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Cabot Prime Pro Week Ending September 17, 2021

Cabot Prime Pro Week Ending September 17, 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 talks about the continued crosscurrents out there — this week, many growth stocks held up well and some did just fine, but the major indexes are now testing key support and many (mostly cyclical stocks) are weakening. Mike still sees more good than bad out there but is taking things on a stock-by-stock basis and watching to see if the market changes character going forward.

UPCOMING CABOT EVENTS:

3 Stocks to Play the Coming American Solar Boom

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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 16: We’re still more bullish than not, but the crosscurrents continue—recently, the top-down evidence has worsened, though many (not all) individual growth stocks are actually perking up. In the Model Portfolio, we have a few names we’d like to take positions on (preferably after a bit more weakness or rest), but tonight we’ll hold on to our 32% cash position. We are, however, going to restore our Buy rating on Devon Energy (DVN).

Cabot Top Ten Trader

Movers & Shakers September 17: This week has been pretty quiet for the major indexes—coming into today, most were up on the week but by 0.5% or less. For the big-cap indexes, the good news was that both the S&P 500 and Nasdaq have so far held some meaningful support (including the 50-day line on the S&P); other indexes aren’t as strong but are still above their August lows.

Weekly Issue September 13: This week’s list is lighter on growth stocks than in recent weeks, reflecting some of the dents they’re taking, but there are many other names that look to be resuming their advances. Our Top Pick is Antero Resources (AR), which looks like the best play in the natural gas space. Aim to enter 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 Pro Trade Alert September 16: Covered Call: Buy Devon Energy (DVN) Stock and Sell the October 30 Call (exp. 10/15/2021) for a net price of $28.50 or less.

Cabot Options Trader Basic Trade Alert September 16: Covered Call: Buy Devon Energy (DVN) Stock and Sell the October 30 Call (exp. 10/15/2021) for a net price of $28.50 or less.

Cabot Options Trader Pro Weekly Review September 13: Long positions: KWEB, CSCO, CGC, JETS, BSX, NKE, MS, UBER; Bearish Positions: SPY

Cabot Options Trader Basic Weekly Review September 13: Last week all of the major indices took a small step back as the S&P 500 lost 1.69%, the Dow fell 2.15%, and the Nasdaq declined 1.61%. Even with the pullback last week, my sentiment has not changed. I remain “cautiously optimistic” until I see market action state otherwise.

Cabot Undervalued Stocks Advisor

Weekly Update September 17: After a stunningly strong market so far this year, with the S&P 500 producing a 20% total return through Monday, the slow grind-down of most stocks since early September has seemed interminable. The 1,100 largest stocks in our 3,000-stock database have declined only 2% in the past two weeks, but the steady flow of higher inflation news, a growing likelihood of interest rate increases, a never-ending pandemic, the prospect of higher taxes of all kinds and memories of the tragic events of 9/11 makes us feel like we’re stuck inside on a cold, rainy day watching an awful four-hour movie.

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 13: he bull market remains intact, so I continue to recommend that you be heavily invested in stocks that help achieve your investing goals. Today’s featured stock is a small company that’s growing fast and that has huge growth potential as the market for intelligent vision systems booms. As for the current portfolio, most of our stocks look good, and many are hitting new highs, but I have two sells, Supreme Brands (SPB) and Trulieve (TCNNF).

Cabot Explorer

Bi-weekly Issue September 16: Carl’s new recommendation Glaukos (GKOS), is a medical technology company focused on innovative therapies for the treatment of glaucoma, corneal disorders and retinal diseases.

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 16: The S&P 500 has finally failed to make a new high every day lately and is 2% below the high-water mark! That doesn’t seem like it should be news but in this market it’s worth noting. We have to go back to this time in 2020 to find the last time the index fell meaningfully below its 50-day line, which is where it currently sits today.

Special Bulletin September 13: Shares of CS Disco (LAW) are selling off today on what’s been a generally weak day for growth stocks (though getting better as we move into the early afternoon).

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 15: Stocks have drifted slightly lower over the past week. While that’s nothing alarming, it is a reversal of the summer market where stocks were drifting slightly higher. It could be that the balance has been tipped toward the negative.

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.

Update September 13: Fundamentally, all is well in the marijuana sector as the industry’s leaders continue to grow, both organically and by acquisition. The average rate of revenue growth for the plant-touching companies in our portfolio in the most recent quarter was an amazing 132% from the previous year.

Cabot Early Opportunities

Special Bulletin September 17: Today we’re stepping away from our remaining three-quarter position in long-term holding 10X Genomics (TXG), which we added in December 2019. The stock has been moving sideways since January, and this week management spoke at conferences and suggested it is seeing lower-than-expected lab activity during what’s already a seasonally slow period.

Monthly Issue September 15: From Tyler’s perspective growth has been where it’s at lately. We all tend to focus on what’s right in front of us, but even when flipping through dozens of charts of other types of stocks lately it seems like those that are working the best are the ones growing the fastest. In particular, software and rapid growth IPO stocks have been on fire. Case in point is Upstart (UPST), which is up 126% for us in just two months.

Cabot Profit Booster

Weekly Issue September 14: The headlines say the 5-day pullback was the largest for the S&P 500 since February. But considering that the streak of over 230 days without a 5% pullback is still in play, the short-term bearish stretch last week was minimal. And even with the slight pullback last week, my sentiment has not changed. I remain “cautiously optimistic” until I see market action that changes my mind. Of course, if we see further continuation of the recent bearish trend, I might begin to shift my outlook. But a week doesn’t make a trend, and again we must remember we are only a few percentage points from all-time highs.

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 15: The market (S&P 500) continues to chug along. It’s pulled back modestly, but that’s to be expected given September is historically the worst month for the market. Many cyclicals look attractive. I especially like energy stocks.

Cabot Income Advisor

Weekly Update September 15: For the first week after Labor Day, the market has drifted lower. It’s no big deal. But stocks have been losing a battle they were winning in the summer. The bulls were eking it out then. Now the bears are prevailing, slightly.

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 17: The Cabot Turnaround Letter has been traveling most of this week to Texas. We’re watching our stocks closely, like always, but don’t have great email or recording tech with us, so this week’s note and podcast were prepared and recorded on Wednesday morning.

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 Growth Investor

Question:

1) ASAN: Where is the possible entry point to add another half?

2) DXCM: Today, it is a new high. do you think it is OK if I create a position here?

3) How is the market indicator? Will you add more positions in your portfolio?

Mike:

  • Yeah, not sure. We’re not chasing it here, but a 2-3 day shakeout could do the trick, or a 2-3 week controlled pullback sort of thing
  • DXCM – not opposed to starting a position, though we’re looking for a bit more weakness/rest. Looks fine though, no problem w it at all.
  • We’re open to adding but frankly the top-down evidence is getting worse, not better. Still a ton of crosscurrents, but thankfully, our stocks are holding well of late.

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
AGCSell
AGNCBuy
AMBABuy
ARCOBuy
ARNABuy
ASANBuy 1/2
ASMLBuy
AVGOBuyBuy
AVLRBuy
AVVIYBuy
BIPHoldHold
BMYBuy
CCHWFSee Advisory
CGCSee Advisory
CHPTBuyBuy
CIIBuy
CRLBFSee Advisory
CRNCBuy
CSCOBuyBuy
CURLFSee Advisory
CVXHold
DLRHold
DOCUHoldBuy
DOWHold
DTBuy
DVNHold
DXCMBuy
EPDBuy
EVBGBuy
FIVESoldSold
FNDBuyBuy
FSRBuy 1/2
FVRRBuy
GKOSBuy
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
TAPSoldBuy
TCNNFSee AdvisoryHold
THBRFBuy
TPBSee Advisory
TRSSFSee Advisory
TSLABuy
TSMBuy 1/2
USBBuy
VECOBuy
VLOHold
VZHold
XELBuy