Cabot Prime Pro Week Ending December 1, 2017
Cabot Weekly Review
In this week’s stock market video, Mike Cintolo discusses the market’s rough action this week and what it means—he’s still generally bullish, but is taking things on a stock-by-stock basis , as some growth leaders look toppy, while other leading names (growth or otherwise) are pulling back normally. Mike runs though a bunch of examples of each, including highlighting some new leadership that could be taking flight.
Cabot Marijuana Investor
November Issue (emailed to Prime Pro members on November 16) If you bought a basket of Tim’s 10 Best Marijuana Stocks when the report was originally published in August, you’re off to a great start. Since that report was written, the average of the 10 stocks is up 38%, with the best up 157% and the worst down just 3%. Even better, if you bought only the eight stocks that he actually recommended (he suggested waiting on two until their charts improved), your average gain was 45%—and you had no losses!
Cabot Growth Investor
Bi-weekly Update November 29: Today’s huge selling wave in growth stocks isn’t the end of the world, as the trends of the major indexes and most leading stocks is still up. Thus, it’s vital to take things on a stock-by-stock basis, selling those that are raising red flags and holding (or buying) those that are dipping normally. In the Model Portfolio, we’re selling Autodesk (ADSK) and selling one-third of our PayPal (PYPL) shares, while shifting ServiceNow (NOW) to Hold.
Bi-weekly Issue November 21: Mike dives into some education, revealing a long-term chart pattern that bodes well (including one stock that’s at the top of our Watch List now). He also gives his latest thoughts on the market and our recommended stocks, and presents the usual crop of new ideas if you have some cash on the sideline.
Other Stocks of Interest November 21: Follow ups to stocks featured June 21, 2017 (issue 1370) to November 21, 2017 (issue 1381). 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 December 1 : Mike says the big theme in recent days has been rotation, as the super-hot leading growth stocks have cooled off (including a few that have shown abnormal action) while some of the cyclical and other lagging sectors have gone nuts, pushing indexes like the Dow Industrials sharply higher.Buy ideas: DXC Technology (DXC), E*Trade (ETFC), SVB Financial (SIVB), ProPetro (PUMP) and Salesforce.com (CRM).
Weekly Issue November 20: This week’s Top Ten has another batch of earnings winners, though many of the stocks are on the small side. Our Top Pick is Splunk (SPLK), long been a fast-growing software provider, the stock is now freewheeling on the upside.
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.
Position Updates November 30: Rotation into Transports and Retail continues to be very strong today, which has pushed Union Pacific (UNP) to a big profit and two positions, Sprouts Farmers Market (SFM) and Michaels (MIK), back to life.
Stock on Watch November 29: I wait at least three days before even thinking about buying into a stock “disaster.” That said, not everyone follows my three-day rule. And today, traders are taking big shots that Autodesk (ADSK) is going to rebound.
Market Update November 29: The Dow is up 0.3%. The S&P 500 is unchanged. The Nasdaq is down 2%. Clearly the standout is the Nasdaq. And looking back, the yellow flag, which I noted on Monday, may have been the abnormal 14% drop in Square, on a downgrade. And while the 2% decline on Nasdaq stands out, it is the bloodbath in individual stocks that is concerning.
Position Update November 28: This morning we sold half our Cisco (CSCO) calls for a quick 35% profit (you can sell for 40% or more now).
Trade Alert November 28: Sell Half of Existing Position: Sell HALF your Cisco (CSCO) March 37 Calls for $1.60 or more.
Position Update November 27: one of our recent purchases, Cisco Systems (CSCO) is enjoying a nice day, following an upgrade this morning.
Weekly Update November 27: Early in the week, traders will be focused on retailers’ sales data and mall foot traffic on Black Friday and the holiday weekend. Then attention will turn to a huge week of economic data, including New Home Sales, Consumer Confidence, GDP, Pending Homes Sales, Beige Book, Jobless Claims, Motor Vehicle Sales and Manufacturing Data.
Daily Watch List: Order Flow Reading is a strategy Jacob uses to follow the biggest hedge funds or traders into their trades. These are recent large order flows that Jacob has spotted, plus two covered call ideas.
Cabot Undervalued Stocks Advisor
Weekly Update November 28: After a dismal airline profit situation in 2017, in which only two of the 10 U.S. airlines in today’s research saw a profit increase, the industry is looking forward to a decisive turnaround in 2018. One company’s numbers will soar above all its peers. That company is Southwest Airlines (LUV – yield 0.9%), which is joining the Growth Portfolio today.
Monthly Issue November 7: Today’s featured stocks include two new additions to the portfolios—WestRock Company (WRK) and Delek US Holdings (DK)—and Cavium (CAVM), which has ostensibly become a takeover target.
Cabot Stock of the Week
Weekly Issue November 28: Today’s recommendation is Wingstop (WING), a chain restaurant that’s growing fast and the chart is very constructive. Some of the portfolio’s stocks are hitting new highs, but some are weakening. There are lots of ratings changes this week, but only one outright Sell, Square (SQ), on strength.
Cabot Emerging Markets Investor
Bi-weekly Issue November 30: Paul digs into the reasons behind this painful correction, finding an aggravating Chinese government regulatory shift that can account for a large part. Despite the turmoil, the Cabot Emerging Market Timer is still positive, and Paul has a fresh, young Chinese tech stock, GDS Holding (GDS), that has enormous potential as the development of the Chinese cloud continues.
Special Bulletin November 29: A wave of selling took a bite out of growth stocks today, including every stock in the Cabot China and Emerging Market Investor’s portfolio. Paul is taking two actions in response to today’s weakness: moving our half positions in Sociedad Quimica y Minera (SQM) and Jupai (JP) to Sell.
Cabot Benjamin Graham Value Investor
Weekly Update November 30: Updates on Signet Jewelers (SIG), Ross Stores (ROST), Big Lots (BIG), Home Depot (HD), Lowe’s (LOW) and Thor Industries (THO).
Monthly Issue November 9: Azmath presents his outlook on the investment climate and the economy, adds two new stocks to the portfolio, Discovery Communications (DISCA) and Signet Jewelers (SIG), and gives updates on our existing stocks.
Cabot Small-Cap Confidential
Monthly Issue December 1: Public since just last September, this month’s stock is Apptio (APTI), a $895 million market cap software company that is pioneering Technology Business Management (TBM) solutions. Ratings changes: BioTelemetry (BEAT) to Buy and Datawatch (DWCH) to Hold.
Cabot Dividend Investor
Monthly Issue November 29: Chloe adds UnitedHealth (UNH) to the Safe Income Tier. She also reviews why you might want to own preferred stock, and provides updates on all our holdings.
Wall Street’s Best Investments
Daily Alert December 1: Discovery Communications (DISCA) from Cabot Benjamin Graham Value Investor
Daily Alert November 30: Toshiba (TOSYY) from The Turnaround Letter
Daily Alert November 29: Activision Blizzard (ATVI) from Argus Weekly Staff Report
Daily Alert November 28: Adesto Technologies (IOTS) from The Cutting Edge
Daily Alert November 27: Cameco Corporation (CCJ) from The Personal Capitalist
Monthly Issue November 15: Most of Nancy’s contributors remain bullish for now, and are still finding pockets of opportunities for our subscribers. This month’s Spotlight Stock is Cognizant Technology Solutions (CTSH), a company that is steeped in a variety of technology channels, including some very disruptive technologies that Nancy discusses further in her feature.
Wall Streets Best Dividend Stocks
Daily Alert December 1: Cisco Systems (CSCO) from Dividend Advisor
Daily Alert November 30: Brinker International (EAT) from Forbes Dividend Investor
Daily Alert November 29: Procter & Gamble (PG) from Sure Dividend
Daily Alert November 28: The Wendy’s Co. (WEN) from The Buyback Letter
Daily Alert November 27: Cameco (CCJ) from The Personal Capitalist
Monthly Issue November 8: Nancy’s contributors remain bullish, but cautious. The Spotlight Stock is Blackstone Group (BX), a Master Limited Partnership that’s primarily an asset manager, with holdings that are increasingly energy investments. The company is growing at double-digit rates and currently yields 5.35%.
This Week’s Q&As
Cabot Growth Investor and Cabot Top Ten Trader
Question: Simple question: Do you think the strength in cyclical stocks we’ve seen on the hopes for tax cuts is sustainable? Are these the new leading stocks, while growth stocks will correct? Or will growth soon regain its glory?
Mike: So, first, I would say that we’ve had a couple of bad days in growth stocks—some have broken down, but I wouldn’t make it sound like every leading growth stock is toast. Maybe that happens, but not yet.
But, as to cyclical stocks, I won’t predict anything, but we have seen periods of rotation throughout the year. I know the tax cut is being used as an “excuse” as to why the move is happening, but to me, the set-up (overextended growth stocks, tight setups among cyclicals) was there and the market took it.
That said, as a growth investor, I’m still looking for stocks that fit my methodology—I’m not just going to chase a railroad just because it’s going up, for instance. Right now, some retailers and bull market stocks (along with a few oil stocks) are appearing on my watch list. But I’m not jumping in just yet.
Cabot Stock of the Week
Question: I am a Cabot subscriber and know Cabot still recommends Tesla though I never bought it. I thought you might find this report of interest: Who Did Tesla Lie To?
Tim: Thanks for asking.
First, I’m sure you understand that when you read free content like this, YOU are the product, and the customer is the advertiser who pays to get your eyeballs exposed to his ads. Note the inflammatory headline that draws your attention.
Anyway, this kind of detailed analysis of one part of the business—the rate of car deliveries—is simply myopic.
To see the big picture, look at a long-term chart of TSLA going back to 2011. Then look at the growth rate of revenues. Then look at the company’s goals. Tesla remains the leader in both the electric car revolution and the self-driving car revolution (not to mention the battery business), and because of that, I believe the stock will be higher three and five years from now.
I think the company and the stock are developing in the mold of other world-changers like Microsoft, Apple and Amazon.
But I have not recommended it as a Buy for a while, in part because it’s such a high profile stock. It’s a strong Hold for owners who have a big profit.
Guide to Cabot Prime
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