Cabot Prime Pro Week Ending December 20, 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 discusses his bullish stance today and his optimism that 2020 is going to be another great year—he still believes the market and many stocks have likely started sustained advances just three months ago, so bigger profits could be in store. That said, he’s also not leaving his brain at the door; after such a good run, some turbulence isn’t unexpected in the weeks ahead. But he’s still viewing pullbacks as buying opportunities, and goes over many stocks that are setting up well.
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Cabot Growth Investor
Bi-weekly Issue December 19: The market remains in great shape, and bigger picture, Mike continues to expect good things in 2020. Near-term, he’s finally seeing a few signs of complacency, so some rocky trading is likely at some point; being choosy on the buy side makes sense. In tonight’s issue, Mike is adding one half-sized position in Sea Ltd. (SE) to the Model Portfolio; that will leave us with 17% in cash, which he’s looking to put to work as opportunities arise. He also reviews three initial lessons learned from this year, highlights some intriguing names that are setting up well and gives you his latest thoughts on all our holdings. There is one portfolio change: Dexcom (DXCM) is moving back to Buy from Hold.
Bi-weekly Update December 12: Remain bullish, while keep your eyes open as some stocks have hit potholes. The market itself is in good shape, though Mike continues to think some news-driven ups and downs are likely in the near term. Individual stocks have turned mixed of late, and he’s keeping his eyes peeled for abnormal action. Tonight, he’s placing Dexcom (DXCM) on Hold due to its recent weakness, but have no other changes. Our cash position is around 24%.
Other Stocks of Interest December 20: Follow ups to stocks featured August 1, 2019 (issue 1425) to December 19, 2019 (issue 1435). 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 December 20: The vast majority of the intermediate- and (especially) longer-term evidence remains in good shape. The trends are clearly up for the major indexes, and a bunch of big-picture studies continue to tell us that higher prices are likely in the year ahead. Don’t forget that, when looking at many major indexes no net progress was made for a full 20 months (January 2018 to the early-October bottom this year), so from a longer-term perspective, we’re far from being “overheated.” Mike’s buy ideas today are: Insulet (PODD), Sherwin Williams (SHW) and Vertex Pharmaceuticals (VRTX). He has three sells today: Agnico Eagle (AEM), KB Home (KBH) and Visteon (VC).
Weekly Issue December 16: The overall market remains in good shape—the intermediate-term trend is firmly up, the number of stocks hitting new highs is expanding and many longer-term studies tell us that 2020 is likely to be another solid year. That said it’s not all peaches and cream out there—short-term, huge number of new highs often leads to some retrenchment, and Mike is also seeing a bit more divergent action among individual stocks, with some growth titles hitting potholes while investors rotate elsewhere. None of that is “bad,” per se, but it is a reminder to honor and update your stops as time goes by, and to take a couple of partial profits if you score a decent profit. This week’s list has a wide variety of newer names, from construction to precious metals to biotech to chips. Mike’s Top Pick is Synaptics (SYNA), which has the makings of an intriguing turnaround as it’s riding a few powerful growth trends.
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 Alert December 20: Sell Half of Existing Position: Sell Half your Target (TGT) January 110 Calls for $19.50 or more.
Cabot Options Trader Position Update December 20: Today the Cabot Options Trader portfolio has one position expiring (LK), and the Cabot Options Trader Pro portfolio has two positions expiring (LK and FB).
Cabot Options Trader Alert December 19: Adjust Existing Position: Buy back the Snap (SNAP) December 16 Call and Sell the January 15 Call (exp. 1/17/2020)
Cabot Options Trader Position Update December 18: Jacob has position updates on Target (TGT), Luckin Coffee (LK) and Snap (SNAP).
Cabot Options Trader Pro Alert December 18: Adjust Existing Position: Buy Back your salesforce (CRM) December 175 Call and sell the January 170 Call (exp. 1/17/2020)
Cabot Options Trader Stocks on Watch December 17: As we get closer to the end of 2019 hedge funds and institutions are positioning their portfolios with more and more 2020 options plays. And one stock that has seen intriguing call buying yesterday and today looking for a big move higher next year is Johnson & Johnson (JNJ).
Cabot Options Trader Video December 16: Our Luckin Coffee (LK) buy-write is in great shape headed into expiration on Friday. That being said, LK is a volatile stock, and there is a chance the stock could fall below the 28 strike price. For that reason Jacob wanted to share with you a video on the two ways you could lock in your profits today if you want to lower your risk.
Cabot Options Trader Alert December 16: Sell Half of Existing Position: Sell Half of the JD.com (JD) January 32 Calls for $3.20 or more.
Cabot Options Trader Pro Alert December 16: Sell Half of Existing Position: Sell Half of the JD.com (JD) January 32/38 Bull Call Spread for $2.60 or more.
Cabot Options Trader Pro Weekly Update December 16: Jacob has 9 Long positions: BX, CRM, KO, JD, JBLU, LK, SNAP, TGT and TSM two short positions, SPY and FB.
Cabot Options Trader Weekly Update December 16: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week at 12.63, or lower by 7.27%. Not surprisingly the VIX held its bid above 15 for nearly the entire week ahead of the U.S.-China trade news. Also, not surprisingly, as soon as news of a “deal” was announced, the VIX quickly fell below 13 again.
Cabot Undervalued Stocks Advisor
Special Bulletin December 19: Voya Financial (VOYA) agrees to sell life insurance division. A Morgan Stanley analyst turned bullish on Broadcom (AVGO) and Crista has brief remarks on Baker Hughes (BKR) and Tyson Foods (TSN).
Special Bulletin December 18: Crista reports on Guess? (GES) which rises 8% on bullish research recommendation, Tyson Foods (TSN) – China is ready to buy U.S. poultry and Citigroup (C) – a brief comparison of 5 bank stocks. There are no rating changes.
Weekly Update December 17: Bristol-Myers Squibb (BMY) and CF Industries (CF) depart from the Special Situation Portfolio and the Growth Portfolio today, respectively, while Broadcom (AVGO) joins the Growth & Income Portfolio. Also, Designer Brands (DBI) moves from Strong Buy to Hold.
Monthly Issue December 3: LGI Homes (LGIH) joins the Buy Low Opportunities Portfolio today and Quanta Services (PWR) rejoins the Growth Portfolio. Additionally, Crista says goodbye to CIT Group (CIT), which continues to have a slightly-improving price chart, but the 2020 earnings growth prospects are too dismal to remain in the Growth Portfolio. Other changes today are: Blackstone Group (BX) moves from Strong Buy to Hold and Universal Electronics (UEIC) moves from the Buy Low Opportunities Portfolio to the Growth Portfolio.
Cabot Stock of the Week
Weekly Issue December 17: The major indexes continue to hit new highs, all Cabot’s market timing indicators remain positive and our portfolio is solid overall—though Tim is downgrading three stocks to Hold today for various reasons. As for today’s new recommendation, Disney (DIS), a dividend-paying Wall Street Blue Chip—that Mike Cintolo says has great growth potential because of its new business. Tim has three stocks today that are moving from Buy to Hold: Alexandria Real Estate Equities (ARE), TopBuild (BLD) and Trulieve (TCNNF).
Cabot Global Stocks Explorer
Bi-weekly Update December 19: Carl writes that we are so accustomed to looking at stocks and markets day by day that we sometimes miss the big trends as well as opportunities. In a chart of the S&P 500 since 1990 he shows how extraordinarily long this bull market has run over the last decade since its recovery after the global financial panic. This raises the question—what can we expect from 2020 to 2030? No one knows of course and he hopes that our bull run continues but it might be smart to move some cash into markets that have been lagging. Carl has one portfolio change today: Icici (IBN) moves from Buy a Half To Hold a Half.
Bi-weekly Issue December 12: Because Carl missed an issue on Thanksgiving, today is a “catch-up” issue. The Cabot Global Stocks Explorer portfolio had another positive week led by last week’s recommendation, Virgin Galactic (SPCE), which is up 27% this week. Part of the reason is that Morgan Stanley picked up coverage of the stock with a 2020 price target of 22 – even higher than my price target of 20. Carl’s recommendation today is Freeport-McMoRan (FCX), headquartered in Phoenix, Arizona, it engages in the managing of mineral properties in North America, South America, and Indonesia. The company explores for copper, gold, molybdenum, silver, and other metals primarily in Indonesia as well as in Chile, Peru, New Mexico and Colorado. It is the world’s most significant copper producer. It’s rated Buy a Half.
Cabot Small-Cap Confidential
Weekly Update December 20: The S&P 600 Small Cap Index, which hadn’t broken above 1,000 for most of 2019, is now comfortably above that level and appears to be heading higher. This is significant because there is little in terms of overhead resistance until the index gets back to 1,100. It also illustrates participation from a broader group of sectors (materials, consumer staples, energy, industrials, etc.) than Tyler has seen in recent quarters. He has one portfolio change today: Health Catalyst (HCAT), shares have been dropping by the day on no news so it moves from Buy to Hold.
Monthly Issue December 6: This month Tyler recommends a newly public company that’s trying to do what seems impossible – make the healthcare system work better. Health Catalyst (HCAT) is a $1.4 billion market cap company that provides cloud-based data and analytics technologies (55% of revenue) and professional services (45% of revenue) to healthcare organizations. There’s one portfolio change today: Veracyte (VCYT) moves from HOLD to BUY.
Cabot Dividend Investor
Monthly Issue December 18: In this issue, Tom highlights an outlier in the marijuana industry, Innovative Industrial Properties (IIPR). The company is actually a Real Estate Investment Trust (REIT) that takes much less risk than most of the other sector stocks and benefits from the simple fact that more marijuana will continue to be grown in the years ahead. The company is already making money and earnings continue to grow at a rapid clip. Also, the Invesco BulletShares 2019 Corporate Bond ETF (BSCJ) has matured. The final day of trading was on Monday, December 16
Weekly Update December 11: Tom likes the way the Cabot Dividend Investor portfolio is positioned right now. It has several REITs and Utilities that continue to benefit in the current environment, value stocks that offer bargains and new found momentum, and opportunities to benefit from strong growth where it is still powerful. He has one portfolio change today: Alexandria Real Estate Equities moves from Buy to Hold.
Cabot Marijuana Investor
Update December 19: Because the portfolio’s cash position is now 43% and Tim believes that’s too high as we enter the new year, he’s adding two new stocks to the portfolio and averaging up in others. He’ll initiate new 4% positions in GrowGeneration (GRWG) and Planet 13 (PLNHF); both stocks are rather lightly traded, so be careful and take your time. He’ll put an additional 4% in both Canopy Growth (CGC) and Cresco Labs (CRLBF). And he’ll put an additional 2% in Trulieve, which went through the wringer on Tuesday.
Update December 17: Trulieve (TCNNF) is down sharply today on big volume following a report by short-sellers Grizzly Reports that accuses the company and insiders of numerous improprieties, ranging from political cronyism and corruption to overvaluation of assets to misrepresentation of financial relationships. Tim’s plan at the moment is to stick with TCNNF in Cabot Marijuana Investor. Yes, we have a small loss, but there’s a decent chance the bottom is near, and there is substantial upside from here.
Monthly Issue November 27: The cannabis sector remains in a correction, with Canadian stocks in particular still struggling—even as Cannabis 2.0 promises new retail opportunities. But the fundamentals of the industry remain bright, and investors are now beginning to discriminate between the winners and the losers—with the best stocks showing substantial increases in buying volume recently. The portfolio remains more than a third in cash, waiting for the sector’s main trend to turn up, and Tim has just two small adjustments today. The portfolio will sell half its position in Cresco Labs (CRLBF) and double its position in Innovative Industrial Properties (IIPR).
Cabot Early Opportunities
Monthly Issue December 18: In this month’s Issue of Cabot Early Opportunities Tyler takes a closer look at recent recommendations and evaluates their Q3 earnings reports. He also shows why he thinks the Small cap index is going higher in the near term. And he features five early-stage growth stocks going after totally different markets that look poised to deliver big gains in 2020 and beyond. His top pick this month is LeMaitre Vascular (LMAT), a Massachusetts-based medical device company with a market cap of $710 million.
Bonus Report:
3 Cloud Software Stocks to Buy NowBonus Report:
3 Canadian Small-Cap Stocks to Buy NowBonus Report: Secrets To Early-Stage Stock Profits
Bonus Report:
Cabot Profit Booster
Weekly Issue December 17: The Stock – Pan American Silver (PAAS) Precious metal stocks (and their underlying commodities) have become a mixed bag, especially with some global uncertainties seemingly cleared up, but Pan American Silver is pushing ahead nonetheless thanks to some company-specific catalysts in addition to higher gold and silver prices. As the name suggests, the company is one of the larger silver mining outfits in the world.
Bonus Report:
Best-Kept Hedge Fund Secrets to Explode Your WealthBonus Report:
5 Easy Stock-Picking Secrets That Make it Ridiculously Easy to Profit.Bonus Report:
The Simple Technique that Brings in 5%-15% Each Month.Wall Street’s Best Investments
Daily Alert December 20: Virgin Galactic Holdings, Inc. (SPCE) Cabot Global Stocks Explorer
Daily Alert December 19: iPath Series B Bloomberg Copper Subindex Total Return ETN (JJC) and United States Copper Index Fund LP (CPER) Stock Trader’s Almanac
Monthly Issue December 18: We’ve had a decent month in the markets—despite all the impeachment hoopla. It looks like the China trade issue is improving, housing starts and building permits are healthy, and unemployment remains low. Sounds like the making of a great holiday season! Nancy begins this issue with her Spotlight Stock, General Dynamics Corporation (GD), a company that has been in business for 67 years, residing in the defense and aerospace sectors. As as she notes in her Feature article, both of those arenas are experiencing fantastic growth, which bodes well for GD.
Daily Alert December 18: Ramco-Gershenson Properties Trust PERP PFD-D CV (RPT-PD) Sound Advice
Daily Alert December 17: Avalara, Inc. (AVLR) Personal Wealth Advisor
Daily Alert December 16: New Mountain Finance Corporation (NMFC) Forbes Dividend Investor
Ask the Experts
Cabot Profit Booster
Question: I am a subscriber to Options Pro and also your new service Profit Booster. I’ve a question about covered calls. If a call is written closer to ATM level it seems to give more credit/return in the same amount of time but probably at a higher risk of stock being called away. Example: the SPLK 150 February strike gives a premium of $7.70 as opposed to the 155 strike. So my question I guess is why are we writing calls a bit further away from the stock? Is it because our goal is to keep the stock for much longer and write calls against it repeatedly as long as it maintains its price above the original purchase price?
Jacob: Excellent question, and your analysis of premiums received close to the current stock price vs. further away is spot on. So on to your question ... the reason I chose to sell the SPLK February 155 vs. the 150 call is that we are in a bull market, and because of that I wanted to give the stock more room to run, which gives us more profit potential. Should the market get weak, I will likely move to selling calls closer to the current stock price to get us even more premium/cushion.
Cabot Undervalued Stocks Advisor
Question: What are your thoughts on bank stocks? GS, HSBC, WFC, JPM.
Crista: Presuming that you’re interested in buying one or more of these bank stocks, the one with the best price chart is Wells Fargo (WFC). The chart is very bullish, appearing as if the stock will immediately begin a run-up. From an earnings growth point of view, the most attractive selection is Goldman Sachs Group (GS). HSBC Holdings PLC (HSBC) has only one analyst covering the stock, so I wouldn’t consider that one. Wells Fargo (WFC) is projected to see earnings fall a bit in 2020, and JPMorgan Chase’s earnings are projected to barely increase in 2020. So basically, if I wanted to buy a stock to catch a near-term run-up, I’d go with WFC; and if I wanted to buy one of those four for quality earnings growth, I’d go with GS. All that being said, I still like Citigroup (C) better than GS, and the price chart is also bullish -- the run-up has begun.
Cabot Marijuana Investor
Question: Tim - I have been a customer starting way back with your father and the red binders! I have been a Marijuana customer for over a year now and unfortunately for a number of reasons I have not sold when you advised. This leaves me with multiple stocks that are at significant losses but potentially good in the long run ( you have ITHUF in your Forever Stock list!). So the question is: Should I sell and take the loss for this year or hang on since the amount I would get would be quite small? (I invest by dollar amount, 3K, and so I don’t have much in any stock and I do not buy or sell halves!). Right now I have: MEDIF, MRMD, TCNNF, GTBIF, OGI, CTST, VFF, CWBHF, TPB, CGC, CRON, CURLF, ELLXF, KSHB, CRLBF, TLRY, APHA, ACB, HEXO, ITHUF. Only TCNNF and CRLBF are positive!! Thanks for your advice. I will try to be more conscientious in the future.
Tim: Thanks for asking and thanks for your long patronage! It’s been a rough year for the cannabis stocks, so much of this is not your fault. Still, I believe you can be better positioned for 2020. Normally, I would suggest selling one of the stocks hitting new lows (leaning toward the lowest-priced stocks) and then waiting a few days, to see if that was wise. If so, repeat, always aiming to sell the weakest, lowest-quality stock. (You have definitely diversified by company and selling this way diversifies your actions over time.) However, the approaching year end complicates matters, so maybe selling two stocks at a time is a start. And if you go into the new year still holding most of these, the same advice applies; try to sell the weakest, lowest-quality stock. In my Thursday update I’ll try to give you an idea of the best prospects for holding.
Premium Reports
Cabot’s 10 Favorite Low-Priced Stocks for 2020
Special ReportThis year’s Low Priced Stocks Report, which as it usually does, features a mix of names (some beaten-down, some recently strong) that have great potential to stage at least a short-term bounce in the weeks ahead—if not much more down the road.
Quarterly Cabot Analyst Meeting
The recording of the quarterly Cabot Analyst Meeting from October 23, 2019 is now available for you to listen to at your convenience—click here for access. This quarterly 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 |
|---|---|---|---|---|---|---|---|
| ABBV | Buy | ||||||
| ACB | See Advisory | ||||||
| ADBE | Buy | ||||||
| ALXN | Strong Buy | ||||||
| AMZN | Strong Buy | ||||||
| ANF | Buy | ||||||
| APHA | See Advisory | ||||||
| APPF | Buy | ||||||
| APPS | Hold | ||||||
| ARE | Hold | Hold | |||||
| ARNA | Buy | ||||||
| AVGO | Strong Buy | ||||||
| AVLR | Buy | ||||||
| BABA | Buy | ||||||
| BAND | Hold | ||||||
| BIP | Hold | Hold | |||||
| BKR | Buy | ||||||
| BLD | Hold | ||||||
| BMY | Retired | ||||||
| BSCJ | Buy 1/2 | ||||||
| BSCL | Buy 1/2 | ||||||
| BX | Hold | ||||||
| C | Buy | Buy | |||||
| CCI | Buy | ||||||
| CDLX | Hold | ||||||
| CF | Sell | ||||||
| CGC | See Advisory | ||||||
| CHCT | Hold 1/3 | ||||||
| CRAK | Strong Buy | ||||||
| CRLBF | See Advisory | ||||||
| CRON | See Advisory | ||||||
| CTVA | Buy | Buy | |||||
| CURLF | See Advisory | ||||||
| DBI | Hold | Hold | |||||
| DBSDY | Buy 1/2 | ||||||
| DIS | Buy | ||||||
| DOCU | Buy | ||||||
| DOMO | Hold | ||||||
| DOW | Buy | ||||||
| DXCM | Buy | ||||||
| EPD | Buy | Buy | |||||
| EQH | Strong Buy | ||||||
| EVBG | Buy | ||||||
| EVER | Hold | ||||||
| FCX | Buy 1/2 | ||||||
| GES | Strong Buy | ||||||
| GRWG | See Advisory | ||||||
| GSHD | Buy | ||||||
| GTBIF | See Advisory | ||||||
| HCAT | Hold | ||||||
| HTHT | Hold | ||||||
| IBN | Hold 1/2 | ||||||
| IIPR | See Advisory | Buy | |||||
| INSP | Buy | ||||||
| IPHI | Buy | Buy | |||||
| LGIH | Strong Buy | ||||||
| LK | Buy 1/2 | Buy | |||||
| MCY | Buy | ||||||
| MEDIF | See Advisory | ||||||
| MO | Buy | ||||||
| MOS | Hold | ||||||
| MPC | Strong Buy | ||||||
| MRVL | Buy 1/2 | ||||||
| MTZ | Sold | ||||||
| NEE | Hold | Hold 1/2 | |||||
| NVCR | Buy 1/2 | ||||||
| OGI | See Advisory | ||||||
| OKTA | Hold | ||||||
| PDD | Hold | ||||||
| PGX | Buy 1/2 | ||||||
| PLNHF | See Advisory | ||||||
| PWR | Strong Buy | ||||||
| QCOM | Buy | ||||||
| QTRX | Hold 1/2 | ||||||
| QRVO | Buy | Buy | |||||
| QTWO | Buy | ||||||
| RCL | Sold | ||||||
| RGEN | Buy | ||||||
| RIO | Buy | ||||||
| RKUNY | Buy 1/2 | ||||||
| RNG | Hold | ||||||
| ROAD | Buy | ||||||
| RPD | Buy | ||||||
| SE | Buy 1/2 | Buy 1/2 | |||||
| SLB | Buy | ||||||
| SNAP | Hold | ||||||
| SPCE | Buy a Half | Buy | |||||
| SSO | Buy | ||||||
| STAG | Hold | ||||||
| TCNNF | See Advisory | Hold | |||||
| TDOC | Buy | ||||||
| TOT | Buy | ||||||
| TPB | See Advisory | ||||||
| TSLA | Hold | ||||||
| TSN | Strong Buy | ||||||
| TV | Buy 1/2 | ||||||
| UEIC | Buy | ||||||
| VCYT | Buy | ||||||
| VLO | Buy | ||||||
| VOYA | Strong Buy | ||||||
| VRTX | Buy | ||||||
| XEL | Hold 2/3 |