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Cabot Prime Pro Week Ending September 24, 2021

Cabot Prime Pro Week Ending September 24, 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 talks about the market’s reaction to the Fed’s Wednesday meeting and how Treasury yields have reacted throughout the week. He then shifts into growth mode and reviews three strong IPOs that should be of interest to aggressive investors.

UPCOMING CABOT EVENTS:

3 Stocks to Play the Coming American Solar Boom

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Advisory Services

Cabot Growth Investor

Bi-weekly Issue September 24: But, while we’re far from complacent, the resilient action of growth stocks (including many we own) and the snapback in some indexes has us standing pat with the rest of our names. In the Model Portfolio, we’re holding around 36% in cash after selling half of SSO, but we’re holding on tightly to our best performers (indeed, many still have Buy ratings) and we’re not opposed to adding exposure if the early-week decline turns into one big shakeout

Special Bulletin September 20: For the first time in months, the market’s intermediate-term trend has turned clearly down, with the sellers punishing everything today and driving all indexes below support. In the Model Portfolio, we were already holding 31% cash so we’re not advising to sell wholesale, but given the Cabot Tides sell signal, we’re going to sell half of our relatively large stake in ProShares Ultra S&P 500 Fund (SSO), leaving us with around 36% in cash.

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 24: It’s been a very interesting week in the market. It started, of course, with Monday’s news-driven plunge, as fears of an implosion in the Chinese real estate market caused a big selloff that brought most indexes below near-term support. But growth stocks never really gave up the ghost, and the rally on Wednesday and Thursday was very encouraging, with most indexes coming into today up slightly on the week.

Weekly Issue September 20: Our intermediate-term trend model has effectively been neutral for months, with the big-cap indexes acting pretty well but most other areas chopping sideways. Today, though, the sellers got their act together, with the S&P 500 decisive diving below its 50-day line and small caps actually falling below their 200-day line! Mike’s Top Pick isLululemon (LULU), which is emerging from a long rest and has held its recent earnings gap despite the market’s dip.

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 Trade Alert September 24: Sell Half of Existing Position: Sell Half of your JETS March 23 Calls for $2.90 or more.

Cabot Options Trader Pro & Basic Earnings Update September 23: Nike (NKE) will report earnings today after the close. Headed into the event, we are holding half of a position, having locked in a profit of approximately 20% on the first half of the trade.

Cabot Options Trader Pro & Basic Stocks on Watch September 22: Another stock Jacob has his eye on that falls in the beaten-up category is Freeport McMoRan (FCX) which has fallen from a high of 45 in May, to a low of 30 yesterday. The steepest decline of this downtrend has been in the last week as the stock fell from 37 last Wednesday to 30 yesterday (perhaps somewhat related to the Evergrande shakeout worries).

Cabot Options Trader Basic & Pro Trade Alert September 21: Sell Half of Existing Position: Sell Half of your UBER June 42.5 Calls for $7.40 or more.

Cabot Options Trader Pro & Basic Position Update September 21: After three weeks of NON-STOP call buying, this morning Uber (UBER) raised its outlook for the third quarter. In addition, the company’s CEO noted last week U.S. volumes were the best since March. In reaction to this news, UBER is trading higher by 10% today at 43.5.

Cabot Options Trader Pro & Basic Market Update September 20: The S&P 500 is trading lower today by 2.2% today on what appears to be growing concern of Chinese property giant Evergrande’s collapse. If this is the real reason the market is down, or if it is finally time for a market sell-off, is truly anyone’s guess.

Cabot Options Trader Pro Weekly Review September 20: Long positions: KWEB, CSCO, CGC, DVN, JETS, BSX, NKE, MS, UBER. Bearish Positions: None

Cabot Options Trader Basic Weekly Review September 20: Quadruple-witching week left the major indices lower as the S&P 500 lost 0.57%, the Dow fell 0.06%, and the Nasdaq declined 0.41%. While the market has given up some ground in the last three weeks, for some context the S&P 500 is up roughly 18% year-to-date and 33% over the last 12 months. So this 2-3% pullback is totally normal … for now.

Cabot Undervalued Stocks Advisor

Special Bulletin September 24: We are initiating coverage of ConocoPhillips (COP) with a BUY rating. Our interest in oil and natural gas exploration and production (E&P) companies has been warming up lately. Many of these stocks are beaten down, yet oil prices have remained resilient, leaving producers like ConocoPhillips meaningfully undervalued.

Weekly Update September 22: It’s not news that the stock market has been sloppy lately. After the steady march upward to a doubling of the S&P 500 from the early 2020 low, and a 33% increase from year-end 2019 before the pandemic, one can hardly be disappointed in the market’s performance. Strategists have been calling for a correction of 5-10%. The S&P 500 has had a brief 3.5% pullback, perhaps justifying the fears. It’s easy to see a Wile E. Coyote (of the Road Runner cartoon fame) situation, where the market surges over a cliff, hangs suspended in mid-air, then plummets.

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 20: Tim’s featured stock U.S. Bancorp (USB), is the fifth largest bank in the United States and the country’s largest regional bank, with over 3000 bank branches in 25 states in the Western and Northern US. The Minneapolis bank was founded in 1863 and now has more than 70,000 employees and $543 billion in assets.

Cabot Explorer

Bi-weekly Update September 23: A recent survey by the American Association of Individual Investors (AAII) showed that the percentage of investors who think stocks will rise over the next six months plunged to its lowest level in more than a year. Bullish sentiment sank 16.4 points to 22.4%, one of the fastest drops in history. Meanwhile, bearish sentiment rose 12.1 points to 39.3%. That marks the seventh week of the last nine that pessimism has exceeded the historical average. Yet we had only a mere 4% pullback in the S&P 500 from its recent highs, and now stocks appear to climbing again.

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.

Cabot Small-Cap Confidential

Weekly Update September 23: The big developments over the last week have been the situation with the potential failure of Evergrande (Chinese property developer) and interest rates. As of mid-morning Thursday, we appear to be moving past these potential issues.

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

Weekly Update September 22: It’s been a wild week so far in the market. It started off on Monday with the worst selloff in months. News that Chinese real estate giant Evergrande will likely default on $80 million in debt payments this month and possibly $300 billion in total debt sent markets reeling. There is fear that such an event could cause contagion and ripple through the financial markets. But that was Monday.

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).

Cabot Marijuana Investor

Update September 22: The simple fact is that the major market indexes are still high, even after Monday’s plunge, and thus a correction is to be expected, at some point. And whether that correction is blamed on a Chinese real estate company or inflation numbers or what the Fed does next really doesn’t matter. What matters (for this advisory service) is that marijuana stocks have already had their big correction—though of course it can get bigger. The index is already 51% off its February high—and some of our stocks have corrected even more.

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.

Cabot Early Opportunities

Special Bulletin September 22: This morning we found out that Endava (DAVA) has postponed its Q4 earnings report from tomorrow (September 23) until next Tuesday (September 28). The stock is down around 6% on the news. Now, it very well could be that this delay is due to non-material events. Maybe some numbers just needed to be double checked, some accounting methods are changing that aren’t a big deal, or there was some logistical challenge in pulling everything together. Or, there could be some figures that need much more scrutiny or there is some issue with how things are being reported.

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 21: Last week we closed three covered calls for full profits. Here are the details: DT – A profit of $350 per covered call, or a yield of 5.7%. ON – A profit of $280 per covered call, or a yield of 6.48%. BLDR – A profit of $160 per covered call, or a yield of 3.3%. Jacob’s new stock recommendation is Cloudflare (NET).

Cabot Micro-Cap Insider

Weekly Update September 22: In case you’ve missed it, Evergrande is a Chinese real estate developer. Its core business is building homes, but it branched out into other directions like investing in EVs, a theme park, and other business lines. It funded its tremendous growth with debt. As of year-end 2020, it had $100BN of debt and $300BN of liabilities. Growth has slowed recently given tightening credit in China, and this has made it difficult for Evergrande to make its interest payments.

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.

Cabot Income Advisor

Special Bulletin September 24: Trade Alert: Sell USB November 19th $60 calls at $2.30 or better.

Monthly Issue September 22: The dicey market prognosis creates two issues for the portfolio. One is that it isn’t a great time to buy anything. Stocks aren’t down much yet and the near future looks bleak. The other issue is that the recent downward bias has shrunken call premiums, as less investors are willing to bet on higher prices. Tom’s featured stock AGNC Investment Corp. (AGNC), is a mortgage real estate investment trust that invests predominantly in U.S. Government-backed residential mortgages. It pays a very high dividend yield and makes payments on a monthly basis.

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.

Cabot Turnaround Letter

Weekly Update September 24: The Cabot Turnaround Letter is back from our travels to Texas. On the trip, the airports and jets were looking more crowded, but were by no means full. The city centers in Dallas and Ft. Worth were remarkably devoid of pedestrians – maybe it is always this way, but even the parking lots seemed nearly empty. Streets and highways had what seemed like a lot of traffic, so maybe it’s just the high-rise office people who are working from home.

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: I am wondering what you think about the fact that in October the national debt will be increased to whatever level that Joe Biden wants, leading to massively increased inflation, etc. It would appear that those making under $400K will have their taxes increased?

Mike: So we really don’t go there – not saying it doesn’t matter, per se, but we prefer to watch the market itself, which will tell us day by day, week by week whether these things will affect stocks, and if so, when—maybe it’s a super negative but only proves to be negative 6 months from now, etc etc. We pay attention to everything, but only trade on rubber-meets-the-road sort of evidence.

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
AGCSold
AGNCBuy
AMBABuy
ARCOBuy
ARNABuy
ASANBuy 1/2
ASMLBuy
AVGOBuyBuy
AVLRBuy
AVVIYBuy
BIPHoldHold
BMYBuy
CCHWFSee Advisory
CGCSee Advisory
CHPTBuy a 1/2Buy
CIIHold
COPBuy
CRLBFSee Advisory
CRNCBuy
CSCOBuyBuy
CURLFSee Advisory
CVXHold
DLRHold
DOCUHoldHold
DOWBuy
DTBuy
DVNBuy
DXCMBuy
EPDBuy
EVBGBuy
FNDBuyBuy
FSRBuy a 1/2
FVRRBuy
GKOSBuy
GLBEBuy
GMHoldBuy
GOLDBuy
GRWGSee Advisory
GTBIFSee Advisory
HUBSHold
IIPRSee Advisory
IBMBuy a 1/2
INSPHold
JOANBuy
JUSHFSee Advisory
KKRHold
KOBuy
KRNTBuy
LAWBuy
LLYHold
MRKBuy
MRVLBuy a 1/2Buy
NEEBuyBuy
NETHold a 1/2Buy
NVDAHold
NVNXFBuy a 1/2
OHold
OGNBuy
OKEBuy
ONTFHold
OTTRBuy
PGXHold
PLTRBuy a 1/2
PSHZFSold
QCOMBuy
QTWOHold
RGENHold
RVLVHold
SEBuy a 1/2Buy
SPBSoldBuy
SPCEHold a 1/2
SPTBuy
SSOSell 1/2
STBuyBuy
STAGHold
TAPBuy
TCNNFSee AdvisorySold
THBRFBuy
TPBSee Advisory
TRSSFSee Advisory
TSLABuy
TSMBuy a 1/2
USBBuyBuy
VECOBuy a 1/2
VLOHold
VZHold
XELBuy