Cabot Prime Pro Week Ending April 17, 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, In this week’s video, Mike Cintolo discusses the market’s improved standing, including the fact that his intermediate-term trend indicator has turned positive. Mike reviews what to do with the buy signal and what stocks appear to be in pole position to lead any continued advance from here.
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Cabot Growth Investor
Bi-weekly Update April 16: Remain defensive, but stay tuned. Despite many crosscurrents and news-driven moves this week, Mike is just playing it by the book—our Cabot Tides are close to a buy signal, and if that happens, he’ll take a step back into the market. Until then, though, we’ll stand pat and ride our four remaining stocks, all of which are acting great.
Bi-weekly Issue April 9: Mike writes that now’s the time to form a game plan. For us, that means remaining defensive until more legitimate bullish evidence emerges—tonight, we have no changes, as the Model Portfolio remains solidly in the black for the year. If the rally fails, he’ll obviously stay in our bunker, but should the Tides turn positive, he’ll aim to put a chunk of money to work
Other Stocks of Interest April 10: Follow ups to stocks featured November 21, 2019 (issue 1433) to April 9, 2020 (issue 1443). 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 April 17: First and foremost, our intermediate-term trend model (called the Cabot Tides) is turning positive today, which is the first meaningful sign that the buyers are stepping up. As for buying, Mike would probably start with smaller positions and then use the stocks (and the market) as a feedback mechanism; if you make progress, you can extend your line (either by averaging up in stocks you have, or buying new ones), and if you don’t, you can slow down a bit. By taking it step by step, you can get aggressively invested quickly if the rally works—but won’t get too heavily invested if the sellers reappear. Mike’s buy ideas today are: DocuSign (DOCU), Netflix (NFLX), Okta (OKTA) and Slack (WORK). He has one suggested sell: Domino’s Pizza (DPZ)
Weekly Issue April 13: Mike thinks the next week or two will be the key juncture—if the major indexes can ramp from here, the intermediate-term trend would turn up and could coincide with some powerful breakouts. On the flip side, if the sellers reappear, a deeper pullback or a retest of the lows could be on tap. Right now, he’s optimistic, but he never anticipate signals; today, with the trend still down, you should remain defensive. But, he continues to see a lot of stocks that want to go higher if bulls do retake control. His Top Pick this week is Inphi (IPHI), which is already at new closing highs as demand for its high-speed goods improves. Start small and/or aim for 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 Position Update April 17: Today is the expiration of two of our positions, Dropbox (DBX) and Taiwan Semiconductor (TSM). Jacob gives you his thoughts on each.
Cabot Options Trader Pro Alert April 17: Close Existing Position: Close your S&P 500 (SPY) April 290/285 Bull Put Spreads for $4.50 or less.
Cabot Options Trader Position Update April 15: The S&P 500 is trading lower by 2.6% today. However, despite this market weakness our position in JD.com (JD) is breaking out to a new high following two upgrades.
Cabot Options Trader Pro Alert April 14: Adjust Existing Position: Buy back HALF of your SPY April 290/285 Bull Put Spreads for $4.00 or less.
Cabot Options Trader Stocks on Watch April 13: There are two major themes in the options trading world today … Buying long term growth stock calls,and selling out-of-the-money calls in slow and steady stocks. Jacob gives us examples of each.
Cabot Options Trader Pro Weekly Update April 13: Jacob has 6 Long positions: DBX, JD, SPY Iron Condor, TSM, XLF and Z.
Cabot Options Trader Weekly Update April 13: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week at 41.7, or lower by 18%. The decline from 75 to 41 in the “fear index” has been fairly precipitous, though Jacob would expect the 35-40 level will start to get “sticky” as the market has raced higher, and traders are likely more willing to buy puts to protect recent buys and portfolios at these levels.
Cabot Undervalued Stocks Advisor
Special Bulletin April 17: TODAY’S NEWS: Kansas City Southern (KSU) reports record first-quarter results, L3Harris Technologies (LHX) approaches upside price resistance, Crista gives us her 2020 Stock Market Outlook and today’s Trading Idea: Amazon.com (AMZN) moves from Strong Buy to Hold.
Special Bulletin April 16: Crista normally takes her time in the mornings, assessing current-day stock activity, before deciding what to buy and sell. In that light, she can’t send you trading ideas in the early morning, because the market needs to open and get its legs before she can begin doing this analysis. There are even some days when she does the entire buy-and-sell assessment during the market’s last hour. Nevertheless, she has some ideas for you now.
Weekly Update April 15: As we enter earnings season, Crista is going to approach it differently than usual. She’s normally focused on earnings estimates, and how the companies perform compared to Wall Street’s expectations. However, the virus pandemic has screwed up business plans at every company around the globe. Analysts’ estimates are now akin to dart-throwing. There will be a reset in the financial community as companies report quarterly results, and far more importantly, describe their future outlooks. Therefore, she won’t be reporting consensus earnings estimates for the quarter, because those numbers will frankly be irrelevant. Crista has one portfolio change today: Alexion Pharmaceuticals (ALXN) moves from Buy to Hold.
Monthly Issue April 1: Crista’s featured companies today are benefiting from the current focus on healthcare, online commerce, dining at home and limited travel behaviors. These companies are Amazon.com (AMZN); Bristol-Myers Squibb (BMY), a new addition to the Growth & Income Portfolio; Mercury General Group (MCY) and Tyson Foods (TSN). Here are today’s portfolio changes: Abercrombie & Fitch (ANF) moves from Hold to Buy, Adobe Systems (ADBE) moves to the Special Situation and Movie Star Portfolio, Bristol-Myers Squibb (BMY) joins the Growth & Income Portfolio as a Strong Buy, General Motors (GM) moves from Hold to Buy, Goldman Sachs Group (GS) moves from Hold to Retired, MKS Instruments (MKSI) moves from Hold to Strong Buy, Netflix (NFLX) moves from Strong Buy to Hold, Quanta Services (PWR) moves from Hold to Buy, Total SA (TOT) moves from Hold to Buy, Universal Electronics (UEIC) moves from Hold to Strong Buy and VanEck Vectors Oil Refiners ETF (CRAK) moves from Hold to Strong Buy.
Cabot Stock of the Week
Weekly Issue April 13: The market has rallied nicely over the past three weeks, and many of our stocks have done quite well in that time. So what happens next? History says this upside action is unlikely to go on much longer, mainly because the market’s bottoming process typically needs time to lower the confidence of investors. Right now, investors haven’t felt enough pain—for a long enough period of time—to truly turn negative on the market. Technical analysis, however, says if we can just get a few more up days, our intermediate-term trend model will turn positive! Until that happens, however, caution is the watchword. In the meantime, for investors who are truly underinvested, or feel the need to nibble on promising growth stocks, there’s today’s featured stock, Zscaler (ZS), which was originally recommended by Mike Cintolo in Cabot Growth Investor. Tim has no portfolio changes today.
Cabot Global Stocks Explorer
Bi-weekly Issue April 16: Carl’s read is that the huge stimulus measures have overpowered concerns about the real economy. This is why he’s keeping as a hedge a 10% position in our ETF that moves opposite the S&P 500 index. Our emerging markets indicator (EEM) is in an uptrend but needs a bit more time to turn positive. There are still great names trading at attractive prices. Keep in mind that the EEM recovered from its last sharp pullback by rising 80% in two years, from early 2016 to early 2018. Carl’s recommendation today is, Fanuc (FANUY), a Japanese blue chip with zero debt, a sterling reputation, and a storied past. It’s rated Buy a Half. Here are today’s portfolio changes: British Petroleum (BP) moves from Buy a Half to Sell and JP Morgan (JPM) is removed from the watch list.
Bi-weekly Update April 9: Most positions are up 5%-6% for the week. The exceptions are Virgin Galactic (SPCE), up 15%, and Luckin Coffee (LK), shares were put on an exchange-mandated trading halt yesterday morning at 4.39. Today, Carl offers us a strategy that looks at micro-cap stocks in a different way. He has no portfolio changes today.
Cabot Small-Cap Confidential
Weekly Update April 16: Tyler says, big picture, we’re clearly in the very early stages of a potential recovery, but it’s tenuous. We have to go with the trends and acknowledge that the massive amounts of stimulus spending is paving the way for investors to put some money to work, but there will likely be ups and downs as we move forward. He has two portfolio changes today: Inspire (INSP) and Fiverr (FVRR) both move from HOLD to BUY.
Special Bulletin April 13: Shares of Domo (DOMO) are bucking the downtrend early on Monday after management announced late last week that it would take steps to cut an additional $30 million in costs by reducing the workforce by roughly 90 employees across sales, marketing, general/administrative and R&D departments. Tyler is keeping at HOLD.
Monthly Issue April 2: This month Tyler is looking past all the current uncertainty in the market at a profitable, young company that should hold its own during this rough patch then accelerate growth into the back half of 2020 (assuming the pandemic eases as we move into the summer months). Ping Identity Holding Corp. (PING) offers intelligent identity solutions for global enterprises. These solutions are strategic imperatives because they help workers do their job from anywhere and help companies streamline customer experiences. Tyler is starting with a half position.
Cabot Dividend Investor
Weekly Update April 15: Things are certainly looking up. After a lightning fast 30%-plus plunge, the market has recouped half of the losses already.The market is forward looking. It senses an end to this pandemic crisis and a reopening of the economy sooner rather than later. That’s good news. And Tom agrees. The end-of-the-world pessimism that caused the market crash is being tempered. He has no rating changes today.
Monthly Issue April 8: While Tom believes the economy and the markets will recover, there is a good chance of another down leg in the market. In this issue, he seeks to take advantage of that possibility by targeting great companies to buy at below current prices. These are fantastic companies to own that are only ever cheap in bear markets like this. He has one portfolio change today, Verizon (VZ) moves from HOLD to BUY.
Cabot Marijuana Investor
Update April 16: The long-term prospects for the sector look great from here, both because the stocks have fallen so far, and because the fundamental growth in the industry is still exceptional. For example, in the latest reported quarter, the average revenue growth of the companies in the portfolio was up 120% from the year before. Also promising—many of these companies are now solidly profitable on an operating basis. But Tim is not adding any new stocks to the portfolio yet (he did a little averaging up three days after the bottom).
Monthly Issue March 25: Coming into this week, the portfolio was more than 60% in cash, though that’s been reduced as the stocks have bounced. And today Tim is going to take the cash level down to 50% by averaging up (using equal amounts) in both Canopy Growth (CGC) and Innovative Industrial Properties (IIPR). Note, he’s like to buy more of CURLF and GRWG, but he learned long ago that averaging down is a bad idea, so he’s just wait until our position is profitable in them. Canopy Growth (CGC), GrowGeneration (GRWG) and Innovative Industrial Properties (IIPR) all move to BUY.
Cabot Early Opportunities
Monthly Issue April 15: This isn’t to say it’s time to get super-aggressive. There are still big hurdles to get over. But the trends suggest we could be in the early to middle stages of a market recovery, complete with expected bouts of volatility, and that means continue to average into select opportunities. So, this month’s Issue of Cabot Early Opportunities features a variety of stocks across the risk spectrum. Tyler has a company working on immune medicines, including antibody testing for COVID-19, as well as a conservative MedTech stock that’s been punished but should bounce back. The month’s Top Pick, Datadog (DDOG), is a way to play surging demand for a specific type of cloud computing technology.
Special Bulletin April 14: With the market surging today, 20 positions under coverage and five more coming tomorrow, Tyler is going to take advantage of the opportunity to trim a few positions. Sell: Arco Platform (ARCE) and Endava (DAVA).
Bonus Report:
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Update April 17: Today is the expiration of our April Covered Calls. Jacob doesn’t anticipate adjusting any of these positions today. He gives you his thoughts on each position.
Update April 15: Morgan Stanley (MS) is our first company this quarter to report earnings tomorrow morning before the opening bell. We are holding a stock position, but without an option as we let the March 57.5 call that we sold for $0.85 expire worthless. However, with earnings coming tomorrow morning Jacob is going to sell a new call to further lower our cost basis and risk headed into earnings. To execute this trade, you need to: Sell to Open the MS May 44 Calls (exp. 5/15/2020) for $0.50 or more.
Weekly Issue April 14: The Stock – Chewy (CHWY) Chewy looks like rare merchandise because it combines defensive characteristics with an excellent short- and long-term growth story; the firm is effectively the Amazon of pet supplies, selling everything from food to toys to crates to meds and more. The Covered Call Trade — Buy Chewy (CHWY) Stock at 42, Sell to Open May 43 Calls (exp. 5/15/2020) for $2.25, or a Net Price of 39.75 or less.
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Daily Alert April 17: NAPCO Security Technologies, Inc. (NSSC) BI Research
Monthly Issue April 16: Nancy’s Spotlight Stock this month, Amazon (AMZN), certainly fits the growth category. One of the FANG stocks, the company is seeing expansion on all levels, including e-commerce, streaming, and its web services. This month, she also has a second opinion on the stock, also very positive. And her Feature article is a bit more numbers-based as to why she believes this company will continue to be a major online force.
Daily Alert April 16: BlackRock, Inc. (BLK) The Prudent Speculator
Daily Alert April 15: New Residential Investment Corp. (NRZ-PA) The Dividend Hunter
Daily Alert April 14: Invesco QQQ Trust (QQQ) Moneyletter
Daily Alert April 13: DBS Group Holdings Ltd (DBSDY) Upside
Ask the Experts
Cabot Undervalued Stocks Advisor
Question: Do you see a good option strategy to follow for Netflix (NFLX), with earnings being reported on April 21?
Crista: Since I tend to focus on call options (as opposed to other option strategies), I don’t attempt to buy options on stocks that just rose a lot, like NFLX. If NFLX had not recently moved, I definitely would have considered calls prior to earnings. I often use that strategy with AAPL. (Caveat: I read analyst research first, to see whether the quarter is likely to deliver an upside surprise, and I assess recent changes in consensus earnings estimates, before “playing earnings” with options.) All-in-all, I would rather buy calls on stocks that are just beginning run-ups from relatively stable bases or trading ranges.I highly recommend that investors follow fellow analyst Jacob Mintz’s option strategies and learn from his vast experiences.
Question: I know that Universal Electronics (UEIC) is rated as a Strong Buy, but what’s the time horizon you have in mind to see decent growth?
Crista: I would expect UEIC (price 38) to rise past 40 within the next 2-4 weeks, assuming that another round of very bad news does not disrupt the market. The next points of price resistance are at 44, 52 and 60. UEIC is a micro-cap stock that corners the market in state-of-the-art audio/video and smart home remote control technology. Even during a severe recession, people will be sitting at home, continually accessing their electronics. Micro-cap stocks are volatile. This is a very profitable company that could easily become a takeover target.
Cabot Options Trader
Question: I have been sitting on most of my holdings over the gut wrenching market for the past couple of months. However last week, I took some profits on some of my stock positions and held on to some good amount of cash ( 50% ) as advocated by Mike & others at Cabot. I wanted to be defensive what if a big RE-TEST was going to come.
Seems like that is being put to bed right now as the market tries to ride higher. I do own some options especially VRTX, IPHI, SE that I bought in the first week of the year and
they expire in May thru July. I do sit on a good 100+% profit on these and so I wonder what kind of stops I should put on them and NOT SIT on them to become losing positions like some others ... ( after being up more than 100% like TSM ). Your calls have been great. But I have not had the heart to put money into this market over the past 2 months.
Jacob: Big picture if you “survived” the last month and a half, you are good. If you “thrived” the last month and a half, you are a hero. My rules for managing positions like this is to set mental stops. For example, if an option you own is worth $10, maybe set that stop at $7.50 or $8. Then if the stock rises to be worth $12, bump that stop up to $10. And as these positions get nearer to expiration tighten those stops even more. And one last thing .. yes it appears the market is healing, and as I’ve written there is the potential for a massive move to the upside if the market really gets in gear. Conversely, I’m also keeping my eyes open to a buy the rumor, sell the news type of situation, if and when the economy opens up again.
Premium Reports
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts from April 15, 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.
A Richer Retirement
Special Report This handbook is designed to help you secure a better, longer, richer retirement for yourself by making the most of your savings both before and during retirement.
Guide to Cabot Prime Pro
This Guide to Cabot Prime Pro will help you make the best use of your Prime membership to create a strong personal portfolio.
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 |
|---|---|---|---|---|---|---|---|
| AAPL | Strong Buy | ||||||
| ABBV | Buy | Buy | |||||
| ADBE | Strong Buy | ||||||
| ALXN | Hold | ||||||
| AMZN | Hold | ||||||
| ANF | Buy | ||||||
| APPF | Hold | ||||||
| ARE | Hold | ||||||
| ARNA | Buy | ||||||
| AVGO | Hold | ||||||
| AVLR | Hold | ||||||
| BABA | Buy | ||||||
| BIP | Buy | ||||||
| BKR | Hold | ||||||
| BL | Buy | ||||||
| BMY | Strong Buy | ||||||
| BP | Sell | ||||||
| BSCL | Buy 1/2 | ||||||
| CCI | Buy | ||||||
| CDLX | Hold | ||||||
| CGC | See Advisory | ||||||
| CHCT | Hold 1/3 | ||||||
| CRAK | Strong Buy | ||||||
| CRON | See Advisory | ||||||
| CURLF | See Advisory | ||||||
| DBI | Buy | ||||||
| DBSDY | Buy | ||||||
| DOCU | Hold | ||||||
| DOMO | Hold 1/2 | ||||||
| DOW | Buy | ||||||
| DXCM | Hold | ||||||
| EPD | Hold | ||||||
| EQH | Strong Buy | ||||||
| EVBG | Hold | ||||||
| EVER | Hold 1/2 | ||||||
| FANUY | Buy 1/2 | ||||||
| FVRR | Buy | ||||||
| GES | Hold | ||||||
| GM | Buy | ||||||
| GRWG | See Advisory | ||||||
| GSHD | Hold 3/4 | ||||||
| HCAT | Hold | ||||||
| HTHT | Hold | ||||||
| IIPR | See Advisory | Hold | |||||
| INSP | Buy | ||||||
| LGIH | Hold | ||||||
| LK | Hold | Hold | |||||
| LX | Buy 1/2 | ||||||
| MCY | Strong Buy | ||||||
| MKSI | Strong Buy | ||||||
| MO | Hold | ||||||
| MPC | Buy | Buy | |||||
| NEE | Hold | Hold 1/2 | |||||
| NFLX | Hold | ||||||
| NVDA | Buy | Strong Buy | |||||
| NVEE | Strong Buy | ||||||
| PGX | Buy 1/2 | ||||||
| PING | Buy 1/2 | ||||||
| PNGAY | Buy | ||||||
| PWR | Buy | ||||||
| QCOM | Hold | ||||||
| QTWO | Hold | ||||||
| RGEN | Hold | ||||||
| RNG | Hold | ||||||
| SE | Buy 1/2 | Hold | |||||
| SPCE | Buy a Half | Hold | |||||
| SPDN | Buy | ||||||
| STAG | Hold | ||||||
| TCNNF | See Advisory | ||||||
| TDOC | Hold | ||||||
| TOT | Buy | ||||||
| TPB | See Advisory | ||||||
| TSLA | Hold | ||||||
| TSN | Strong Buy | ||||||
| UEIC | Strong Buy | ||||||
| VLO | Hold | ||||||
| VOYA | >Strong Buy | ||||||
| VRTX | Hold | Hold | |||||
| VZ | Buy | ||||||
| XEL | Hold 2/3 | ||||||
| ZM | Buy | ||||||
| ZS | Buy |