Cabot Prime Pro Week Ending January 8, 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 talks about the market’s positive start to the year and his still-bullish stance, but when it comes to new buying, he’s got a specific pattern or two in mind and advises against chasing names that are racing to the moon. The good news is that there are many names that aren’t red hot that seem to be near attractive entries. Stocks mentioned include TDOC, DKNG, TXG, FTCH, SNAP, INSP, TWLO, SPOT, and PINS.
UPCOMING CABOT EVENTS:
Cabot Micro-Cap Insider Member Call - January 2021
FREE WEBINAR FOR PRIME MEMBERS ONLY: January 14, 2021 Sign up now.
Cabot Prime Members Meeting with the Analysts: 1st Quarter 2021
FREE WEBINAR FOR PRIME MEMBERS ONLY: January 20, 2020 Sign up now.
The Best Stocks to Buy in 2021 - January 2021
FREE WEBINAR FOR PRIME MEMBERS ONLY: January 21, 2020 Sign up now.
Advisory Services
Cabot Growth Investor
Bi-weekly Update January 7: The indexes are having another good day today, led by growth stocks this time—as of 3:30pm, the Dow is up 253 points and the Nasdaq is up a big 322 points. As Mike wrote during the latter part of December, early January is often like watching Jell-O-on-a-plate, and that’s proven to be true so far this week, with some major crosscurrents during the first couple of days, followed by a wild reaction to the Georgia elections/Presidential certification yesterday and today. Things are a bit hot and heavy right now, and the day-to-day rotation is extreme—neither are bearish, but we prefer to sit tight for the moment and see if the market and leaders settle down a touch. Mike has no changes tonight, and we’re holding 19% in cash.
Bi-weekly Issue December 30: It’s been a long, strange 12 months, but it’s also been a very prosperous period, at least for growth investors—with one day left in the year, the Model Portfolio is up around 60%, easily besting most major indexes. Happily, that builds on our track record for the past few years (up 160% over the past four years vs. half that for the S&P 500) and longer term (topping the S&P by 4.6% annually, not including dividends, since I took over 14 years ago). Whatever the exact numbers, we hope you were solidly in the black in 2020 as well. Mike has no portfolio changes this week.
Special Report December 17: Cabot’s 10 Favorite Low-Priced Stocks for 2021 (look for it in the Special Report Section)
Cabot Top Ten Trader
Movers & Shakers January 8: We discussed a couple of weeks ago how early January is usually volatile, and this year has been no different—in fact, with the headlines out of Washington, D.C., Georgia and more, we’ve seen even more whippy action than normal, with big moves in the indexes and especially among individual stocks and sectors, with 4% moves up and down happening nearly every day. Mike has four Buy recommendations: Cardlytics (CDLX), HubSpot (HUBS), Inspire Medical (INSP) and Snap (SNAP).
Weekly Issue January 4: After a prosperous last 12 months, 2021 got off to a sour start today, though that wasn’t totally surprising—early-January is known for crosscurrents and profit taking (especially after good years) as big investors un-hedge and reposition their portfolios. Mike is keeping his eyes peeled, but so far, the trends of the market and the vast majority of stocks remains up, so he remain mostly bullish, though are continuing to pick our spots. Mike’s Top Pick is Bill.com (BILL), which is finding support after a normal, early-stage retreat.
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 Basic & Pro Trade Alert January 7: Buy the Financials ETF (XLF) June 31 Calls (exp. 6/18/2021) for $2.25 or less.
Cabot Options Trader Pro Position Update January 7: Pro traders are going to continue to hold the TSM January 85/115 Bull Call Spread for a couple more days.
Cabot Options Trader Basic Trade Alert January 7: Close Existing Position: Sell your Taiwan Semiconductor (TSM) January 85 Calls for $36 or more.
Cabot Options Trader Basic & Pro Hedging Ideas January 7: Jacob’s portfolio continues to be in outstanding shape. That being said, based on the volume of emails he received last night, he can tell that some of you are worried about the developments from Washington, D.C. yesterday, and are looking for hedging ideas.
Cabot Options Trader Basic & Pro Stocks on Watch January 5: Pharmaceutical giant Bristol Myers (BMY) stock is kicking off the new trading year with several rounds of bullish option order flow.
Cabot Options Trader Basic & Pro Trade Alert January 5: Sell Half of your Freeport-McMoRan (FCX) May 27 Calls for $4.10 or more.
Cabot Options Trader Pro & Basic Position Update January 4: Despite the market’s weakness, the Semiconductors (SMH) opened today at a new all-time high. And into this strength a trader opened a large bullish position looking for the SMH to make even more new highs in the coming months.
Cabot Options Trader Basic Weekly Update January 4: Stocks notched new highs again last week to close out 2020 on a high note as the “Santa Claus” rally delivered once again. For the full week the DJIA gained 1.3% and finished 2020 up 6.85%. The S&P 500 rose 1.4% last week and gained 16.3% for the full year.
Cabot Options Trader Pro Weekly Update January 4: Long positions: AAPL, CGC, FCX, GM, MSFT, NET, UBER, SNAP, SONO, TSM, ZNGA. Short position: None
Cabot Undervalued Stocks Advisor
Monthly Issue January 6: While our investment recommendations focus on specific stocks, we like to keep these macro trends in mind. Investors generally prefer stocks that ride these trends. But, sometimes the most appealing stocks are those that superficially seem to go against these trends (leading to investors avoiding them) yet have either fundamental traits that sidestep these trends or have overly discounted valuations. Some of these secular trends are favorable and clear positives (tech and health, as examples) yet others are concerning (China, market cycles, government spending). Bruce has no portfolio changes today.
Weekly Update December 30: With the turn of the calendar only a few days ahead, just about every investor is mapping out their market views for the coming year. Some do this formally, like Wall Street brokerage firms who publish their opinions on where the S&P 500 and interest rates will finish next year and their outlooks for all sorts of economic and financial indicators. Others will informally develop their views and expectations for the coming year. Bruce has one portfolio change this week: U.S. Bancorp (USB) – new Buy.
Cabot Stock of the Week
Weekly Issue January 4: After closing out 2020 with a bang, delivering profits that were inconceivable in the depths of the March selloff, the broad market turned down today—and could very easily continue lower far longer, eventually turning our market timing indicators negative and leading us to raise cash. Tim’s featured stock Elastic (ESTC), is a search company that applies the ability to instantly find relevant information and actionable insights from any data to a diverse set of applications and use cases.” In other words, it makes data usable, quickly, providing relevant results even in massive and growing databases. Tim has three portfolio changes: B&G Foods Inc. (BGS) to Sell, Virgin Galactic (SPCE) to Hold, Zoom Video (ZM) to Sell.
Cabot Global Stocks Explorer
Bi-weekly Issue January 7: The shift in power, wealth and influence over the past century has been unmistakable. From agriculture and land to industrial production and now to information, data, technology and finance, intellectual intangible assets are now more important than physical assets and even cold hard cash. The most important catalyst for America’s political upheaval as well as the prime generator of wealth over the last three decades has been the inexorable rise of finance and technology and the relative decline in terms of jobs, growth and profits from manufacturing and industry. Carl’s new recommendation International Business Machines (IBM), is at the heart of our transformation to an information technology economy. Carl also has one portfolio change: Afterpay (APT.AX) from Buy a Half to Hold
Bi-weekly Update December 31: As we head into a new year, Carl would like to thank all of you for your support and wish you all both good health and profits in 2021. But today, we have a piece of unfinished business that needs to be dealt with – Alibaba (BABA). Alibaba has been a holding far longer than when I took over this advisory service two years ago and has recently been a legacy hold. It is one of the giants of China’s economic rise and a platform that touches just about every Chinese citizen. Carl has two portfolio changes: Alibaba (BABA) from HOLD TO SELL and Virgin Galactic (SPCE) From BUY to HOLD.
Cabot Small-Cap Confidential
Special Bulletin January 8: Yesterday after the close Accolade (ACCD) reported Q3 results that surpassed expectations on both the top and bottom lines. Revenue of $38.4 million rose 30% while EPS of -$0.32 beat by $0.03. Growth was driven by new customer growth (member population is now over 2 million) across Accolade’s markets as well as across product offerings, including new solutions such as COVID Response Care. Tyler recommends if you have a small position it’s okay to add some shares here, but for larger purchases look to add below 45. HOLD
Monthly Issue January 7: Tyler’s new recommendation, Porch Group (PRCH) is a business-to-business-to-consumer (B2B2C) software company that offers a proprietary ERP/CRM platform to home services companies in the U.S. It also offers home services comparison and booking tools for consumers. Porch has a market cap of $1 billion. Porch Group grew revenue by 43% to $77.6 million in 2019, which ended with 10,585 customers (up 20%) and $444 in revenue per account (monthly, up 29%). Things got off to strong start in 2020 but, not surprisingly, the pandemic put a dent in Q2.
Weekly Update December 30: This week between Christmas and New Year is always odd because so many market participants are taking time off. My news feeds have basically shut down and there’s little company-specific news of substance. The main thing on my mind is how all the tech stocks will perform in the January and February given vaccine rollouts and the potential risk of rotation into more cyclical names. This isn’t a hot take – a lot of people are watching for the same thing so it may amount to nothing. In my view I think a period of consolidation for a lot of these ultra-hot stocks would be a good thing. Tyler has no portfolio changes.
Cabot Dividend Investor
Weekly Update January 6: The New Year is a wild one so far in the market with big up and down swings. The Dow was down big Monday and it’s up big today as bank stocks have caught fire. Bank stocks are flying and driving the market higher. The Financial Select Sector SPDR Fund (XLF) is about 5% higher on the day. Recent portfolio addition U.S. Bancorp (USB) is up over 6%. Banks love the specter of more stimulus spending, looser monetary policy and higher interest rates. 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 January 6: Marijuana stocks exploded higher this morning as investors speculated that the solid Democratic federal government resulting from yesterday’s Georgia election would be favorable to this fast-growing industry. The average stock in the portfolio is up 7.7% today. Jushi Holdings (JUSHF) Monday announced an offering of subordinate shares intended to raise $35 million—and at the same time increased guidance for the fourth quarter of 2020. The stock sold off in reaction, but remains in a strong uptrend, and if you haven’t bought yet, you could buy here, remembering that this is a smaller, lower-priced stock. Tim has no portfolio changes this week.
Monthly Issue December 30: First, the long-term trend of the market, over the centuries, is up, reflecting the growing value added by our civilization. That’s why it pays to invest. Second, the fundamentals of the leading companies in the marijuana sector remain extremely favorable. Revenue growth at the companies in our portfolio averaged 170% in the latest quarter. And that was not the result of any huge outlier; the median growth rate was 131%. Third, the legal situation continues to improve, with the state-by-state march toward legalization continuing and the incoming federal administration almost certain to be more friendly to the industry than the outgoing. Fourth, the leading stocks in the sector are still strong today—and as experienced momentum investors know, the final phase of a bull run can be very profitable. Tim has three rating changes: Jushi Holdings (JUSHF), Turning Point Brands (TPB) and Village Farms (VFF) to Hold.
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 January 5: The Cabot Profit Booster portfolio had a spectacular 2020, aided by great stock picks from Cabot Top Ten Trader Chief Analyst Mike Cintolo, “juicy” call premiums which we sold via our covered call strategy, and a generally strong market. Now that the calendar has flipped to 2021, we will stick to the plan, and manage our open positions with an eye out for risk, while continuing to sell covered calls on the best of stocks. Jacob’s new stock recommendation is Kohl’s (KSS).
Cabot Micro-Cap Insider
Weekly Update January 6: Despite signs of speculative excess, odds are the market should have a good year in 2021. As Rich has mentioned before, one of his favorite follows on twitter is Ryan Detrick, Chief Market Strategist at LPL Financial. He recently shared some interesting info about market returns after a strong year. “The S&P 500 is up nearly 14% in November and December. Only 7 other years was it ever up >10% or more these two months. What happened in January? Higher every single time, up 4.7% on average. Didn’t expect that.” So if history is a guide, January should be strong.
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
Weekly Update January 6: It’s a New Year! And the market started with a thud. The major indexes had a down day on the first trading day of the year. There were a few reasons. One is that sobered up investors who stopped paying attention during the holidays took a more skeptical look at the market, especially one that has moved higher so quickly. There was also a spike in virus cases after the holidays. But one issue is weighing heavier than the rest: the Georgia Senate runoff election. Either way, Tom is optimistic for 2021 as the economy will likely move toward full recovery as the vaccines put the pandemic behind us.
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.
Cabot Turnaround Letter
Weekly Update January 8: This week had one company reporting earnings – Lamb Weston Holdings (LW). Bruce is raising the price target on Signet Jewelers (SIG) to 42 from 35. DuPont (DD) shares are under review as they trade above our 75 price target. DuPont shareholders have until January 27th to decide whether to tender their shares for IFF shares in the Nutrition & Biosciences divestiture transaction. Overall, the turnaround at Lamb remains on-track and closely tied to the pandemic recovery. Click here to listen to the podcast.
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).
Ask the Experts
Cabot Profit Booster
Question: Hi I am a new subscriber to Cabot Profit Booster and I have 2 questions. What is the stop in your table of open positions? Is that the stop limit of the underlying if the covered call goes south?
If the trade goes south what do you do? Do just hold on till expiration and do another call? I understand that you are not a registered SEC advisor and cannot give individual advice. Also what is the difference between options trader pro and options trader?
Jacob: First off Welcome to Cabot Profit Booster! Now on to your questions... If our stop is hit, and that stop is the Stock Level, I will send an alert giving you detailed instructions on how to exit the trade. But don’t get too worried about the stop. I will manage that for you. Cabot Options Trader is strictly Buying Calls/Puts and Covered Calls. Cabot Options Trader Pro is Buying Calls/Puts and Covered Calls, plus more advanced strategies such as Bull Call Spreads, Bear Put Spreads, Iron Condors etc.
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 | Hold | ||||||
| ARNA | Buy | ||||||
| AVLR | Hold | ||||||
| BABA | Sold | ||||||
| BGS | Sell | 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 | Hold | ||||||
| DOW | Hold | ||||||
| EPD | Buy | ||||||
| EQH | Hold | ||||||
| ESTC | 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 | |||||
| IBM | Buy | ||||||
| INSP | Hold 3/4 | ||||||
| JBLU | Buy | ||||||
| JUSHF | See Advisory | Hold 2/3 | |||||
| KO | Buy | Buy | |||||
| KPTI | Buy | ||||||
| LGIQ | Buy 1/2 | ||||||
| LLY | 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 | |||||
| PRCH | Buy | ||||||
| PSNL | Buy | ||||||
| QCOM | Buy | Hold 2/3 | |||||
| QTWO | Buy | ||||||
| RGEN | Buy | ||||||
| ROKU | Buy | ||||||
| SBS | Buy | ||||||
| SE | Hold 1/2 | Hold | |||||
| SOLO | Buy 1/2 | ||||||
| SPCE | Hold | Hold | |||||
| 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 | |||||
| USB | Buy | Buy | |||||
| VIAC | Buy | ||||||
| VLO | Buy | ||||||
| VZ | Hold | ||||||
| XEL | Buy 2/3 | ||||||
| ZM | Sell |