Cabot Prime Pro Week Ending March 12, 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 says “up is good” when it comes to the rally this week, but not much has changed with his thoughts—most of the market is OK, but growth is still in a correction until proven otherwise. He’s open to anything, though, and goes through (in some detail) many growth names that could be ready to go if the Nasdaq can truly kick into gear. Stocks mentioned include W, AMAT, NARI, SHAK, DT, DKNG, UBER, and LYFT.
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Advisory Services
Cabot Growth Investor
Bi-weekly Issue March 11: Last year saw a ton of “wow, we haven’t seen this kind of unusual market action in decades!” situations, but instead of reverting back to normal behavior, 2021 has had plenty of tricks up its sleeve as well. The past few weeks has been a good example of that, as growth stocks have cracked their uptrends across the board, while the rest of the market continues to dance to its own bullish tune. Indeed, today, many indexes leapt to fresh all-time highs, even as the Nasdaq itself is hanging around its 50-day line and most growth leaders are still 15% or more off their peaks! However, that’s left us with a huge cash position, so tonight Mike will start a half-sized position in DraftKings (DKNG), which will leave us with right around 50% on the sideline. Mike is changing ProShares Ultra S&P 500 Fund (SSO) to a Buy.
Bi-weekly Update March 4: Growth stocks have turned tail in a big way starting two weeks ago, with most leaders having now cracked intermediate-term support. This is still a bull market overall (our Cabot Tides are technically still positive, though they’re close to the fence), but the action among individual growth stocks has forced us to sell three names during the past two weeks and we’re now holding a cash position north of 50%. Mike is placing ProShares Ultra S&P 500 Fund (SSO) on Hold.
Cabot Top Ten Trader
Movers & Shakers March 12: It’s been a solid rebound week for the markets, but as has been the case lately, it really depends on where you look—many major indexes actually hit new highs yesterday, but the Nasdaq could “only” get back to its 50-day line, and so far this morning, we’re seeing some sellers reemerge. Mike has three buy recommendations: Dynatrace (DT), General Motors (GM) and Shake Shack (SHAK).
Weekly Issue March 8: The selling pressure that we saw emerge two weeks ago really picked up last week, with the vast majority of leading growth stocks cracking intermediate-term support. That said, the rest of the market has refused to follow the Nasdaq’s lead; there’s been some damage and plenty of wobbles, but so far the broader indexes have held up, and buying in many cyclical areas has picked up. Mike’s Top Pick is Marriott Vacations (VAC), which has soaring earnings estimates and a stock that just lifted out of a three-year base on huge volume.
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 Trade Alert March 12: Sell your Microsoft (MSFT) March 220/240 Bull Call Spread for $12.70 or more.
Cabot Options Trader Basic & Pro Trade Alert March 11: Buy the DraftKings (DKNG) August 70 Calls (exp. 8/20) for $15 or less.
Cabot Options Trader Basic & Pro Stocks on Watch March 10: DraftKings (DKNG) popped on Jacob’s radar last week as the stock busted out to a new all-time high of 72 following earnings. Fast forward a couple days later, the Nasdaq dropped 11%, growth stocks were mauled, and DKNG traded as low as 54, and the stock had fallen right back off my watchlist. However, following the company’s investor day yesterday, very impressively DKNG is again approaching those highs, trading at 68 today, and is attracting very bullish option activity as calls are outpacing puts on a ratio of 6.3:1 call over put (174,000 vs. 27,000).
Cabot Options Trader Basic & Pro Position Update March 8: The financial sector has been a prime beneficiary of this rotation and our position in the Financials ETF (XLF) June 31 Call options continues to prosper as a result. Jacob expects this rotation into financial stocks to continue. In fact, it could be in the very early stages, similar to the way financial shares outperformed the overall market for several years from 2000-2003.
Cabot Options Trader Basic Weekly Update March 8: It was another volatile week for the Chicago Board of Options Exchange Volatility Index (VIX), which slumped on Monday and Friday, but rose Tuesday through Thursday reflecting the up-and-down stock market turbulence last week. For the full week the VIX declined by 11.8%
Cabot Options Trader Pro Weekly Update March 8: Long positions: FCX, MSFT, SNAP, SONO, XLF, PINS, UBER
Cabot Undervalued Stocks Advisor
Weekly Update March 10: Each day brings something new. Some days every stock falls, other days they all surge, and some days, like Monday, undervalued stocks in the industrial, consumer and financial sectors jump (the Dow Jones Industrial Average gained 1%) while the Nasdaq slipped 2.4% – an enormous and historically unusual 3.4 percentage point gap, particularly as the indices went in opposite directions. Since February 12th, the Dow Jones Industrial Average has lifted by 1.1% while the Nasdaq has plunged by 10.5%, entering what the media call a correction. The Cabot Undervalued Stocks Advisor names have been doing well. In the past week, the average recommended stock gained about 4%, while the S&P500 was flat. It’s been quite a year so far, and it is only early March. Bruce remains optimistic on undervalued stocks. Bruce has two portfolio price changes.
Monthly Issue March 3: This wouldn’t be a proper value investing letter without mentioning Berkshire Hathaway’s earnings report and chairman Warren Buffett’s annual shareholder letter, released this past Saturday. The earnings were fine, given the pandemic this year, while the letter seemed shorter than typical and more of a reminiscence of the company’s history than sage advice about investing. This week, Bruce is adding a new name that Buffett may appreciate but almost certainly doesn’t own – Aviva, Plc. This London-based insurance company is undergoing an overhaul, led by the highly capable new CEO Amanda Blanc.
Cabot Stock of the Week
Weekly Issue March 8: The Dow was up big today as investors flooded into the stocks of big companies that are expected to benefit from the economic reopening, but growth stocks in general remain under pressure, so Tim recommends minimizing buys in this sector until the picture improves. Tim’s featured stock APi Group Corporation (APG), best known as a provider of fire safety and sprinkler systems, but the business is really a diversified provider of safety (43% of revenue), specialty (36% of revenue) and industrial (21% of revenue) services to customers in the U.S., Canada and U.K. Tim has three portfolio changes this week.
Cabot Global Stocks Explorer
Bi-weekly Update March 11: In a bit of a reversal, tech stocks gyrated and industrial stocks jumped this past week. In particular, energy and financial stocks led the way as the Dow closed above 32,000 for the first time. Tech company stalwarts rebounded a bit yesterday but have been stung by the sharp pullback. One of the most prominent names in SPACs, Chamath Palihapitiya, faced criticism this week after regulatory filings showed that he had sold his entire personal stake in Virgin Galactic (SPCE), an Explorer holding. His response was that he would maintain a stake in Virgin Galactic indirectly through an investment firm and plans to reallocate capital to climate change tech. This spin is not convincing.
Bi-weekly Issue March 4: The market is hitting a little turbulence, which is natural as it feels its way across the timing of the pandemic economic recovery, concern over debt, interest rates, and inflation – and the big issue that will not go away for the balance of this decade: the U.S.-China rivalry. Carl’s new recommendation Atlas Corp. (ATCO), operates as an independent charter owner and manager of containerships. The company charters its containerships to various container liner companies. It operates a fleet of 118 containerships and also provides fast-track mobile turbine power to various industries. In addition, the company plans, finances, and constructs permanent power plants. Carl has two portfolio changes: ElectraMeccanica (SOLO) moves from Hold to Sell and NovoCure (NVCR) moves from Hold to Sell.
Cabot Small-Cap Confidential
Weekly Update March 11: Tyler continues to believe that the long-term trend for most of ours stocks remains up and that a 20% to 40% decline is “normal” for these types of stocks when fear enters the mix. However, we’ll continue to evaluate each position as we work through this and try to maintain the balanced approach that’s helped us get to where we are (average gain of 220% across the portfolio). Tyler has two portfolio changes: Cardlytics (CDLX) moves to BUY and Cerence (CRNC) moves to HOLD.
Special Bulletin March 10: Yesterday’s big rally in the Nasdaq was enough to reignite bullish spirits but it was not a clear signal that it is time back up the truck on growth stocks just yet. While Tyler sides with those who say the pullback has opened up opportunities for fresh buying in many beaten down names and think it’s fine to pick up shares of some of ours stocks, he also thinks the chances of a snapback rally in many of the highest multiple growth stocks, then a follow through to new highs within a few weeks, is unlikely.
Monthly Issue March 4: Tyler’s new recommendation, Kornit Digital (KRNT) designs and manufactures industrial digital printing technologies for the garment, apparel, and home goods markets. It represents a way to play mass-market adoption of digitally printed textiles on a huge range of items, including clothes, sheets, furniture coverings, rugs, curtains, rolled fabric and more. The company has a market cap of $4.7 billion. In 2019 revenue rose by 26% to $180 million. The first half of 2020 was dramatically impacted by Covid-19 related shutdowns. Revenue fell by 32% in Q1 and 17% in Q2.
Cabot Dividend Investor
Monthly Issue March 10: This is a wild market. Yesterday’s perennial losers are today’s big winners. At the same time, long dominant technology stocks are taking a beating. Cyclical or open-up stocks are on fire, and for good reason. The U.S. economy has far exceeded expectations at every phase of the recovery so far. The vaccines promise to end the remaining lockdowns and restrictions, or significantly curtail them. With the shackles removed, the economy will kick into high gear. Even several normally dour economists are predicting the highest GDP growth in decades this year. Tom’s featured stock KKR & Co. (KKR), is a leading global alternative asset manager. The firm manages multiple alternative asset classes including private equity, energy, infrastructure, real estate, credit, as well as hedge funds through strategic partners. It generates revenues from management fees, performance income and investment income with a global reach on five continents.
Weekly Update March 3: The market has gotten a little choppy and interest rates are to blame. At least, that’s what they say. The market indexes fell last week and have been all over the place so far this week. The technology-stock heavy Nasdaq has been particularly concerning. That index had fallen over 7% from the highs at one point last week and is still down almost 6%. It’s about time. There’s no way technology stocks could keep up that pace. Tom has two portfolio changes: Innovative Industrial Properties (IIPR) moves from Hold to Sell and Qualcomm Inc. (QCOM) moves from Hold to Sell 1/3.
Cabot Marijuana Investor
Weekly Update March 10: The Dow hit a new high today, but marijuana stocks didn’t; their correction, which was richly deserved, is now one month old. And the fact is this correction is likely to run further, mainly because the broad market still needs a correction. In the meantime, Tim is going to lighten up further in the portfolio, to reduce our losses should the correction continue, by selling a third of our positions in those three weakest stocks: GRWG, IIPR and TRSSF. This will take our cash position from 54% to roughly 58%.
Monthly Issue February 24: Two weeks ago, just as the sector peaked, our Marijuana Portfolio was up 48% YTD while the Marijuana Index was up 91% (in part due to the Canadian stocks that had rebounded from an oversold position late last year). That’s when I advised selling, based mainly on the action of the charts—which were showing unsustainable parabolic action—but also on the elevated sentiment among investors. Today, the Index has given up nearly half of its gain, while our portfolio has lost far less, thanks to holding plenty of cash and just one Canadian stock. Tim has no portfolio changes.
Cabot Early Opportunities
Special Bulletin March 11: Three days does not make a trend in any way, shape or form. But, rejuvenated by a stalling/pullback in yields, growth stock bulls have pulled themselves up off the mat and appear ready to defend their turf – at least for now. Among the stocks Tyler likes best now are those that show growth traits AND exposure to an economic reopening. Shift4 (FOUR) fits the bill.
Special Bulletin March 10: Yesterday’s big rally in the Nasdaq was enough to reignite bullish spirits but it was not a clear signal that it is time back up the truck on growth stocks just yet. While Tyler sides with those who say the pullback has opened up opportunities for fresh buying in many beaten down names, he think the chances of a snapback rally in many of the highest multiple growth stocks, then a follow through to new highs within a few weeks, is unlikely.
Monthly Issue February 17: This has been a phenomenal run for those of us that focus on early-stage companies. The IPO market is as strong as it has been at any point in six years. Even if all the companies that have been coming public aren’t great buys right now, collectively they are recharging the pipeline of potential opportunities. Tyler’s Top Pick is JFrog (FROG), is the hands-down leader in providing artifact repositories. It has been doing so since 2009 and the company’s core product, Artifactory, leads in a specialized market. That said, while the DevOps movement is gaining ground, many organizations still don’t fully understand how artifact repositories can help them. Over time they will, and in the meantime, JFrog’s growth should expand with clients that have already seen the light.
Cabot Profit Booster
Weekly Issue March 9: The last two weeks have seen a massive rally into cyclical stocks, and a purge of growth stocks. Massive! Whether this trend will continue is anyone’s guess. The good news for the Cabot Profit Booster portfolio is we have a relatively diverse portfolio. And as I eyeball our portfolio, I would say we have five cyclical stocks (AZEK, JCI, SONO, GS, APHA) and “only” two growth stocks (DT, AMKR), and the premiums we collected via our covered call sales have partially buffered us from big losses on those stocks that have been hit hard. Jacob’s new stock recommendation is Abercrombie & Fitch (ANF).
Cabot Micro-Cap Insider
Monthly Issue March 10: Value investors have waited a long time for this. After suffering through one of the worst periods of relative underperformance ever, value is outperforming. Not only is value outperforming, but it feels like some of the froth is being sucked out of the market. Tesla (TSLA) is down 36% from its all-time highs. Nikola (NKLA) is down 49%. Many SPACs are suddenly trading for less than their cash holdings. Rich’s new recommendation Aptevo Therapeutics (APVO), a biotech company with a promising pipeline yet a very low valuation. Tang Capital has an offer outstanding to purchase the company for 50 per share, significantly above where the stock currently trades.
Weekly Update March 3: There are a lot of reasons to be optimistic with stocks. Vaccines are being rolled out, and the economic recovery will be strong in 2021. Stocks that will benefit from the economic recover should have strong tailwinds. While our entire portfolio should benefit from an improving economy, two stand out to Rich. The first is Dorchester Minerals (DMLP) which is an energy royalty company. As the global economy picks up steam, demand for energy will increase, driving prices higher. We’ve already seen this as crude oil is above $60/bbl. Dorchester is a direct beneficiary of higher prices and pays out its income as dividends. Rich is increasing limit on DFIN to Buy under 25.00.
Cabot Income Advisor
Weekly Update March 10: Although the S&P 500 index has gone sideways in recent weeks, there is a lot going on under the hood. The long dominant technology sector finally took a hit. The tech-laden Nasdaq index closed in correction territory on Monday, down 10.5% from the February 12th high. And while technology stocks were correcting, cyclical plays in energy and finance accelerated their upward thrust. The Financial Sector SPDR Fund (XLF) was up 5.6% during the tech selloff and the Energy Select Sector SPDR Fund (XLE) moved up 15%.
Monthly Issue February 24: This generally isn’t the best time to buy stocks. Shares in energy, finance and other cyclical sectors have just had a huge run higher and may be due for a consolidation. At the same time, much of the rest of the market is under increasing selling pressure and may be setting up for a more significant, and overdue, downturn. However, it is a very good time to write high-priced calls in stocks that have been soaring higher. That’s why this portfolio has recently written calls on high-flying positions Valero Energy (VLO) and Chevron (CVX). Tom’s featured stock NextEra Energy, Inc. (NEE), is the world’s largest utility. It’s a monster with about $18 billion in annual revenue and a $147 billion market capitalization.
Cabot Turnaround Letter
Weekly Update March 12: The bull market in our turnaround stocks has pushed more names above their price targets. Many (most) of these companies continue to see their fundamentals improve while their valuations still look attractive enough to keep, so we are raising our price targets on six stocks today. No companies reported earnings this past week. Next Monday, Volkswagen (VWAGY) is holding a “Power Day 2021” conference, and on Tuesday will release its full-year earnings and host its annual Media Conference and Investor Conference. Click here to listen to the podcast.
Monthly Issue February 24: The energy industry has been through a remarkably difficult time in the past seven years. The collapse of oil prices in mid-2014, from over $110/barrel to less than $25/barrel in early 2020, exerted immense stress on energy companies, particularly those that were bloated with debt from their overzealous pursuit of growth. At the same time, capital markets curtailed their financing of energy companies, worn out by the chronic lack of free cash flow. Several of these companies slid into bankruptcy, yet now look like interesting investment opportunities. Bruce’s has one buy recommendation: Altria Group (MO) and one sell recommendation: Trinity Industries (TRN).
Ask the Experts
Cabot Profit Booster
Question: As I edge closer to retirement – I’m starting to think that I will fund my retirement with the profit booster strategy and live off the premiums. Do you think that is a viable strategy ?
Jacob: Absolutely that is a sound strategy. Covered calls are a great way to create income month after month. And if you layer dividend paying stocks on top of covered calls, you can create real nice yields. Though of course there will be some bumps in the road, so do not go “all in” on covered calls. Congrats on nearing retirement!
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts from January 20, 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.
| 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 2/3 | ||||||
| ACA | Sold | ||||||
| ACCD | Buy | ||||||
| APG | Buy | ||||||
| APT.AX | Hold 1/2 | ||||||
| ARNA | Buy | ||||||
| ATCO | Buy 1/2 | ||||||
| AVGO | Buy | Buy | |||||
| AVLR | Buy | ||||||
| AVVIY | Buy | ||||||
| BFT | Buy 1/2 | ||||||
| BIP | Buy | Buy 2/3 | |||||
| BLFS | Buy | ||||||
| BMY | Strong Buy | ||||||
| BSCL | Buy 1/2 | ||||||
| CDLX | Buy | ||||||
| CGC | See Advisory | ||||||
| CRLBF | See Advisory | ||||||
| CRNC | Hold | ||||||
| CRWD | Sold | ||||||
| CSCO | Buy | ||||||
| CURLF | See Advisory | ||||||
| CVX | Buy | ||||||
| DKNG | Buy 1/2 | ||||||
| DLR | Buy | ||||||
| DOW | Hold | ||||||
| EPD | Buy | ||||||
| ESTC | Sold | ||||||
| EVBG | Buy | ||||||
| FIVE | Buy | Buy | |||||
| FSR | Hold 1/2 | ||||||
| FVRR | Hold 1/2 | ||||||
| GM | Hold | Hold | |||||
| GRWG | See Advisory | ||||||
| GSHD | Hold 3/4 | ||||||
| GTBIF | See Advisory | ||||||
| HALO | Sold | ||||||
| HTHT | Hold | ||||||
| IIPR | See Advisory | Sold | |||||
| IBM | Buy | ||||||
| INSP | Hold | ||||||
| JBLU | Hold | ||||||
| JUSHF | See Advisory | Hold 2/3 | |||||
| KO | Buy | Buy | |||||
| KRNT | Buy | ||||||
| LGIQ | Buy 1/2 | ||||||
| LLY | Hold 2/3 | ||||||
| MO | Buy | ||||||
| MRK | Buy | ||||||
| NEE | Buy | Buy | |||||
| NET | Hold 1/2 | ||||||
| NGLOY | Buy | ||||||
| NUAN | Sold | ||||||
| NVCR | Sold | Buy | |||||
| O | Buy | ||||||
| PGNY | Hold | ||||||
| PGX | Hold 1/2 | ||||||
| PINS | Hold | Hold | |||||
| PRCH | Buy | ||||||
| PROF | Buy | ||||||
| QCOM | Sold 1/3 | ||||||
| QTWO | Buy | ||||||
| RGEN | Buy | ||||||
| ROKU | Sold 1/4 | ||||||
| SE | Hold 1/2 | Hold | |||||
| SOLO | Sold | Sell | |||||
| SPCE | Hold 1/2 | Take Partial Profits | |||||
| SPOT | Sell | ||||||
| SPT | Hold | ||||||
| SSO | Buy | ||||||
| ST | Buy | ||||||
| STAG | Buy | ||||||
| TAP | Hold | Buy | |||||
| TCNNF | See Advisory | Hold | |||||
| TPB | See Advisory | ||||||
| TRSSF | See Advisory | ||||||
| TSLA | Hold | ||||||
| TSM | Buy 1/2 | ||||||
| TSN | Buy | ||||||
| TWLO | Sold 1/4 | ||||||
| UBER | Hold | Hold | |||||
| USB | Buy | Buy | |||||
| VLO | Hold | ||||||
| VZ | Hold | ||||||
| XEL | Buy 2/3 |