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Cabot Prime Pro Week Ending September 10, 2021

Cabot Prime Pro Week Ending September 10, 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 a couple of eyebrow-raising breakdowns from individual stocks this week, but overall, he’s not changing his stance -- the environment remains tricky, but there’s also far more good than bad at this point, and a few wobbles aren’t unexpected after a solid August. Most important, he’s not having trouble filling up his watch list and reviews a bunch of names from a variety of areas that are of interest.

UPCOMING CABOT EVENTS:

How to Hedge Against Global Uncertainty with Gold

FREE WEBINAR: September 16, 2021 Sign up now.

Cabot Retirement Club Member Call

FREE MEMBER CALL FOR PRIME MEMBERS: September 23, 2021 Sign up now.

Advisory Services

Cabot Growth Investor

Bi-weekly Issue September 9: Growth indexes and funds (think IWO and ARKK), which had shown a minor change in character of late, have been rejected once again as they approached resistance. In other words, the tricky, challenging and choppy environment is still with us, which continues to argue for a selective, go-slow, buy-on-weakness-type of approach. In the Model Portfolio, we’re up to around one-third in cash after having to dump one stock this week.

Special Bulletin September 8: Overall, the evidence for growth stocks continues to slowly improve, but we’re still seeing some stocks and sectors hit major potholes every couple of weeks. In the Model Portfolio, we’re going to sell Five Below (FIVE) today, which has flashed clearly abnormal action, and we’re also placing DocuSign (DOCU) on Hold. Our cash position will now be around 34%.

Bi-weekly Update September 2: Remain mostly bullish but continue to pick your spots and be prepared for plenty of shenanigans. The environment continues to improve steadily in our view, though (a) the Nasdaq is extended to the upside and (b) the chop factor remains in place, with names generally pulling back after a good week or two. In the Model Portfolio, most of our names act fine, but Five Below (FIVE) is now a problem—we’re holding on tonight, but keeping it on a tight leash and will have further updates as need be. Our cash position will remain near 25%.

Cabot Top Ten Trader

Movers & Shakers September 10: The holiday-shortened week has seen more bad than good, especially early when many growth stocks hit potholes—including a few breakdowns. But while most major indexes are lower, the damage has been mostly reasonable and today’s bounce helps the cause.

Weekly Issue September 7: We traded in our crystal ball years ago, especially when it comes to short-term predictions, but our screens over the weekend told a clear tale: While it’s not 1999 out there, many growth stocks and indexes have enjoyed good moves of late, and when you combine that with some signs of complacency, a retrenchment looks possible. Mike’s Top Pick Ambarella (AMBA), which staged a massive blastoff on earnings—we’re OK starting small here or 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 Basic & Pro Position Update September 9: One of the old trading floor sayings that I have always thought was critical to trading decisions was, “It’s not the news that matters, but the reaction to that news, that is most important.” And today we are seeing a perfect example of this.

Cabot Options Trader Pro Trade Alert September 7: Sell Half of Existing Position: Sell half of your SPY September 415/375 Bear Put Spread for $0.20 or more.

Cabot Options Trader Basic Trade Alert September 7: Sell Half of Existing Position: Sell half of your SPY September 415 Puts for $0.30 or more

Cabot Options Trader Pro Weekly Review September 7: Long positions: KWEB, CSCO, CGC, JETS, BSX, NKE, MS, UBER. Bearish Positions: SPY

Cabot Options Trader Basic Weekly Review September 7: Ahead of the long holiday weekend the S&P 500 rose 0.58%, the Dow lost 0.25%, and the Nasdaq climbed 1.55% … essentially a quiet week for the market.

Cabot Undervalued Stocks Advisor

Weekly Update September 8: This week, we are rolling forward our valuation comments – generally dropping our valuation based on 2021 estimates, where appropriate, while adding commentary based on estimates for 2023. Most analysts project that all of their companies will have higher earnings in future years, so we take the 2023 estimates (which are over two years away) with a grain of salt. And, they almost certainly will be wrong – we just don’t know in which direction or by how much. However, these estimates are helpful in understanding the level and direction of consensus opinion, especially between earnings reports when there is usually little hard news or fundamental data at the company level to support estimate changes.

Monthly Issue September 1: On August 18, Cisco reported encouraging fiscal fourth-quarter results, particularly with a strong new order flow, and provided favorable and longer-term guidance. The company’s fundamentals are improving, and management is helping boost investor confidence by providing more visibility.

Cabot Stock of the Week

Weekly Issue September 7: Tim’s featured stock Global-E Online (GLBE), is a big idea company that has developed a cross-border e-commerce platform empowering businesses to sell to consumers all over the world. Cross-border commerce represents a meaningful market opportunity worth nearly $800 billion today—but that number would be significantly higher if the process wasn’t such a pain in the neck!

Cabot Explorer

Bi-weekly Issue September 9: Carl’s new recommendation Veeco Instruments Inc. (VECO), is an American high quality provider of state-of-the-art semiconductor fabrication equipment. The company delivers the leading edge technology to U.S.-based and international high-end chip makers, some of which are 100% reliant on Veeco technology to deliver the next generation chips due the company’s base in New York since 1945.

Bi-weekly Update August 26: While only insiders will be attending the Federal Reserve’s annual Jackson Hole symposium, which starts this morning, markets will react to any hints on the Fed’s move to tighten monetary policy and lift interest rates. It does seem a bit odd that that markets seemingly look past a resurging Covid, the Afghanistan fiasco and surging federal spending and debt. The latter might have the most impact as the House this week narrowly passed a $3.5 trillion budget blueprint and locked in a September vote on a roughly $1 trillion infrastructure bill.

Cabot Small-Cap Confidential

Weekly Update September 9: Despite more grumblings out there about how “we are due for a pullback,” stocks continue to hold up. In fact, many growth stocks have done far better than that and are jumping higher on almost a daily basis. The biggest splash lately has come from CS DISCO (LAW), last week’s new addition.

Special Bulletin September 3: In JOANN’s second quarter as a public company, management has dealt with the Delta variant complicating social sewing events and supply chain challenges driving up costs. The net effect in Q2 was that revenue of $496.9 million missed by almost $36 million and adjusted EPS of -$0.20 missed by $0.06.

Special Bulletin September 3: CS DISCO (LAW) Spins Through Q2. The quarter was just what we wanted see. Revenue grew by 87.9% to $29.5 million, slightly ahead of consensus for $29.1 million (which was based on S-1 filling guidance). Operating margin was roughly a percentage point above expectations (-6.8%). Full-year 2021 guidance of $103.5 – $104.3 million is ahead of consensus of $100 million and implies growth of 51% to 52% versus the 46% rate embedded in prior consensus. Given the trends, wise management team and status as a new IPO we should view this guidance as conservative.

Monthly Issue September 2: Tyler’s new recommendation CS DISCO (LAW), has developed a next-gen AI-powered cloud software platform that helps corporate law departments, law firms and legal service providers operate more efficiently by automating and simplifying workflows. Users say the platform can slash time per case by roughly 30%. The company’s AI and ML powered applications are built around its eDiscovery solution, which is most commonly used by corporate legal departments and outside council for litigation and other legal matters.

Cabot Dividend Investor

Monthly Issue September 8: It’s still an amazing market. The S&P is up 96% from the bear market low in March of 2020. The index is also up over 20% so far this year. It may seem too good to be true. It feels like the market is overdue for trouble. And we are heading into what is historically the worst time of year for stocks, September and October. Meanwhile, the Delta variant is still wreaking havoc and inflation is persistent. Tom’s featured stocks are AGNC Investment Corp. (AGNC) and U.S. Bancorp (USB).

Weekly Update September 1: Oh no. The summer is over. Summer used to last forever in youth. Now, it’s like a long weekend. Although it went by way too fast, it’s been a glorious summer in the market. The S&P 500 is up 8% since Memorial Day. And the index is now up over 20% so far in 2021. August was the seventh consecutive month of gains for the market. Now, we head into Labor Day.

Cabot Marijuana Investor

Monthly Issue August 27: Tim remains cautiously optimistic that the sector’s uptrend will resume soon; the stocks have fallen far enough, and the fundamentals of the industry remain terrific. But until we see real strength, there’s no reason to be aggressive. The portfolio is already heavily invested, but not fully, and when we do buy more, it will be of the strongest stocks. The only change today is a downgrade of Columbia Care (CCHWF) to Hold.

Weekly Update August 4: Innovative Industrial Properties (IIP) yesterday announced that it closed on the acquisition of a property in Illinois and entered into a long-term lease with a subsidiary of 4Front Ventures. IIP already owns and leases to subsidiaries of 4Front a cultivation, processing and dispensing facility in Massachusetts and a cultivation and processing facility in Washington, and this brings to 73 the number of properties that IIP owns in the industry nationwide. The stock is up today and still aiming for its February high of 222. And the company is expected to release its second-quarter report after the market close today.

Cabot Early Opportunities

Special Bulletin September 9: We’ve been enjoying a crazy-strong market in many growth stocks lately, which has padded our paper gains in many of those positions. Today we’re going to step off the gas a little, book a few modest profits and step aside from some positions that haven’t done a lot lately.

Monthly Issue August 19: Tyler’s Top Pick Global-E Online (GLBE) is a big idea company that has developed a cross-border e-commerce platform empowering businesses to sell to consumers all over the world. Cross-border commerce represents a meaningful market opportunity worth nearly $800 billion today. That number would be significantly higher if it wasn’t such a pain in the neck!

Cabot Profit Booster

Weekly Issue September 8: Ahead of the long holiday weekend, it was a mixed bag last week as the S&P 500 rose 0.58%, the Dow lost 0.25%, and the Nasdaq climbed 1.55%. Jacob’s new stock recommendation is Ternium S.A. (TX).

Cabot Micro-Cap Insider

Monthly Issue September 9: Rich’s new recommendation Cipher Pharma (CPHRF) is a cheap, Canadian specialty pharma company that has a promising pipeline. Despite strong potential, the stock trades at a draconian valuation. Insider ownership is high and insiders have been buying the stock in the open market. Further, the company is buying back its own shares in the open market. Downside protection is high given net cash on its balance sheet and strong free cash flow generation. My price target of 2.50 implies good upside over the next 12 months.

Weekly Update September 1: Rich has several potential recommendations on his watch list. An energy/utility company that is growing quickly and recently hinted on its conference call that it is considering a spin-off that would unlock significant value. A company that makes protective equipment and is growing revenue 100% yet only trades at a P/E of 20x. A Canadian Specialty Pharma Company (similar to Medexus) that is profitable and growing yet trades at a P/E of 8x. And insiders are buying stock in the open market.

Cabot Income Advisor

Weekly Update September 8: The main thing to watch for, as things currently stand, is the delta variant. Over the summer, the strong economy prevailed over concerns about the virus. And the market drifted higher. We’ll see if the scales get tipped the other way in this historically tough month for the market. The market has been directionless recently. Investors have not yet decided on a narrative for the fall. It could be that the virus spread will be seen as significantly curtailing the recovery that the market has already largely priced in. In that case, the market could sell down.

Monthly Issue August 25: As worries continue to gather, the bulls are still winning, at least for now. The S&P 500 and the Nasdaq just made new all-time highs. Strong earnings and a booming economy are outweighing concerns about the delta variant, the Chinese slowdown, inflation and a Fed tapering of bond purchases. 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.

Cabot Turnaround Letter

Weekly Update September 10: We’re past the earnings season, so there were no companies reporting earnings this week. The next scheduled earnings report looks to be on October 8, with Lamb Weston (LW) reporting. There were no changes to any of our ratings this week.

Monthly Issue September 1: While the stock market continues to set new record highs, investors continue to bypass the energy sector. One indicator: the sector’s weight within the S&P 500 has collapsed from nearly 16% in 2009 to only 2.4% today, making it the smallest in the index. Within the energy sector, the exploration and production (E&P) companies – the ones that search for and pump oil and natural gas – look particularly out of favor, as many E&P shares remain below their year-end 2019 prices despite oil trading nearly 10% higher and approaching $70/barrel. This dichotomy highlights one of the more contrarian opportunities in the market. Bruce’s has one buy recommendation: Marathon Oil Company (MRO).

Ask the Experts

Cabot Top Ten Trader

Question: Hi Mike, What is the difference between Cabot Growth Investor and Cabot Top Ten Trader? Should I follow just one or both?

Mike: Think of Top Ten more as a source of ideas – if you want, you can set up your own “top ten portfolio” and have 8-10 ideas etc. But it’s not meant as a portfolio but a source of ideas which subscribers can then manage (with guidance from us) going ahead. Really, many follow both – and if you’re getting good ideas from both, then I wouldn’t stop using that advisory. (If you’re not, obviously, you can consider cutting one.)

Quarterly Cabot Analyst Meeting

The recording of the Cabot Prime Members Meeting with the Analysts from July 14, 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
AGCHold
AGNCBuy
ARCOBuy
ARNABuy
ASANBuy 1/2
ASMLBuy
AVGOBuyBuy
AVLRBuy
AVVIYBuy
BIPHoldHold
BMYBuy
BSCLSold
CCHWFSee Advisory
CGCSee Advisory
CHPTBuyBuy
CIIBuy
CRLBFSee Advisory
CRNCBuy
CSCOBuyBuy
CURLFSee Advisory
CVXHold
DLRHold
DOCUHoldBuy
DOWHold
DTBuy
DVNHold
DXCMBuy
EPDBuy
EVBGBuy
FIVESellSell
FNDBuyBuy
FSRBuy 1/2
FVRRBuy
GLBEBuy
GMHoldHold
GOLDBuy
GRWGSee Advisory
GTBIFSee Advisory
HUBSHold
IIPRSee Advisory
IBMBuy 1/2
INSPHold
JOANBuy
JUSHFSee Advisory
KKRHold
KOBuy
KRNTBuy
LAWBuy
LLYHold
MRKBuy
MRVLBuy 1/2Buy
NEEBuyBuy
NETHold 1/2Buy
NVDAHold
NVNXFBuy
OHold
OGNBuy
OKEBuy
ONTFBuy
OTTRBuy
PGXHold
PLTRBuy 1/2
PSHZFHold
QCOMBuy
QTWOHold
RGENHold
RVLVHold
SEBuy 1/2Buy
SPBBuyBuy
SPCEHold 1/2
SPTHold
SSOBuy
STBuyBuy
STAGHold
TAPSellBuy
TCNNFSee AdvisoryHold
THBRFBuy
TPBSee Advisory
TRSSFSee Advisory
TSLABuy
TSMBuy 1/2
USBBuy
VECOBuy
VLOHold
VZHold
XELBuy