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Cabot Prime Pro Week Ending July 2, 2021

Cabot Prime Pro Week Ending July 2, 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)

The stock market video will return July 9th.

UPCOMING CABOT EVENTS:

Cabot Prime Members Meeting with the Analysts: 3rd Quarter 2021

FREE WEBINAR FOR PRIME MEMBERS ONLY: July 14, 2021 Sign up now.

Cabot Micro-Cap Insider Member Call

FREE WEBINAR FOR PRIME MEMBERS ONLY: July 15, 2021 Sign up now.

How Government Spending Can Turn Into Investment Gains

FREE WEBINAR FOR PRIME MEMBERS: July 22, 2021 Sign up now.

Advisory Services

Cabot Growth Investor

Bi-weekly Issue July 1: Slowly extend your line. Last week, we added half-sized positions in Cloudflare (NET) and DocuSign (DOCU), which leaves us with 47% cash. We’re aiming to put more to work soon, especially if growth stocks rest for a few days, but tonight our only change is restoring the Buy rating on Floor & Décor (FND).

Bi-weekly Update June 24: There remain a few yellow flags in this environment, especially as many indexes are chopping around and trends in individual stocks and sectors remain fleeting. But there’s no question that the action in growth stocks has improved, so we’re going to put a bit more of our large cash hoard to work—we’re going to add half-sized positions in both DocuSign (DOCU) and Cloudflare (NET), which are two of the best-looking growth names in terms of story, numbers and charts. That will leave us with around 47% in cash.

Cabot Top Ten Trader

Movers & Shakers July 2: It’s been a relatively quiet week from a top-down perspective—the Nasdaq is up about 1%, the S&P is up a bit less, while most other indexes are near breakeven, give or take. On the whole, that keeps the intermediate-term trend pointed up, though as has been the case all year, it’s more of a split decision, with small-/mid-cap areas mostly sideways and big-cap indexes showing more strength.

Weekly Issue June 28: Just over a week ago, it looked like the market’s intermediate-term trend was going up in smoke as cyclicals cracked and growth stocks remained hit or miss. But, frankly, last week’s action was one of the more impressive few days we’ve seen in a while—most indexes roared back, we saw more stocks (growth and otherwise) pop on excellent volume and even some hard-hit areas rebounded nicely. Mike’s Top Pick is Dynatrace (DT), which appears to be emerging from a big-picture, year-long consolidation.

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 Weekly Review June 28: Long positions: CLF, CSCO, KWEB, GPS, CGC, BSX. Bearish Positions: SPY

Cabot Options Trader Basic Weekly Review June 28: What a difference a week makes! After falling hard the previous week, the market came roaring back with a vengeance last week as the S&P 500 and Nasdaq 100 closed Friday at, or near, all-time highs. For the week the S&P 500 added 2.57%, the Dow gained 3.37%, and the Nasdaq advanced by 2.23%.

Cabot Undervalued Stocks Advisor

Weekly Update June 30: In our continuing series on deciding how many positions to hold in a stock portfolio, let’s borrow a page from Major League Baseball (MLB). The methods that these teams use managing their players can be applied to investment portfolios. MLB teams are limited to 26 players (up from 25 previously) on their active roster. These players are the only ones allowed to participate in a game. Translating to an investment portfolio, these would be analogous to your current roster of stock holdings. If you have a portfolio with more than 26 stocks, these active roster names might represent your highest-conviction holdings.

Monthly Issue June 3: Several companies are presenting at investor conferences in coming weeks, including Bristol-Myers, Cisco, and Dow. The annual Bernstein Strategic Decisions Conference is notable, as it provides a high-level discussion of each company’s strategy. The conference is being held this week. Cisco is presenting on June 9th at Cowen’s Technology, Media and Telecom conference. Investors can access replays at each company’s (not the brokerage firm’s) investor relations website. Bruce has no portfolio changes.

Cabot Stock of the Week

Weekly Issue June 28: The bull market is alive and well, and Tim continues to recommend that you be heavily invested in stocks that help meet your goals—while remaining prudently diversified. Tim’s featured stock Maravai LifeSciences (MRVI), is a newly public, high-growth life sciences company that offers exposure to some of the highest growth areas of the industry, including cell and gene therapy, biologics drug manufacturing and mRNA therapeutics.

Cabot Explorer

Bi-weekly Update July 1: The S&P 500 closed out the second quarter of 2021 at a record high, advancing for a fifth consecutive quarter. Meanwhile the Dow and Nasdaq closed just below records and each of these indexes recorded more than 18 record closes during the first half of the year. Accelerating economic growth is the key to keeping things moving forward. Younger Chinese people’s views of the American and the West’s brands are evolving. According to the Global Times, the share of young Chinese people that looked up to the West is down from 37% five years ago to only 8% today.

Bi-weekly Issue June 24: The S&P 500 has now gained 90% since its closing low last March. Quite amazing. We now need to look forward and remain optimistic while a bit cautious. Carl’s new recommendation Pinduoduo (PDD), is the third-largest e-commerce player in China in terms of annual revenue, but in terms of total shoppers it’s actually now larger than JD.com (JD), with 628 million annual active buyers. Like Alibaba, Pinduoduo generates most of its revenue through listing fees and ads for third-party merchants.

Cabot Small-Cap Confidential

Monthly Issue July 1: Tyler’s new recommendation On24 (ONTF), is a $1.6 billion market cap company that offers a cloud-based digital experience platform to facilitate business-to-business (B2B) sales. Despite its small size, On24 is the leading provider of purpose-built solutions for this market, which is worth roughly $40 billion. Organizations use the platform to deliver interactive webinar experiences, virtual event experiences and multimedia content experiences in either live or on-demand formats.

Weekly Update June 24:

Clear

Despite some wobbles last Friday it has been a constructive week for the market, and especially for growth stocks. Since last Thursday’s close and through yesterday’s close the S&P 500 has inched up 0.5% (back near record closing highs), the Nasdaq has hit a record high and the S&P 600 Small Cap Index is up 0.3%. Tyler has three portfolio changes: Cerence (CRNC) Moves to Buy, Revolve (RVLV) Moves to Hold, Sprout Social (SPT) Moves to Hold.

Cabot Dividend Investor

Weekly Update June 30: The second quarter ends today. GDP growth is forecasted to be 8.6% for the quarter, one of the best on record. Earnings for the S&P 500 is expected to grow over 60% over last year’s second quarter. Economic growth for the third and fourth quarter is expected to be very strong as well. Yet, the market is worried about growth. What gives?

Monthly Issue June 9: It’s hard to get away from the current headlines. It’s all about the pandemic and recovery. Lately, they’re throwing in some inflation talk to spice things up. But, as hard as it may be to believe, these headlines will fade away. The current smoke will clear. Then what? Tom’s featured stocks are Qualcomm (QCOM) and Broadcom (AVGO). Tom also has four portfolio changes.

Cabot Marijuana Investor

Monthly Issue June 30: In the early years of marijuana legalization in the U.S., when the main action was in Colorado and the three West Coast states, there were no major multistate operators (MSOs). Instead, hundreds of small-time businesses sprang up, and in the competitive environment that followed, many found it difficult to compete with the established illegal market, which didn’t pay taxes. But many survived, and because of that, those early states still have a very fragmented industry. Today, as the country is perhaps halfway (a very rough guess) toward national legalization, the state of Michigan, where legal adult-use sales began in December 2019, provides some interesting data.

Weekly Update June 23: The trend toward legalization in the U.S. continues, as Connecticut’s governor, Ned Lamont, yesterday signed legislation that will make adult-use legal beginning July 1 and will enable retail sales to begin in late 2022. These retail sales will include a 3% municipal sales tax, directed to the city or town where the sale occurs, plus the usual 6.35% state sales tax plus an additional tax based on the THC content of the product—which will be 2.75 cents per milligram of THC for cannabis edibles; 0.625 cents per milligram of THC for cannabis flower; and 0.9 cents per milligram of THC for all other product types. This means that Connecticut generally will have about a 4% lower tax rate than New York and about the same as Massachusetts.

Cabot Early Opportunities

Special Bulletin June 23: We’re going to step aside from e.l.f Beauty (ELF) today for a very slight loss (roughly 4%). We’ve held the stock for just over a month and it has posted uninspiring performance, especially since reporting on May 26. My original intent was to try to make a relatively quick and modest gain on the stock, but with so many other positions working well there’s little incentive to hold this one. Let’s walk away.

Monthly Issue June 16: The Nasdaq, which fell 9% in the first half of May, has recovered and hit an all-time closing high early this week. Even the ARK Innovation ETF (ARKK), which felt immense pain from February through March, has begun to look better and is up 18% over the last four weeks, though it is still 26% below the all-time high from February. Tyler’s Top Pick Telus International (TIXT) is a customer care company that serves enterprise clients and their digital customer experiences by designing, building and managing engagement and HR tools that reach end consumers. Examples of services it provides on behalf of clients are sales, after sales support, transaction processing and complaint management.

Cabot Profit Booster

Weekly Issue June 29: The market bounced back last week in a significant way. For the week the S&P 500 added 2.57%, the Dow gained 3.37%, and the Nasdaq advanced by 2.23%. The bounce helped to crush volatility and the call premium in our three open positions (good situation). Consequently, our positions are shaping up for another profitable expiration cycle. Jacob’s new stock recommendation is Nutanix (NTNX).

Cabot Micro-Cap Insider

Weekly Update June 30: Last week, BBX announced that it increased its tender offer to buy back shares up to 8.00 per share, up from 6.75. Currently, the stock is trading at 7.96 and it makes sense to buy shares up to 8.00 as you can immediately sell the shares back to the company at a profit. Because BBX is buying back shares at a higher price, it won’t be able to purchase as many shares (3.5MM instead of 4MM). Nonetheless, this is a huge positive as it will increase book value per share significantly.

Special Bulletin June 29: Aptevo filed an 8-K disclosing that Proposal 4 (Company Sale) passed. However, as you can see in the screenshot below, the company made a special point in the footnote that the majority of non-Tang shareholders voted against the immediate sale.

Monthly Issue June 9: Rich’s new recommendation Stabilis Solutions (SLNG) specializes in delivering liquid natural gas (LNG) and hydrogen to its customers who are away from pipelines and off the energy grid. Customers use Stabilis Solutions as it provides them with cheap, reliable energy that is cleaner than other fossil fuels. The company has grown revenue at a 27% CAGR and has a bright outlook. Insiders own over 50% of the company but have been relentlessly buying more stock in the open market. The stock has performed well since the pandemic but looks like a double over the next 12 months.

Cabot Income Advisor

Weekly Update June 30: There’s good news. The S&P 500 has made a new all-time high. The Nasdaq achieved a new high on Monday. That’s the first new high for the tech-heavy index since early February. But things aren’t great in the market, just okay. Despite the new highs, these indexes are just a whisker above the levels of months ago. Stocks have been moving sideways. Investors still can’t seem to decide the next big move.

Monthly Issue June 23: The sideways market finally got some action. It went the wrong way. But it showed signs of life nonetheless. Last week, the Dow Jones Industrial Average posted its worst week since last August, down more than 3.4%. The main culprit was the Fed. At last Wednesday’s meeting, the central bank announced its intention to start hiking the federal funds rate – in two years. That is sooner than the market had anticipated. And investors freaked.

Cabot Turnaround Letter

Weekly Update July 2: Covering recent news and analysis for our portfolio companies and other topics relevant to value investors.

Monthly Issue June 30: Major pharmaceutical stocks are clearly not “the place to be” in today’s market. Investors much prefer fast-growing yet expensive technology (including biotech) and cyclical re-opening stocks. After years of stagnant share prices while the S&P 500 surged, the group now sells at about a 40% price/earnings discount to the market, its largest in decades and well below the historical premium valuation. Bruce’s has one buy recommendation: Organon & Co. (OGN).

Quarterly Cabot Analyst Meeting

The recording of the Cabot Prime Members Meeting with the Analysts from April 21, 2021 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.

StockCabot Small-Cap ConfidentialCabot ExplorerCabot Growth InvestorCabot Marijuana InvestorCabot Stock of the WeekCabot Undervalued Stocks AdvisorCabot Dividend Investor
ABBVBuy
ACCDBuy
AGCBuy
AGNCBuy
ARCOBuy
ARNABuy
ASMLBuy
AVGOBuyBuy
AVLRBuy
AVVIYBuy
BIPBuyBuy 2/3
BMYStrong Buy
BSCLHold
CBTBuy
CCHWFBuy
CGCSee Advisory
CRLBFSee Advisory
CRNCBuy
CSCOBuy
CURLFSee Advisory
CVXBuy
DLRHold
DOCUBuy
DOWHold
DVNBuy Another Half
EPDBuy
EVBGBuy
FIVEHoldHold
FNDBuy
FSRBuy
FVRRHold
GMHoldHold
GOLDBuy
GRWGSee Advisory
GTBIFSee Advisory
HTHTHold
HUBSBuy
IIPRSee Advisory
IBMBuy
INSPHold
JUSHFSee AdvisoryHold 2/3
KOSoldBuy
KRNTBuy
LLYHold 2/3
MRKBuy
MRVIBuy
MRVLBuy
NEEBuyBuy
NETHold 1/2Buy
NVCRBuy
NVDABuy
OSellBuy
OGNBuy
OKEBuy
OTTRBuy
PDDBuy
PGNYBuyBuy
PGXHold 1/2
PLTRBuyBuy
PRCHBuy
QCOMBuy
QTWOBuy
RBLXHoldHold
RGENBuy
RVLVHold
SEBuy 1/2Buy
SLBBuy
SPCEHold 1/2
SPTHold
SSOBuy
STBuyBuy
STAGHold
TAPHoldBuy
TCNNFSee AdvisoryBuy
TPBSee Advisory
TRSSFSee Advisory
TSLABuy
TSMBuy 1/2
USBBuy
VLOHold
VZHold
XELBuy 2/3
XPBuy