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Cabot Prime Pro Week Ending June 18, 2021

Cabot Prime Pro Week Ending June 18, 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 discusses the upheaval in the market late this week--it’s not bearish, and in fact, he continues to see growth stocks building some momentum, but cyclical stocks have cracked and the action remains jello-on-a-plate-ish, making it tough to make much money. Mike reviews many stocks on his watch list, but prefers going slow and picking your spots.

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Advisory Services

Cabot Growth Investor

Bi-weekly Issue June 17: Remain patient and relatively cautious while we see if the buying pressures persist. In the Model Portfolio, we’ve been riding the bucking bronco with most of our stocks, but we’re still standing pat with all of them. Our only change since last week is that we’ve placed Roblox (RBLX) on Hold after its sharp pullback this week. Our cash position remains north of 50%. Details inside.

Special Bulletin June 16: This is just a quick message regarding today’s action in Roblox (RBLX)—the stock had been correctly normally in recent days, but last night, it gave its May business update, and the numbers left a lot to be desired, with users actually shrinking from the prior month (though revenues were still up triple digits from the year before). If you own some, hold for now. HOLD

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.

Cabot Top Ten Trader

Movers & Shakers June 18: Things had been a bit too quiet in the market, and that usually results in some unexpected action, and we’re starting to see that now—many leading cyclical stocks and sectors have broken down, while yesterday, growth stocks (especially the winners from last year) ramped … basically, another big round of rotation. Today, though, we’re seeing the sellers hit everything, growth and cyclical alike.

Weekly Issue June 14: Our thoughts on the overall environment remain the same—growth stocks continue to slowly repair the damage, though most stocks aren’t out of the woods yet (many have moved right into some tough resistance), and there remains lots of selling on strength and rotation on a daily basis (cyclical stocks look iffy), so it’s tough to make much progress. Mike’s Top Pick is DocuSign (DOCU), which has shown excellent accumulation since earnings, though we favor keeping it small and/or trying to get in on dips.

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 Market Update June 17: Following the Federal Reserve chairman’s press conference yesterday, the market is fairly nuts today. Materials, Financials, and Oils are getting killed (down 3-6% depending on the sector), while at the same time earlier this morning, the Nasdaq was trading higher by 1.5% before giving up some of those gains.

Cabot Options Trader Position Update June 16: This Friday is the expiration of two of our Covered Call positions. Ford (F) should be a non-event, while Cleveland Cliffs (CLF) will likely be more interesting.

Cabot Options Trader Pro & Basic Trade Alert June 15: Roll Existing Position: Against CGC stock, Buy back the June 27.5 Call, and Sell the July 27.5 Call (exp. 7/16/2021)

Cabot Options Trader Pro Weekly Review June 14: Long positions: CLF, CSCO, XLF, DKNG, F, GPS, CGC, BSX. Bearish Positions: SPY

Cabot Options Trader Basic Weekly Review June 14: The S&P 500 continued its steady march higher last week, breaking out to a new all-time high as the inflation story, at least in the short term, cooled off a bit. For the week the S&P 500 gained 0.41%, the Dow fell 0.8%, and the Nasdaq rose 1.85%.

Cabot Undervalued Stocks Advisor

Weekly Update June 16: In most professional and personal endeavors, there are dozens if not hundreds of decisions to make. Manage a tech company? You need to decide who to hire/promote/fire, what responsibilities to give them, how much to pay them (base and bonus), resolve conflicting agendas, decide what products to promote, approve technical and strategic changes to each product or service, check quality control, help customers, set pricing … the list is essentially endless. Even a simple home landscaping project involves a long list of decisions: how much to spend, do it yourself or hire out, what to plant and where, and so on.

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 14: Tim’s featured stock Sensata Technologies (ST), is a $3.8 billion (revenues) producer of an exceptionally broad range (47,000 unique products) of highly engineered sensors used by automotive, heavy vehicle, industrial and aerospace customers. These products are typically critical components within cars, trucks, factories and jets, yet since they represent a tiny percentage of the end-products’ total cost, they generally yield high profit margins. Tim has two portfolio changes.

Cabot Explorer

Bi-weekly Update June 17: The Federal Open Market Committee (FOMC) convened on Wednesday and Chairman Jerome Powell and colleagues seem to be inclined to raise benchmark rates sometime next year. At least for now, the Fed kept rates on hold and signaled it would continue its quantitative easing. However, what spooked markets a bit was that according to the Fed’s new economic projections, seven of 18 officials now see an interest rate hike taking place by the end of 2022. Carl actually thinks this sort of signal was way overdue and can be good for markets, which can now focus on what’s far more important – growth, profits and valuations.

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.

Cabot Small-Cap Confidential

Weekly Update June 17: Small caps have pulled back ever so slightly from the all-time highs of last week. But that’s not the big news of the week. The larger event was yesterday’s Fed meeting, during which Chairman Jerome Powell suggested that a start to tapering of asset purchases was still a “ways off” but that this was a “talking about talking about meeting.” This has markets contemplating the first Fed full price hike sometime in late 2022, even though the Fed’s projections show interest rate increases in 2023. Also on the table are discussions about when to slow down the rate of bond purchases.

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

Weekly Update June 16: The current market can’t seem to get excited or dejected enough for a move either way. But the sideways market has driven more investors toward income and value stocks. Many previous market laggards are slowly forging ever higher and making new highs while the overall market flounders. Portfolio positions including Enterprise Product Partners (EPD), ONEOK (OKE), STAG Industrial (STAG), Brookfield Infrastructure Partners (BIP) and Digital Realty (DLR) have broken out to highs and have solid momentum. The move toward these stocks was overdue. Finally, investors are appreciating the value of dividends.

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

Weekly Update June 16: Since bottoming at the end of March, stocks in the marijuana sector have been building a base, with the best stocks in our portfolio still showing a healthy pattern of higher lows. But we still don’t have a renewed uptrend, and that’s OK. We’re patient. What we do have are 200-day moving averages that are coming close to our stocks and that, ideally, will provide support.

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 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 15: This Friday is the expiration of June options, and for the time being it looks like the Profit Booster portfolio will have yet another spectacular month of returns as IGT, PGNY, RRC are trading well above the strike price of the calls we sold, while FNKO is at the strike, which is also a good situation. Jacob’s new stock recommendation is GoPro (GPRO).

Cabot Micro-Cap Insider

Weekly Update June 16: The market continues to be strong with the S&P 500 near all-time highs. And micro-caps continue to chug along. In aggregate, our micro-cap recommendations continue to do quite well, and Rich continues to find many excellent opportunities, especially in “cyclical” areas of the market. In case you missed it, we hosted our monthly member call last week. You can watch the replay here.

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 16: Not much has changed in the market over the last week. The S&P 500 did manage to climb to a new all-time high yesterday. But that high was only a fraction of a percent above the high of early May. The market really hasn’t gone anywhere in six weeks.

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 18: Covering recent news and analysis for our portfolio companies and other topics relevant to value investors. Click here to listen to the podcast.

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
AVGOBuyBuy
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
GOLDSellBuy
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
NVCRBuy
NVDABuy
OBuyBuy
OGNBuy
OKEBuy
OTTRBuy
PGNYBuy
PGXHold 1/2
PLTRBuyBuy
PRCHBuy
QCOMBuy
QTWOBuy
RBLXHoldBuy
RGENBuy
RVLVBuy
SEBuy 1/2Buy
SLBBuy
SPCEHold 1/2
SPTBuy
SSOBuy
STBuyBuy
STAGHold
TAPHoldBuy
TCNNFSee AdvisoryHold
TPBSee Advisory
TRSSFSee Advisory
TSLAHold
TSMBuy 1/2
TSNSold
USBBuy
VLOHold
VZHold
XELBuy 2/3
XPBuy