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Cabot Prime Pro Week Ending August 27, 2021

Cabot Prime Pro Week Ending August 27, 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 discusses the recent rebound in growth stocks and the market, which he deems the 5th successful test since February; ideally, that’s enough to have worn/scared out the weak hands for a more persistent, less choppy advance going forward. Still, Mike wants to see it before changing his game plan, which remains focused on picking your stocks carefully and buying on dips and/or starting with small positions.

UPCOMING CABOT EVENTS:

Cabot Micro-Cap Insider Member Call

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How to Hedge Against Global Uncertainty with Gold

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Advisory Services

Cabot Growth Investor

Bi-weekly Issue August 26: All in all, we remain optimistic and more bullish than not, though we’re not pushing the envelope. In the Model Portfolio, most stocks are acting well, and tonight we’re going to average up on one of them, buying another half-sized position (5% of the portfolio) in Cloudflare (NET) to fill out our position. Our cash position will now be around 25%.

Bi-weekly Update August 19: The sellers are gaining some traction here, first with growth stocks (many of which have retreated to key support) and then with the broad market (Cabot Tides back to neutral). Still, with 30% in cash, we have no changes tonight, as most of our stocks are holding well, though we have one problem child (DVN) that’s on a very tight leash.

Cabot Top Ten Trader

Movers & Shakers August 27: The markets had a mostly positive week, with most indexes up, and interestingly, the strength has been relatively broad based—whether it’s the big-cap indexes or small-cap indexes, growth or value, everything seems to be up in the 1% to 2.5% range. This week’s upmove is certainly a good sign—as we wrote last week, many growth stocks, funds and indexes had dipped down to key support levels (50-day lines for many stocks, and price support for indexes), and while it hasn’t been a buying panic, the support shown is a plus.

Weekly Issue August 23: The selling in growth stocks spread to the rest of the market last week, with most major indexes finishing lower, led again by growth-y indexes and funds. The good news is that, for now, the worst-case scenario has been avoided—many growth stocks tested key support in recent days (50-day lines, etc.) and almost all held up, with Friday and today seeing some solid bounces. Mike’s Top Pick Chart Industries (GTLS), is an under-the-radar name that’s set to see earnings soar as demand for its various energy infrastructure items (including many that play into the clean energy space) takes off.

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 Pro Trade Alert August 27: Adjust Existing Position: Against MS January 100 Calls, Sell the October 115 Calls (exp. 10/15/2021) for $0.80 or more.

Cabot Options Trader Basic & Pro Position Update August 26: The last couple of days have been somewhat slow in the options world ahead of the Fed chairman’s speech at Jackson Hole tomorrow morning. It’s expected Chairman Powell will lay out the foundation for tapering the Fed’s monthly bond-buying program, which certainly could cause some short-term market volatility.

Cabot Options Trader Basic & Pro Trade Alert August 24: Speculative Trade: Buy the Global Jets ETF (JETS) March 23 Call (exp. 3/18/2022) for $2.65 or less.

Cabot Options Trader Pro Weekly Review August 23: Long positions: KWEB, CSCO, CGC, BSX, NKE, MS. Bearish Positions: SPY

Cabot Options Trader Basic Weekly Review August 23: The market pulled back in the middle of last week, and again looked suspect. However, the dip buyers stepped back in Friday which helped to minimize the blow. By week’s end the S&P 500 declined 0.59%, the Dow dropped 1.11%, and the Nasdaq fell 0.73%.

Cabot Undervalued Stocks Advisor

Weekly Update August 25: One of our friends asked us about how to use Wall Street’s ratings on stocks. After all, these brokerage research analysts have exceptional minds, educations, training, financial backing, industry expertise and access to company managements as well as their internal army of research associates, economists, strategists, quants and others with a wealth of information and viewpoints. It seems logical that these analysts would be among the best stock-pickers in the market. And, after all, the acronym hidden in their ratings scale – Buy, Outperform, Neutral, Underperform, Sell – spells “B-O-N-U-S.” One would think that stock picking would be the driver of the huge bonuses that these analysts earn. Our response to the question: ignore their ratings.

Monthly Issue August 4: As value investors, we look for companies whose shares are out of favor. Typically, these companies have little revenue or earnings growth – maybe their product or service offerings are in slow-growth industries or maybe aren’t quite as in-sync with customer demand as competitors, or perhaps they are pharmaceutical companies with patent expirations looming in the future. There are other potential overhangs, such as sub-par margins, poor capital allocation, temporary regulatory or legal issues or involvement in a recent spin-off transaction.

Cabot Stock of the Week

Weekly Issue August 23: The long bull market continues, unfazed by fears of COVID variants, the Taliban in Afghanistan, or the return of inflation. And that’s not unusual. Tim’s featured stock Dexcom (DXCM), offers one of the leading continuous glucose monitors on the market, which does just what it says—continuously monitors a patient’s glucose to drastically decrease the amount of time it’s out of the healthy range.

Cabot Explorer

Bi-weekly Update August 26: While only insiders will be attending the Federal Reserve’s annual Jackson Hole symposium, which starts this morning, markets will react to any hints on the Fed’s move to tighten monetary policy and lift interest rates. It does seem a bit odd that that markets seemingly look past a resurging Covid, the Afghanistan fiasco and surging federal spending and debt. The latter might have the most impact as the House this week narrowly passed a $3.5 trillion budget blueprint and locked in a September vote on a roughly $1 trillion infrastructure bill.

Bi-weekly Issue August 19: What has been propelling electric vehicles forward and what will power them into the mainstream across the world? It is a combination of growing political concern over climate change, the need to get air pollution under control in big cities with urban congestion, and breakthroughs in electric vehicle batteries that lower costs and expand range. Carl’s new recommendation ChargePoint Holdings (CHPT), is an indirect but powerful way to play the electric vehicle (EV) revolution is through companies providing battery-charging ports and stations.

Cabot Small-Cap Confidential

Weekly Update August 26: We’ve seen a nice little rally as we head into the waning weeks of summer. The S&P 500 has been incredibly strong and even the S&P 600 Index, which hasn’t made any net new progress since March, popped off last week’s low and is back to within 5% of an all-time high. Interestingly, within small caps there’s normally more divergence when we look at different sectors. But right now, they’re pretty much all telling the same story (i.e. moving sideways).

Monthly Issue August 5: Tyler’s new recommendation JOANN (JOAN) is one of the largest U.S. retail chains in the $40 billion arts and crafts category. It has an omnichannel sales platform, with 855 stores across the U.S., a mobile-first website (joann.com) and a popular mobile app that has been downloaded over 12 million times. The company is the market leader (over 30% market share) in fabric and sewing supplies, which account for half of total sales. It is also the craft retailer of choice for people that self-identify as somewhat experienced.

Cabot Dividend Investor

Weekly Update August 25: The summer malaise is in full swing. The market is doing pretty much exactly what it was doing when investors went on vacation and stopped paying attention. The booming economy with low interest rates and spectacular earnings is winning the tug-o-war against the delta variant and possible Fed tapering, for now. But not by much.

Monthly Issue August 11: Markets have a history of being cranky after Labor Day. Will growth concerns be a problem? Maybe inflation will again haunt the market. Right now, the market is in a tug-o-war between the booming economy and growth concerns, primarily being stoked by the delta variant. Tom’s featured stock is Spectrum Brands Holdings, Inc. (SPB).

Cabot Marijuana Investor

Monthly Issue August 27: Tim remains cautiously optimistic that the sector’s uptrend will resume soon; the stocks have fallen far enough, and the fundamentals of the industry remain terrific. But until we see real strength, there’s no reason to be aggressive. The portfolio is already heavily invested, but not fully, and when we do buy more, it will be of the strongest stocks. The only change today is a downgrade of Columbia Care (CCHWF) to Hold.

Weekly Update August 4: Innovative Industrial Properties (IIP) yesterday announced that it closed on the acquisition of a property in Illinois and entered into a long-term lease with a subsidiary of 4Front Ventures. IIP already owns and leases to subsidiaries of 4Front a cultivation, processing and dispensing facility in Massachusetts and a cultivation and processing facility in Washington, and this brings to 73 the number of properties that IIP owns in the industry nationwide. The stock is up today and still aiming for its February high of 222. And the company is expected to release its second-quarter report after the market close today.

Cabot Early Opportunities

Monthly Issue August 19: Tyler’s Top Pick Global-E Online (GLBE) is a big idea company that has developed a cross-border e-commerce platform empowering businesses to sell to consumers all over the world. Cross-border commerce represents a meaningful market opportunity worth nearly $800 billion today. That number would be significantly higher if it wasn’t such a pain in the neck!

Special Bulletin August 18: Sell LYFT, ATRC and DRVN. With a new batch of stocks being added to our portfolio tomorrow and a few of our current names looking just OK we’re going to sell three stocks today.

Cabot Profit Booster

Weekly Issue August 24: The recent August expiration cycle was our second disappointing month in a row. And while 18 wildly successful months of trading out of 20 is a truly spectacular track record, when trades go wrong there is little doubt it’s painful in the moment. Jacob’s new stock recommendation is BuildersFirstSource (BLDR).

Cabot Micro-Cap Insider

Weekly Update August 25: Aptevo (APVO) has been stable this past week. The story with the stock is the same as it’s been for the past couple of months. The market is undervaluing Aptevo’s pipeline. One positive bit of news occurred that may improve sentiment: Pfizer (PFE) announced that it is acquiring Trillium Therapeutics (TRIL) for $2.3BN. The purchase price represents a 200% premium to Trillium’s stock price.

Special Bulletin August 24: Greystone Logistics (GLGI) filed its 10-K recently, and Rich was surprised that sales declined in the 4th quarter by 5%. He had expected a strong quarter given that a large order had slipped from the 3rd quarter to the 4th quarter and because one customer that had previously decided to diversify away from Greystone for its pallet orders reversed its decision. This quarterly report doesn’t jibe with my bullish conversation with the CEO earlier this year, which implied that Q4 would be a very strong quarter. For the full year, the company reported EPS of $0.11. As such, it’s trading at a P/E of 12.7x, what Rich views as a fair valuation. As a result, he is going to switch his recommendation to Sell given this uncertainty.

Special Bulletin August 24: Rich recently downgraded Donnelley Financial (DFIN) to Hold as he had concerns that the company was overearning given buoyant capital market activities which tend to be cyclical. After re-underwriting the investment, he decided to close out his recommendation and lock in our profit of 129% over a period of 10 months.

Monthly Issue August 11: Rich’s new recommendation Epsilon Energy (EPSN) is a cheap, debt free company, that is generating gobs of cash and buying back stock. Insiders already own 25% of shares outstanding but are buying stock in the open market. The company has downside protection with a net cash balance sheet and a valuable midstream business. I see significant upside over the next 12 months as the company benefits from high natural gas prices.

Cabot Income Advisor

Monthly Issue August 25: As worries continue to gather, the bulls are still winning, at least for now. The S&P 500 and the Nasdaq just made new all-time highs. Strong earnings and a booming economy are outweighing concerns about the delta variant, the Chinese slowdown, inflation and a Fed tapering of bond purchases. 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.

Weekly Update August 18: Things are still good in the market. The S&P 500 closed at yet another record high on Monday. That index is now up 19.27% so far in 2021 after managing to return 15.76% in pandemic-stricken 2020. The market is rising despite growing concerns about the new virus strain and the possible negative effect on growth. There’s also the slowdown in China and the negative impact that will have on the global economy. But the magnificent earnings quarter is overriding these worries, at least for now.

Cabot Turnaround Letter

Weekly Update August 20: Today’s note includes earnings updates on Macy’s (M) and the podcast. There were no ratings changes this past week. Also, a few scheduling changes as the CTL is on vacation next week

Special Bulletin August 11: This afternoon we are moving Albertsons (ACI) from BUY to SELL. Albertsons’ shares continue to surge well past our 23 price target. Recent catalysts include more encouraging news that removes much of the pension overhang, strong earnings that point to more build-up of excess cash, and continued concerns over Covid that will help drive consumers back to grocery stores.

Monthly Issue July 28: It’s been a remarkably strong market, not just since the bottom of the pandemic-driven sell-off a little more than a year ago, but over the past decade. The 10-year annualized total return of the S&P 500 was 14.8% at the end of June, one of the strongest decades in history. Shorter-term gains have been even sharper: the 17.7% annualized return over the past five years, which bridges the pandemic sell-off, is simply stunning. Bruce’s has one buy recommendation: Walgreens Boots Alliance (WBA).

Ask the Experts

Cabot Options Trader Pro

Question: I received the recommendation about MS, and adjusting our position. How many options should we be selling? Is it even with the call options we already own?

Jacob: That is exactly right. If you own 10 MS January calls, you can sell 10 October calls. Not any more than that. However, you can sell fewer calls if you want to have more upside exposure. For example, if you own 10 calls, you can sell five calls, which would leave five of the January calls uncovered.

Quarterly Cabot Analyst Meeting

The recording of the Cabot Prime Members Meeting with the Analysts from July 14, 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.

StockCabot Small-Cap ConfidentialCabot ExplorerCabot Growth InvestorCabot Marijuana InvestorCabot Stock of the WeekCabot Undervalued Stocks AdvisorCabot Dividend Investor
ABBVBuy
ACCDBuy
AGCBuy 1/2
AGNCBuy
ARCOBuy
ARNABuy
ASANBuy 1/2
ASMLBuy
AVGOBuyBuy
AVLRBuy
AVVIYBuy
BIPBuyHold
BMYBuy
BSCLHold
CCHWFSee Advisory
CGCSee Advisory
CHPTBuy
CIIBuy
CRLBFSee Advisory
CRNCBuy
CSCOBuyBuy
CURLFSee Advisory
CVXHold
DLRHold
DOCUBuyBuy
DOWHold
DRVNSell
DTBuy
DVNHold
DXCMBuy
EPDBuy
EVBGBuy
FIVEBuyBuy
FNDBuyBuy
FSRBuy 1/2
FVRRBuy
GMHoldHold
GOLDBuy
GRWGSee Advisory
GTBIFSee Advisory
HUBSBuy
IIPRSee Advisory
IBMBuy 1/2
INSPHold
JOANBuy
JUSHFSee Advisory
KKRHold
KOBuy
KRNTBuy
LLYSell 1/3
MRKBuy
MRVLBuy 1/2Buy
NEEBuyBuy
NETHold 1/2Buy Another Half
NVDABuy
NVNXFBuy
OHold
OGNBuy
OKEBuy
ONTFBuy
OTTRBuy
PGXHold
PLTRBuy 1/2
POAHYSell
PRCHSold
PSHZFBuy 1/2
QCOMBuy
QTWOHold
RGENHold
RVLVHold
SEBuy 1/2Buy
SPBBuy
SPCEHold 1/2
SPTHold
SSOBuy
STBuyBuy
STAGHold
TAPHoldBuy
TCNNFSee AdvisoryHold
THBRFBuy
TPBSee Advisory
TRSSFSee Advisory
TSLABuy
TSMBuy 1/2
USBHold
VLOHold
VZHold
XELBuy