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Cabot Prime Pro Week Ending March 26, 2021

Cabot Prime Pro Week Ending March 26, 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, Tyler Laundon discusses the generally strong performance at the index level but continued choppy action in growth stocks. He highlights small cap stocks as one area of particular strength. He runs through six growthy names that look compelling right now due to exposure to a reopening economy and/or solid business trends. And then discusses six more that are trading near support and which could be attractive for more risk-tolerant investors. Stocks discussed: LYFT, FOUR, TXG, ALTR, FRPT, IBM, FIVN, CHWY, RGEN, SPT, CDLX, VRNS, IGV.

UPCOMING CABOT EVENTS:

Cabot Micro-Cap Insider Member Call – April 2021

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Cabot Prime Members Meeting with the Analysts: 2nd Quarter 2021

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3 Micro-Cap Stocks that Could Triple in the Next Year

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Advisory Services

Cabot Growth Investor

Bi-weekly Issue March 25: Since the last issue we’ve seen some ups, some downs and lots of rotation in and out of sectors, but overall, our main view hasn’t changed much: There’s not any real money being made out there unless you’re a nimble swing trader (we, of course, are position traders, which means intermediate to longer term), with individual stocks and sectors doing a lot of chopping (at best) or declining (at worst). Really, this action isn’t unusual after a big uptrend ends and, ideally, should serve to dampen sentiment and set up some solid launching pads down the road. For now, though, staying mostly on the sideline is key, especially for growth stocks, letting others fight it out while we wait for the buyers to retake control.

Special Bulletin March 25: Growth stocks have come under renewed pressure in recent days as the Nasdaq’s recent rally attempt has hit a wall, with a few former leaders already testing their lows. We’ve been cautious for three weeks now, and tonight, we’re going to sell our remaining position in Roku (ROKU), as the stock is showing relative weakness even compared to other growth titles. That will bring our cash position near 55%.

Bi-weekly Update March 18: The market has thrashed around in recent days, which hasn’t changed the overall outlook—most of the market remains in decent shape, but growth stocks and the Nasdaq are mired in a correction and there’s still a chance we see another leg down. That doesn’t mean we couldn’t on something here or there for the most part Mike think it’s best to stay close to shore until the sellers finish their work. Mike has no changes tonight and the Model Portfolio remains about 50% in cash.

Cabot Top Ten Trader

Movers & Shakers March 26: It’s been another mostly sour week in the market, with the Nasdaq stumbling again and small- and mid-caps lagging even more. At this point, the overall intermediate-term trend for the market is basically on the fence, while the Nasdaq remains mired in a correction. Mike has three buy recommendations: Amkor (AMKR), Applied Materials (AMAT) and Goldman Sachs (GS).

Weekly Issue March 22: There were some intra-week ups and downs, but overall, not much changed with the evidence last week—the major indexes mostly closed down 0.5% to 1.5%, which keeps the broad market in an uptrend but also means growth stocks and the Nasdaq are still in corrections and consolidations. Mike’s Top Pick is LGI Homes (LGIH), which has reemerged on the upside and could be leading a new group move in the homebuilders.

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 Trade Alert March 25: Sell Existing Position: Sell your Sonos (SONO) June 22.5 Calls for $14 or more.

Cabot Options Trader Basic & Pro Trade Alert March 24: Covered Call: Buy Ford (F) Stock and Sell the April 12.5 Call (exp. 4/16) for a net price of $11.95 or LESS.

Cabot Options Trader Basic & Pro Stocks on Watch March 23: For the second straight day a trader has been accumulating Activision Blizzard (ATVI) May calls. Here are those trades: Today – Buyer of 5,200 ATVI May 95 Calls for $3.40 – Stock at 92.5 and Yesterday – Buyer of 5,700 ATVI May 95 Calls for $3.25 – Stock at 92.

Cabot Options Trader Basic Weekly Update March 22: The Chicago Board of Options Exchange Volatility Index (VIX) was mostly unchanged last week, closing at 20.95. This lack of a move higher, especially following Thursday’s nasty market sell-off, is somewhat interesting … though admittedly the VIX is priced off of the S&P 500, which has held up much better than the Nasdaq, which has been crushed in recent weeks.

Cabot Options Trader Pro Weekly Update March 22: Long positions: FCX, SONO, XLF, PINS, UBER, DKNG

Cabot Undervalued Stocks Advisor

Weekly Update March 24: There’s no doubting the dominance achieved by mega-tech companies like Facebook, Amazon, Netflix, Google and the other members of the “FANGMAN” club (Microsoft, Apple and Nvidia). Over the past decade or two, these have created entirely new industries, grown to unprecedented size and rewarded shareholders with vast profits. And, like all of the technology companies that preceded them, they have reached their peak potential. Bruce has no portfolio 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 22: The broad market continues to send mixed messages. While leading growth stocks have been hit hard (and some have rebounded), the major indexes remain in uptrends and cyclical stocks and “reopening” stocks have attracted new buyers. Bottom line: it’s still a bull market, but selectivity is important as ever—as is diversification, perhaps the single biggest conviction of this advisory. Tim’s featured stock Barrick Gold (GOLD), is one of the world’s largest and highest quality producers of gold. Based in Toronto, Canada, the company has mining operations around the world, with about 50% of production in North America, 32% in Africa and the Middle East and 18% in Latin America and Asia Pacific. Tim has one portfolio change: Sea, Ltd. (SE) to Buy.

Cabot Global Stocks Explorer

Bi-weekly Update March 25: It has been one year since the S&P 500 hit bottom and since the then the blue-chip index has roared back nearly 75%. Just imagine if we would have had a pile of cash and the guts to jump in. For some tech stocks, the returns have been spectacular. Tesla’s stock, for example, is up more than 650% even after coming back over the last couple of months. Over the last few weeks though, it seems that markets are hitting the pause button. Carl has three portfolio changes: LogiQ (LGIQ) Moves from a Buy to a Sell, Afterpay (APT.AX) Moves from Hold to Sell and Fisker Inc. (FSR) Moves from a Hold to Buy

Bi-weekly Issue March 18: You can often find exciting and profitable investment ideas at the edge of new technologies. China is accelerating its government-sponsored satellite initiative to beam Internet from space, taking on American rivals SpaceX’s Starlink and Amazon’s Project Kuiper, as well as the United Kingdom’s OneWeb, in the competition to dominate the age of space connectivity. Carl’s new recommendation QuantumScape (QS), is working on some breakthrough electric vehicle battery technology backed by some heavyweight industrialists, as well as Volkswagen. Carl has one portfolio change: Sea Limited (SE) moves from Hold a Half to Buy a Half.

Cabot Small-Cap Confidential

Weekly Update March 25: It continues to be a very tough market, and with our exposure to small- and mid-cap growth stocks our portfolio continues to feel pressure. After some signs of stabilization last week the sellers are back in control this week and many names look destined to retest their March lows, or possibly dip a little lower. Tyler has three portfolio changes: Arena Pharmaceuticals (ARNA) moves to HOLD, Avalara (AVLR) moves to HOLD and Profound Medical (PROF) moves to SELL.

Special Bulletin March 24: Accolade revealed preliminary Q4 and full-year 2020 results after the bell yesterday and announced a private offering of $250 million convertible notes, with a $37.5 million option (pricing to be determined). The reasons for the offering are the usual – working capital, acquisitions, strategic investments and general corporate purposes.

Special Bulletin March 23: BioLife (BLFS) reported Q4 results yesterday after the close that surpassed revenue expectations. Revenue was up 77.5% to $14.7 million (beating by $1.2 million) while adjusted EPS of -$0.01 was in-line. For the full-year 2020 revenue was up 76% to $48.1 million, driven largely by Media products, which grew by 32% to $31 million.

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

Weekly Update March 24: The furious recent surge in energy stocks has ended, or at least taken a break. After soaring over 36% since the beginning of February, the Energy Select Sector SPDR Fund (XLE) pulled back over 10% in the last couple of weeks. Meanwhile, long neglected defensive stocks are starting to show signs of life. Utilities are actually the best performing S&P sector over the past month. Many market sectors have been floundering in recent months and the market could rotate back to some of the recently neglected plays. Tom has two portfolio changes: Altria (MO) moves from Buy to Hold and Invesco BulletShares 2021 Corporate Bond ETF (BSCL) moves from Buy to Hold.

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.

Cabot Marijuana Investor

Weekly Update March 24: The marijuana sector, in general, remains in a correction. The high for the sector was six weeks ago, while the most recent bottom was two and a half weeks ago. Since then, one of our stocks, Trulieve (TCNNF), has hit a new high, while another, TerrAscend (TRSSF), has broken down below its recent low. Going forward, if we see more weakness, we could sell even more from our portfolio, which is now 58% in cash. Alternatively, if the sector strengthens, we could jump back in.

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 25: Sell APi Group (APG). The market remains messy and is acting in a one step forward, two steps back fashion, at least where growth stocks are concerned. As of early afternoon today it looks like many of our stocks are testing their lows from earlier this month. Suffice to say we would like to see these levels hold. If not, we will likely be exiting more positions as a break of support could leave many stocks in a vulnerable position.

Monthly Issue March 17: One year and one day ago, on March 16, 2020 the S&P 500 had one of the worst days in history, falling nearly 12%. Of course, that was just one in a horrible stretch of trading days that slashed the index by 35% over the course of six weeks. This advisory service was relatively new at the time and we were just starting to get into a groove when things went crazy. Tyler’s Top Pick is Eargo (EAR), produces high-quality, small, well-fitting and easy-to-use hearing aids, at a reasonable cost. Eargo’s solution ticks all the boxes. It is nearly invisible (fitting completely in the ear canal) and has a lot of technology (including 16 hours per charge) packed into a small form factor.

Cabot Profit Booster

Weekly Issue March 23: Despite the market having some bumpiness, March was another great month for the Cabot Profit Booster portfolio as we closed four positions for the following profits: JCI – $235 per covered call – yield of 4.5%, SONO – $450 per covered call – yield of 17.7%, GS – $1,550 per covered call – yield of 5.8% and APHA – $220 per covered call – yield of 18.6%. Jacob’s new stock recommendation is TripAdvisor (TRIP).

Position Update March 22: The Dynatrace (DT) March 55 call that we sold last month for $4.60 expired worthless on Friday. This was a totally fine situation, and our position is at a small profit. Today, Jacob is going to sell a new call against our stock position as DT looks much better than its growth stock peers, and we can get a solid premium by selling a new April call.

Cabot Micro-Cap Insider

Weekly Update March 24: Over the past couple of weeks, the market has been flat despite a lot of news flow. There are rumors that the Biden administration may try to push through a tax hike on high earners and separately propose a massive infrastructure bill. Meanwhile, another round of stimulus checks are being mailed out and perhaps that will provide support for stocks. What impact will all this news have on our stocks? It’s hard to say. It’s natural to feel the need to react to the news and adjust our portfolios in real time. But sometimes it’s best to just sit back and be patient. Rich has no portfolio changes.

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.

Cabot Income Advisor

Monthly Issue March 24: Cyclical stocks are hot and technology stocks are not. Wait a minute. Cyclical stocks are moving lower and technology is roaring back. That’s been the story over the past month. Of course, energy stocks are due for a pullback or consolidation after such a huge move higher. It’s normal. And the prognosis for the sector is still good for the rest of the year. It also isn’t clear if technology stocks are finished correcting or not. While those sectors are having all the fun, most S&P 500 sectors haven’t been doing much. Tom’s first featured stock U.S. Bancorp (USB), is the fifth largest bank in the United States and the country’s largest regional bank with over 3,000 bank branches in 25 states in the western and northern U.S. Tom’s second featured stock KKR & Co. (KKR), Formerly Kohlberg Kravis Roberts Co., is a leading global alternative asset manager.

Weekly Update March 17: So much for the technology selloff. The sector dipped its toe into correction territory and has roared back with a vengeance. A week ago yesterday, the technology-stock-heavy Nasdaq Index closed down over 10% from the recent high. It had been a long overdue pullback for a sector that has been on fire much of the past year. But it looks like the sector is right back in business after it got that correction over with. The Nasdaq has rallied about 8% in the past week and already recouped most of the short-lived losses. At the same time, boiling hot energy stocks have pulled back over the past few days. The Energy Select Sector SPDR Fund (XLE) soared a remarkable 35% since February but has pulled back in the past few days.

Cabot Turnaround Letter

Weekly Update March 26: It was a quiet week for news on our recommended stocks. No recommended companies reported earnings this week. The next earnings report looks like Lamb Weston Holdings (LW), on April 7, which kicks off the first-quarter earnings season. 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: First I appreciate your work on profit booster, I made nice money with your service. I was wondering why we sold another call on DT? I sold the stock at 53$ and made a couple of percent. By selling another call we might bring down the cost of the stock, however wouldn’t it make more sense to use that money and buy a new stock and get a better rate or return? I was also wondering why you picked TRIP today when Europe is starting to close down.

Jacob: DT chart looks like the top 5% amongst the growth stocks. That is why I sold a new call, and kept the trade going. Could it be the wrong move? Absolutely! But I want to be in the best stocks, should momentum swing back to growth. Also, with a stop in place, and more call premium collected, our risk is minimal. As for TRIP, the market has been starting to price in the European tightening, and that is why we were able to buy the stock 10% lower than it was trading two days ago. Also, because of this stock decline, options premiums were very healthy.
Again, that decision could prove to be an error, but let’s give it a couple days/weeks.

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.

StockCabot Small-Cap ConfidentialCabot Global Stocks ExplorerCabot Growth InvestorCabot Marijuana InvestorCabot Stock of the WeekCabot Undervalued Stocks AdvisorCabot Dividend Investor
ABBVHold 2/3
ACCDBuy
APGBuy
APT.AXSell
ARNAHold
ATCOBuy 1/2
AVGOBuyBuy
AVLRHold
AVVIYBuy
BFTBuy 1/2
BIPBuyBuy 2/3
BLFSBuy
BMYStrong Buy
BSCLHold
CDLXBuy
CGCSee Advisory
CRLBFSee Advisory
CRNCHold
CSCOBuy
CURLFSee Advisory
CVXBuy
DKNGBuy 1/2Buy
DLRBuy
DOWHold
EPDBuy
EVBGBuy
FIVEBuyBuy
FSRBuy
FVRRHold 1/2
GMHoldHold
GOLDBuyBuy
GRWGSee Advisory
GSHDHold 3/4
GTBIFSee Advisory
HTHTHold
IIPRSee Advisory
IBMBuy
INSPHold
JBLUHold
JUSHFSee AdvisoryHold 2/3
KOBuyBuy
KRNTBuy
LGIQSell
LLYHold 2/3
MOHold
MRKBuy
NEEBuyBuy
NETHold 1/2
NGLOYBuy
NVCRBuy
OBuy
PGNYHold
PGXHold 1/2
PINSHoldHold
PRCHBuy
PROFSell
QCOMHold 2/3
QSBuy
QTWOBuy
RGENBuy
ROKUSell
SEBuy 1/2Buy
SPCEHold 1/2Take Partial Profits
SPTHold
SSOBuy
STBuy
STAGBuy
TAPHoldBuy
TCNNFSee AdvisoryHold
TPBSee Advisory
TRSSFSee Advisory
TSLAHold
TSMBuy 1/2
TSNBuy
TWLOHold 3/4
UBERHoldHold
USBBuyBuy
VLOHold
VZHold
XELBuy 2/3