Cabot Prime Pro Week Ending December 25, 2020
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 market’s encouraging resilience in the face of some worrisome headlines this week, though he’s still sticking with the same game plan of being bullish but looking for fresh names and solid entry points. Mike reviews a variety of ideas (growth and otherwise) and wishes everyone a great holiday season! Stocks mentioned include AMZN, DDOG, AMAT, LRCX, HALO, NARI, ZS, CRWD, XOP, SPWR, and SQ.
UPCOMING CABOT EVENTS:
Cabot Micro-Cap Insider Member Call - January 2021
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The Best Stocks to Buy in 2021 - January 2021
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Advisory Services
Cabot Growth Investor
Bi-weekly Update December 23: Remain mostly bullish, but keep your feet on the ground. The market continues to handle itself well despite some iffy news headlines this week, with some growth stocks going vertical. How it plays out once the calendar turns will have to be seen, but there’s no question most of the evidence remains positive. Today, we’ll stand pat in the Model Portfolio, which holds around 19% in cash. Mike has no portfolio changes.
Special Report December 17: Cabot’s 10 Favorite Low-Priced Stocks for 2021 (look for it in the Special Report Section)
Bi-weekly Issue December 17: We’re past the halfway point in December, which means many of us have other things on our minds, be it getting out the snow shovel (a foot of snow hit the ground here last night), buying last-minute gifts or perfecting your favorite eggnog-based drink. We hope you and yours have a wonderful holiday season. As for the market, not much has changed with the evidence: When it comes to rubber-meets-the-road things like the trends of the major indexes, the price/volume action of leading stocks and the amount of abnormal action out there (very little), there’s no question the bulls are in control. In the Model Portfolio, Mike started a new half-sized position in CrowdStrike (CRWD) last week, and in today’s issue, we’re going to fill out our stake in NovoCure (NVCR) by purchasing another half.
Cabot Top Ten Trader
Movers & Shakers December 23: As for the market, not much has changed with our thinking since Monday’s issue—we’re still bullish, but we wouldn’t be surprised if there were some reverberations going forward from this weekend’s “new” virus worries over in the U.K., especially given how hot and heavy the environment is. It’s also possible the Covid stimulus shenanigans could bring about some worries, but we’ll have to see. Mike also suggests selling four stocks this week.
Weekly Issue December 21: News of travel restrictions due to a new strain of the virus over in Europe hit the major indexes early today, but when it comes to our analysis, the reason for the initial selloff is secondary—the setup for an air pocket has been around for a couple of weeks as sentiment was elevated and most stocks and indexes were extended to the upside. Thus, today’s hiccups weren’t totally unexpected, but the damage was limited; at day’s end, the major indexes held up well and remain in intermediate-term uptrends, as do most stocks. Mike’s Top Pick is Elastic (ESTC), which has finally, decisively gotten going from a long 20-month IPO base.
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 & Basic Position Update and Happy Holidays December 23: The Verizon representative told Jacob that they had sold out of iPads, had limited supplies of iPhones, and were fielding calls from other stores looking to see if this store had inventory. Jacob’s takeaway: This feels like a big Christmas for Apple (aren’t they all?).
Cabot Options Trader Pro & Basic Position Update December 22: On December 10, with Apple (AAPL) shares trading at 121, Jacob’s option scanner picked up on several call buys that seemed a bit odd. What makes this an even worse situation for this big call buyer is an intriguing news story that broke yesterday afternoon … Apple is working on its own self-driving electric vehicle, slated for release in 2024.
Cabot Options Trader Pro Trade Alert December 21: Adjust Existing Position: Against your Taiwan Semiconductor (TSM) January 85 Call, Sell the January 115 Call (exp. 1/15/2021) for $1.00 or more.
Cabot Options Trader Basic Weekly Update December 21: Stocks notched new highs last week as the market rebounded strongly from the previous week’s slump, spurred by hopes that Congress will finally deliver a stimulus package in time for Christmas. For the week the DJIA gained 0.6%, the S&P 500 rose 1.0%, and the Nasdaq jumped 0.7%
Cabot Options Trader Pro Weekly Update December 21: Long positions: AAPL, CGC, GM, MSFT, NET, UBER, QCOM, SNAP, SONO, TSM, ZNGA. Short position: None
Cabot Undervalued Stocks Advisor
Weekly Update December 23: Over a century ago, in 1915, Albert Einstein published his theory of general relativity. His work introduced a new way of thinking about physics. A central tenet was how massive objects will create distortions in time and space, which is felt as gravity. While the scientific implications may seem somewhat remote to investors most of time, the power of gravity has a geometrically increasing effect on stocks as the year-end approaches. With less than six trading days remaining, the effect of the massive object (the calendar year-end) on stock prices is accelerating. Gravity-dampening side influences like earnings reports, economic news, mergers/IPOs and government actions are increasingly limited in number and size. Bruce has no portfolio changes this week.
Monthly Issue December 3: Stocks have surged this past month, with the S&P 500 returning 11% in November. Other major indices, including the Dow Jones Industrial Average and the Nasdaq Composite, produced similarly strong returns. These kinds of returns would make a good year in most investors’ eyes. For the year-to-date, the S&P 500 has generated a 14% return – a very respectable gain for any year. That it occurred in a year like 2020, with a global pandemic that shut down much of the economy, a domestic presidential change-over, social unrest, and countless other unusually disruptive events is truly remarkable. Bruce has one portfolio change today: Broadcom (AVGO) – from Hold to Sell.
Cabot Stock of the Week
Weekly Issue December 21: As we approach the year-end, market trends remain strong (notwithstanding today’s opening action), and odds are that the strength will continue a little longer, as our tax laws favor delaying profit-taking until the new year. After the calendar turns, however, the odds of a major correction increase. In the meantime, Tim continues to recommend that you be heavily invested in a diversified portfolio of good stocks. Tim’s featured stock is Companhia de Saneamento Basico do Estado de Sao Paulo:SABESP (SBS), the largest water company in Brazil. Tim has one portfolio change: Eli Lilly & Company (LLY) to Sell.
Cabot Global Stocks Explorer
Bi-weekly Update December 17: The Explorer portfolio did well this week, led by an explosive 44% surge by LogiQ (LGIQ), and as we head into the final two weeks of the year, opinions on markets are all over the map. The hyper-charged recent IPOs have some investors on edge while the Fed statement today that it will keep buying government bonds until it sees “substantial” improvement is reassuring to many. Carl will be watching today’s FedEx (FDX) third-quarter earnings report, with Wall Street expecting $4 a share in earnings on over $19 billion of revenue, compared to year-ago numbers of $2.51 EPS on just over $17 billion of revenue. MP Materials (MP) moves from Buy to Hold.
Bi-weekly Issue December 10: A stimulus bill looks like it is right around the corner but we need to get through this winter before vaccines are widely available. Facebook faces a real challenge to break it up and accept legal liability for content. An EU-China summit is cancelled after China tried to limit speakers critical of China’s clampdown of Hong Kong. On the Explorer front this past week, MP Materials (MP) and NovoCure (NVCR) were particularly strong as Sea Limited (SE) briefly made a new high at 200. As promised, our new idea this week hails from Brazil and is a monopoly play on the most essential of all resources.
Cabot Small-Cap Confidential
Weekly Update December 24: My main message today is really just to touch base and say thank you for being part of the Cabot family in 2020 and I hope you have a happy and healthy Holiday season. In some ways 2020 is a year we want to kick in the butt and say good riddance to. But in some other ways, like looking at our portfolio balances and thinking about positive changes that are arising due to the pandemic, 2020 has been very good. Such a mixed bag it’s hard to put it all into words. So let’s not bother trying! Tyler has no portfolio changes.
Monthly Issue December 3: Tyler’s new recommendation, Personalis (PSNL) is a cancer genomics company offering next-generation sequencing (NGS) solutions and data analysis services to support personalized cancer vaccine and cancer immunotherapy development. It also provides sequencing and data analysis to support population sequencing initiatives. Personalis has a market cap of $1 billion. Customers of cancer genomic services are primarily pharma and biotech companies, universities and non-profits. Customers of population sequencing initiatives are primarily government entities, led by the U.S. Department of Veterans Affairs (VA).
Cabot Dividend Investor
Weekly Update December 23: It’s Christmas time. And the market is finishing out one of the most amazing years ever. Despite a global pandemic and an economic crash, stocks had a great year. As of yesterday’s close all three indexes are higher for the year and very near all time highs. The S&P 500 is up over 14% while the tech-laden Nasdaq is up an astounding 42% YTD. The portfolio is well positioned with great performing stocks that are continuing to kill it, as well as underperforming stocks that are turning things around fast. Things look good. Click here to listen to the podcast. Tom has no changes this week.
Monthly Issue December 9: The vaccine is changing everything. Stocks that had been left for dead by the market recovery are springing back to life and leading the market higher. One area of opportunity ahead of the New Year is in banks stocks. As a cyclical sector, banks took it on the chin during the pandemic. They crashed during the bear market and have lagged the recovery. But they are rising fast and have great momentum ahead of what looks to be a promising year for the sector. In this issue, I highlight one of the very best and most profitable banks in the country, U.S. Bancorp (USB). It still sells at a great value, pays one of the highest dividends in the industry and now has solid upward momentum.
Cabot Marijuana Investor
Weekly Update December 23: Marijuana stocks as a whole remain very strong as we head into the holiday season, where trading is expected to be lighter and news announcements few. Interestingly, the Canadian marijuana stocks have been weaker than the U.S. stocks in recent weeks—so it’s good that we have only one Canadian. Tim has no portfolio changes this week.
Monthly Issue November 25: And good news abounds. First came the election, in which voters in all five states that voiced their opinions on the issue voted for legalization. Then came the quarterly reports, which revealed that business is booming in the marijuana industry. And now we have news of vaccines, which will speed economic reopening. The portfolio has three changes this month. GrowGeneration (GRWG) to Hold. Innovative Industrial Properties (IIPR) to Buy. Village Farms International (VFF) New Buy.
Cabot Early Opportunities
Monthly Issue December 16: The rumblings about stocks, and growth stocks in particular, getting overheated have gotten louder in December, thanks in no small part to the huge performance of IPOs like DoorDash (DASH), Snowflake (SNOW) and AirBnb (ABNB), and the lofty valuations that many growth stocks have been able to sustain so far. Rumblings don’t always translate to a correction. And in fact, questioning outstanding performance is generally a good thing. But still, the point is that investors should not get complacent. There is always a correction coming at some point and it’s best to realize that so when it comes, you’re not surprised. It’s just part of investing. Overall, Tyler recommends keeping two hands on the wheel, two eyes on the road, and proceed cautiously. Today’s Top Pick is Array Technologies (ARRY), which went public in October and has a market cap of $4.9 billion, is one of the world’s largest manufacturers of ground-mounting systems used in utility-scale solar energy projects.
Cabot Profit Booster
Weekly Issue December 22: With the expiration of these five positions, our portfolio is only holding three covered calls, all of which are in good shape. And to add more market exposure, today we are adding a silver miner, which is trading just shy of its 52-week high. Last Friday was the expiration of our December covered call positions, and I’m happy to report it was yet another great month. Read the issue to see final profits and yields.
Cabot Micro-Cap Insider
Weekly Update December 23: As a micro-cap investor, Rich has good access to management. That is one of his favorite parts of being a micro-cap investor. Just last week Rich was able to have an hour-long conversation with the CEO and CFO of FlexShopper (FPAY), his most recent recommendation. The conversation enabled him to better understand the business and industry as well as understand FlexShopper’s growth strategy. All in all, the conversation has increased his conviction in the stock. Rich has one change this week: Increase limit on MEDXF to Buy under 5.50.
Monthly Issue December 9: Today, Rich believes sentiment indicators continue to suggest the market may be due for a pullback. The Citi Panic/Euphoria model suggests sentiment is high right now. Rich’s new recommendation FlexShopper (FPAY) is a rapidly growing company in the virtual lease-to-own market. Despite rapid growth and margin expansion, it is only trading at 5.0x forward earnings. Importantly, the Chairman of FlexShopper owns over 20% of the company and has been buying more stock as fast as he can in the open market. Rich sees 100%+ upside over the next year. Please read the issue for more recommendation updates.
Cabot Income Advisor
Monthly Issue December 23: Although the pandemic disrupted our lives and crashed the economy, the market loved it. All three major market indices are higher for the year and within a whisker of the all time highs. The S&P 500 is up over 14% YTD and the technology-laden Nasdaq is over 40% higher on the year. Tom has one new featured stock Chevron Corporation (NYSE: CVX) and multiple portfolio changes.
Weekly Update December 16: The market has leveled off a bit since the fabulous November rise. That’s okay. The market can’t go up that fast for long. It needed a breather and this is healthy. And the basic story still hasn’t changed. The vaccine is now being distributed. It should end the pandemic sooner rather than later. The ending of the lockdowns and restrictions will prompt a full recovery in 2021. That vision is keeping stock prices high and will likely drive the market higher next year.
Cabot Turnaround Letter
Weekly Update : No update this week.
Monthly Issue December 23: Following the S&P 500’s incredibly strong 33% total return last year, adding to a remarkable decade-long bull market, it would have seemed a stretch to think that 2020 would bring more gains. Had we known that the world would be rattled by a devastating pandemic that brought a 10% drop in global economic output and a 31.4% plunge in U.S. output in the second quarter, we would have been shocked if the market was even flat for the year. Bruce’s has one buy recommendation: Ironwood Pharmaceuticals (IRWD) and two sell recommendations: GameStop (GME) and Freeport-McMoran (FCX).
Wall Street’s Best Investments
Daily Alert December 24: Crown Castle International Corp. (REIT) (CCI) Forbes Dividend Investor
Daily Alert December 23: Newmont Corporation (NEM) The Dividend Hunter
Daily Alert December 22: Pinterest, Inc. (PINS) Cabot Top Ten Trader
Daily Alert December 21: Banco Santander, S.A. (SAN) Contra the Heard
Monthly Issue December 17: Despite all the challenges, the markets have held up very well, and the Dow Jones Industrial Average has surpassed the big 30,000 mark several times in the last few weeks. Unemployment continues to decline, with the rate dropping to 6.7% in November. Consumers are shopping for the holidays, with online Thanksgiving sales up 21.5%, to $5.1 billion. I know my finger is sure hitting the ‘buy’ button a lot more this year! Hopefully, 2021 will remove some of the uncertainties that the virus has wrought, and the economy can begin to speed up its recovery. And while the markets have done very well this year, there are still pockets that are undervalued, many of which are represented in our pages this month. Nancy begins this issue with our Spotlight Stock, Companhia de Saneamento Básico do Estado de São Paulo – SABESP (SBS) the largest water company in Brazil, which is expanding to deliver services outside its borders. In Nancy’s Feature article, she further explores that growth—as well as the rising need—for potable water in Latin America.
Ask the Experts
Cabot Options Trader
Question:If I was going to play some options trades based on Mike’s Top 10 how would I do that? Do I find short term contacts? What strike price do I get it at? Let’s use ESTC for example: 147-153 buy range
Jacob: There are many Cabot Options Traders subscribers who buy calls based on Mike’s stock pick. My general rule, is buy calls slightly out-of-the-money, and 3-6 months until expiration. Something along the lines of the May 160s in the ESTC example.
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts from October 21, 2020 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 Global Stocks Explorer | Cabot Growth Investor | Cabot Marijuana Investor | Cabot Stock of the Week | Cabot Undervalued Stocks Advisor | Cabot Dividend Investor |
|---|---|---|---|---|---|---|---|
| ABBV | Hold | ||||||
| ACCD | Hold | ||||||
| APT.AX | Buy 1/2 | ||||||
| ARNA | Buy | ||||||
| AVLR | Hold | ||||||
| BABA | Hold 1/2 | ||||||
| BGS | Buy | Hold | |||||
| BIP | Buy 2/3 | ||||||
| BLFS | Buy | ||||||
| BMY | Buy | ||||||
| BSCL | Buy 1/2 | ||||||
| CDLX | Hold | ||||||
| CGC | See Advisory | ||||||
| COLM | Buy | Buy | |||||
| CRLBF | See Advisory | ||||||
| CRNC | Buy | ||||||
| CRWD | Buy 1/2 | Buy | |||||
| CSCO | Buy | ||||||
| CURLF | See Advisory | ||||||
| DLR | Sold | Hold | |||||
| DOW | Hold | ||||||
| EPD | Buy | ||||||
| EQH | Hold | ||||||
| EVBG | Buy | ||||||
| FIVE | Buy | ||||||
| FVRR | Hold 3/4 | ||||||
| GM | Hold | Hold | |||||
| GRWG | See Advisory | ||||||
| GSHD | Hold 3/4 | ||||||
| GTBIF | See Advisory | ||||||
| HALO | Buy 1/2 | ||||||
| HTHT | Hold | ||||||
| IIPR | See Advisory | Hold 2/3 | |||||
| INSP | Hold 3/4 | ||||||
| JBLU | Buy | ||||||
| JUSHF | See Advisory | Hold 2/3 | |||||
| KO | Buy | Buy | |||||
| KPTI | Buy | ||||||
| LGIQ | Buy 1/2 | ||||||
| LLY | Sell | Buy | |||||
| MO | Buy | ||||||
| MP | Hold | ||||||
| MRK | Buy | ||||||
| NEE | Hold | Hold 1/2 | |||||
| NEO | Buy 1/2 | ||||||
| NET | Hold 1/2 | ||||||
| NUAN | Buy | ||||||
| NVCR | Buy | Buy Another 1/2 | Buy | ||||
| O | Buy | ||||||
| PGX | Hold 1/2 | ||||||
| PINS | Buy | Buy | |||||
| PSNL | Buy | ||||||
| QCOM | Buy | Hold 2/3 | |||||
| QTWO | Buy | ||||||
| RGEN | Buy | ||||||
| ROKU | Buy | ||||||
| SE | Hold 1/2 | Hold | |||||
| SOLO | Buy 1/2 | ||||||
| SPCE | Buy | Buy | |||||
| SPT | Buy | ||||||
| SSO | Buy | ||||||
| STAG | Hold 1/2 | ||||||
| TAP | Buy | Buy | |||||
| TCNNF | See Advisory | Hold | |||||
| TMX | Buy | ||||||
| TPB | See Advisory | ||||||
| TRSSF | See Advisory | ||||||
| TSLA | Hold | ||||||
| TSM | Buy 1/2 | Buy | |||||
| TSN | Buy | ||||||
| TWLO | Buy | ||||||
| UBER | Buy | Buy | |||||
| VIAC | Buy | ||||||
| VLO | Buy | ||||||
| VZ | Hold | ||||||
| XEL | Buy 2/3 | ||||||
| ZM | Hold |