Cabot Prime Pro Week Ending November 27, 2020
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 overall environment, which remains bullish (albeit a bit jubilant), as well as the tricky nature of individual stocks--there’s definitely more good than bad, but there’s also plenty of crosscurrents still out there. Before dashing off to start cooking and prepping cocktails, Mike reviews a bunch of solid setups that could offer entry points in the days or weeks ahead.
UPCOMING CABOT EVENTS:
Two Basic Options Trades to Make Money on Growth Stocks
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Cabot Retirement Club Member Call - December 2020
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Cabot Micro-Cap Insider Member Call – December 2020
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Advisory Services
Cabot Growth Investor
Bi-weekly Update November 25: Remain optimistic but pick your stocks carefully. The overall market is in good shape, and there’s definitely more good than bad among individual stocks, though it’s also tricky, with plenty of rotation and news-driven moves. We’re still holding a good amount of cash but are OK with a little buying here and there. Mike has one update: Buying a half position in Halozyme (HALO) today, which will leave us with a still hefty 36% cash position.
Bi-weekly Issue November 19: While the market has shaped up nicely in recent weeks, the bucking bronco environment for growth stocks chopped us out of a couple of names—combined with our lack of new buying, that ballooned our cash position to north of 50%. We thought that was too high, but we decided to wait a few days given the meat-grinder situation for growth stocks out there. Happily, though, we’re now seeing more growth titles shape up. The Model Portfolio came into this week with a bunch of cash on the sideline so we’re going to fill out our position in Roku (ROKU) and add a new half-sized position in Uber (UBER), leaving us with around 42% in cash.
Other Stocks of Interest November 5: Follow ups to stocks featured July 2, 2020 (issue 1449) to November 5, 2020 (issue 1458). Since many of the stocks written about in Other Stocks of Interest don’t make their way into the Model Portfolio, you won’t see them followed on a regular basis in the issues. However, we are monitoring these stocks, and this listing gives you a quick view of our latest thoughts.
Cabot Top Ten Trader
Movers & Shakers November 25: As for the market, not much has changed with our view—the major indexes look great, although near-term, some elevated sentiment measures and the hype surrounding Dow 30,000 could make for a post-holiday shakeout. Still, the intermediate-term trend is pointed up and many blastoff-type indicators bode well when looking out over the next few months. Mike’s Buy ideas today are: Align Technology (ALGN), Pinterest (PINS—preferably on a bit more of a shakeout), possibly Zillow (Z) and Martin Marietta (MLM—though with a relatively tight stop). Freeport McMoRan (FCX) looks great, but it’s now five points above its 50-day line, has been advancing for months and gapped up yesterday; shaving off some shares and holding the rest makes sense.
Weekly Issue November 23: As for the market, there remain a couple of flies in the ointment (the Nasdaq still hasn’t reached a new high; sentiment is a bit bubbly), but it’s fair to say the recent action has been constructive, with leading stocks avoiding another bout of selling so far and more individual names perking up. You should still go slow, but we’re increasingly optimistic. Our top pick is Halozyme (HALO), which acts powerfully and has terrific metrics. Try to buy 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 Position Update November 25: Jacob’s happy to report we are firing on all cylinders as our TSM, GM, QCOM, UBER, SNAP positions are at profits ranging from 80% to well over 200%. Also, I really like the set-ups in our NET and SONO trades.
Cabot Options Trader Basic and Pro Mental Stops November 24: Uber (UBER) is breaking out to a new all-time high today at 52. This stock strength has helped push our March 38 calls, originally purchased for $5.21, to be worth $15, or a potential profit of 187%. Jacob is going to set a new mental stop on our UBER calls at $11.
Cabot Options Trader Basic and Pro Trade Alert November 23: Buy the Sonos (SONO) June 22.5 Calls (exp. 6/18/2021) for $4.00 or less.
Cabot Options Trader Pro Weekly Update November 23: Jacob has eight long positions: GM, MSFT, NET, UBER, QCOM, SNAP, TSM, ZNGA and one short position: QQQ December Puts
Cabot Options Trader Basic Weekly Update November 23: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week virtually unchanged at 23.7. Unless the market really falls apart next week, Jacob expects the VIX, and options in general, to be under pressure ahead of the long Thanksgiving holiday.
Cabot Undervalued Stocks Advisor
Weekly Update November 25: Stocks showing strength and breadth like we haven’t seen in a long time, particularly with the broad market at a record high. Despite flattish returns from the formerly high-flying mega-cap tech stocks, the broad stock market is no longer grinding higher, it is surging higher, lifting the S&P 500 index to a month-to-date gain of 8.8% through Monday. This week Bruce has new portfolio changes for: JetBlue Airways (JBLU) and General Motors (GM).
Monthly Issue November 4: This past week at least modestly illustrated the merits of a value strategy. Two of our three “Strong Buy” stocks, Molson Coors Beverage Company and Equitable Holdings, surged on company-specific news that highlighted their underlying value. Other “non-value” stocks not on our recommended list, like Apple, Amazon, Microsoft and Facebook, provided company-specific news that should have been flattering but instead sent their stocks down between 5% and 9%. For investors that focus on high-growth and momentum-driven stocks, having at least a few value stocks can provide portfolio stability. This added stability can help boost investor resolve to stay the course when markets get sloppy and the macro news looks grim, as it did late last week. Bruce has two portfolio changes today: Columbia Sportswear (COLM) and Marathon Petroleum (MPC) both move from Hold to Buy.
Cabot Stock of the Week
Weekly Issue November 23: The bull market is alive and well, as investors look forward to vaccines that enable economic reopening. So I continue to recommend that you be heavily invested in a diversified portfolio of stocks. This weeks featured stock is Uber (UBER) which was originally recommended by Mike Cintolo in Cabot Growth Investor. Tim has three portfolio changes today: Azek (AZEK) to Sell, General Motors (GM) to Hold and Trulieve (TCNNF) to Hold.
Cabot Global Stocks Explorer
Bi-weekly Issue November 24: This is probably going to be an unusual Thanksgiving for many of you as we head into the last month of a turbulent year. While the overall market is up only a bit over 10%, there have been pockets that have delivered much, much higher returns. These include the big tech and data stocks, financial payments and other digital plays, and clean energy areas such as electric vehicles. Today, Carl’s new recommendation, NeoGenomics, Inc (NEO),operates a network of cancer-focused testing laboratories in the United States, as well as laboratories in Switzerland and Singapore. There are no portfolio changes.
Bi-weekly Update November 19: Markets steadied this week as the political situation became clearer and prospects for Covid-19 vaccines becoming available in the first half of 2021 seem more promising. The Explorer portfolio performed well this week, with a couple of ideas breaking out to new highs. This week, Sea Limited (SE) reported third-quarter financial results. This Singapore-based company’s revenue doubled to $1.2 billion for the quarter and it boosted annual forecasts for two key businesses. There are no portfolio changes today.
Cabot Small-Cap Confidential
Weekly Update November 25: Other than price changes not much has happened with our stocks since I wrote last week. With our offices closed tomorrow and Friday we’ll all be taking a short break before gearing up for the last month of the year. Next week is also when the next issue of Cabot Small-Cap Confidential will be released. Tyler has changed Palomar (PLMR) to a Sell
Monthly Issue November 5: Today’s recommendation, BioLife Solutions (BLFS), designs and manufactures bioproduction tools, hypothermic storage solutions and cryopreservation freeze media for the tissue engineering, cell therapy and gene therapy markets. Products include biopreservation media, automated thawing devices, cloud-connected shipping containers and freezer technologies. In the near-term, look to buy down to support around 26 and up to 35. Following the Q3 earnings report tonight Tyler will update his rating and outlook. Average in!
Cabot Dividend Investor
Weekly Update November 25: The world has been devastated by pestilence. The ensuing lockdowns have crashed the economy. The virus is getting worse not better. Strict lockdown restrictions are returning in many states. Meanwhile, the market is on an exuberant bender with indexes making new all time highs. Tom has rating changes for B&G Foods (BGS), Crown Castle International (CCI) andAlexandria Real Estate Equities (ARE).
Monthly Issue November 11: Some long dormant positions and well as the underperforming stocks are reawakening. The most notable change so far is in the health care stocks, AbbVie (ABBV) and Eli Lilly (LLY). ABBV has soared 22% since late October and LLY is 13% higher in the same time frame. In addition the two energy stocks, Enterprise Product Partners (EPD) and Valero Energy (VLO), may be on the cusp of reversing the hideous performance so far this year. The best performing stocks, Innovative Industrial Properties (IIPR) and Qualcomm (QCOM), are continuing to soar ever higher. Due to the valuation and momentum, Tom believes LLY and ABBV are the most attractive stocks to buy right now. This month’s featured stock is Realty Income (O).
Cabot Marijuana Investor
Monthly Issue November 25: And good news abounds. First came the election, in which voters in all five states that voiced their opinions on the issue voted for legalization. Then came the quarterly reports, which revealed that business is booming in the marijuana industry. And now we have news of vaccines, which will speed economic reopening. The portfolio has three changes this month. GrowGeneration (GRWG) to Hold. Innovative Industrial Properties (IIPR) to Buy. Village Farms International (VFF) New Buy.
Weekly Update November 18: A wave of quarterly reports in recent days means most of our companies have reported—the exceptions being Jushi (JUSHF) and TerrAscend (TRSSF), which has preannounced. The verdict from these reports is clear and simple: Business at these companies is booming! Tim describes the most attractive stocks using Bigger, Faster, Stronger analogy. Bigger refers to revenues. The biggest now are Curaleaf (CURLF), Green Thumb (GTBIF) and Cresco (CRLBF). Faster refers to the rate of revenue growth. The fastest-growing now are Cresco, Innovative Industrial Properties (IIPR) and Curaleaf. Stronger refers to the stocks’ momentum. The strongest now are GrowGeneration (GRWG), TerrAscend (TRSSF) and Cresco.
Cabot Early Opportunities
Monthly Issue November 18: The current investing climate is one of the most fascinating in history. We are in an economic recovery, which suggests investors should stay long stocks. We also have an incoming president intent on reducing the sense of chaotic leadership that accompanied the Trump White House and bringing back a sense of relative calm to U.S. leadership. That, combined with what is likely to be a republican controlled senate, is also bullish for stocks. Then we have the pandemic. Tyler suggests being prepared for conflicting headlines driving erratic trading action as we deal with an intensifying pandemic and a path toward vaccine distribution. Overall, Tyler believes now is a good time to keep new positions somewhat smaller than normal and average up to a full position with more purchases (three to five purchases to get to a full position seems about right). Today’s Top Pick is Avantor (AVTR), is a diversified global supplier of mission-critical products and services to customers in the life sciences, advanced technologies, applied materials, and education and government markets.
Cabot Profit Booster
Weekly Issue November 24: Last Friday all three of our November covered calls expired for full profits. Here were those gains and yields: OMI $275 per covered call, yield of 13.92%, STM $340 per covered call, yield of 10.75%, PLUG $210 per covered call, yield of 14.09%. The Stock – Alcoa (AA) saw a rough few years and a horrid start to 2020, the global aluminum market is in full-on recovery mode, led by a rebound in the automotive and construction industries. Rising demand and tightening supplies are boosting the white metal’s outlook, and Alcoa, one of the world’s largest aluminum producers, should benefit. Stop – 15.2. The Covered Call Trade - Buy Alcoa (AA)Stock at 20.75, Sell to Open February 21 Strike Calls (exp. 2/19/2021) for $1.75, or a Net Price of 19 or less.
Update November 19: Friday is November expiration, and Jacob is happy to report that all three of our covered call positions expiring Friday will likely close for full profits ranging from 10.75% to 14.09%.
Cabot Micro-Cap Insider
Weekly Update November 25: Given the news that we are likely to have several effective vaccines approved over the next couple of months, value stocks, which tend to be more cyclical and thus will benefit more sharply from an improving economy, have outperformed growth stocks. While our micro-cap strategy is not really a value strategy – it’s more of a growth at a value price strategy – I think it should continue to do quite well in this environment. Rich has no changes this week.
Special Bulletin November 24:Late last week, P10 Holdings (PIOE) announced another transformative acquisition. And the stock continues to skyrocket. It is up over 200% from our initial recommendation price earlier this year and it’s definitely not dirt cheap anymore. Nonetheless, Rich recommends holding on (but not buying more) as it is not expensive and continues to execute on its strategy.
Monthly Issue November 11: Today, Rich is going full steam ahead and recommending an investment in a company that has successfully executed a turnaround, transitioning from a mainly print focused business to a software/tech-enabled services business. Donnelley Financial Solutions (DFIN) with modest earnings growth and multiple expansions, coupled with significant debt pay down, the stock should hit 40 by 2024, implying almost 200% upside.
Cabot Income Advisor
Monthly Issue November 25: It’s another week and another vaccine rally for the market. For the third straight week, a company has announced positive trial results for a coronavirus vaccine. The market loves it every time. The major indexes are now at or very near all-time highs. This market is great. But it’s also tricky here. You don’t want to sell anything while the market is still flying higher with great momentum. But it’s also tough to buy anything after prices have risen so high. Tom has one new featured stock U.S. Bancorp (USB) and multiple portfolio changes.
Cabot Turnaround Letter
Monthly Issue November 25: This month Bruce looks at year-end selling pressure. Tax-loss selling is one source of artificial selling pressure. Taxable investors will pay federal taxes on their profits at rates as high as 37%, and likely more when state taxes are factored in. These investors have a strong incentive to sell their losers to offset these gains, thereby reducing their tax bill. Bruce’s has one buy recommendation: Xerox Corporation (XRX) and three sell recommendations: Barrick Gold (GOLD), Peabody Energy (BTU),Weyerhaeuser (WY).
Weekly Update November 20: This week three companies reported earnings: Macy’s (M), Oaktree Specialty Lending (OCSL) and Vodafone (VOD). We also review Toshiba’s (TOSYY) earnings that were reported last week. Bruce has no rating or price target changes this week. To listen today’s podcast and view the latest Catalyst Report click here.
Wall Street’s Best Investments
Daily Alert November 25: 1Life Healthcare, Inc. (ONEM) Power Growth Investor
Daily Alert November 24: Barrick Gold Corporation (GOLD) Adrian Day’s Global Analyst
Daily Alert November 23: Fulgent Genetics, Inc. (FLGT) Pivotal Point
Monthly Issue November 19: October was a surprisingly good month for the markets, until the very end, when investors took a rest. But since the election, they’ve come in off the sidelines and the markets are now close to all-time highs. Investors love the idea of a divided Congress. As well, the unemployment picture continues to improve, although with the coronavirus causing more widespread shutdowns, we may see a temporary rise—at least until the vaccinations begin distribution. And that certainly looks promising, with both Pfizer and Moderna sharing terrific stats this past week. Nancy begins this issue with our Spotlight Stock, CACI International Inc (CACI) a provider of technology, primarily to the U.S. Defense Department. This company is right on the cutting-edge of advanced technologies—the future of defense. In Nancy’s Feature article, she discusses the coming technologies and CACI’s potential to harness and profit from them.
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts from October 21, 2020 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 | Buy | ||||||
| ACCD | Buy 1/2 | ||||||
| AEM | Sold | ||||||
| APT.AX | Buy 1/2 | ||||||
| ARE | Sell | ||||||
| ARNA | Buy | ||||||
| AVGO | Hold | ||||||
| AVLR | Buy | ||||||
| AZEK | Sell | ||||||
| BABA | Hold 1/2 | ||||||
| BGS | Buy | Hold | |||||
| BIP | Buy 2/3 | ||||||
| BLFS | Buy | ||||||
| BMY | Buy | ||||||
| BSCL | Buy 1/2 | ||||||
| CCI | Sell | ||||||
| CDLX | Hold | ||||||
| CGC | See Advisory | ||||||
| COLM | Buy | Buy | |||||
| CRLBF | See Advisory | ||||||
| CRNC | Buy | ||||||
| CSCO | Buy | ||||||
| CURLF | See Advisory | ||||||
| DLR | Hold | Buy | |||||
| DOW | Hold | ||||||
| EPD | Buy | ||||||
| EQH | Buy | ||||||
| EVBG | Buy | ||||||
| FIVE | Buy | ||||||
| FVRR | Hold 3/4 | ||||||
| GM | Hold | Hold | |||||
| GRWG | See Advisory | ||||||
| GSHD | Hold 3/4 | ||||||
| GTBIF | See Advisory | ||||||
| HALO | Buy 1/2 | ||||||
| HTHT | Hold | ||||||
| IIPR | See Advisory | Hold 2/3 | |||||
| INSP | Hold 3/4 | ||||||
| JBLU | Buy | ||||||
| JUSHF | See Advisory | Hold 2/3 | |||||
| KO | Buy | Buy | |||||
| KPTI | Buy | ||||||
| LGIQ | Buy 1/2 | ||||||
| LLY | Buy | Buy | |||||
| MO | Buy | ||||||
| MP | Buy 1/2 | ||||||
| MPC | Sold | ||||||
| NEE | Hold | Hold 1/2 | |||||
| NEO | Buy 1/2 | ||||||
| NET | Hold 1/2 | ||||||
| NUAN | Buy | ||||||
| NVCR | Buy | Buy 1/2 | Buy | ||||
| O | Buy | ||||||
| PGX | Hold 1/2 | ||||||
| PINS | Buy | Buy | |||||
| PLMR | Sell | ||||||
| QCOM | Buy | Hold 2/3 | |||||
| QTWO | Buy | ||||||
| RGEN | Buy | ||||||
| ROKU | Buy Another 1/2 | ||||||
| RPAY | Buy | ||||||
| SE | Hold 1/2 | Hold | |||||
| SOLO | Buy 1/2 | ||||||
| SPCE | Buy | Buy | |||||
| SPT | Buy | ||||||
| SSO | Buy | ||||||
| STAG | Hold 1/2 | ||||||
| TAP | Buy | Buy | |||||
| TCNNF | See Advisory | Hold | |||||
| TMX | Buy | ||||||
| TPB | See Advisory | ||||||
| TRSSF | See Advisory | ||||||
| TSLA | Hold | ||||||
| TSM | Buy 1/2 | Buy | |||||
| TSN | Buy | ||||||
| TWLO | Hold | ||||||
| UBER | Buy 1/2 | Buy | |||||
| UEIC | Sold | ||||||
| VIAC | Buy | ||||||
| VIPS | Buy 1/2 | ||||||
| VLO | Hold 1/2 | ||||||
| VZ | Hold | ||||||
| XEL | Hold 2/3 | ||||||
| ZM | Hold |