Cabot Prime Pro Week Ending December 11, 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 talks about his overall bullish view of the market due to the overall positive evidence among the major indexes and leading stocks. That said, he’s still being discerning on the buy side given the fact many stocks are extended and sentiment has become complacent, but he’s still finding a good amount of stocks that are either set up here or could be on any minor weakness. Stocks discussed include: AAXN SPOT PYPL Z SNOW SONO FUBO FTCH PINS
UPCOMING CABOT EVENTS:
Two Basic Options Trades to Make Money on Growth Stocks
FREE WEBINAR: Thursday, December 17 Sign up now.
Cabot Retirement Club Member Call - December 2020
FREE WEBINAR FOR PRIME MEMBERS ONLY: December 22, 2020 Sign up now.
Advisory Services
Cabot Growth Investor
Bi-weekly Issue December 3: In the last issue, we wrote about the myriad crosscurrents that were still being seen—while the major indexes looked good, the day-to-day rotation was wild among sectors and themes, with news-driven moves the norm for a few weeks. But we also said that the real question is whether that whippy action was slowly dissipating. Happily, we had begun to see some encouraging signs two weeks ago, and the market’s tenor has continued to improve since then—growth stock sellers never really followed up on the initial virus rotation back in early November, allowing more and more names to pop higher. In the Model Portfolio, Mike started a new half-sized position in Halozyme (HALO) last week ahead of Thanksgiving, and tonight, we’re going to fill out our position in Uber (UBER). That will leave us with around 31% in cash, which Mike looks to put to work in the days to come.
Bi-weekly Update December 10: Stick with the game plan of putting some money to work as opportunities arise. While the near-term path is a bit of a tossup, the major evidence remains bullish, and we’re seeing more and more leaders get moving in recent weeks. Tonight, we’re going to start a new half-sized position (5% stake) in CrowdStrike (CRWD), leaving us with around 25% in cash. We’re also moving Novocure (Buy a Half) and Twilio (Buy) into the Buy column, preferably on dips.
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 December 11: After weeks on the upside, the market has finally hit a bit of a pothole over the past few days, with some up-down-up-down action coming since Wednesday. The action isn’t a total shock given the elevated sentiment and the fact that most stocks are stretched to the upside. Mike’s Buy ideas today are: Canopy Growth (CGC) and SunPower (SPWR). Mike also suggests selling four stocks.
Weekly Issue December 7: If you’re looking at the trends of the major indexes, the price/volume action of leading stocks (both cyclical and growth) or the breadth of the overall market, it’s hard to find much fault. About the only thing to worry about is that there’s not much to worry about; sentiment measures of all stripes tell us that things are a bit hot and heavy right now, which is a reminder that risk is rising, so keep your feet on the ground and look for good entry points. Our Top Pick has recently staged a long-term breakout and sports accelerating sales and earnings growth.
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 and Pro Trade Alert December 7: Adjust Existing Position: Against your Zynga (ZNGA) stock position, Sell the January 9 calls (exp. 1/15/2021) for $0.45 or more.
Cabot Options Trader Basic and Pro Trade Alert December 10: Buy the Apple (AAPL) April 125 Calls (exp. 4/16/2021) for $10 or less.
Cabot Options Trader Pro Trade Alert December 11: Adjust Existing Position: Against your GM March 31 Calls, Buy Back the December 48 calls, and Sell the January 48 calls (exp. 1/15/2021)
Cabot Options Trader Pro Trade Alert December 11: Sell Existing Position: Sell your Qualcomm (QCOM) January 120/170 Bull Call Spread for $24 or more.
Cabot Options Trader Basic Trade Alert December 11: Sell Existing Position: Sell your Qualcomm (QCOM) January 120 Calls for $25 or more.
Cabot Undervalued Stocks Advisor
Monthly Issue December 3: Stocks have surged this past month, with the S&P 500 returning 11% in November. Other major indices, including the Dow Jones Industrial Average and the Nasdaq Composite, produced similarly strong returns. These kinds of returns would make a good year in most investors’ eyes. For the year-to-date, the S&P 500 has generated a 14% return – a very respectable gain for any year. That it occurred in a year like 2020, with a global pandemic that shut down much of the economy, a domestic presidential change-over, social unrest, and countless other unusually disruptive events is truly remarkable. Bruce has one portfolio change today: Broadcom (AVGO) – from Hold to Sell.
Weekly Update December 9: Over the past month or so, it seemed like stocks would continue their frenetic surge. This week, however, the market appears relatively lackluster with a lot less excitement. Some investors may yearn for more fireworks, but as a value investor, I find this calm to be more sane. I value the time to think. What does an investor do when there is “nothing” going on in the stock market? Often, it’s a good time to revisit your basics, especially as the year-end approaches
Cabot Stock of the Week
Weekly Issue December 7: The bull market remains alive and well, and I continue to recommend that you be heavily invested in a diversified portfolio of stocks. This week’s recommendation is a very small medical technology company focused on the business of processing and testing cells, as accurately and efficiently as possible. Long-term potential is big. But to make room for it in the portfolio, something has to go, and this week it’s Digital Realty (DLR), which never really got going for us.
Cabot Global Stocks Explorer
Bi-weekly Update December 3: The Explorer portfolio had another good week despite a sharp pullback by ElectraMeccanica (SOLO). We still have a big profit there, so Bruce advises you to sell half your position and let the rest ride. As you review your stock portfolios going into 2021, Bruce encourages you to take partial profits from your big winners. On to news affecting our investing world, the House of Representatives passed a bill this week that would lead to the delisting of Chinese stocks from U.S. exchanges if they don’t comply with U.S. audit oversight rules within a three-year window. I comment on this in the below update of Alibaba (BABA). Bruce has one portfolio change today: Sell Vipshop (VIPS)
Bi-weekly Issue December 10: A stimulus bill looks like it is right around the corner but we need to get through this winter before vaccines are widely available. Facebook faces a real challenge to break it up and accept legal liability for content. An EU-China summit is cancelled after China tried to limit speakers critical of China’s clampdown of Hong Kong. On the Explorer front this past week, MP Materials (MP) and NovoCure (NVCR) were particularly strong as Sea Limited (SE) briefly made a new high at 200. As promised, our new idea this week hails from Brazil and is a monopoly play on the most essential of all resources.
Cabot Small-Cap Confidential
Monthly Issue December 3: Tyler’s new recommendation, Personalis (PSNL) is a cancer genomics company offering next-generation sequencing (NGS) solutions and data analysis services to support personalized cancer vaccine and cancer immunotherapy development. It also provides sequencing and data analysis to support population sequencing initiatives. Personalis has a market cap of $1 billion. Customers of cancer genomic services are primarily pharma and biotech companies, universities and non-profits. Customers of population sequencing initiatives are primarily government entities, led by the U.S. Department of Veterans Affairs (VA).
Weekly Update December 10: As I said a couple weeks ago, I continue to think that, for the most part, the trends and the stocks that we’re invested in are durable enough to power through the shifting dynamics in 2021. But I am getting a little concerned about what feels like the gamification of stock trading/investing. I don’t have a takeaway message on that today. Rather, I just wanted to pose the question – at what point do the benefits of engaged retail investors and easy-to-use and free trading apps give way to the drawbacks? Tyler has changed Accolade (ACCD) to HOLD, Avalara (AVLR) to HOLD, and Repay Holdings (RPAY) to SELL
Cabot Dividend Investor
Weekly Update December 2: The final tally is in, and it was a November for the ages. The Dow Jones Industrial average was up 11.8% for November, making it the best month for the index since 1987. The S&P 500 climbed 10% while the Nasdaq gained another 11% for the month. History clearly shows that November was a spectacular month. What happened? Click here to listen to the podcast. Tom has no rating changes this week. Tom has no rating changes this week.
Monthly Issue December 9: The vaccine is changing everything. Stocks that had been left for dead by the market recovery are springing back to life and leading the market higher. One area of opportunity ahead of the New Year is in banks stocks. As a cyclical sector, banks took it on the chin during the pandemic. They crashed during the bear market and have lagged the recovery. But they are rising fast and have great momentum ahead of what looks to be a promising year for the sector. In this issue, I highlight one of the very best and most profitable banks in the country, U.S. Bancorp (USB). It still sells at a great value, pays one of the highest dividends in the industry and now has solid upward momentum.
Cabot Marijuana Investor
Weekly Update December 9: The bull market is alive and well, and marijuana stocks remain among the leaders, as buyers continue to flood into this hot sector in the midst of a growing trend toward legalization. Tim made no changes to the portfolio.
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.
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 December 8: As 2020 winds to a close, and as the market races to all-time highs, our six open covered call positions are all doing very well ... especially our December positions set to expire next Friday, December 18.
Cabot Micro-Cap Insider
Weekly Update December 2: Investor sentiment is high these days. Just look at the Citi Panic/Euphoria Index. Historically, when the index is at Euphoria, the market is due to take a breather. Similarly, the Investors Intelligence Bullish Percentage chart is also suggesting the market may be overheated. Rich will continue to focus on bottom up analysis to identify companies that look attractive no matter the market environment. Rich has one change this week: P10 Holdings (PIOE) to Sell Half.
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
Weekly Update December 9: This market continues to impress. After having eclipsed the September high in mid November, the S&P 500 is continuing to make a series of new all time highs. The catalyst has been the likely distribution of a coronavirus vaccine in the near future and the likelihood of an end to this pandemic and an ensuing full recovery in 2021.
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
Weekly Update December 4: This week two companies reported: Signet Jewelers (SIG) and Duluth Holdings (DLTH). Bruce has no changes in ratings or price targets since our last weekly update. To listen today’s podcast and view the latest Catalyst Report click here.
Weekly Update December 11: This week two companies reported: Signet Jewelers (SIG) and Duluth Holdings (DLTH). There were no changes in ratings or price targets since our last weekly update. To listen today’s podcast and view the latest Catalyst Report click here.
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).
Wall Street’s Best Investments
Daily Alert December 11: Xerox Holdings Corporation (XRX) Cabot Turnaround Letter
Daily Alert December 10: First Trust Enhanced Equity Income Fund (FFA) Income Securities Investor
Daily Alert December 9: Regency Centers Corporation (REG) The Prudent Speculator
Daily Alert December 8: iShares MSCI EAFE Small-Cap ETF (SCZ) DRIP Investor
Daily Alert December 7: AECOM (ACM) Argus Weekly Staff Report
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.
Ask the Experts
Cabot Profit Booster
Question: I was surprised that my YETI 12/18 call was assigned this morning 12/11?
Jacob: That is surprising I would agree. The trader who assigned you on the call likely wanted to control the stock himself, and manage his new stock holding early. Big picture that is a totally fine situation, as you essentially capture your full profit a week early.
Cabot Early Opportunities
Question: I started a position in this stock a month ago. I think it might be a long term winner. Have you looked at LMND? I am one of your subscribers to early opportunities. You have done amazing job picking winners. You have helped me have my best year ever as far as returns in one year.
Tyler: Thanks for your kind email. I’ve looked at LMND and have considered it for CEO. I was waiting to see how it handled itself in the months after the IPO since it went up so much those first couple of days. I don’t have anything to add re: the recent jump or anything overly insightful re the company. It’s been a few weeks anyway since I last dug in. Big picture I like the theme/trend.
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 | Hold | ||||||
| APT.AX | Buy 1/2 | ||||||
| ARNA | Buy | ||||||
| AVGO | Sold | ||||||
| AVLR | Hold | ||||||
| BABA | Hold 1/2 | ||||||
| BGS | Buy | Hold | |||||
| BIP | Buy 2/3 | ||||||
| BLFS | Buy | ||||||
| BMY | Buy | ||||||
| BSCL | Buy 1/2 | ||||||
| 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 | ||||||
| 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 | |||||
| PSNL | Buy | ||||||
| QCOM | Buy | Hold 2/3 | |||||
| QTWO | Buy | ||||||
| RGEN | Buy | ||||||
| ROKU | Buy Another 1/2 | ||||||
| RPAY | Sell | ||||||
| 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 Another 1/2 | Buy | |||||
| VIAC | Buy | ||||||
| VIPS | Sold | ||||||
| VLO | Buy | ||||||
| VZ | Buy | ||||||
| XEL | Hold 2/3 | ||||||
| ZM | Hold |