Cabot Prime Pro Week Ending April 24, 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 remains optimistic about the market and leading stocks, most of which have suffered some wobbles but they’ve avoided any abnormal selling to this point. As usual, he dives into a couple of sectors he’s interested in and a batch of leading stocks (with all different setups) that he’s high on.
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Cabot Growth Investor
Bi-weekly Issue April 23: As always, if things change, then Mike will change along with it, but the Tides buy signal and other positives prompted him to add a full position in Okta (OKTA) and half positions in both Cloudflare (NET) and Chewy (CHWY) earlier this week. That leaves us with a cash position of 46%. Also, DocuSign (DOCU), Dexcom (DXCM) and Vertex (VRTX) all move from Hold to Buy.
Special Bulletin April 20: Our Cabot Tides are now positive, which means it’s time to put some money to work. There are still headwinds out there, so it’s not a time to plunge headfirst, but with the evidence improved, Mike is adding three new stocks to the Model Portfolio tonight—a full position in Okta (OKTA), and half positions in both Cloudflare (NET) and Chewy (CHWY). Our cash position will now be around 47%.
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.
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 24: Mike remains optimistic, though we’re just playing it by the book—he took a couple steps back into the market’s waters based on the intermediate-term buy signal (our Market Monitor is likely to remain at a level 6), and he wants to see continued upside from the indexes and leading stocks (including some new names that could emerge on earnings) to extend his line. Mike’s buy ideas today are: Coupa Software (COUP), Nvidia (NVDA) and RingCentral (RNG). Also, in general, it’s good to remember to take a few chips off the table if you have a stock that’s been running quickly higher over the past few weeks.
Weekly Issue April 20: There’s no question the evidence has improved, so it’s a good idea to slowly put money to work, and then use the market for feedback; If you develop some solid profits, you can become more aggressive, but if the uptrend decisively cracks (would take a 6% to 7% drop from here), you want to hold off further buying and honor your stops. This week’s list continues the trend Mike’s seen of many high-potential stocks spiking back toward their old highs. His Top Pick is Okta (OKTA), which has rejoined the leadership ranks after nine-months of correcting and consolidating.
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 22: This morning Jacob added a speculative position in Gilead (GILD) after a surge in call buying yesterday afternoon. Now, just a couple hours later, traders are trying to wrap their minds around new headlines on GILD’s drug success/failure. Jacob is going to continue to hold his calls for the time being. While he is going to hold his calls, he doesn’t recommend adding more into what may be a very poorly timed call buy.
Cabot Options Trader Basic and Pro Alert April 23: Speculative Trade: Buy the Gilead (GILD) August 85 Calls (exp. 8/21/2020) for $11.00 or less.
Cabot Options Trader Market Update April 22: Having suffered two days of losses of approximately 5% to start the week the indexes are bouncing back nicely today with a gain of more than 2%. And while the early-week sell-off was somewhat worrisome, interestingly Jacob has picked up on quite a few short-term bullish trades in individual stocks today. He gives you two examples.
Cabot Options Trader Market Update April 21: Last evening Jacob reached out to some of his hedge fund associates in that space to get their insight as to how this could be possible. How could oil be sold for negative $37 a barrel?!!! He gives you his insight.
Cabot Options Trader Market Update April 20: The story of the day is oil, as according to CNBC, “West Texas Intermediate crude for May delivery fell more than 100% to settle at negative $37.63 per barrel, meaning producers would pay traders to take the oil off their hands.” Jacob is going to continue to dig into this never-before-seen event.
Cabot Options Trader Pro Weekly Update April 20: Jacob has 3 Long positions: JD, XLF and Z.
Cabot Options Trader Weekly Update April 20: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week marginally lower at 41.7. Despite the market having a good week, and the daily market volatility continuing to decline as I had expected, the 30-40 area in the VIX has become sticky. I expect this will continue for some time as many traders don’t believe the recent rally, and/or want to protect individual stock holdings and portfolios.
Cabot Undervalued Stocks Advisor
Special Bulletin April 23: Today’s news: Crista gives you market commentary and talks about Small-Cap Stocks, Marathon Petroleum (MPC) issues a financial report and Chart Industries (GTLS) reports first quarter results.
Special Bulletin April 22: Today’s news: Baker Hughes (BKR) and Netflix (NFLX) reports first-quarter results. Both remain at Hold.
Weekly Update April 22: This Weekly Update was completed at midday yesterday, so Crista doesn’t have much more to add to yesterday’s Bulletin, in which she cautioned investors to expect a possible retest of the March lows in U.S. stock markets. That’s because oil prices took a shocking fall on Monday, and it’s natural that investors would respond with a bearish attitude toward global economies and stocks. All stocks move to a Hold recommendation while U.S. stock markets react to turmoil in energy markets.
Special Bulletin April 21: Yesterday’s steep drop in oil prices will inevitably take stock prices down, and not just for one day. Crista is estimating that we’ll see U.S. stock markets trade back down to their March lows in the coming days. She gives you three potential courses of action.
Special Bulletin April 20: This is a Bulletin for experienced stock investors who like to trade stocks or options over the short-term: a few days or weeks. Buy-and-hold investors can use some of these ideas to buy stocks, but please ignore any discussions about price resistance, since it is not your intention to be doing short-term trading. Crista cannot give detailed guidance to options traders regarding strike prices and expiration dates.
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 20: The good news is that four weeks of upside action has brought a new buy signal from Cabot’s intermediate-term market timing indicator. But this doesn’t mean you can jump in with both feet yet; there’s still reason for caution. One way Cabot Stock of the Week exercises caution is by diversifying widely, not only among industries but also among investment strategies. Today’s recommendation, Fanuc (FANUY), is a big undervalued robotics company in Japan, is an excellent example. Tim has one portfolio change today: BlackLine (BL) moves from Buy to Hold.
Cabot Global Stocks Explorer
Bi-weekly Update April 23: Carl writes that what we may see developing in markets is a rather broad trading range – say from 21,000 to 25,000 in the Dow. This could be our reality until we work our way through the real but uncertain impact of the shutdown on the economy. He has several portfolio changes today: Per his special bulletin from Tuesday, sell half your position in Virgin Galactic (SPCE), Sea Limited (SE) sell half your position and hold the rest, and move Alibaba (BABA) to the Watch List.
Special Bulletin April 21: Sell half your position in Virgin Galactic (SPCE). Carl is concerned that impact from the Virgin Airlines debt issue might impact the stock.
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.
Cabot Small-Cap Confidential
Weekly Update April 23: This week Tyler is moving incrementally, and somewhat hesitantly, more bullish based on the action in stocks (not economic data), moving two stocks to buy. That doesn’t mean to go in huge with big positions. Rather, continue to be cautious and start slow with any new buying. Here are his changes this week: Cardlytics (CDLX) and Q2 Holdings (QTWO) both move to BUY.
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 22: It’s unlikely that the market will return to the old highs anytime soon as it will be a long time before the economy recovers to the level of pre-virus January and February. But the market’s worst fears of past weeks are not likely to be realized, and there is a good chance we have seen the bottom. For now, the BUY-rated stocks in the portfolio are those that have minimal earnings disruptions or are even benefitting from the crisis, including BIP, VZ, CCI, and ABBV. Tom 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
Special Bulletin April 24: COVID-19 likely sounds the death knell for many companies, like slow-to-adjust retailers. But it also represents a likely accelerant for others, including those exposed to trends such as work from home (WFH), cloud, e-commerce, internet, digital transformation, streaming, etc. There are no specific actions Tyler is recommending today. More, he just wanted to pass some thoughts on as food for thought as we (hopefully) begin to see consistent decreases in new cases and think longer term about what investment trends we want to be putting our hard-earned money in.
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.
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3 Cloud Software Stocks to Buy NowUpdated - 1/27/20 - Bonus Report: 3 Canadian Small-Cap Stocks to Buy Now
Bonus Report: Secrets To Early-Stage Stock Profits
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Cabot Profit Booster
Weekly Issue April 21: The Stock – CrowdStrike (CRWD) Despite the self-induced recession, the stay-at-home economy is booming thanks to companies that are letting employees work from home—and even after things go back to normal, it’s likely some of this new workplace flexibility will be here to stay. Helping keep the cloud secure is CrowdStrike, which facilitates endpoint detection and protection on or off networks, as well as on major platforms such as Google Cloud and Microsoft Azure. The Covered Call Trade — Buy CrowdStrike (CRWD) Stock at 69, Sell to Open June 70 Calls (exp. 6/19/2020) for $6, or a Net Price of 63 or less.
Update April 20: Expiration Friday of our April Cabot Profit Booster Positions went largely as Jacob had expected. And, he is making one adjustment today: This morning he is going to Sell to Open the DDOG May 43 Calls for $1.75 or more to further lower his cost basis on this stock position, and create yield.
Frequently Asked Questions Report:
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Daily Alert April 24: Zscaler, Inc. (ZS) Pivotal Point
Daily Alert April 23: Etsy, Inc. (ETSY) Canaccord Genuity Research
Daily Alert April 22: PulteGroup, Inc. (PHM) AlphaProfit Sector Investors’ Newsletter
Daily Alert April 21: Sell: AdvisorShares Ranger Equity Bear ETF (HDGE) Nate’s Notes
Daily Alert April 21: Cleveland-Cliffs Inc. (CLF) Nate’s Notes
Daily Alert April 20: The Progressive Corporation (PGR) Dow Theory Forecast
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.
Ask the Experts
Cabot Top Ten Trader
Question: hi Mike, bought some QDEL in low 90’s. Sold half around 100 and now looks like a runaway train....ride the wave or is it time to take the home run and move on?
Mike: Thanks for writing. Well, it looks fine to me so I’d rather hold on this early in the advance, though I think they have earnings coming up and yes the stock is extended. Honestly, it’s your call -- I wouldn’t argue against taking the profit as QDEL isn’t generally a go-go stock, but I rarely sell things at new highs and would probably trail a stop instead.
Question: LVGO came up on the top 10 a few weeks ago. It did not quite dip into the buy range and so is being dropped. It was so close to being in the buy range that I bought some shares. It has done well and up again today. Any thoughts on LVGO?
Mike: Oh, if you own it, I would advise hanging on -- it looks like a new leader (no guarantees, but so far, so good). We just missed our entry point. Will try to get on at some point. Glad you own some. If you really want to just take a quick profit, I can’t fault you for that in this environment, but if it were me, I’d be holding for sure and seeing what comes. Earnings in a couple of weeks I believe.
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 | Hold | ||||||
| ABBV | Buy | Buy | |||||
| ADBE | Hold | ||||||
| ALXN | Hold | ||||||
| AMZN | Hold | ||||||
| ANF | Hold | ||||||
| APPF | Hold | ||||||
| ARE | Hold | ||||||
| ARNA | Buy | ||||||
| AVGO | Hold | ||||||
| AVLR | Hold | ||||||
| BABA | Watch | ||||||
| BIP | Buy | ||||||
| BKR | Hold | ||||||
| BL | Buy | ||||||
| BMY | Hold | ||||||
| BP | Sold | ||||||
| BSCL | Buy 1/2 | ||||||
| CCI | Buy | ||||||
| CDLX | Buy | ||||||
| CGC | See Advisory | ||||||
| CHCT | Hold 1/3 | ||||||
| CHWY | Buy 1/2 | ||||||
| CRAK | Hold | ||||||
| CRON | See Advisory | ||||||
| CURLF | See Advisory | ||||||
| DBI | Hold | ||||||
| DBSDY | Buy | ||||||
| DOCU | Buy | ||||||
| DOMO | Hold 1/2 | ||||||
| DOW | Hold | ||||||
| DXCM | Buy | ||||||
| EPD | Hold | ||||||
| EQH | Hold | ||||||
| EVBG | Hold | ||||||
| EVER | Hold 1/2 | ||||||
| FANUY | Buy 1/2 | ||||||
| FVRR | Buy | ||||||
| GES | Hold | ||||||
| GM | Hold | ||||||
| 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 | Hold | ||||||
| MKSI | Hold | ||||||
| MO | Hold | ||||||
| MPC | Buy | Hold | |||||
| NEE | Hold | Hold 1/2 | |||||
| NET | Buy 1/2 | ||||||
| NFLX | Hold | ||||||
| NVDA | Buy | Hold | |||||
| NVEE | Hold | ||||||
| OKTA | Buy | ||||||
| PGX | Buy 1/2 | ||||||
| PING | Buy 1/2 | ||||||
| PNGAY | Buy | ||||||
| PWR | Hold | ||||||
| QCOM | Hold | ||||||
| QTWO | Buy | ||||||
| RGEN | Hold | ||||||
| RNG | Hold | ||||||
| SE | Sell 1/2 | Hold | |||||
| SPCE | Sell 1/2 | Hold | |||||
| SPDN | Buy | ||||||
| STAG | Hold | ||||||
| TCNNF | See Advisory | ||||||
| TDOC | Hold | ||||||
| TOT | Hold | ||||||
| TPB | See Advisory | ||||||
| TSLA | Hold | ||||||
| TSN | Hold | ||||||
| UEIC | Hold | ||||||
| VLO | Hold | ||||||
| VOYA | Hold | ||||||
| VRTX | Buy | Hold | |||||
| VZ | Buy | ||||||
| XEL | Hold 2/3 | ||||||
| ZM | Buy | ||||||
| ZS | Buy |