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Weekly Summary August 2, 2019

Cabot Prime Pro Week Ending August 2, 2019

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, Chief Analyst of Cabot Top Ten Trader and Cabot Growth Investor, gets right into the market, delivering all his latest thoughts on the Fed/tariff-related selloff, what he’s focusing on going into next week and a bunch of names that are holding well and could help lead—once the selling pressures ease up.

CABOT EVENTS:

Cabot Wealth Summit 2019

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

We’ve 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.

Learn More and Reserve Your Place

FREE WEBINAR: Thursday, September 12.

High-Yield Dividend Stocks to Boost Your Income Now

By Tom Hutchinson, Chief Analyst of Cabot Dividend Investor | Space is limited so sign up now for FREE.

Advisory Services

Cabot Growth Investor

Bi-weekly Issue August 1: Remain bullish, but keep your antennae up. In the Model Portfolio, Mike averaged up in Snap (SNAP) and bought a half-sized position in Elastic (ESTC) last week, though earlier this week, he booked partial profits in Okta (OKTA). All combined, those moves leave us stakes in 10 stocks and a cash position of 12%. There are no portfolio changes tonight.

Special Bulletin July 29: Mike is making one move tonight, booking partial profits in Okta (OKTA), by selling one-third of our shares and holding the rest. Ratings-wise, he’s also going to put Twilio (TWLO) on Hold, as the stock has repeatedly failed at resistance near 150 and came under pressure today.

Bi-weekly Update July 25: Mike says to remain bullish, but continue to take things on a stock-by-stock basis. Some potholes based on earnings, rotation and news flow are certainly possible, but overall, the bull market is in good shape and most leading stocks act well. In the Model Portfolio tonight, he’s making two moves—he’s adding another half position to Snap (SNAP), which looks like a fresh leader, and he’s starting with a half-sized position (5% of the portfolio’s value) in Elastic (ESTC). Our cash position will now be around 9%.

Other Stocks of Interest July 24: Follow ups to stocks featured February 28, 2019 (issue 1414) to July 18, 2019 (issue 1424). 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 August 2: Mike says there’s no question the near-term evidence has worsened for many growth stocks (rotation) and the market as a whole, so it’s a good idea to trim your sails by booking a couple of partial profits, keeping your worst performers and biggest losers on tight leashes—or both. He’ll likely knock our Market Monitor down another notch or two come Monday, though a lot will depend on whether the indexes are able to hold support. His buy ideas this week are: Anaplan (PLAN) and Agnico Eagle (AEM). Mike has 11 sell ideas this week.

Weekly Issue July 29: The overall market remains in good shape, with the major indexes and most leading stocks in uptrends. That said, today was a very bad day for growth stocks, as big investors hit the sell button almost from the get-go, leaving most of this year’s winners down sharply. Mike’s Top Pick is Teradyne (TER), which leapt out of a huge base on earnings last week.

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 Market Update August 2: As is usually the case when the market gets rocky Jacob will evaluate the market, option order flow, the VIX, and the strength and time till expiration of each of our positions to help guide his decision-making process.

Cabot Options Trader Alert August 1: Buy-Write: Buy Snap (SNAP) stock and Sell the August 17 (exp. 8/16) Calls for a net price of $16.55 or less.

Cabot Options Trader Market and Earnings Update July 31: This afternoon the Federal Reserve will announce its decision on interest rates. Jacob says that options traders are signaling that today will largely be a non-event as the VIX is calm at 14, and the options market is pricing in a move of 0.6% for the S&P 500 today, and a 1.1% move by the end of the week. Jacob also gives an update on Twilio (TWLO) who reports earnings today after the close.

Cabot Options Trader Stocks on Watch July 30: Yesterday the leading cloud software stocks, which have had a spectacular year, came under intense selling pressure. However, into that decline a trader executed an interesting roll in ServiceNow (NOW), which had recently fallen on earnings. Jacob also updates us on several stocks that he has his eye on.

Cabot Options Trader Earnings Update July 30: Jacob gives us earnings updates on Apple (AAPL), Advanced Micro Devices (AMD) and General Electric (GE).

Cabot Options Trader Pro Alert July 30: Sell the Nasdaq ETF (QQQ) September 204/208 Bear Call Spreads (exp. 9/20) for $0.50 or more.

Cabot Options Trader Earnings Update July 29: Jacob gives us earnings updates on Beyond Meat (BYND), Corning (GLW) and Merck (MRK).

Cabot Options Trader Pro Alert July 29: Adjust Existing Position: Against your Disney (DIS) October 140 Calls, Sell the October 160 Calls for $1.50 or more.

Cabot Options Trader Pro Weekly Update July 29: Jacob has 10 long positions: DIS, KO, JD, LVS, MDT, MSFT, RF, SE, XME and Z.

Cabot Options Trader Weekly Update July 29: Jacob says this week will be packed with potentially market-moving events as the Federal Reserve will announce their decision on interest rates on Wednesday, and Friday, traders will be paying close attention to the July Jobs Report. In addition, approximately one-third of the S&P 500 will report, as well as other high profile companies.

Cabot Undervalued Stocks Advisor

Special Bulletin August 1: Today Crista reports strong earnings beats from CF Industries (CF), Corteva (CTVA), Marathon Petroleum (MPC) and TiVo (TIVO). In portfolio moves, CF Industries (CF) moves from Strong Buy to Hold., Corteva (CTVA) moves from Buy to Hold. and TiVo (TIVO) is now Retired from the Buy Low Opportunities Portfolio.

Special Bulletin July 31: Crista updates us on good earnings reports from Apple (AAPL), Axis Capital (AXS), Baker Hughes, a GE Co. (BHGE) and Carlyle Group (CG). Also, Carlyle Group officially announced a conversion to a corporation.

Weekly Update July 30: Crista continues to believe that strength in the economy should prohibit the Fed from lowering the fed funds rate. She also gives her take on CEO of L Brands (LB), Leslie Wexner and his long-term ties to the recently-arrested Jeffrey Epstein. There are two portfolio changes today: Carlyle Group (CG) moves from Strong Buy to Hold and Synchrony Financial (SYF) moves from Strong Buy to Hold.

Monthly Issue July 2: Crista is revisiting the topic of Baby Boomers and real estate. You won’t want to miss the conversation she had with a retired Boomer. Featured stocks in this Issue are: Voya Financial (VOYA), Corteva Inc. (CTVA) and Designer Brands (DBI). Here are today’s portfolio changes: Alexion Pharmaceuticals (ALXN) moves from Buy to Strong Buy, Corteva (CTVA) moves from Hold to Buy, Delta Air Lines (DAL) moves from Strong Buy to Buy, Designer Brands (DBI) moves from Buy to Strong Buy, DuPont de neMours (DD) moves from Hold to Sell, Sanmina (SANM) moves from Hold to Buy and Supernus Pharmaceuticals (SUPN) moves from Hold to Buy.

Cabot Stock of the Week

Weekly Issue July 30: The broad market remains in fine health, with the major indexes trending higher and sentiment measures still bullish. Thus Tim continues to recommend that you be heavily invested in a diversified portfolio of stocks that fit your investment needs. This week Tim swings back to a fast-growing cloud software stock that’s been one of the market leaders this year and has great prospects going forward. The stock, Coupa Software (COUP) was originally recommended by Mike Cintolo in Cabot Growth Investor. There are two changes in the portfolio this week: CIT Group (CIT) moves from Buy to Sell and Twilio (TWLO) from Buy to Hold.

Cabot Global Stocks Explorer

Bi-weekly Update August 1: Carl writes that emerging and international markets are holding their own as U.S. markets hit new highs in the wake of modest interest rate cuts by the Fed. The emerging market index (EEM), a basket of 800 stocks, is trading at just 12 times forward earnings. The key to unlocking this value in a big way is probably a weaker U.S. dollar. Carl has no portfolio changes this week.

Bi-weekly Issue July 25: Our emerging market signal stays in positive territory as Luckin Coffee (LK), Sea Limited (SE) and NIO (NIO) are all advancing nicely. With our new global mandate in place, Carl moves beyond emerging markets to a European quality play on technology. He also explores what the new Fortune Global 500 rankings can tell us about the changing landscape of investment opportunities. Today’s recommendation is Infineon Technologies (IFNNY) a leading broad-based European chipmaker with exposure to secular growth drivers in the industrial and automotive chip sectors. It’s rated Buy a Half.

Cabot Small-Cap Confidential

Monthly Issue August 2: Today’s recommendation, Bandwidth (BAND), is a software and infrastructure company specializing in communications. It just reported Wednesday night, and results were better than expected. There are no portfolio changes today.

Special Bulletin July 31: AppFolio (APPF) and Veracyte (VCYT) reported earnings this week. AppFolio (APPF) reported Monday night that revenue in Q2 2019 grew by 35% to $63.6 million and that EPS jumped 210% to $0.65. It remains a Hold. Veracyte (VCYT) reported last night and beat on both the top and bottom line. Revenue was up 32.5% to $30.1 million while adjusted EPS of -$0.05 beat by $0.05. It remains a Buy.

Weekly Update July 26: News flow from our portfolio holdings remains slow given the quiet period that comes before earnings reports. Next week, the action heats up. Tyler writes that we will have six positions reporting. There is one portfolio change this week: Domo (DOMO) moves from Hold to Buy.

Cabot Dividend Investor

Monthly Issue July 31: Tom hasn’t found a stock that fits the bill this month. Instead he has highlighted an existing portfolio position as this month’s “target buy.” He believes Brookfield Infrastructure Partners (BIP) is a better investment right now than any possible new additions to the portfolio. It’s still a great buy. There is one change today: He’s selling 1/3 of Community Health Trust (CHCT) ahead of earnings next Tuesday.

Weekly Update July 24: Tom says, overall, this earnings season is shaping up to be positive but uninspired. S&P 500 profits are likely to grow, but not by much. It seems like a logical breather after the torrid earnings growth of last year from the effects of the tax cuts. There is one rating change this week. NYC utility Consolidated Edison (ED) is being sold from the portfolio.

Cabot Marijuana Investor

Update August 1: Tim’s long-term strategy remains the same; to become owners of the companies that will lead this industry five and 10 years down the road. But to do that, you’ve got to survive the short-term, and sometimes that means biting the bullet and selling—so that you can come back and fight another day when market conditions are more supportive. In his portfolio today, that means selling Elixinol (ELLXF), where both the fundamentals and the chart have worsened. That will take our cash position to roughly 32%.

Monthly Issue July 25: The cannabis sector remains in a correction, with both marijuana and CBD stocks trending lower, giving up some of their early-year gains—and perhaps building a bottom here. In the meantime, more and more peripheral companies are getting in on the action, and Tim has been increasing our exposure to these in recent weeks while still holding substantial cash. This week he’s selling one more of the pure-play marijuana companies, HEXO (HEXO) raising the portfolio’s cash level to about 27%.

Wall Street’s Best Investments

Daily Alert August 2: Merit Medical Systems, Inc. (MMSI) Game Changers
Daily Alert August 1: Snap Inc (SNAP) Shortex Market Letter
Daily Alert July 31: Atomera Incorporated (ATOM) Technology & Opportunity
Daily Alert July 30: Accenture plc (ACN) Argus Weekly Staff Report
Daily Alert July 29: Centene Corporation (CNC) AlphaProfit Sector Investors’ Newsletter

Monthly Issue—Top Picks Mid-Year Update July 10: Our Top Picks mid-year update is here! Nancy writes that it’s been a great year for the markets, with gains of 14.8% on the Dow Jones Industrial Average, 18.9% on the S&P 500 and 22.7% on the NASDAQ. But our contributors beat those numbers by a mile! Nancy gives us a selection of mid-year updates, as well as a collection of new ideas for our review.

Wall Streets Best Dividend Stocks

Daily Alert August 2: Bank of Montreal (BMO, BMO.TO) Income Investor
Daily Alert August 1: Cohen & Steers REIT and Preferred Income Fund (RNP) Contrarian Outlook

Monthly Issue July 31: Our contributors continue to be bullish. After a fantastic showing for our 2019 Top Picks last month, our contributors are continuing to find some great stocks with big potential for you. Our Spotlight Stock this month, Compass Diversified Holdings (CODI), is a private-equity fund that gives you the opportunity to invest like the deep-pocket investors—buying shares in a business that owns privately-held companies. In her Feature article, Nancy explores this investment niche a bit more and sheds some light on the investing strategy of our Spotlight pick.

Daily Alert July 31: Alaska Air Group, Inc. (ALK) Cabot Stock of the Week
Daily Alert July 30: Eagle Bancorp, Inc. (EGBN) SmallCap Informer
Daily Alert July 29: Occidental Petroleum Corporation (OXY) Forbes Dividend Investor

Ask the Experts

Cabot Undervalued Stocks Advisor

Question: I purchased the Buy and Hold Stocks for 2019 advisory and bought all 10 stocks. Overall they’re doing well. My question is what to do with the few that are up quite a bit. In particular, of course, is Sleep Number (SNBR) after today’s 18% jump. I know these are touted as investments for the year without worrying about trading, but is SNBR really going to hold onto this gain?

Crista: Glad to hear that you’re making profits on these stocks! SNBR is up 55% YTD through July 31. Here’s my personal approach to stocks like SNBR -- small-cap or micro-cap stocks that have big gains: If they rose rapidly, take the money and run. (If the fundamentals remain strong, buy them back if they have a big pullback down the road.) If they rose gradually, use stop-loss orders. They will eventually sell, because they’re volatile. At this point, I would use a stop-loss order at 45 on SNBR. The fundamental outlook still remains quite strong.

Cabot Growth Investor

Question: Mike, Good morning! Some stocks I/we follow, they have great, uneven runs, tough to stay in and make money, and then they fall out of bed. And then I forget about them! Do you think RH deserves a new look here? Thanks!

Mike: Thanks for writing. I think it’s worth keeping an eye on, but the stock has just had a big move and is still underneath resistance. Plus, honestly, it has a history of big ups and downs and buying on strength hasn’t always worked. I do think it’s decent, but maybe more for a trade, and ideally on pullbacks or tightness.

Question: hi. any thoughts about the high number on new lows on the big board these days?

Mike: Well, I don’t have any deep thoughts — it’s not a great thing, but the new lows haven’t been super helpful for a couple of years now. Heck they were above 40 the vast majority of the time all last year, and have been for the past few weeks. Could it be a red flag? Sure, I’m open to anything, and am not saying they’re “wrong.” Plus I’d rather see it the other way around. But it’s more of a 50-50 thing to me at this point.

Premium Reports

Cabot Prime Quarterly Report

Special Report

July, 2019: After a straight-up first quarter, the second quarter was a good one, though proved far trickier. April was solid, though we saw the broad market stall out. May brought a very sharp correction (10% on the Nasdaq!). And then June was a big winner, with the major indexes and many leading stocks ripping back to their highs. Despite the ongoing worries and uncertainties in the world (U.S.-China trade, what the Fed will do, Iran, politics, you name it), you should listen to the message of the market—and that message remains bullish.

Cabot’s 10 Best REIT’s to Buy Now

Special Report

May 2, 2019: REITs are a way for investors to have a diversified portfolio of real estate-related investments even if you don’t have millions of dollars, much like mutual funds did for stocks. And REITs are traded on the market, just like stocks. In this new, exclusive report, you’ll discover how to profit in REITs, even when interest rates are rising.

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 Global Stocks ExplorerCabot Growth InvestorCabot Marijuana InvestorCabot Stock of the WeekCabot Undervalued Stocks AdvisorCabot Dividend Investor
AAPLHoldStrong Buy
ABBVHold
ACBSee Advisory
ADBEBuy
ALKBuyStrong Buy
ALXNStrong Buy
ANFBuy
APHASee Advisory
APPFHold
ARNABuy
AVLRBuy
AXPHold 1/2
BABABuy
BANDBuy
BHGEStrong Buy
BIPBuyBuy
BSCJBuy 1/2
BSCLBuy 1/2
BXBuyBuy
CStrong Buy
CCIBuy
CDNABuy
CDXSBuy
CFHold
CGHold
CGCSee Advisory
CHCTSell 1/3
CITSellStrong Buy
CMCBuy
CMGBuy
COUPBuyBuy
CRLBFSee Advisory
CRONSee Advisory
CURLFSee Advisory
CVTAHold
CWBHFSee Advisory
DALSold
DBIStrong Buy
DOMOBuy
DOWStrong Buy
EDSold
ELLXFSee Advisory
EPDBuy
ESTCBuy 1/2
EVBGHoldHold
EVERBuy
EXASHold
GESStrong Buy
GSHDBuy
HTHTHold
IBNBuy 1/2
IFNNYBuy 1/2
IIPRSee Advisory
KSHBSee Advisory
LGORFBuy 1/2
LKBuy 1/2Buy
LQSIFSee Advisory
LUVBuy
LXBuy
MKCHold 1/2
MMNFFSee Advisory
MMYTBuy 1/2Buy
MOHold
MOSBuy
MPCBuy
MTCHHold
NEEHoldHold
NIOBuy a Small Position
OGISee Advisory
OKTASell 1/3
PGXBuy 1/2
PLNTHold 1/2Hold
QTRXHold
QTWOBuy
RCLStrong Buy
REMXBuy 1/2
RGENBuy
RPDBuy
RUNHold
SANMBuy
SEBuy 1/2
SLBBuy
SNAPBuyBuy
SSOBuy
STAGHoldHold
SUPNBuy
SYFHold
TCEHYBuy 1/2
TIVORetired
TOTStrong Buy
TPBSee Advisory
TSLAHold
TWLOHoldHold
UEICStrong Buy
UPLDBuy
VCYTBuy
VFFSee Advisory
VLOBuyBuy
VOYABuyStrong Buy
XELHold 2/3
ZBuy 1/2Buy
ZTOBuy 1/2