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Weekly Summary April 5, 2019

Cabot Prime Pro Week Week Ending April 5, 2019

We’ve Added a New Feature

By request, we have added a new feature to your Cabot Prime Weekly Summary—the Stock Recommendation Tracker. It 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 to the portfolios or any changes to our recommendations over the previous week. We will 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 remains bullish on the big picture, but is monitoring a couple of yellow flags he’s seeing—the advance is narrowing a bit and a batch of leading growth stocks have come under pressure. Mike discusses what he’s thinking with these leaders, takes a look at the overall market and goes through a variety of names that still look to be setting up well.

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Cabot Prime Quarterly Analyst Update & Q&A

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Great Growth & Value Stocks That Are Poised for Immediate Upside | Thursday, April 18

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Cabot Wealth Summit 2019

7th Annual Conference | Wed-Fri, Aug 14-16 | Salem, Mass.

We’ve just added a beginning investors workshop to help you understand the terminology and concepts of investing so you will be better prepared to make more money. The cost of the workshop is $197 but as a Cabot Prime member, once you register for the summit, you can attend the additional workshop for FREE.
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Advisory Services

Cabot Growth Investor

Bi-weekly Update April 4: The overall market is still in fine shape, but there have been a growing number of yellow flags, including among growth stocks, which came under fire today. Tonight, Mike is going to sell our position in Ciena (CIEN), leaving us with 27% in cash. He’s also downgrading Workday (WDAY) to Hold.

Bi-weekly Issue March 28: In the Model Portfolio, Mike placed some stocks on hold and, this week, sold one stock as it broke down on huge volume. He’s holding 18% cash now, though should the market and growth stocks firm up, he’ll be looking to put that to work in stronger leaders. In tonight’s issue, Mike looks at prior environments after blastoff signals to see what’s normal and what’s not (hint: so far, we’re still in good shape).

Other Stocks of Interest March 28: Follow ups to stocks featured October 24, 2018 (issue 1405) to March 28, 2019 (issue 1416). Since they’re not in the Model Portfolio, you don’t see them followed on a regular basis. However, we are monitoring these stocks, and this listing gives their current momentum status.

Cabot Top Ten Trader

Movers & Shakers April 5: Overall, Mike is still bullish, but it’s really about taking things on a stock-by-stock basis. Many (most?) names look just fine, and while he never argues against booking some partial profits, he advises mostly sitting tight with your strong, profitable positions. His buy ideas this week are: Acacia Communications (ACIA), Veeva Systems (VEEV) and Woodward (WWD). There are three sells today, Mirati Therapeutics (MRTX), Q2 Holdings (QTWO)and Smartsheet (SMAR).

Weekly Issue April 1: Overall, Mike remains mostly bullish, though he’ll keep the Market Monitor at a level 7 for a bit longer to see if this recent push (a) continues and (b) is led by leading, Top Ten-style stocks. This week’s list has many familiar names from earlier this year—a good sign, in our view, that leading stocks are continuing their uptrends. His Top Pick is Ionis Pharmaceuticals (IONS), a unique drug firm with a powerful chart. 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 Stock on Watch April 5: Alibaba (BABA) has had a choppy week of trading as the stock surged higher on Monday following strong Chinese economic data from the weekend … and then gave back some of those gains Wednesday after Altaba announced that it would sell its entire stake in BABA. However, into the decline, Wednesday traders began amassing bullish positions.

Cabot Options Trader Alert April 4: Buy the Las Vegas Sands (LVS) September 67.5 Calls (exp. 9/20) for $3.80 or less.

Cabot Options Trader Alert April 4: Sell Existing Position: Sell your Zscaler (ZS) May 44 Calls for $18.30 or more.

Cabot Options Trader Stocks on Watch April 2: Dentsply Sirona (XRAY) has been on Jacob’s watch list since the company reported earnings in early March and saw its stock jump from 41.75 to 49 and he’s been intrigued by Casino stocks Wynn Resorts (WYNN) and Las Vegas Sands (LVS).

Cabot Options Trader Pro Alert April 2: Adjust Existing Position: Against your SBUX June 70 Calls, Sell the June 80 Calls for $0.60 or more.

Cabot Options Trader Pro Alert April 1: Sell Half of Existing Position: Sell Half your JD.com (JD) September 30/38 Bull Call Spread for $2.80 or more.

Cabot Options Trader Alert April 1: Sell Half of Existing Position: Sell Half your JD.com (JD) September 30 Calls for $3.65 or more.

Cabot Options Trader Weekly Market Update April 1: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week at 13.7, or lower by 17%. This was a rather large decline from a high of 17.85 on Monday. Jacob would expect the VIX will be sticky at these levels ahead of the March Jobs Report on Friday. That said, if the market is stable throughout the week, and following the Jobs Report, he could see the VIX trade back to the low 12 area.

Cabot Options Trader Pro Weekly Market Update April 1: Jacob has eight long positions: CRON, GLW, JD, LULU, MSFT, RF, SBUX and ZS and one short position, QQQ.

Cabot Undervalued Stocks Advisor

Special Bulletin April 4: Alexion Pharmaceuticals (ALXN) begins a run-up and Crista is moving the stock from Buy to Strong Buy; Commercial Metals (CMC) continues run-up; Delta Air Lines (DAL) surges on good news.

Monthly Issue April 2: Crista writes of two unusual changes that are happening within the portfolio stocks today. DSW Inc. (DSW) officially changes its name and stock symbol to Designer Brands (DBI); and Dow Inc. (DOW) begins trading separately from DowDuPont (DWDP). She also has quite a few changes today: Comerica (CMA) moves from Buy to Strong Buy, Dow Inc. (DOW) joins the Growth & Income Portfolio with a Buy recommendation, DowDuPont (DWDP) moves from Strong Buy to Buy, DSW Inc. (DSW) changed their name to Designer Brands (DBI), Schlumberger (SLB) moves from Hold to Buy and Synchrony Financial (SYF) moves from Hold to Strong Buy.

Weekly Update March 26:The March flooding in Nebraska and neighboring Midwest and Great Plains states is devastating to farmers, crops and livestock. Consumers can expect prolonged food price inflation that reaches around the globe. Food prices affect the headline consumer price index (CPI) numbers, which can certainly influence a Federal Reserve decision to raise interest rates. Crista doesn’t expect this potential scenario to play out quickly. Here are today’s portfolio changes: Apollo Global Management (APO) moves from Buy to Strong Buy, Apple (AAPL) moves from Buy to Strong Buy and CF Industries (CF) moves from Strong Buy to Buy.

Cabot Stock of the Week

Weekly Issue April 2: The market’s weakness didn’t last long; the indexes snapped quickly back, though breadth is not quite as good as previously. Still, the market strength restores Tim’s confidence that we’ll see higher highs in the months ahead, and he recommends that you invest accordingly. For today’s recommendation he swings back to the aggressive side with Invitae (NVTA). The company’s aim is to take the genetic testing industry from the old days, where tests were done on a case-by-case basis and cost thousands of dollars, to one where costs are much lower and, hence, genetic tests for a variety of cases are becoming more commonplace, giving patients an idea of what conditions they (or, say, their babies) might be predisposed to. Today, Tim has three changes: Exact Sciences (EXAS) goes from Buy to Hold, General Motors (GM) from Hold to Sell and The Trade Desk (TTD) from Buy to Hold.

Cabot Emerging Markets Investor

Bi-weekly Issue April 4: Despite a choppy past few weeks, our Emerging Markets remains positive, depicting a continuing intermediate-term uptrend among the sector. The iShares EM Fund (EEM) had two tests of its uptrend during March, but each dip found support near its rising 50-day line, and the fund has pushed back toward its 2019 highs this week. Tonight, Carl’s recommendation is: LexinFintech (LX), a stock that is growing at an incredible rate yet its stock trades at only ten times expected 2019 earnings. LexinFintech Holdings operates as an online consumer finance platform for young adults in the People’s Republic of China.

Bi-weekly Update March 28: As we close out the first quarter, this is a good time to look at how emerging markets have fared. The MSCI Emerging Market index (EEM) is up 9% so far in 2019 but has basically hit the pause button in March. Our EEM market signal is still positive but is now trading in the ballpark of both the 20-day and 50-day moving averages. While this is probably just a pause before the next move upward, Carl feels we need some caution in case the market has other ideas. After the sale yesterday of Nio (NIO) there are no additional portfolio changes today.

Cabot Small-Cap Confidential

Monthly Issue April 5: Today’s stock, Quanterix (QTRX), is an exciting story of a young company that appears to be in the early innings of its growth curve, but has made it far enough with respect to technology development, customers and strategic partnerships to attract attention from larger investors. Revenue was up 60% in 2018, and is projected to keep growing at a rapid rate. Tyler also updates all the stocks in the portfolio and has one change today: Avalara (AVLR) moves from to Buy to Hold.

Weekly Update March 29: With the exception of one small partial position sale, this week’s update has no ratings changes, so Tyler says to just keep executing on the stock-specific strategies that he had in place last Friday. Also, since stock-specific news flow has slowed to a trickle, he’s included a high-level overview of what each of our stocks does. There is one change to the portfolio today: CareDx (CDNA) moves to SELL A QUARTER.

Cabot Dividend Investor

Monthly Issue March 27: Tom writes that this is a tricky environment. He believes dividend stocks are in the sweet spot of this late stage economic cycle market. The December selloff gave most investors a hangover and increased the appetite for income and recession resistant businesses. His featured stock this month is, Brookfield Infrastructure Partners L.P. (BIP) , a company that owns and operates infrastructure assets all over the world. It particularly focuses on high quality, long-life properties that generate stable cash flows, have low maintenance expenses and are virtual monopolies with high barriers to entry. Tom has three rating changes since last week’s update, General Motors (GM) moves from Hold to Sell, American Express (AXP) from Hold to Buy and UnitedHealth Group (UNH) from Buy to Hold.

Weekly Update March 20: Tom says that we have the ideal environment for the relative performance of dividend stocks. This late-stage economic cycle is where dividend-paying stocks typically thrive. As well, they generally hold up much better if there is a bear market. In today’s update Tom is moving Hormel Foods (HRL) from Sell Half to Hold.

Cabot Marijuana Investor

Update April 4: As Tim writes this, the Marijuana Index is up 47%, year-to-date. That’s a fantastic move, and it will lead to a correction at some point, but as he’s written before, trends tend to last longer and go further than people expect. The update includes a couple of important observations about the behavior of cannabis stocks in recent weeks, as well as updates on all the portfolio stocks. As for actions, Tim will average up in HEXO (HEXO) tonight.

Monthly Issue March 28: Tim says that CBD is hot, and acquisitions in the cannabis industry seem to occur daily, but the biggest marijuana stocks are cooling, at least for a while. Long-term, however, he remains very bullish on both the companies and the stocks in the industry and is truly enjoying staying on top of the developments. Tim is making one small change in the portfolio by averaging up in Kush Bottles (KSHB), increasing our position by one-third its current size.

Wall Street’s Best Investments

Daily Alert April 5: Anavex Life Sciences Corp. (AVXL) from BI Research
Daily Alert April 4: ProShares Ultra S&P500 (SSO) from Cabot Growth Investor
Daily Alert April 3: Sell: ArcBest Corporation (ARCB) from Upside
Daily Alert April 3: Comfort Systems USA, Inc. (FIX) from Upside
Daily Alert April 2: Hilton Worldwide Holdings Inc (HLT) from Argus Weekly Staff Report
Daily Alert April 1: VanEck Vectors Vietnam ETF (VNM) from Jack Adamo’s Insiders Plus

Monthly Issue March 13: This month, Nancy’s Spotlight Stock, ShotSpotter, Inc. (SSTI), focuses on an unhappy subject—mass shootings. And while the company she is recommending isn’t pioneering a solution to that tragedy, it is finding a niche in mitigating the losses that come with it. In her Feature article, she further explores the technology behind its products.

Wall Streets Best Dividend Stocks

Daily Alert April 5: Foot Locker, Inc. (FL) from Canaccord Genuity Research
Daily Alert April 4: Sell: Senior Housing Properties Trust (SNH) from Sure Retirement Newsletter
Daily Alert April 4: The Western Union Company (WU) from Sure Retirement Newsletter

Monthly Issue April 3: Our issue this month begins with Nancy’s Spotlight Stock, Lexington Realty Trust (LXP), a Real Estate Investment Trust that is in the midst of a transformation and whose shares are trading at bargain levels. In her Feature article, Nancy explores the direction in which the REIT is moving, highlighting the opportunities in that sector.

Daily Alert April 3: MGM Growth Properties LLC (MGP) from The Wealth Advisory
Daily Alert April 2: Aviva plc (AVVIY) from High Yield Wealth
Daily Alert April 1: Templeton Global Income Fund (GIM) from The Personal Capitalist

Ask the Experts

Cabot Growth Investor

Question: Hi Mike. I’m a long time subscriber to your Cabot growth newsletter your picks are excellent keep it up. Best newsletter I have come across. One quick question I bought cmg at 610 it’s been going steady earnings are coming up and would like to get your opinion whether to sit tight. Thank you. Have a Great Day!

Mike: Thanks for writing, and the kind words. Yes, I would hold on, as I’m viewing the whole thrust of the past 2-3 months (for the market and this stock) more as a kickoff to a longer-term move. That said, there’s no question pullbacks will come, possibly after earnings. There are no sure things. We’re going to be patient, but I’m not opposed to selling some (partial profits -- maybe 1/3 or so of your position) and then putting a stop a bit above your cost so that, even if the stock does tank, you’re getting out with something. The goal would be to let the rest of your shares run, but taking some off after this nice run is fine in my view.

Cabot Options Trader

Question: I have a question I hope you can answer. When investment banks give price targets for stocks, is there an industry standard when that target is projected for? 6 months out. 1 year out? For example today I read the following: “the Jefferies team led by Brent Thill reiterated their current price target of $2,300, about 27% above current levels. Shares of Amazon were last trading around $1,828.”

Jacob: So Jeffries believes AMZN will be worth $2300/share when? Now that is a great question! And one that I don’t have a great answer for. While I’m sure most analysts are doing the best job possible, some assign price targets and make wild statements to make names for themselves. But yes, at face value that analyst believes AMZN will hit 2,300 ... when is another question.

Premium Reports

Cabot’s Ten Best Canadian Small-Cap Stocks

Special Report

Updated March 6, 2019: One of the generally accepted wisdoms over the past couple of years has been that the U.S. stock market is where the action is. But relative performance of ex-U.S. markets is showing that’s no longer the case. There are market-beating returns available to those investors willing to step abroad. And one of the easiest steps to take is just over the border with our neighbor to the north, Canada. For the modestly adventurous investor, I think there are quite a few Canadian stocks worth a look right now.

Cabot’s Best Safe Investments for Uncertain Times

Special Report

December 21: This report gives you some suggestions of the safest, productive places to put your money when the market gets bumpy.

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.

StockCabot Small-Cap ConfidentialCabot Emerging Markets InvestorCabot Growth InvestorCabot Marijuana InvestorCabot Stock of the WeekCabot Undervalued Stocks AdvisorCabot Dividend Investor
AAPLBuyStrong Buy
ABBVBuyBuy
ACBSee Advisory
ALXN Strong Buy
ANFHold
APHASee Advisory
APOBuyStrong Buy
APPFBuy
ARNAHold
AVLRHold
AXPBuy 1/2
BABABuy 1/2
BHGEBuy
BIP Buy
BSCJ Buy 1/2
BSCL Buy 1/2
BXBuy
BZUNBuy 1/2
CDNAHold 3/4
CDXSBuy
CFBuy
CGCSee Advisory
CHCTHold
CHEFBuy
CIENSell
CITBuy
CMAStrong Buy
CMCStrong Buy
CMGBuy
CRLBFSee Advisory
CRONSee Advisory
CURLFSee Advisory
DALStrong Buy
DBIStrong Buy
DDAIFBuy 1/2
DHIHold
DOWBuy
DWDPBuy
ECL Hold 1/2
ED Hold 2/3
ELLXFSee Advisory
EPAYBuy
EPDBuy
EVBGHoldHold
EXASSoldHold
FIVEHold
GESStrong Buy
GMSellSold
GSHDBuy
GTBIFSee Advisory
HEXOSee Advisory
HRL Hold
HTHTHold
IIPRSee Advisory
ITHUFSee Advisory
KNXHold
KSHBSee Advisory
LUVStrong Buy
LXBuy 1/2
MKC Hold
MLMHold
MPCStrong Buy
MTCHBuy
MOBuy
MOSBuy
NEE BuyBuy
NIOSoldSold
NVTA Buy
OGRMFSee Advisory
OKTAHold 1/2
PGX Buy 1/2
PLNTBuyBuy
PWRHold
QTRXBuy
QTWOBuy
RCLStrong Buy
REMXHold 1/2Hold
RGENBuy
RPDHoldBuy
SANMStrong Buy
SEHold 1/2
SLBBuy
SSOBuy
STAGHoldHold
SUPNStrong Buy
SYFStrong Buy
TALBuy 1/2
TCEHYBuy 1/2
TDOCSold
TIVOHold
TOTBuy
TPBSee Advisory
TSLAHold
TTDHold
TWLOBuyBuy
UEICStrong Buy
UNH Sell
UPLDBuy
VOYABuyBuy
WDAYHold
WRKBuy
XEL Hold 2/3
ZTOBuy 1/2