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Cabot Prime Pro Week Ending December 29, 2017

Cabot Prime Pro Week Ending December 29, 2017

Cabot Weekly Review

In this week’s stock market video, Paul Goodwin, chief analyst of Cabot Emerging Markets Investor takes a look back at year’s end, as he does every December in verse. Sometimes it’s a celebration of progress and prosperity and sometimes the news is mixed. He wants to leave this year’s label up to you, but here’s how Paul describes the biggest stories of the year. This is Paul’s ode to 2017.

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Cabot’s 10 Favorite Low Priced Stocks for 2018

Annual Report December 14: The report was sent to you via email on December 14. The goal with these stocks is generally to capture a shorter-term rally during the next two to eight weeks. Historically, most of these types of stocks enjoy something of a pop higher, and there are usually one or two that continue to trend for a few months (assuming the market remains in good shape).

Cabot’s 10 Best Marijuana Stocks

Special Update December 28: (emailed to Prime Pro members) Tim’s general advice is this: traders should take profits now—especially in the most extended stocks—and plan to get back on board when heads are cooler and risks much lower. Investors, assuming you invested no more than 10% of your assets in the sector, as he originally recommended, can take partial profits in the biggest gainers and then sit tight.

Cabot’s 10 Best Stocks to Buy and Hold for 2018

Crista Huff, Chief Analyst of Cabot Undervalued Stocks Advisor, selects 10 stocks to buy in January and hold all year. You will receive your copy on January 4, 2018.

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Cabot Growth Investor

Bi-weekly Update December 27: Mike is buying a position in Diamondback Energy (FANG), a pure-play on the energy sector, which has turned very strong.

Other Stocks of Interest December 22: Follow ups to stocks featured July 19, 2017 (issue 1372) to December 20, 2017 (issue 1383). 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.

Bi-weekly Issue December 20: Today, the system tells us to remain bullish, and on the buy side, look for fresher leading stocks. In the Model Portfolio, Mike is placing Universal Display (OLED) back on Buy.

Cabot Top Ten Trader

Movers & Shakers Weekly Update December 22: Mike says that shorter-term, things look fine, but there’s no question that (a) the major indexes and many stocks are extended to the upside, and (b) investor sentiment is getting giddy. Buy ideas: Beacon Roofing (BECN), First Solar (FSLR), Match.com (MTCH), Nutanix (NTNX) and Old Dominion (ODFL). Sell ideas: Align Technology (ALGN ) and Pure Storage (PSTG).
Weekly Issue December 18: Intermediate- to longer-term, the majority of evidence is clearly positive, so you should remain bullish. Tonight’s Top Ten has a bunch of excellent charts, and from a variety of industries, too. It was tough to narrow down to one Top Pick, but our choice is Urban Outfitters (URBN), another turnaround retailer that’s under very strong accumulation.

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.
Trade Alert December 28: Adjust Existing Position: Against your Sprouts (SFM) January 22.5 Call, Sell the January 25 Call for $0.40 or more.

Stock on Watch December 28: Jacob writes that a stock that has attracted interesting call buying the last two days, targeting the first quarter of next year, is Pepsi (PEP). The stock is trading higher by 14% year-to-date, slightly beating its peers in the Consumer Staples ETF (XLP), which is up 10% year-to-date.

Stock on Watch December 26: Jacob writes that semiconductor stocks have fallen out of favor in recent weeks as money has rotated into sectors such as Transports, Oil and Retail. And likewise Micron (MU), a leading semiconductor stock, has been weak since peaking in late November.

Position Updates December 22: Since the market will be closed on Monday, Jacob will not be sending his weekly market update. In this update he has written his thoughts on our current open positions.
Options Education December 19: Bitcoin and crypto-related securities have been the talk of the trading world for weeks as the value of these new digital currencies have skyrocketed. And with the value of the coins’ rise, there’s been massive moves in the share prices of companies that are involved.

Earnings Update December 19: Micron (MU) will report earnings today after the close. With the stock trading at 44, the options market is pricing in a move of $3.5, 40.5 to the downside and 47.5 to the upside.
Weekly Update December 18: As long as the tax bill continues to progress as most anticipate, Jacob expects trading will slow down as the calendar gets closer to the Christmas holiday. Traders are likely to begin traveling ahead of the holiday mid to late this week, and the slate of economic data to be released this week—companies releasing earnings and Federal Reserve speeches—is largely barren of market-moving catalysts.

Cabot Undervalued Stocks Advisor

Special Bulletin December 27: Today’s News: Crista is Selling BP plc (BP) and moving four stocks move to Hold — Delek Holdings (DK), Martin Marietta Materials (MLM), Vertex Pharmaceuticals (VRTX) and Vulcan Materials (VMC).

Weekly Update December 26: KLXI rose $6 in after-hours trading on December 22, subsequent to the company’s announcement that “in response to inquiries from interested parties, it has initiated a formal process to explore strategic alternatives for the Company focused on maximizing shareholder value.” Therefore, Crista is changing the rating of KLX Inc. (KLXI) from Strong Buy to Hold.

Monthly Issue December 5: Today’s featured stocks include two new additions to the portfolios, Alphabet (GOOGL) and The Interpublic Group of Companies (IPG), and Alexion Pharmaceuticals (ALXN), which seems ready for a huge price rebound.

Cabot Stock of the Week

Weekly Issue December 19: Today’s recommendation is Insulet (PODD), a medical device company whose one product—an insulin delivery system for diabetics—is growing market share rapidly. No ratings changes today.

Cabot Emerging Markets Investor

Bi-weekly Issue December 28: Today’s recommendation is an old friend, Melco Resorts (MLCO), which is doing a thriving business running casinos in Hong Kong and Macau. As to the current portfolio, the stocks are generally acting well, though an interesting divergence has developed; the Chinese internet giants are lagging while younger stocks are racing ahead. There are no rating changes tonight.

Bi-weekly Update December 21: The iShares EM Fund (EEM) has popped back above its 50-day line, which is a plus, but the Emerging Markets Timer remains basically neutral, having made no net progress over the past two months. Thus, we continue to take things on a stock-by-stock basis. Paul is making one rating change: moving China Lodging (HTHT) back to Buy a Half.

Cabot Benjamin Graham Value Investor

Weekly Update December 28: Azmath moves Discovery Communication (DISCA) to Hold after a stock price increase of 35% and introduces a new Buy recommendation, Target (TGT).

Monthly Issue December 14: Since the last issue, five stocks have declined and 10 gained more than 10%. Many are now at or near fair value, and eight are rated Sell or Sell a Portion. Also in this issue, Azmath recommend two new stocks, Hanesbrands (HBI) and LCI Industries (LCI) and profiles a new small-cap stock, Malibu Boats (MBUU), that’s on his watch list.

Cabot Small-Cap Confidential

Weekly Update December 29: Tyler writes that there has been very little going on in our portfolio this week. After last week’s 3.5% average gain, our stocks have moved only -0.5% this week, on average. There are no rating changes.

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

Weekly Update December 27: With only four low-volume trading days elapsed since the January issue was published, Chloe says that there’s not much new to report from the markets. The exception is the interest rate front. Inflation expectations continue to tick higher, fueled by reports of employee shortages and still-strong economic data. That led to further declines in utilities and real estate stocks over the past week, and both sectors could continue to underperform for some time. Her only change today is to sell half of our shares in Welltower (HCN) today, cutting our loss at 15%.

Monthly Issue December 20: Chloe adds American Express (AXP) to the Dividend Growth Tier. She also reviews the buys and sells of 2017, and provides updates on all our holdings.

Wall Street’s Best Investments

Top Picks Daily Alert December 29: Osisko Gold (OR) from Adrian Day’s Global Analyst
Top Picks Daily Alert December 28: Obsidian Energy (OBE.TO) from Contra the Heard Investment Letter
Top Picks Daily Alert December 27: Five Below (FIVE) from Cabot Growth Investor
Top Picks Daily Alert December 27: Roku (ROKU) from Cabot Top Ten Trader
Top Picks Daily Alert December 26: Metropolitan Bank Holding Corp. (MCB) from Hughes Investment Management

Monthly Issue December 20: Bullish sentiment remains high, both for investors and advisors. This month’s Spotlight Stock, Texas Pacific Land Trust (TPL), is a two-pronged recommendation, as the company is benefiting from owning and selling off its land holdings, which also happen to be in one of the most profitable oil regions in the country. As Nancy explains in her Feature article, this oil basin is nowhere near depletion, so the profits should continue to roll in for many years.

Wall Streets Best Dividend Stocks

Top Picks Daily Alert December 29: General Electric (GE) from The Personal Capitalist
Top Picks Daily Alert December 28: The TJX Companies (TJX) from Hendershot Investments
Top Picks Daily Alert December 27: Tekla Life Sciences Investors Fund (HQL) from Nate’s Notes
Top Picks Daily Alert December 26: UnitedHealth Group (UNH) from Cabot Dividend Investor

Monthly Issue December 13: Nancy’s Market Views contributors remain bullish, as do the Advisor and Investor Surveys she follows, and contributors continue to find investing ideas with which to stuff your stocking—in just about every sector.

This Week’s Q&As

Wall Street’s Best Investments

Question: I am wondering what is your recommendation for the stock BLUE. Did I miss your sell recommendation?

Nancy: BLUE has been a great stock, hasn’t it? Joseph Cotton, of Cotton’s Technically Speaking, recommended it as a Top Pick in late June 2016 at $44.98. The shares are trading around $180 as I write this. I have contacted Joe to see if he has an update, and will send that to you when I receive it, but in the meantime, here are the latest brokerage ratings:

Initiated Oppenheimer: to Perform 12/21/2017
Downgrade Maxim Group: Buy to Hold 12/13/2017
Upgrade Jefferies: Hold to Buy 12/11/2017
Initiated Canaccord Genuity: to Buy 12/5/2017
Maintains Maxim Group: Buy to Buy 11/30/2017

Insiders have been selling the stock recently, and the shares have some dilution, since the company issued a secondary offering of more than 3 million shares earlier this month.

Biotechs, as you know, are speculative stocks, and this one has gone off the charts. Honestly, at this point, I would take my money and run, although you may want to keep a small amount in the shares just to see where they go from here. They could continue to excel, but this has been a fabulous run, so why chance losing your profits if the stock suddenly turns?

I hope this helps, and will let you know when I hear back from Joe.
Joe Cotton’s Reply: You must be psychic ... This morning, on the open, I sold the complete BLUE position in my Virtual High Risk Trading Fund ... even though I think it is a great stock, and may go higher. As you know, trading profits have a habit of disappearing if one gets greedy.

Cabot Benjamin Graham Value Investor

Question: I’m confused on your TGT recommendation on your buy are you telling me you show a Price of 65.14 that is now at a Fair Value of 85. Please explain?

Azmath: Fair Value is approximately how much the stock is really worth and the price is the current trading price. So, when a stock is trading below its fair value it is undervalued. You sell the stock when the stock goes above its fair value.

Cabot’s 10 Best Marijuana Stocks

Question: Re the marijuana top10: thank you for these winners. Sadly, I only accumulated 1/2 of what I was planning on prior to this explosion. So, I sold 1/3 of Canopy and Aphria and hope to buy back in at some point. To clarify, are you recommending to WAIT even on a new “toe-dip” position in, ie: OGRMF - the lowest % mover?

Tim: Thanks for asking. The smaller your investment (as a percentage of your portfolio), the greater the risk you can take, so yes, a pilot position in ORGMF could be initiated on a pullback, perhaps at 3.

Question: I need verification on Tim’s recommendation. If I have just one marijuana stock, regardless if it’s a big gainer or not, I should take my partial profits now?

Tim: What’s important is analyzing your risk level. Any of those stocks might correct 50% from here, so you need to ask yourself if you would be comfortable with that. If yes, hold on. If not, lighten up a bit.

Guide to Cabot Prime

This Guide to Cabot Prime will help you make the best use of your Prime membership to create a strong personal portfolio.