Cabot Prime Pro Week Ending December 4, 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, Tyler Laundon talks about the improving breadth he’s seeing in the market across large and small cap value and growth stocks. He runs through a number of strong names in the travel, hospitality, restaurant, internet and software industries, then digs deeper into three high growth cloud-based security software stocks that reported this week. Stocks discussed include: LUV, CHEF, MTN, DIS, SNOW, ZEN, CHWY, ETSY, OKTA, ZS, CRWD
UPCOMING CABOT EVENTS:
Two Basic Options Trades to Make Money on Growth Stocks
FREE WEBINAR: Thursday, December 17 Sign up now.
Cabot Micro-Cap Insider Member Call – December 2020
FREE WEBINAR FOR PRIME PRO MEMBERS ONLY: Thursday, December 10 Sign up now.
Cabot Retirement Club Member Call - December 2020
FREE WEBINAR FOR PRIME MEMBERS ONLY: December 22, 2020 Sign up now.
Advisory Services
Cabot Growth Investor
Bi-weekly Issue December 3: In the last issue, we wrote about the myriad crosscurrents that were still being seen—while the major indexes looked good, the day-to-day rotation was wild among sectors and themes, with news-driven moves the norm for a few weeks. But we also said that the real question is whether that whippy action was slowly dissipating. Happily, we had begun to see some encouraging signs two weeks ago, and the market’s tenor has continued to improve since then—growth stock sellers never really followed up on the initial virus rotation back in early November, allowing more and more names to pop higher. In the Model Portfolio, Mike started a new half-sized position in Halozyme (HALO) last week ahead of Thanksgiving, and tonight, we’re going to fill out our position in Uber (UBER). That will leave us with around 31% in cash, which Mike looks to put to work in the days to come.
Bi-weekly Update November 25: Remain optimistic but pick your stocks carefully. The overall market is in good shape, and there’s definitely more good than bad among individual stocks, though it’s also tricky, with plenty of rotation and news-driven moves. We’re still holding a good amount of cash but are OK with a little buying here and there. Mike has one update: Buying a half position in Halozyme (HALO) today, which will leave us with a still hefty 36% cash position.
Other Stocks of Interest November 5: Follow ups to stocks featured July 2, 2020 (issue 1449) to November 5, 2020 (issue 1458). Since many of the stocks written about in Other Stocks of Interest don’t make their way into the Model Portfolio, you won’t see them followed on a regular basis in the issues. However, we are monitoring these stocks, and this listing gives you a quick view of our latest thoughts.
Cabot Top Ten Trader
Movers & Shakers December 4: It’s been a solid, steady post-holiday week for the market, with the major indexes generally flat (small and mid-caps) to up (S&P 500 and Nasdaq) 1% or so. That keeps the intermediate-term trend pointed solidly up, with all indexes we track a few percent above their 50-day lines. Mike’s Buy ideas today are: Axon Enterprise (AAXN) and Norfolk Southern (NSC). Mike also suggests selling four stocks outright and one partial sale.
Weekly Issue November 30: No issue this week
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 Position Update December 4: Jacob wanted to quickly update you on the strong performance this week of Qualcomm (QCOM). Shares broke out to a new closing high on Tuesday, and the stock is up another 3.7% at midday today, which would be another new high.
Cabot Options Trader Basic and Pro Trade Alert December 4: Covered Call: Buy Canopy Growth (CGC) Stock and Sell the January 27.50 Call (exp. 1/15/21) for a net price of $25.30 or less.
Cabot Options Trader Position Stock on Watch December 3: Based on three large call buys yesterday Facebook (FB) is on Jacob’s radar for a new position.
Cabot Options Trader Position Update and Stock on Watch December 2: Jacob’s excited to share that UBER is trading higher by 6% today, making a new 52-week high in the process. Our UBER March 38 calls, originally bought for $5.21, are trading at $15.95 or a potential profit of 206%!
Cabot Options Trader Position Update and Stock on Watch December 2: Jacob’s happy to report that Taiwan Semiconductor (TSM) strong stock performance has helped push our January 85 calls that were originally purchased for $7.69 to be worth $16.50, or a potential profit of approximately 115%. Jacob has added Boeing (BA) to his watchlist.
Cabot Options Trader Basic and Pro Trade Alert November 30: Sell Half of Existing Position: Sell Half of your Sonos (SONO) June 22.5 Calls for $4.50 or more.
Cabot Options Trader Basic and Pro Trade Alert November 30: Sell Half of Existing Position: Sell Half of your Cloudflare (NET) May 70 Calls for $15.00 or more.
Cabot Options Trader Pro Weekly Update November 30: No update this week.
Cabot Options Trader Basic Weekly Update November 30: No update this week.
Cabot Undervalued Stocks Advisor
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.
Weekly Update November 25: Stocks showing strength and breadth like we haven’t seen in a long time, particularly with the broad market at a record high. Despite flattish returns from the formerly high-flying mega-cap tech stocks, the broad stock market is no longer grinding higher, it is surging higher, lifting the S&P 500 index to a month-to-date gain of 8.8% through Monday. This week Bruce has new portfolio changes for: JetBlue Airways (JBLU) and General Motors (GM).
Cabot Stock of the Week
Weekly Issue November 30: No issue this week.
Cabot Global Stocks Explorer
Bi-weekly Update December 3: The Explorer portfolio had another good week despite a sharp pullback by ElectraMeccanica (SOLO). We still have a big profit there, so Bruce advises you to sell half your position and let the rest ride. As you review your stock portfolios going into 2021, Bruce encourages you to take partial profits from your big winners. On to news affecting our investing world, the House of Representatives passed a bill this week that would lead to the delisting of Chinese stocks from U.S. exchanges if they don’t comply with U.S. audit oversight rules within a three-year window. I comment on this in the below update of Alibaba (BABA). Bruce has one portfolio change today: Sell Vipshop (VIPS)
Bi-weekly Issue November 24: This is probably going to be an unusual Thanksgiving for many of you as we head into the last month of a turbulent year. While the overall market is up only a bit over 10%, there have been pockets that have delivered much, much higher returns. These include the big tech and data stocks, financial payments and other digital plays, and clean energy areas such as electric vehicles. Today, Carl’s new recommendation, NeoGenomics, Inc (NEO),operates a network of cancer-focused testing laboratories in the United States, as well as laboratories in Switzerland and Singapore. There are no portfolio changes.
Cabot Small-Cap Confidential
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).
Weekly Update November 25: Other than price changes not much has happened with our stocks since I wrote last week. With our offices closed tomorrow and Friday we’ll all be taking a short break before gearing up for the last month of the year. Next week is also when the next issue of Cabot Small-Cap Confidential will be released. Tyler has changed Palomar (PLMR) to a Sell
Cabot Dividend Investor
Weekly Update December 2: The final tally is in, and it was a November for the ages. The Dow Jones Industrial average was up 11.8% for November, making it the best month for the index since 1987. The S&P 500 climbed 10% while the Nasdaq gained another 11% for the month. History clearly shows that November was a spectacular month. What happened? Click here to listen to the podcast. Tom has no rating changes this week. Tom has no rating changes this week.
Monthly Issue November 11: Some long dormant positions and well as the underperforming stocks are reawakening. The most notable change so far is in the health care stocks, AbbVie (ABBV) and Eli Lilly (LLY). ABBV has soared 22% since late October and LLY is 13% higher in the same time frame. In addition the two energy stocks, Enterprise Product Partners (EPD) and Valero Energy (VLO), may be on the cusp of reversing the hideous performance so far this year. The best performing stocks, Innovative Industrial Properties (IIPR) and Qualcomm (QCOM), are continuing to soar ever higher. Due to the valuation and momentum, Tom believes LLY and ABBV are the most attractive stocks to buy right now. This month’s featured stock is Realty Income (O).
Cabot Marijuana Investor
Weekly Update December 2: Sometime between today and Friday, the U.S. House of Representatives will vote on the Marijuana Opportunity, Reinvestment and Expungement Act, otherwise known as the MORE Act. Sponsored by Kamala Harris, the MORE Act, as currently written, would remove marijuana from the Controlled Substances Act‘s list of harmful narcotics; eliminate criminal penalties for manufacturing, distribution, and possession; expunge low-level marijuana convictions; and impose a 5% federal sales tax. Last week Tim’s portfolio became fully invested, adding one new stock (Village Farms (VFF)), and there are no changes today; all our stocks are acting well—in fact, eight have seen new closing highs in the past three trading days.
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 November 18: The current investing climate is one of the most fascinating in history. We are in an economic recovery, which suggests investors should stay long stocks. We also have an incoming president intent on reducing the sense of chaotic leadership that accompanied the Trump White House and bringing back a sense of relative calm to U.S. leadership. That, combined with what is likely to be a republican controlled senate, is also bullish for stocks. Then we have the pandemic. Tyler suggests being prepared for conflicting headlines driving erratic trading action as we deal with an intensifying pandemic and a path toward vaccine distribution. Overall, Tyler believes now is a good time to keep new positions somewhat smaller than normal and average up to a full position with more purchases (three to five purchases to get to a full position seems about right). Today’s Top Pick is Avantor (AVTR), is a diversified global supplier of mission-critical products and services to customers in the life sciences, advanced technologies, applied materials, and education and government markets.
Cabot Profit Booster
Weekly Issue December 1: No issue this week.
Cabot Micro-Cap Insider
Weekly Update December 2: Investor sentiment is high these days. Just look at the Citi Panic/Euphoria Index. Historically, when the index is at Euphoria, the market is due to take a breather. Similarly, the Investors Intelligence Bullish Percentage chart is also suggesting the market may be overheated. Rich will continue to focus on bottom up analysis to identify companies that look attractive no matter the market environment. Rich has one change this week: P10 Holdings (PIOE) to Sell Half.
Special Bulletin November 24:Late last week, P10 Holdings (PIOE) announced another transformative acquisition. And the stock continues to skyrocket. It is up over 200% from our initial recommendation price earlier this year and it’s definitely not dirt cheap anymore. Nonetheless, Rich recommends holding on (but not buying more) as it is not expensive and continues to execute on its strategy.
Monthly Issue November 11: Today, Rich is going full steam ahead and recommending an investment in a company that has successfully executed a turnaround, transitioning from a mainly print focused business to a software/tech-enabled services business. Donnelley Financial Solutions (DFIN) with modest earnings growth and multiple expansions, coupled with significant debt pay down, the stock should hit 40 by 2024, implying almost 200% upside.
Cabot Income Advisor
Weekly Update December 2: November was quite a month in the market. It was one of the very best months for the market indexes in decades. The Dow was up 11.8%, the S&P 500 rose 10% and the Nasdaq gained another 11% in the month. The main driver of the market rally is, of course, the vaccines. A vaccine means the end of the pandemic sooner rather than later. On the other side of the pandemic is a likely full and robust economic recovery. The market tends to look ahead about six months and it’s celebrating that recovery now. Tom has no portfolio changes.
Monthly Issue November 25: It’s another week and another vaccine rally for the market. For the third straight week, a company has announced positive trial results for a coronavirus vaccine. The market loves it every time. The major indexes are now at or very near all-time highs. This market is great. But it’s also tricky here. You don’t want to sell anything while the market is still flying higher with great momentum. But it’s also tough to buy anything after prices have risen so high. Tom has one new featured stock U.S. Bancorp (USB) and multiple portfolio changes.
Cabot Turnaround Letter
Weekly Update December 4: This week two companies reported: Signet Jewelers (SIG) and Duluth Holdings (DLTH). Bruce has no changes in ratings or price targets since our last weekly update. To listen today’s podcast and view the latest Catalyst Report click here.
Weekly Update November 30: No companies reported earnings last week, and we review Adient’s (ADNT) earnings that were reported today. Bruce has four rating or price target changes this week. To listen today’s podcast and view the latest Catalyst Report click here.
Special Bulletin November 30: Several of our stocks have reached/exceeded our price targets, so we are making changes to several of our ratings: GameStop (GME) – moving to Sell, Freeport-McMoran (FCX)– moving to Sell, General Motors (GM)– raising target to 49 from 45 and Adient (ADNT) – raising price target to 35 from 28
Monthly Issue November 25: This month Bruce looks at year-end selling pressure. Tax-loss selling is one source of artificial selling pressure. Taxable investors will pay federal taxes on their profits at rates as high as 37%, and likely more when state taxes are factored in. These investors have a strong incentive to sell their losers to offset these gains, thereby reducing their tax bill. Bruce’s has one buy recommendation: Xerox Corporation (XRX) and three sell recommendations: Barrick Gold (GOLD), Peabody Energy (BTU),Weyerhaeuser (WY).
Wall Street’s Best Investments
Daily Alert December 4: Pembina Pipeline Corporation (PBA, PPL.TO) Income Investor
Daily Alert December 3: Uber Technologies, Inc. (UBER) Cabot Stock of the Week
Daily Alert December 2: Diageo plc (DEO) Sure Dividend
Daily Alert December 1: Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) Dow Theory Forecasts
Daily Alert November 30: Overstock.com, Inc. (OSTK) FMA Trader Alert
Monthly Issue November 19: October was a surprisingly good month for the markets, until the very end, when investors took a rest. But since the election, they’ve come in off the sidelines and the markets are now close to all-time highs. Investors love the idea of a divided Congress. As well, the unemployment picture continues to improve, although with the coronavirus causing more widespread shutdowns, we may see a temporary rise—at least until the vaccinations begin distribution. And that certainly looks promising, with both Pfizer and Moderna sharing terrific stats this past week. Nancy begins this issue with our Spotlight Stock, CACI International Inc (CACI) a provider of technology, primarily to the U.S. Defense Department. This company is right on the cutting-edge of advanced technologies—the future of defense. In Nancy’s Feature article, she discusses the coming technologies and CACI’s potential to harness and profit from them.
Ask the Experts
Cabot Profit Booster
Question: I jumped out of the May21 option several days ago with a decent profit. Noticing the drop in NET, would it be wise to get back in with the same expiration date and strike price?
Jacob:I have no issue with that strategy. The only pushback I would have is I would have thought NET would have rallied yesterday given the market strength, and the fact that the stock received an upgrade. So that lack of performance is slightly concerning in the short term.
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 | Buy | ||||||
| ACCD | Buy 1/2 | ||||||
| APT.AX | Buy 1/2 | ||||||
| ARE | Sold | ||||||
| ARNA | Buy | ||||||
| AVGO | Sell | ||||||
| AVLR | Buy | ||||||
| AZEK | Sold | ||||||
| BABA | Hold 1/2 | ||||||
| BGS | Buy | Hold | |||||
| BIP | Buy 2/3 | ||||||
| BLFS | Buy | ||||||
| BMY | Buy | ||||||
| BSCL | Buy 1/2 | ||||||
| CCI | Sold | ||||||
| CDLX | Hold | ||||||
| CGC | See Advisory | ||||||
| COLM | Buy | Buy | |||||
| CRLBF | See Advisory | ||||||
| CRNC | Buy | ||||||
| CSCO | Buy | ||||||
| CURLF | See Advisory | ||||||
| DLR | Hold | Buy | |||||
| DOW | Hold | ||||||
| EPD | Buy | ||||||
| EQH | Buy | ||||||
| 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 | Buy | Buy | |||||
| MO | Buy | ||||||
| MP | Buy 1/2 | ||||||
| NEE | Hold | Hold 1/2 | |||||
| NEO | Buy 1/2 | ||||||
| NET | Hold 1/2 | ||||||
| NUAN | Buy | ||||||
| NVCR | Buy | Buy 1/2 | Buy | ||||
| O | Buy | ||||||
| PGX | Hold 1/2 | ||||||
| PINS | Buy | Buy | |||||
| PLMR | Sold | ||||||
| PSNL | Buy | ||||||
| QCOM | Buy | Hold 2/3 | |||||
| QTWO | Buy | ||||||
| RGEN | Buy | ||||||
| ROKU | Buy Another 1/2 | ||||||
| RPAY | 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 | Hold | ||||||
| UBER | Buy Another 1/2 | Buy | |||||
| VIAC | Buy | ||||||
| VIPS | Sell | ||||||
| VLO | Hold 1/2 | ||||||
| VZ | Hold | ||||||
| XEL | Hold 2/3 | ||||||
| ZM | Hold |