Please ensure Javascript is enabled for purposes of website accessibility
Cabot Prime Pro Logo
Cabot Prime Pro

Cabot Prime Pro Week Ending June 11, 2021

Cabot Prime Pro Week Ending June 11, 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 continued improvement — it’s not a blastoff, and rotation and choppy conditions are still the norm, but growth stocks continue to take baby steps in the right direction with some leaders emerging, even as many cyclical areas are beginning to look somewhat ragged. Stocks mentioned include NET, SNAP, DT, ALGN, NVDA, RBLX, DOCU, LSPD, AMAT, TXG and CELH.

UPCOMING CABOT EVENTS:

Contrarian Stocks for a Momentum World

FREE WEBINAR FOR PRIME PRO MEMBERS ONLY: June 17, 2021 Sign up now.

Advisory Services

Cabot Growth Investor

Bi-weekly Update June 10: The market has been doing OK, though it’s more about addition by subtraction—the fact that growth stocks have avoided any major selling wave after the recent upmove is a plus, but we’re still seeing lots of selling on strength and rotational action that changes by the day. Translation: The evidence has improved from mid-May for sure, but we’re still not seeing any pervasive signs that big investors are really piling in—there’s still a lot more gyrating than trending action out there. We’re not opposed to putting a little money to work in the right stock or two, but tonight we’ll stand pat and see how things progress. The Model Portfolio remains around 56% in cash.

Bi-weekly Issue June 3: Three weeks ago, growth stocks were in ruins, and we don’t think that’s much of an exaggeration—while the Nasdaq was only 8.5% off its high, things like the Russell 2000 Growth Fund (IWO), which we write about later in this issue, sat more than 18% off its peak while the glamour ARK Innovation Fund (ARKK) was off nearly 40% from its high-water mark. Tonight do a little buying but go slow and take things step by step. In the Model Portfolio, we added half positions in Progyny (PGNY) and Roblox (RBLX) last week, and tonight, we’ll average up in Devon Energy (DVN), which is a bit extended but it (and the group) is very strong. That will leave us with a still-large 57% in cash.

Cabot Top Ten Trader

Movers & Shakers June 11: It’s been another relatively quiet week for the major indexes, with most up in the 0.5% range, though the Nasdaq has outperformed, rising around 1.7% on the week as of this morning. Mike has two suggested buys: Callaway Golf (ELY) and Cleveland-Cliffs (CLF).

Weekly Issue June 7: The holiday-shortened week was a relatively quiet one, with most indexes and sectors mostly meandered in tight ranges. After the prior two and a half weeks of constructive action, we consider the lack of selling a positive; to this point, the bears haven’t really come around for many names despite some decent rallies and a few breakouts. Mike’s Top Pick is Marathon Oil (MRO), which showed some real power last week as oil stocks came to life.

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 Trade Alert June 10: Buy the Cisco Systems (CSCO) January 55 Calls (exp. 1/21/2022) for $3.80 or less.

Cabot Options Trader Basic Trade Alert June 10: Close Existing Position: Sell your XLF June 31 Call for $6.40 or more.

Cabot Options Trader Pro & Basic Trade Alert June 9: Covered Call: Buy Cleveland Cliffs (CLF) Stock and Sell the June 22.5 Call (exp. 6/18) for a net price of $20.85 or less.

Cabot Options Trader Pro & Basic Market Update June 9: The market is yet again mostly unchanged today as the tedious trading action of the past two weeks continues. Though of note, traders will be closely watching the release of the May Consumer Price Index (CPI) tomorrow morning as another look at inflation, which has been the talk of Wall Street the last month.

Cabot Options Trader Pro Trade Alert June 8: Close Existing Position: Sell your Financials ETF (XLF) June 31/37 Bull Call Spread for $5.80 or more.

Cabot Options Trader Pro & Position Update June 7: Unfortunately, on Friday, shortly after my trade alert for an ATOM covered call was sent, the stock took off, and Jacob was not filled on his trade. This has only happened to us one or two other times in his seven years at Cabot.

Cabot Options Trader Pro Weekly Review June 7: Long positions: XLF, DKNG, F, GPS, CGC, BSX. Bearish Positions: SPY

Cabot Options Trader Basic Weekly Review June 7: Despite a slow start for the market last week, and concerning action on Thursday, the three leading indexes were all able to tack on gains for the week, with the S&P 500 closing Friday near its all-time high. The S&P 500 gained 0.6%, the Dow added 0.66%, and the Nasdaq rose 0.48%.

Cabot Undervalued Stocks Advisor

Weekly Update June 9: The market seems to have settled into complacency. We’re in a period after first-quarter earnings reports and government statistics indicate a surging economy, yet investors rightfully wonder if or when the Fed will raise interest rates and are starting to consider what happens after the post-pandemic boom. Bruce has one portfolio change: Tyson (TSN) is moving from Hold to Sell.

Special Bulletin June 7: Bruce is initiating coverage of Organon (OGN) with a BUY rating. Last Wednesday, post-close, Merck spun-off its Organon operations to investors. Merck shareholders received 1 share of OGN for every 10 shares of MRK. Since then, shares of Organon (OGN) have fallen sharply, down nearly 15%. We are starting shares of Organon (OGN) at a BUY. While we are not particularly enthusiastic about Organon’s long-term prospects (“uninspiring but not dour” as we described last week), the discounted price makes the shares appealing.

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 7: The bull market that began in March 2020 rolls on, and the good news is that growth stocks are now looking stronger, as hopes for rapid growth outweigh fears of inflation. Today’s recommendation is a leading player in the semiconductor machinery industry, which has been in the news lately because of chip shortages, but should boom as global growth accelerates. Tim’s featured stock is ASML Holding (ASML).

Cabot Explorer

Bi-weekly Issue June 10: The market has been subdued for the last few weeks as investors weigh how far stocks have come against the risks of rising inflation, supply-chain problems and the possibility of higher taxes. Such worries have contributed to a cautious outlook for stocks, which are trading around all-time highs. Carl’s new recommendation XP Inc. (XP), is a leading technology-driven platform providing services in Brazil such as securities brokerage, private pension plans, investment banking, lending, foreign exchange markets and capital markets services and advisory and wealth management services for investors and institutional clients.

Bi-weekly Update June 3: The market seems to have found its footing this week as the economy reopens amidst some supply shortages and inflationary pressures. Electric vehicle stocks are coming back as Ford announced a big push into EVs and its new F-150 Lightning received 70,000 deposits in just 10 days. After some weakness, Fisker (FSR) and Virgin Galactic (SPCE) have bounced back nicely over the last two weeks—50% and 100%, respectively. Marvell Technology Group (MRVL), our play on 5G, has developed a nice uptrend over the past two weeks as the company expects to announce first-quarter earnings next week. Carl is moving Anglo American (NGLOY) to a Sell.

Cabot Small-Cap Confidential

Weekly Update June 10: Small caps and growth stocks continue to look better for the third consecutive week. This is a welcome trend given that the beginning of May was pretty tough. On Monday, the S&P 600 Small Cap Index closed at an all-time high and throughout the week the index has traded up to intra-day highs near 1417. If we compare small cap value (using the IJT ETF) versus small cap growth (IJR) we see that, while value was clearly more resilient this spring, both are near all-time highs now. Growth may have more work to do to punch above resistance.

Monthly Issue June 3: Tyler’s new recommendation Funko (FNKO), is a pop culture consumer products company that makes figures and other products that give people a chance to showcase their fandom for their favorite TV shows, movies, video games, musicians, and sports teams. The majority of sales – 80% in the most recent quarter – come from sales of figures, while bags, wallets, apparel, accessories, board games, plush, homewares and other products make up the remaining 20%. The company has a market cap of $1.3 billion.

Cabot Dividend Investor

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.

Weekly Update June 2: The market continues to stumble sideways. On the one hand, the S&P 500 is within a whisker of the all-time high. On the other hand, stocks have been going sideways for about a month. It looks like supply chain issues will hold back the pace of the economic recovery. The economy is still growing very strongly. And GDP may even still exceed expectations. But supply shortages, locally and mostly abroad, will limit U.S. economic growth below what it would otherwise have been.

Cabot Marijuana Investor

Weekly Update June 9: The good news this week is that the state of Connecticut appears close to marijuana legalization, as the state Senate passed legislation early Tuesday morning, with an unexpectedly close 19-17 vote. Today—the last day of the 2021 session—the bill heads to the House of Representatives, which is expected to approve it. But you never know. Tim is adding HEXO to the portfolio.

Monthly Issue May 26: The good news is that quarterly reports from our marijuana companies continue to reveal an industry that’s booming. The figures below, reflecting the latest report from each company, show an average revenue growth rate, year-over-year, of 158%! And if you take out the three non-plant-touching companies, which are there to provide a bit of stability and diversification, as well as the lone remaining Canadian company, you get an average of 204%. That’s fast!

Cabot Early Opportunities

Monthly Issue May 19: If you want to strike up conversation at your next social gathering just utter one of two sentences. “Hey, have you guys heard about lumber prices? Holy cow!” Or, “Man, I think inflation is here to stay. Prices on everything are going up and there’s no end in sight.” Tyler’s Top Pick Fox Factory Holdings (FOXF), makes suspension and other parts, including side-by-side vehicles, all-terrain vehicles, snowmobiles, motorcycles, and other specialty vehicles.

Special Bulletin May 14: This may just go down on record as one of the worst earnings seasons ever for growth stocks. Two weeks ago, things were “fine.” Since May began, not. Inflation is the bogeyman spooking investors and his shadow has crept out from below desks and up the walls of those with growth-heavy portfolios. The sell orders picked up steam early this week, and while the last two days have been far better, the divergent action between growth stocks (cloud, MedTech, Internet, etc.) and other areas of the market is crystal clear.

Cabot Profit Booster

Weekly Issue June 8: With June expiration coming next Friday, June 18, the Cabot Profit Booster portfolio is in great shape as all four of our existing positions are either at the strike price that we sold (RRC) or well above it (FNKO, IGT, PGNY). Jacob’s new stock recommendation is Marathon Oil (MRO).

Cabot Micro-Cap Insider

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.

Weekly Update June 2: Rich’s favorite market strategist, Ryan Detrick, is always good for some interesting factoids. According to Ryan, when the S&P 500 is up >10% through the first 100 days of the year, it increases 8.6% on average during the remaining portion of the year. While the market is pricy, the advice “don’t fight the tape” usually pays off. That said, we aren’t recommending a single name in the S&P 500 due to our focus on micro-caps. When evaluating micro-caps, it’s important to focus on the fundamentals.

Cabot Income Advisor

Weekly Update June 9: The overall market has topped out in the last month. But many of the slower-moving and more value-oriented stocks didn’t get the memo. Several portfolio positions are forging to new highs while the market flounders. Technology stocks are no longer flying. The cyclical rally has petered out. There isn’t enough to drive the market higher. But many of the less headline-grabbing stocks have continued their slow uptrend, uninterrupted by the sideways direction of the indexes.

Monthly Issue May 26: It looks like this relentless bull market is finally stalling out. The market isn’t correcting, or really selling off in any substantial way. It has just stopped moving higher, for now. Given the returns in the past year and recent months, the market had to take a break. That pace couldn’t last. Tom’s featured stock ONEOK Inc. (OKE), is a large U.S. midstream energy company specializing in natural gas. It owns one of the nation’s premier natural gas liquids (NGLs) systems and also has an extensive network of natural gas gathering, processing, storage and transportation assets.

Cabot Turnaround Letter

Weekly Update June 11: Today’s note includes the Signet Jewelers’ (SIG) earnings update and our price target increase, as well as our ratings changes from this past Monday, and the podcast. Click here to listen to the podcast.

Special Bulletin June 7: This afternoon Bruce is making an additional rating change: Moving Biogen (BIIB) from BUY to SELL.

Special Bulletin June 7: This afternoon Bruce is making four ratings changes. Raising our price target on MolsonCoors (TAP) from 59 to 69. Raising our price target on General Motors (GM) from 62 to 69. Moving BorgWarner (BWA) from BUY to SELL. Moving Mosaic (MOS) from BUY to SELL.

Monthly Issue May 26: Good investment ideas can come from anywhere. One useful source is to borrow ideas from like-minded investors. While major institutional investors want to keep their best ideas secret, they are required by the Securities and Exchange Commission to file regular reports that disclose their holdings. Once disclosed, anyone can view them. Several online aggregators provide convenient access to these reports. Bruce’s has one buy recommendation: Vistra Corporation (VST).

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
AVGOHoldBuy
AVLRBuy
AVVIYBuy
BIPBuyBuy 2/3
BMYStrong Buy
BSCLHold
CBTBuy
CCHWFBuy
CGCSee Advisory
CRLBFSee Advisory
CRNCHold
CSCOBuy
CURLFSee Advisory
CVXBuy
DLRHold
DOWHold
DVNBuy Another Half
EPDBuy
EVBGBuy
FIVEHoldHold
FNDHold
FSRBuy
FVRRHold
GMHoldHold
GOLDBuyBuy
GRWGSee Advisory
GTBIFSee Advisory
HTHTHold
HUBSBuy
IIPRSee Advisory
IBMBuy
INSPHold
JUSHFSee AdvisoryHold 2/3
KOBuyBuy
KRNTBuy
LLYHold 2/3
MRKBuy
MRVLBuy
NEEBuyBuy
NETHold 1/2
NGLOYSold
NVCRBuy
NVDABuy
OBuyBuy
OGNBuy
OKEBuy
OTTRBuy
PGNYBuy
PGXHold 1/2
PLTRBuyBuy
PRCHBuy
QCOMBuy
QTWOBuy
RBLXBuyBuy
RGENBuy
RVLVBuy
SEBuy 1/2Buy
SLBBuy
SPCEHold 1/2
SPTBuy
SSOBuy
STBuy
STAGHold
TAPHoldBuy
TCNNFSee AdvisoryHold
TPBSee Advisory
TRSSFSee Advisory
TSLAHold
TSMBuy 1/2
TSNHold
USBBuy
VLOHold
VZHold
XELBuy 2/3
XPBuy