sell and NovoCure (NVCR) moves from Hold to Sell.

Bi-weekly Update February 25: You may have seen that a relatively new Explorer idea, Fisker (FSR), was up 38% yesterday. It turns out that Carl’s analogy of comparing the company to Apple’s relationship to Foxconn was truer than even he could imagine. The news yesterday was that Foxconn will be making a future Fisker model electric vehicle, and even better, it may be doing so in his home state of Wisconsin. Carl has multiple portfolio changes: Fisker (FSR) moves from Buy a Half to Hold a Half and NovoCure (NVCR) moves from Buy a Full to Hold a Full.

Cabot Dividend Investor

Weekly Update March 3: The market has gotten a little choppy and interest rates are to blame. At least, that’s what they say. The market indexes fell last week and have been all over the place so far this week. The technology-stock heavy Nasdaq has been particularly concerning. That index had fallen over 7% from the highs at one point last week and is still down almost 6%. It’s about time. There’s no way technology stocks could keep up that pace. Tom has two portfolio changes: Innovative Industrial Properties (IIPR) moves from Hold to Sell and Qualcomm Inc. (QCOM) moves from Hold to Sell 1/3.

Monthly Issue February 10: The bull market keeps raging. All three major indexes just made still new all-time highs. The S&P 500 is up about 20% since the end of October and 78% since the low of last March. How long can this keep going? The short answer is that it will likely continue higher over the course of the year, albeit at a much slower rate. Of course, a pullback or correction would be entirely normal and healthy after such a steep run higher. And it wouldn’t be surprising in the coming weeks and months. But the year looks solid. In this issue, Tom highlights Chevron Corporation (CVX), which is one of the world’s largest fossil fuel pushers. The reason for the purchase is simple. Right now, it is a play on the vaccine and full recovery, which is a good bet. The stock has momentum and a long way to go to get to pre-pandemic prices. CVX has significant upside in just recovering from this pandemic.

Cabot Marijuana Investor

Weekly Update March 3: Bullish as Tim is on the industry, he is concerned that the enthusiasm that led to the blowoff top three weeks ago (particularly in the Canadian stocks) needs more time to be tamped down. He is concerned about the broad market, where growth stocks in particular have come under pressure. And Tim is concerned that the general economic news in this country is just too darn good. Tim is going to lighten up on two of our largest holdings that have weakened more than their peers in recent weeks. They are GrowGeneration (GRWG) and Innovative Industrial Properties (IIPR); we will now sell half of our position in each, thus taking the portfolio to a roughly 52% cash position.

Monthly Issue February 24: Two weeks ago, just as the sector peaked, our Marijuana Portfolio was up 48% YTD while the Marijuana Index was up 91% (in part due to the Canadian stocks that had rebounded from an oversold position late last year). That’s when I advised selling, based mainly on the action of the charts—which were showing unsustainable parabolic action—but also on the elevated sentiment among investors. Today, the Index has given up nearly half of its gain, while our portfolio has lost far less, thanks to holding plenty of cash and just one Canadian stock. Tim has no portfolio changes.

Cabot Early Opportunities

Special Bulletin March 5: Suffice to say the last two weeks have been very tough. On the one hand, yes, of course some sort of correction or pullback has been expected given the huge progress the market – and growth stocks, small caps and IPOs in particular – have made over the last 12 months. But expecting something to come eventually and actually experiencing it are two entirely different things.

Special Bulletin March 4: Updates on ADPT, DDOG, CYRX, ARRY, PRPL. With the market continuing to weaken we’ll move incrementally more into defensive mode until the smoke begins to clear and we can better distinguish the stocks that will emerge as the next leaders. While there is a lot we could say about just about any stock in our portfolio, right now we’ll focus just on what actions to take.

Special Bulletin March 2: Updates on AI, ADPT, FTCH, CYRX and CSTL. Tyler has multiple Sell recommendations.

Monthly Issue February 17: This has been a phenomenal run for those of us that focus on early-stage companies. The IPO market is as strong as it has been at any point in six years. Even if all the companies that have been coming public aren’t great buys right now, collectively they are recharging the pipeline of potential opportunities. Tyler’s Top Pick is JFrog (FROG), is the hands-down leader in providing artifact repositories. It has been doing so since 2009 and the company’s core product, Artifactory, leads in a specialized market. That said, while the DevOps movement is gaining ground, many organizations still don’t fully understand how artifact repositories can help them. Over time they will, and in the meantime, JFrog’s growth should expand with clients that have already seen the light.

Cabot Profit Booster

Weekly Issue March 2: Fears of rising inflation, and what that would mean for interest rates, weighed on the market last week, especially growth stocks, which were crushed. Fortunately, the Cabot Profit Booster portfolio is well diversified, and our stocks held up spectacularly for the most part, and some even made new all-time highs. Jacob’s new stock recommendation is Amkor Technology (AMKR).

Cabot Income Advisor

Weekly Update March 3: After a rough week, the market is right back in business. Just when stocks appeared on the cusp of a deeper selloff, the S&P 500 started off this week with the best session since June. The stated reason for last week’s weakness was interest rate fears. The benchmark 10-year Treasury rate rose to over 1.6% from about 1.1% at the beginning of February. They said interest rates are rising too quickly and the higher rates could change the allocation toward stocks. Cyclical stocks have driven the market higher and taken up all the energy. Most other sectors are just kind of floating along. We seized the opportunity by writing call in Valero Energy (VLO) and Chevron (CVX) to capture the recent surge. Other positions are sort of holding their own right now while paying dividends.

Monthly Issue February 24: This generally isn’t the best time to buy stocks. Shares in energy, finance and other cyclical sectors have just had a huge run higher and may be due for a consolidation. At the same time, much of the rest of the market is under increasing selling pressure and may be setting up for a more significant, and overdue, downturn. However, it is a very good time to write high-priced calls in stocks that have been soaring higher. That’s why this portfolio has recently written calls on high-flying positions Valero Energy (VLO) and Chevron (CVX). Tom’s featured stock NextEra Energy, Inc. (NEE), is the world’s largest utility. It’s a monster with about $18 billion in annual revenue and a $147 billion market capitalization.

Cabot Turnaround Letter

Weekly Update March 5: Several stocks continue to trade above our price targets, including Valero Energy (VLO), Volkswagen (VWAGY) and BorgWarner (BWA). Bruce is moving Valero (VLO) to a Sell. We see valuation being fairly full here. Since our initial purchase recommendation just last November, the shares have gained about 80%. Click here to listen to the podcast.

Monthly Issue February 24: The energy industry has been through a remarkably difficult time in the past seven years. The collapse of oil prices in mid-2014, from over $110/barrel to less than $25/barrel in early 2020, exerted immense stress on energy companies, particularly those that were bloated with debt from their overzealous pursuit of growth. At the same time, capital markets curtailed their financing of energy companies, worn out by the chronic lack of free cash flow. Several of these companies slid into bankruptcy, yet now look like interesting investment opportunities. Bruce’s has one buy recommendation: Altria Group (MO) and one sell recommendation: Trinity Industries (TRN).

Ask the Experts

Cabot Profit Booster

Question: You know that I love the profit booster, and I am making nice profits from it. I am curious to hear your thoughts on the current market, especially on DT and AZEK. AZEK looks like it’s unable to get a break. I was wondering why you went with a technology company this week when the market was so bad. Keep up your great work. I am rooting for you!

Jacob: If we get stopped out in any of our positions, it will be a bummer, but that is trading, and without some risk, there cannot be reward. In terms of my pick this week, in retrospect it was a mistake buying a technology company. Though we will see in time if the short term growth weakness will pass.

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 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 Global Stocks Explorer	Cabot Growth Investor	Cabot Marijuana Investor	Cabot Stock of the Week	Cabot Undervalued Stock Advisor	Cabot Dividend Investor
ABBV						Hold 2/3
ACA				Sell
APT.AX	Hold 1/2
ATCO	Buy 1/2
AVGO				Buy		Buy
AVVIY					Buy
BFT	Buy 1/2
BIP				Buy		Buy 2/3
BMY					Strong Buy
BSCL						Buy 1/2
CGC			See Advisory
CRLBF			See Advisory
CRWD		Sold		Sell
CSCO					Buy
CURLF			See Advisory
CVX						Buy
DLR						Buy
DOW					Hold
EPD						Buy
ESTC				Sell
FIVE		Buy		Buy
FSR	Hold 1/2
GM				Hold	Hold
GRWG			See Advisory
GTBIF			See Advisory
HALO		Sell
HTHT				Hold
IBM	Buy
IIPR			See Advisory			Sell
JBLU					Hold
JUSHF			See Advisory			Hold 2/3
KO				Buy	Buy
LGIQ	Buy 1/2
LLY						Hold 2/3
MO						Buy
MRK					Buy
NEE				Hold		Buy
NET	Hold 1/2
NGLOY	Buy
NUAN				Sell
NVCR	Sell	Sold		Buy
O						Buy
PGNY				Hold
PGX						Hold 1/2
PINS		Hold		Hold
QCOM						Sell 1/3
ROKU		Sell 1/4
SE	Hold 1/2			Hold
SOLO	Sell			Hold
SPCE	Hold A Half			Take Partial Profits
SPOT				Hold
SSO		Hold
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		Sell 1/4
UBER		Hold		Hold
USB					Buy	Buy
VIAC					Sold
VLO						Hold
VZ						Hold
XEL						Buy 2/3