Cabot Prime Pro Week Ending August 9, 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, dives into the market’s crazy action and lets you know just what he’s keying on. The good news is that he’s seeing a ton of resilient names, including a bunch of recent earnings winners, and he gives you his thoughts on these names that want to go higher whenever the bulls retake control.
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.
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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 Update August 8: Mike says to remain cautious, but stay flexible. Our Cabot Tides are effectively back on the fence as the upmove of the past few days has been encouraging—a bit more strength could restore the Tides green light. In the meantime, he continues to take things on a stock-by-stock basis. In the Model Portfolio there are no changes tonight. Our cash position will now be around 35%.
Special Bulletin August 8: This message concerns our half position in Zillow (Z), which was acting fairly well until earnings last night. While the numbers were solid, management’s commentary after hours was not, and Z is plunging this morning below support. Mike advises cutting the loss in Zillow (Z) today and holding the cash.
Special Bulletin August 5: Today, the Dow imploded 767 points while the Nasdaq plunged 278 points. In the Model Portfolio, Mike has a few changes tonight. First, he’s going to sell our remaining shares of Twilio (TWLO), which has completely broken down. Second, he’s going to sell our half position in Elastic (ESTC), whose breakout has failed and is now showing us a loss. And third, he’s going to sell the add-on position we recently bought in ProShares S&P 500 Fund (SSO).
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.
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 9: Mike says the key is to stay flexible. If the trend turns up, he’ll certainly turn more constructive, but he needs to see it happen before changing our stance. His buy ideas this week are: Carvana (CVNA) and Meritage Homes (MTH). Mike has six sell ideas this week.
Weekly Issue August 5: Mike says at this point, your focus should be more on preserving capital (honoring stops, holding cash, cutting back on new buying) and waiting for bottoms to be formed. Our Market Monitor is back down to a level 4. His Top Pick is Inphi (IPHI), a high-potential stock that’s holding up well after earnings.
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 Stocks on Watch August 9: Following a strong day for the market yesterday the S&P 500 is trading lower by 1% today and the Semiconductors (SMH), which are sensitive to China and Huawei, are down more than 2%. However, into this decline a trader/traders have been buying bullish positions looking for the sector to rebound. Jacob gives us those trades.
Cabot Options Trader Position Update August 8: Zillow (Z) reported earnings last night that were above expectations. However, the stock is trading lower this morning by 15% following disappointing commentary from the conference call. Much like Disney (DIS) yesterday Jacob is going to evaluate the stock and options activity today/tomorrow and in the days to come. If things get worse for Z stock he will sell and move on. However, should the stock bounce back, similar to DIS, which is trading higher by $2 today, he will continue to hold.
Cabot Options Trader Earnings Update August 7: Disney (DIS) reported earnings last night that badly missed expectations. As is always the case when a company beats/misses earnings Jacob is more interested in how the stock trades, and the option activity, in the days that follow the announcement. Our next position to report earnings is Zillow (Z), today after the close. Because he has profits in the bank, and because the stock is essentially unchanged during the recent market malaise, Jacob is going to take the risk and hold the position through earnings.
Cabot Options Trader Position Update August 6: Jacob will be closely watching SE for a re-entry if the stock strengthens or if option order flow improves, and perhaps most importantly if the stock responds positively to earnings on August 20. Now that we have exited SE he is actively building his watch list of stocks that are earnings season stars, and have held up reasonably well the last five days. One of those stocks is Pinterest (PINS), which had its stock rally from 28.5 to 33.5 on earnings last week. Jacob also updates us on Disney (DIS) who will report earnings today after the close.
Cabot Options Trader Alert August 6: Sell Existing Position: Sell Remainder of your Sea (SE) August 26 Call for $8 or more.
Cabot Options Trader Alert August 5: Sell Half your Metals & Mining ETF (XME) January 29 Calls for $0.80 or more.
Cabot Options Trader Pro Weekly Update August 5: Jacob has 11 long positions: DIS, KO, JD, LVS, MDT, MSFT, RF, SE, SNAP, XME and Z. And one short position: QQQ
Cabot Options Trader Weekly Update August 5: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week at 17.6, or higher by 45%. Of note, the VIX traded above 20 on Friday, and at its highest level since May. Interestingly, though, even as the VIX came to life Wednesday, Thursday and Friday put buying in the market leaders was almost nonexistent. For now, and this is subject to change if this trend reverses, this would lead Jacob to believe that traders are not looking for a major decline in the indexes.
Cabot Undervalued Stocks Advisor
Special Bulletin August 9: Crista updates us with earnings reports from The Mosaic Company (MOS), Supernus Pharmaceuticals (SUPN), Universal Electronics (UEIC) and Voya Financial (VOYA). And Supernus Pharmaceuticals moves from Buy to Hold.
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.
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.
Cabot Stock of the Week
Weekly Issue August 6: The broad market has now begun a well-needed correction, which is likely to go on at least a little longer, and our job is to adjust our portfolio, on a continuing basis, so that we are always invested in a diversified portfolio of stocks that fit your investment needs. As for the new recommendation, Tim is leaning conservative once again, Enterprise Product Partners (EPD), a low-risk petroleum infrastructure stock that has great recurring business and is decently valued as well. This week he’s selling three stocks: STAG Industrial (STAG) moves from Hold to Sell, Twilio (TWLO) from Hold to Sell and Valero (VLO) from Buy to Sell. And, MakeMyTrip (MMYT) moves from Buy to Hold.
Cabot Global Stocks Explorer
Bi-weekly Issue August 8: The sharp losses on Monday decisively sent our emerging markets signal (EEM) into a negative position. But the flip side of this is that some high-quality names are in bargain territory. The portfolio is in a defensive posture and Carl has highlighted some changes outlined in an alert sent to members after the close on Monday. Since coming on board early this year, Carl has emphasized that the increase in tensions between America and China should not be seen as a “trade war” that can be ended with a “trade deal.” Today’s recommendation is Rakuten (RKUNY), a well-diversified conglomerate with tentacles throughout Japan that has plenty of running room for international expansion. It’s rated Buy a Half.
Special Bulletin August 5: Our emerging markets signal turned negative as EEM lost 3.67% today. China has responded to the Trump Administration’s latest announcement of plans to soon impose 10% tariffs on a wider list of Chinese exports by allowing its currency to fall through a key psychological barrier. While our portfolio is already in a defensive posture with a 50% cash position, Carl thinks it is prudent to take the following changes to the portfolio: Add a 10% position in EUM which moves opposite the MSCI Emerging Market index (EEM), Sell positions in NIO (NIO) and Van Eck Rare Earths/Strategic Metals (REMX) and move ZTO Express (ZTO), LexinFintech (LX) and Largo Resources (LGORF) from Buy a Half to Hold a Half.
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.
Cabot Small-Cap Confidential
Weekly Update August 9: It’s good that earnings have been coming out this week. Earnings numbers are relatively straightforward and give us something to hang on to that’s more tangible than macroeconomic dealings. While we’ve had a few misses here and there, for the most part Tyler is thrilled with how our companies are doing. There are no portfolio changes today.
Special Bulletin August 7: Codexis (CDXS) reported earnings yesterday afternoon. While there are intriguing aspects to the company, Tyler currently has a full portfolio and it’s time to cull at least one stock that’s out of favor. He’ll keep an eye on Codexis and consider adding back to the portfolio if and when the trend improves. SELL.
Special Bulletin August 6: Everbridge (EVBG) reported a solid quarter last night but shares sold off today because of a little quarterly lumpiness in the billings trend. It remains a Hold. EverQuote (EVER) reported yesterday after the close and the stock has absolutely exploded today, trading almost 50% higher! Tyler is moving it to Hold. Quanterix (QTRX) reported this morning with revenue up 56.7% to $13.5 million, which beat by almost $2 million. Tyler is keeping at Hold.
Special Bulletin August 5: Tyler is watching all our positions closely and most of them are holding above their 50-day lines. There are some exceptions, and Domo (DOMO) and Codexis (CDXS) look particularly weak. Those are on a very short leash right now. But in the immediate term he’s turning his attention to Everbridge (EVBG) and EverQuote (EVER), both of which report after the bell 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
Weekly Update August 7: Tom says that the selloff has not gotten to unhealthy levels, so far. After being up 20% for the year, a market pullback can be healthy. It’s also true that even after digesting the distasteful trade escalation, investors will realize that money still has no place else to go but stocks to earn a decent return, especially with interest rates falling. He’s not hitting the panic button, yet. But it is certainly a situation he will closely monitor. And he will most certainly be in touch if market forces change my opinion. There are no portfolio changes today.
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.
Cabot Marijuana Investor
Update August 5: The broad market is selling off, partially because of fundamental reasons like tariffs, but also because after rising 20% in seven months, it’s normal to have a correction. How long it will last and how far it will go, Tim doesn’t know. But his game plan remains unchanged, and he thinks that generally we are well positioned today, with the portfolio 31% in cash. He updates two stocks: Aphria (APHA), which reported earnings last week, and Charlotte’s Web (CWBHF), which has been unusually strong—and in which he will now take some quick profits.
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 9: Fidelity Growth Strategies Fund (FDEGX) Fidelity Monitor & Insight
Daily Alert August 8: Zendesk, Inc. (ZEN) Canaccord Genuity Research
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.
Daily Alert August 7: AAR Corp. (AIR) Upside
Daily Alert August 7: Sell: Comfort Systems USA, Inc. (FIX) Upside
Daily Alert August 7: Sell: Harsco Corporation (HSC) Upside
Daily Alert August 6: Akamai Technologies, Inc. (AKAM) The Buyback Letter
Daily Alert August 5: Baron Growth Fund Retail Shares (BGRFX) Forecasts & Strategies
Wall Streets Best Dividend Stocks
Daily Alert August 9: EnLink Midstream, LLC (ENLC) The Dividend Hunter
Daily Alert August 8: Norfolk Southern Corporation (NSC) Directinvesting.com
Daily Alert August 7: Gannett Co. Inc., (GCI) Dividend Advisor
Daily Alert August 6: Sell: The Timken Company (TKR) Upside
Daily Alert August 6: Sell 1/3: Community Health Trust Incorporated (CHCT) Cabot Dividend Investor
Daily Alert August 6: Nokia Corporation (NOK) The Lancz Letter
Daily Alert August 5: Molson Coors Brewing Company (TAP) The Turnaround Letter
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 Dividend Investor
Question: In January you mentioned Cheniere Energy Partners (CQP) in passing in one of your broadcast general emails. I investigated and ended up buying it, largely for the yield, but also for capital appreciation. I know it isn’t in your portfolio. I still hold the stock and have no plan to sell, but I was wondering what your thoughts are on the stock now. Thanks.
Tom: I love it. I would have it in the portfolio but I’m waiting for a better entry point. NGL exports are growing like crazy and CQP was the first to the party. It still has more facilities coming on line and as long as revenues keep growing the stock should be a winner.
Cabot Options Trader
Question: I’m looking forward to seeing you and all the Cabot staff next week. What are your thoughts on Silver and Gold. I was looking at Silver (SLV) calls this morning - October 2019 and also January 2020 (call spread) and wondering what you think about this. I was looking at buying an October 16 Call for $0.60 - or a January Call spread Buying a 16 and selling a 22 call for around 0.80.
Jacob: If I wanted bullish exposure to SLV then I would go with the January Bull Call Spread you noted ... nice risk/reward. And I look forward to seeing you next week!
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 | Hold | Strong Buy | |||||
| ABBV | Hold | ||||||
| ACB | See Advisory | ||||||
| ADBE | Buy | ||||||
| ALK | Buy | Strong Buy | |||||
| ALXN | Hold | ||||||
| ANF | Buy | ||||||
| APHA | See Advisory | ||||||
| APPF | Hold | ||||||
| ARNA | Buy | ||||||
| AVLR | Buy | ||||||
| AXP | Hold 1/2 | ||||||
| BABA | Buy | ||||||
| BAND | Buy | ||||||
| BHGE | Strong Buy | ||||||
| BIP | Buy | Buy | |||||
| BSCJ | Buy 1/2 | ||||||
| BSCL | Buy 1/2 | ||||||
| BX | Buy | Buy | |||||
| C | Strong Buy | ||||||
| CCI | Buy | ||||||
| CDNA | Hold | ||||||
| CDXS | Sell | ||||||
| CF | Hold | ||||||
| CG | Strong Buy | ||||||
| CGC | See Advisory | ||||||
| CHCT | Hold 2/3 | ||||||
| CIT | Sold | Hold | |||||
| CMC | Buy | ||||||
| CMG | Buy | ||||||
| COUP | Buy | Buy | |||||
| CRLBF | See Advisory | ||||||
| CRON | See Advisory | ||||||
| CURLF | See Advisory | ||||||
| CVTA | Hold | ||||||
| CWBHF | See Advisory | ||||||
| DBI | Hold | ||||||
| DOMO | Hold | ||||||
| DOW | Hold | ||||||
| EPD | Buy | Buy | |||||
| ESTC | Sell | ||||||
| EVBG | Hold | Hold | |||||
| EVER | Hold | ||||||
| EXAS | Hold | ||||||
| GES | Strong Buy | ||||||
| GSHD | Buy | ||||||
| HTHT | Hold | ||||||
| IBN | Buy 1/2 | ||||||
| IFNNY | Buy 1/2 | ||||||
| IIPR | See Advisory | ||||||
| KSHB | See Advisory | ||||||
| LGORF | Hold 1/2 | ||||||
| LK | Buy 1/2 | Buy | |||||
| LQSIF | See Advisory | ||||||
| LUV | Buy | ||||||
| LX | Hold 1/2 | ||||||
| MKC | Hold 1/2 | ||||||
| MMNFF | See Advisory | ||||||
| MMYT | Buy 1/2 | Hold | |||||
| MO | Hold | ||||||
| MOS | Buy | ||||||
| MPC | Buy | ||||||
| MTCH | Hold | ||||||
| NEE | Hold | Hold | |||||
| NIO | Sell | ||||||
| OGI | See Advisory | ||||||
| OKTA | Hold | ||||||
| PGX | Buy 1/2 | ||||||
| PLNT | Hold 1/2 | Hold | |||||
| QTRX | Hold | ||||||
| QTWO | Buy | ||||||
| RCL | Hold | ||||||
| REMX | Sell | ||||||
| RGEN | Buy | ||||||
| RKUNY | Buy 1/2 | ||||||
| RPD | Buy | ||||||
| RUN | Hold | ||||||
| SANM | Buy | ||||||
| SE | Buy 1/2 | ||||||
| SLB | Buy | ||||||
| SNAP | Buy | Buy | |||||
| SSO | Sell 1/3 | ||||||
| STAG | Sell | Hold | |||||
| SUPN | Hold | ||||||
| SYF | Buy | ||||||
| TCEHY | Buy 1/2 | ||||||
| TOT | Hold | ||||||
| TPB | See Advisory | ||||||
| TSLA | Hold | ||||||
| TWLO | Sell | Sell | |||||
| UEIC | Strong Buy | ||||||
| UPLD | Buy | ||||||
| VCYT | Buy | ||||||
| VFF | See Advisory | ||||||
| VLO | Sell | Buy | |||||
| VOYA | Buy | Strong Buy | |||||
| XEL | Hold 2/3 | ||||||
| Z | Sell | Buy | |||||
| ZTO | Hold 1/2 |