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Cabot Prime Pro Week Ending September 3, 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 slow, steady improvement in the evidence he’s been seeing–more growth indexes and funds are perking up, more are showing solid upside follow through and more are setting up. That said, we’re still seeing plenty of potholes out there, so it’s important to buy on dips and go slow, but Mike’s watch list continues to increase as we plow into September.

UPCOMING CABOT EVENTS:

Cabot Micro-Cap Insider Member Call

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How to Hedge Against Global Uncertainty with Gold

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Cabot Retirement Club Member Call

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Advisory Services

Cabot Growth Investor

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%.

Bi-weekly Issue August 26: All in all, we remain optimistic and more bullish than not, though we’re not pushing the envelope. In the Model Portfolio, most stocks are acting well, and tonight we’re going to average up on one of them, buying another half-sized position (5% of the portfolio) in Cloudflare (NET) to fill out our position. Our cash position will now be around 25%.

Cabot Top Ten Trader

Movers & Shakers September 3: It’s been another mostly positive week for the major indexes, with the Nasdaq leading the way and most broad market indexes up marginally. We’re encouraged, though, by another solid performance by some of the growth-oriented indexes and funds, which continued to outperform this week.

Weekly Issue August 30: Last week was definitely a good one for the bulls, with the indexes acting well but also many individual growth stocks scoring some great gains (and most of those came after tests of support earlier this month). Mike’s Top Pick Palo Alto Networks (PANW) is part of the strong cybersecurity group and just leapt out of its own long rest. 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 Basic & Pro Trade Alert September 2: Buy the Uber (UBER) June 42.5 Calls (exp. 6/17/2022) for $6.50 or less.

Cabot Options Trader Basic & Pro Stocks on Watch August 31: Uber (UBER) and Lyft (LYFT) have been in the doghouse since April in the minds of investors. However, in the last month option activity has been transitioning from mixed, to bullish, in both of these stocks, including these trades today, which are targeting a longer-term turnaround.

Cabot Options Trader Pro Weekly Review August 30: Long positions: KWEB, CSCO, CGC, JETS, BSX, NKE, MS. Bearish Positions: SPY

Cabot Options Trader Basic Weekly Review August 30: Federal Reserve Chairman Jerome Powell’s dovish comments Friday helped to fuel a relentless rally to end the week. The more Powell spoke the higher the market climbed. And when he was done speaking, well, the rally never stopped.

Cabot Undervalued Stocks Advisor

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.

Weekly Update August 25: One of our friends asked us about how to use Wall Street’s ratings on stocks. After all, these brokerage research analysts have exceptional minds, educations, training, financial backing, industry expertise and access to company managements as well as their internal army of research associates, economists, strategists, quants and others with a wealth of information and viewpoints. It seems logical that these analysts would be among the best stock-pickers in the market. And, after all, the acronym hidden in their ratings scale – Buy, Outperform, Neutral, Underperform, Sell – spells “B-O-N-U-S.” One would think that stock picking would be the driver of the huge bonuses that these analysts earn. Our response to the question: ignore their ratings.

Cabot Stock of the Week

Weekly Issue August 30: Tim’s featured stock ChargePoint (CHPT), is one of the biggest EV charging companies in the world. The company claims to control 70% of the public charging market share in North America. This lead is a huge advantage because of network effects as the company already has partnerships with more than roughly 60% of the Fortune 50 companies.

Cabot Explorer

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.

Bi-weekly Issue August 19: What has been propelling electric vehicles forward and what will power them into the mainstream across the world? It is a combination of growing political concern over climate change, the need to get air pollution under control in big cities with urban congestion, and breakthroughs in electric vehicle batteries that lower costs and expand range. Carl’s new recommendation ChargePoint Holdings (CHPT), is an indirect but powerful way to play the electric vehicle (EV) revolution is through companies providing battery-charging ports and stations.

Cabot Small-Cap Confidential

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.

Weekly Update August 26: We’ve seen a nice little rally as we head into the waning weeks of summer. The S&P 500 has been incredibly strong and even the S&P 600 Index, which hasn’t made any net new progress since March, popped off last week’s low and is back to within 5% of an all-time high. Interestingly, within small caps there’s normally more divergence when we look at different sectors. But right now, they’re pretty much all telling the same story (i.e. moving sideways).

Cabot Dividend Investor

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.

Monthly Issue August 11: Markets have a history of being cranky after Labor Day. Will growth concerns be a problem? Maybe inflation will again haunt the market. Right now, the market is in a tug-o-war between the booming economy and growth concerns, primarily being stoked by the delta variant. Tom’s featured stock is Spectrum Brands Holdings, Inc. (SPB).

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

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!

Special Bulletin August 18: Sell LYFT, ATRC and DRVN. With a new batch of stocks being added to our portfolio tomorrow and a few of our current names looking just OK we’re going to sell three stocks today.

Cabot Profit Booster

Weekly Issue August 31: Up, up and away! The S&P 500 rose 1.52%, the Dow advanced 0.96%, and the Nasdaq climbed 2.82% last week, aided by Federal Reserve Chairman Jerome Powell’s dovish commentary. There is no doubt this year’s rally has been one of the most impressive rallies market participants have ever seen. More than 50 new closing highs and over 200 trading sessions without a 5% pullback defines the power and consistency of this rally. And as we have all witnessed, the slightest pullback seems to act as a frenzied feeding ground for buyers. Jacob’s new stock recommendation is Sonos (SONO).

Cabot Micro-Cap Insider

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.

Special Bulletin August 31: In case you’ve missed previous updates, Libsyn recently filed a an 8k disclosing that it doesn’t expect to file its financials before December 2021 and that as a result, it is obligated to pay a monthly fee to investors that participated in the secondary earlier this year (up to 2% of purchase price of $24.875MM = $497,500).

Monthly Issue August 11: Rich’s new recommendation Epsilon Energy (EPSN) is a cheap, debt free company, that is generating gobs of cash and buying back stock. Insiders already own 25% of shares outstanding but are buying stock in the open market. The company has downside protection with a net cash balance sheet and a valuable midstream business. I see significant upside over the next 12 months as the company benefits from high natural gas prices.

Cabot Income Advisor

Weekly Update September 1: The market still looks strong. The S&P 500 is on pace for a 3% gain in the month of August, which would be the seventh straight monthly gain. The index is already up 20% for the year. This market still has a lot going for it. The economy is booming, interest rates are low, and the Fed is likely to continue pumping adrenaline into the system. Earnings have been terrific. And money still has no place else to go but stocks to fetch a decent return.

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 3: Today’s note includes earnings updates on Duluth Holdings (DLTH) and Signet Jewelers (SIG), the podcast and the Catalyst Report. We publish the Catalyst Report on the Friday after each monthly issue of the Cabot Turnaround Letter. 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 Growth Investor

Question: What are your thoughts about the fact that 1) rotation has degraded the markets under the surface and 2) the divergences found everywhere call for something ominous?! All that on top of us moving into a historically and seasonally weak period — September?

Mike: Thanks for writing! As for the divergences, I’m not really disagreeing on the major point – there are flies in the market’s ointment, and because of that, we haven’t really floored the accelerator. Right now we’re still 25% in cash in Growth Investor’s Model Portfolio. Still, I would say two things. First, traditional divergences have been going on 4-6 months – maybe two if you look at the A-D Line. Second, the way we use divergences is to tell us the risk level. It’s elevated, but we also place more emphasis on leading stocks and stuff like that. Right now, I don’t think it’s time to be super heavily invested, but we’re not seeing the type of action in leading names. Thus, I’m sort of agreeing with you, but I think I have to see some degradation in the primary evidence first before really getting defensive.

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
AGCBuy 1/2
AGNCBuy
ARCOBuy
ARNABuy
ASANBuy 1/2
ASMLBuy
AVGOBuyBuy
AVLRBuy
AVVIYBuy
BIPHoldHold
BMYBuy
BSCLSell
CCHWFSee Advisory
CGCSee Advisory
CHPTBuyBuy
CIIBuy
CRLBFSee Advisory
CRNCBuy
CSCOBuyBuy
CURLFSee Advisory
CVXHold
DLRHold
DOCUBuyBuy
DOWHold
DRVNSold
DTBuy
DVNHold
DXCMBuy
EPDBuy
EVBGBuy
FIVEHoldBuy
FNDBuyBuy
FSRBuy 1/2
FVRRBuy
GMHoldHold
GOLDBuy
GRWGSee Advisory
GTBIFSee Advisory
HUBSHold
IIPRSee Advisory
IBMBuy 1/2
INSPHold
JOANBuy
JUSHFSee Advisory
KKRHold
KOBuy
KRNTBuy
LAWBuy
LLYSold 1/3
MRKBuy
MRVLBuy 1/2Buy
NEEBuyBuy
NETHold 1/2Buy
NVDAHold
NVNXFBuy
OHold
OGNBuy
OKEBuy
ONTFBuy
OTTRBuy
PGXHold
PLTRBuy 1/2
POAHYSold
PSHZFBuy 1/2
QCOMBuy
QTWOHold
RGENHold
RVLVHold
SEBuy 1/2Buy
SPBBuy
SPCEHold 1/2
SPTHold
SSOBuy
STBuyBuy
STAGHold
TAPHoldBuy
TCNNFSee AdvisoryHold
THBRFBuy
TPBSee Advisory
TRSSFSee Advisory
TSLABuy
TSMBuy 1/2
USBHold
VLOHold
VZHold
XELBuy