Cabot Prime Pro Week Ending August 30, 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 talks about the market’s encouraging action, though he’s not yet jumping into the bullish pool—the trends are still iffy and rotation has been the name of the game in recent days. That said, there’s more to like than not, and Mike goes over a bunch of names that should be on your shopping list.
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Cabot Growth Investor
Bi-weekly Issue August 29: For now, Mike thinks we’re in a proper stance, holding some cash and being choosy on the buy side. Since the last issue, he sold the rest of his shares in Planet Fitness, and last week, he added a half position in Carvana (CVNA). Tonight, he’s going to trim one-third of our remaining Okta (OKTA) position, bringing the cash position to around 36%.
Bi-weekly Update August 22: Mike says to remain generally cautious given that our Cabot Tides are still negative, though you shouldn’t be outright defensive given the encouraging action from so many growth stocks. In the Model Portfolio, he’s going to add a half position in Carvana (CVNA) tonight and restore our Buy rating on Blackstone (BX). That will give us a foothold in a potential new leader, but still leave us with around 33% in cash, providing cushion should this correction deepen.
Other Stocks of Interest August 14: Follow ups to stocks featured March 28, 2019 (issue 1416) to August 13, 2019 (issue 1426). 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. Feel free to email me directly (mike@cabotwealth.com) with any questions/comments you have.
Cabot Top Ten Trader
Movers & Shakers August 30: Overall, Mike says he still needs to see more from the market and leading stocks before getting outright bullish. For now, you should still play things somewhat cautiously—some new buying is fine, but pick your spots and start small, and holding some cash isn’t the worst idea, either. On the flip side, he’d continue to sit with most of your strong, profitable holdings, giving them a chance to continue higher down the road. Today’s buy ideas are: Dexcom (DXCM), Inphi (IPHI) and New Oriental (EDU). There are three outright sells today: Guardant Health (GH), SurveyMonkey (SVMK) and eHealth (EHTH).
Weekly Issue August 26: The bottom line is that little money is being made, and with the intermediate-term trend continuing to point down, you should remain in a cautious stance, keeping new buying on the small side and holding some cash. From here, Mike is open to anything—given the pervasive pessimism, a new uptrend wouldn’t shock us, but the onus remains on the bulls to prove they are retaking control before he becomes more constructive. This week’s list has a wide mix of stocks that have resisted the market’s downward pull—with some actually advancing despite the environment. Mike’s Top Pick is MasTec (MTZ), a stock he missed a couple of weeks ago but think it can have a sustained advance due to its exposure to many strong markets.
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 Education August 30: Earlier this week in discussing the choppy market action Jacob wrote that options prices could potentially fall dramatically headed into the long holiday weekend (the market is closed on Monday). And today he highlights a couple of trades that are the perfect example of this option decay.
Cabot Options Trader Stocks on Watch August 29: The S&P 500 is trading higher by 1.35% today following what appears to be a cooling off of the trade war rhetoric. This has helped push those stocks and sectors that are most sensitive to positive/negative trade headlines soaring higher. For example, the Semiconductors (SMH), which is very sensitive to the trade war, is higher by 2.5% today, and our Lattice Semiconductor (LSCC) buy-write is already in great shape as the stock is up 4%, and right at the 20 strike.
Cabot Options Trader Pro Alert August 28: Adjust Existing Position: Against your Medtronic (MDT) November 100 Calls, Sell the October 115 Calls (exp. 10/18) for $0.55 or more.
Cabot Options Trader Alert August 28: Buy-Write: Buy Lattice Semiconductor (LSCC) Stock and Sell the September 20 Call (exp. 9/20) for $18.75 or less.
Cabot Options Trader Pro Position Update August 27: Yesterday afternoon Jacob sent a trade alert to close our Nasdaq (QQQ) September 204/208 Bear Call Spread for $0.02 or less, as we had captured almost our entire yield with three weeks left until expiration.
Cabot Options Trader Alert August 27: Sell Half of Existing Position: Sell HALF of your Coca-Cola (KO) February 55 Calls for $2.30 or more.
Cabot Options Trader Pro Alert August 26: Close Existing Position: Buy Back the Nasdaq (QQQ) September 204/208 Bear Call Spreads for $0.02 or less.
Cabot Options Trader Pro Alert August 26: Iron Condor: Sell the salesforce.com (CRM) October 130/125 Bull Put Spreads and the October 170/175 Bear Call Spreads for $0.87 or more.
Cabot Options Trader Pro Weekly Update August 26: Jacob has 8 Long positions: DIS, KO JD, MDT, MSFT, RF, SNAP and XME, one position not making an impact on his decision making: LVS and one short position: QQQ.
Cabot Options Trader Weekly Update August 26: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week at 19.87, or higher by 7.5%. Interestingly, even as the market fell apart into the close on Friday the VIX began to pull back from its highs earlier in the day. One explanation of this counterintuitive situation could be that the upcoming long Labor Day weekend will keep a lid on volatility … unless the market really unwinds this week.
Cabot Undervalued Stocks Advisor
Special Bulletin August 30: Alexion Pharmaceuticals’ (ALXN) U.S. Soliris patent extension to undergo a review, therefore Crista is moving the stock from Strong Buy to Hold.
Special Bulletin August 29: Abercrombie & Fitch (ANF) reported a second quarter earnings beat but the stock fell on tariff worries, Designer Brands (DBI) second quarter earnings were on target, the stock rises and moves from Hold to Strong Buy and Guess? (GES) had a huge second quarter earnings beat and a big price jump.
Weekly Update August 27: This week’s update of Cabot Undervalued Stocks Advisor is focused on portfolio stocks that are being affected by recent news or upcoming earnings reports. There is one portfolio change: Supernus Pharmaceuticals (SUPN) moves from Hold to Sell.
Monthly Issue August 6: Since we’re in the midst of a sudden stock market correction, Crista decided to feature three stocks today that seem to offer the best opportunities while their prices are temporarily low: Adobe Systems (ADBE), Apple (AAPL) and Citigroup (C). Here are today’s portfolio changes: Alexion Pharmaceuticals (ALXN) moves from Strong Buy to Hold, Carlyle Group (CG) moves from Hold to Strong Buy, CIT Group (CIT) moves from Strong Buy to Hold, Designer Brands (DBI) moves from Strong Buy to Hold, Dow Inc. (DOW) moves from Strong Buy to Hold, Royal Caribbean Cruises (RCL) moves from Strong Buy to Hold, Synchrony Financial (SYF) moves from Hold to Buy and Total S.A. (TOT) moves from Strong Buy to Hold.
Cabot Stock of the Week
Weekly Issue August 27: Caution is recommended in general, but opportunistic investors—or those who have too much cash—can still find attractive situations; in fact, many leading growth stocks have been hitting new highs! This week’s stock is one of them, and for long-time readers it will be familiar, because we owned it in July and August last year, selling with a 22% profit. The stock, Carvana (CVNA), was recently recommended by Mike Cintolo in Cabot Growth Investor. Tim has two portfolio changes today: Apple (AAPL) moves from Hold to Buy and Snap (SNAP) from Buy to Hold.
Cabot Global Stocks Explorer
Bi-weekly Update August 29: After a sharp pullback last Friday, emerging and international markets have clawed back some gains this week with some stocks doing quite well. Carl is selling our 10% position in (EUM) which moves opposite (EEM). He’s also moving our speculative recommendation Largo (LGORF) to a sell after the company decided not to renew its offtake agreement with Glencore and Sea Limited (SE) moves from Buy a Half to Hold a Half.
Bi-weekly Issue August 22: Our emerging market timer (EEM) is still negative but looking a bit better, trading just below its 20-day moving average. The earnings numbers coming through from emerging market and international companies are largely positive and contrast sharply with the macro concerns holding back markets. Carl’s recommendation today is DBS Bank (DBSDY), one of the largest banks in Southeast Asia, with a presence in 18 markets. It’s rated Buy a Half. There is one portfolio change today: ProShares Short MSCI Emerging Markets (EUM) Moves from Buy to Hold.
Cabot Small-Cap Confidential
Weekly Update August 30: In our portfolio Tyler has felt some softening in certain positions, while others have been rock solid. That’s normal. He updates all stocks in the portfolio and has no rating changes today.
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.
Cabot Dividend Investor
Monthly Issue August 28: Tom says this is one of those times in the market where investors are fearful instead of greedy. It is a market where safe stocks shine. The market has fallen every week for four straight weeks and is down 5% over the past month. And, right now, there doesn’t appear to be a catalyst out of the current woes, unless there is a trade deal. In this issue Tom highlights Alexandria Real Estate Equities (ARE), one of the very best defensive dividend stocks on the market. It has rock solid earnings in any environment and the stock should perform well in just about any market.
Weekly Update August 21: Tom says the market seems to be rebounding and stabilizing after a tumultuous couple of weeks. The escalation of trade tensions, a sputtering global economy and talk of the next recession spooked investors. But as fear wanes investors realize that money has no place else to go but stocks to earn a decent return and they come back into the market. There are no portfolio changes today.
Cabot Marijuana Investor
Monthly Issue August 29: Going into today, the portfolio is 20% in cash, 80% invested, and most heavily invested in Aphria (APHA) and Curaleaf (CURLF), the current largest revenue producers in Canada and the U.S. Tim hopes to use our cash to do some new buying soon, both in current holdings and new additions, but he needs to see a little more sector strength first. In the meantime, he’s paring back more on some of our weakest stocks, selling half of Aurora (ACB), half of Innovative Industrial Properties (IIPR), all of KushCo (KSHB) and taking our position in Canopy Growth (CGC) down to 1%. After these actions, the portfolio will be about 31% in cash.
Update August 14: The cannabis sector has led the way down, some of our stocks have attracted buyers in recent weeks and our portfolio is currently 36% in cash. Put it all together and Tim thinks it’s time to begin buying again. (And today’s selloff might get us some nice prices!) In the portfolio, he will now reinvest half our cash—taking our cash level down to 18%. And he will spread that cash equally among five of our current holdings, Alcanna (LQSIF), Aphria (APHA), Aurora (ACB), Cresco Labs (CRLBF) and Curaleaf (CURLF).
Wall Street’s Best Investments
Daily Alert August 30: Alexion Pharmaceuticals, Inc. (ALXN) Cabot Undervalued Stocks Advisor
Daily Alert August 29: Itron, Inc. (ITRI) Argus Weekly Staff Report
Daily Alert August 28: Waters Corporation (WAT) The Buyback Letter
Daily Alert August 27: Hilton Grand Vacations Inc. (HGV) Small Cap Informer
Daily Alert August 26: Royal Gold, Inc. (RGLD) Adrian Day’s Global Analyst
Monthly Issue August 7: Tech stocks have had a big year so far in 2019, and technology continues to rapidly evolve, making companies more efficient and providing cost savings along the way. And that is exactly what our Spotlight Stock, Asure Software, Inc. (ASUR), does. This cutting-edge tech company is making big waves in the human resource and workspace arenas, offering products that serve the changing demographic landscape. Nancy’s feature article delves a bit deeper into the company’s strategy and market potential.
Wall Streets Best Dividend Stocks
Daily Alert August 30: TPG Specialty Lending, Inc. (TSLX) Weiss Stock Ratings Heat Maps
Daily Alert August 29: Dow Inc. (DOW) Forecasts & Strategies
Daily Alert August 28: CatchMark Timber Trust, Inc. (CTT) Forbes Real Estate Investor
Daily Alert August 27: Molson Coors Canada Inc. (TPX-B.TO) The Successful Investor
Daily Alert August 26: BlackRock Health Sciences Trust (BME) The Personal Capitalist
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.
Ask the Experts
Cabot Options Trader
Question: I’m concerned about new subscribers not being accepted - is that a marketing decision to attract more open when it opens up again, or really because price swings are a problem, or some other reason?
Jacob: First off this 100% is not a marketing thing. The list of stocks I can recommend right now is limited because of the size and buying power of Cabot Options Traders. So we have stopped taking new subs, so that I can have the flexibility to buy whatever stocks I want for you the current subscriber.And NO we are not closing the publication or changing it at all.
Question: I am learning about options and thoroughly enjoy your writings. As I study the different types on option trades, I have a question about Call spreads. Say one enters a call spread on a volatile stock like Amazon. As with all Call spreads the sale of the higher strike Call helps finance the cost of the lower cost one. But let’s say the shares plunge considerably after entering the trade. Does it make sense to buy back the higher priced Call at a profit and hold on to the lower priced one, which is in a loss position, and see if it rises to break even or a profit?
Jacob: Much like many things about the stock market, there really isn’t a sure fire answer to your question. (though I like the way you are thinking as I can tell you are giving “option theory” a good test)For example, if the stock falls as you noted, and you buy the call back, and the stock continues to fall, then you have perhaps lost on more of that call losing value (though if its only worth $0.10 or less clearly there isn’t much more to capture). On the other hand, if you feel strongly that the stock will rebound, then yes you can buy the short call back, and this will leave you only with the long call, which will rebound at a greater rate than the entire bull call spread.Good question, and keep them coming!
Premium Reports
Cabot Prime Quarterly Report
Special ReportJuly, 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 ReportMay 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 ReportUpdated 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 ReportDecember 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.
| 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 | Buy | Strong Buy | |||||
| ABBV | Buy | ||||||
| ACB | See Advisory | ||||||
| ADBE | Buy | ||||||
| ALK | Buy | Strong Buy | |||||
| ALXN | Hold | ||||||
| ANF | Buy | ||||||
| APHA | See Advisory | ||||||
| APPF | Hold | ||||||
| ARE | Buy | ||||||
| ARNA | Buy | ||||||
| AVLR | Buy | ||||||
| AXP | Hold 1/2 | ||||||
| BABA | Buy | ||||||
| BAND | Buy | Buy | |||||
| BHGE | Strong Buy | ||||||
| BIP | Buy | Buy | |||||
| BSCJ | Buy 1/2 | ||||||
| BSCL | Buy 1/2 | ||||||
| BX | Buy | Buy | |||||
| C | Buy | Strong Buy | |||||
| CCI | Buy | ||||||
| CDNA | Hold | ||||||
| CF | Strong Buy | ||||||
| CG | Strong Buy | ||||||
| CGC | See Advisory | ||||||
| CHCT | Hold 2/3 | ||||||
| CIT | Hold | ||||||
| CMC | Buy | ||||||
| CMG | Buy | ||||||
| COUP | Hold | Buy | |||||
| CRLBF | See Advisory | ||||||
| CRON | See Advisory | ||||||
| CTVA | Strong Buy | ||||||
| CURLF | See Advisory | ||||||
| CVNA | Buy 1/2 | Buy | |||||
| CWBHF | See Advisory | ||||||
| DBI | Strong Buy | ||||||
| DBSDY | Buy 1/2 | ||||||
| DOMO | Hold | ||||||
| DOW | Hold | ||||||
| EPD | Buy | Buy | |||||
| EUM | Sell | ||||||
| EVBG | Buy | ||||||
| EVER | Hold | ||||||
| EXAS | Buy | ||||||
| GES | Buy | ||||||
| GSHD | Buy | ||||||
| HTHT | Hold | ||||||
| IBN | Buy 1/2 | ||||||
| IFNNY | Buy 1/2 | ||||||
| IIPR | See Advisory | ||||||
| KSHB | See Advisory | ||||||
| LGORF | Sell | ||||||
| LK | Buy 1/2 | Hold | |||||
| LQSIF | See Advisory | ||||||
| LUV | Buy | ||||||
| LX | Hold | ||||||
| MKC | Hold 1/2 | ||||||
| MMNFF | See Advisory | ||||||
| MMYT | Buy 1/2 | Hold | |||||
| MO | Hold | ||||||
| MOS | Hold | ||||||
| MPC | Hold | ||||||
| MTCH | Hold | ||||||
| NEE | Hold | Hold | |||||
| OGI | See Advisory | ||||||
| OKTA | Sell 1/3 | ||||||
| PGX | Buy 1/2 | ||||||
| PLNT | Sold | ||||||
| QTRX | Hold | ||||||
| QTWO | Buy | ||||||
| RCL | Hold | ||||||
| RGEN | Buy | ||||||
| RKUNY | Buy 1/2 | ||||||
| RPD | Buy | ||||||
| SANM | Buy | ||||||
| SE | Hold 1/2 | ||||||
| SLB | Buy | ||||||
| SNAP | Buy | Hold | |||||
| SSO | Hold | ||||||
| STAG | Hold | ||||||
| SUPN | Sell | ||||||
| SYF | Buy | ||||||
| TCEHY | Buy 1/2 | ||||||
| TOT | Hold | ||||||
| TPB | See Advisory | ||||||
| TSLA | Hold | ||||||
| UEIC | Strong Buy | ||||||
| UPLD | Buy | ||||||
| VCYT | Buy | ||||||
| VFF | See Advisory | ||||||
| VLO | Buy | ||||||
| VOYA | Strong Buy | ||||||
| XEL | Hold 2/3 | ||||||
| ZTO | Hold 1/2 |