Cabot Prime Pro Week Ending December 28, 2018
Cabot Weekly Review (Video)
Due to the Christmas Holiday there is no video this week. But Mike laid out his thoughts on the market in his recent Cabot Wealth Daily. You can read it here.
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Cabot Growth Investor
Bi-weekly Update December 26: Mike continues to remain defensive. Stocks are finally mustering a bounce today, though after the market’s meltdown of recent weeks, the intermediate- and longer-term trends remain firmly down.
Bi-weekly Issue December 19: Remain defensive, but as always, keep an open mind. The Model Portfolio is about three quarters in cash (74%), though Mike is still holding onto three stocks, all of which he believes can help lead the next bull move. He’s not having trouble finding resilient growth stocks with excellent stories for our watch list, but tonight, he has no new buys or sells.
Other Stocks of Interest December 13: Follow ups to stocks featured July 4, 2018 (issue 1397) to December 5, 2018 (issue 1408). 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 December 21: Mike has been getting questions about whether this is a bear market, is a recession coming soon, etc. Honestly, he’s not really into labels—you can call the decline whatever you want, but labeling something doesn’t really help your portfolio. The point is to stay in gear with the market’s trends, which turned down in October and have mostly been down ever since. Here are this week’s Buy ideas: Bilibili (BILI), Mellanox (MLNX), Planet Fitness (PLNT) and Workday (WDAY).
And, this week, Mike has a long list of Sells.
Weekly Issue December 17: This week’s list is another that’s full of stocks Mike thinks can do very well if the market can get going. His Top Pick is Tableau Software (DATA), one of the strongest growth stocks in the market today as big investors buy into its transition to the cloud.
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 December 28: Given the speed in which the indexes have fallen, and in which they have snapped back the last two days, the market this week has been mostly untradeable unless you are scalping stocks and options on VERY short time frames. And given Jacob’s style of waiting for only the best risk/reward setups and then buying and holding positions for multiple weeks and months looking for home runs, this is not a market he’s ready to jump into.
Cabot Options Trader Market Update December 27: The 9 rating that Jacob gave the option activity in this morning’s daily email was the most bullish rating that he has assigned option order flow in many months. What he liked most about this activity was the early put selling (noted yesterday morning in a market update sent to you) when the S&P 500 was up marginally, followed by big call buying in potential market leaders Coupa Software (COUP), Tableau Software (DATA), PayPal (PYPL), Nvidia (NVDA) and others as the market accelerated higher in the afternoon. In addition, there was very little put buying throughout the day even as stocks rose.
Cabot Options Trader Market Update December 26: The rolling bear market has been a horror show for nearly all sectors and stocks. And while Jacob is certainly concerned by the recent damage, he’s keeping his eyes open for signs of a potential market bounce. And one of the trades that he likes to see hedge funds and institutions initiate, which may signify their willingness to add market exposure, is Put Sales.
Cabot Undervalued Stocks Advisor
Weekly Update December 26: As we finish 2018, Crista recaps some timely investing and economic topics. She will resume reviewing individual stocks next week and thereafter. Almost all of our portfolio stocks are in strong positions regarding revenue and earnings growth outlooks, balance sheets and valuations. In other words, the current stock market downturn is NOT being caused by stock overvaluation nor by dismal economic activity, which can certainly be two common causes of stock market downturns.
Monthly Issue December 4: Crista expects December to deliver a nice stock market rebound, which will be somewhat restrained by tax-loss selling, especially among some of the very popular FANG stocks. Then in January, as long as something big and unexpected does not occur, she expects the S&P 500 to retrace its September highs. That could actually happen in December, but January seems more realistic to me.Today’s featured stocks include DowDuPont (DWDP), which moves to Strong Buy. General Electric (GE), General Motors (GM) and United Technologies (UTX). Though Christ is not adding GE, GM or UTX to the portfolios.
Cabot Stock of the Week
Weekly Issue December 18: The market’s major trend remains down, and thus caution remains the watchword; if Tim had a new account to begin investing now, he would keep a hefty amount of it in cash until the main trend turned up. This week’s recommendation is Twilio (TWLO)—it has a fantastic combination of story, numbers and a resilient chart. It looks like an emerging blue chip to us—the kind of company that can grow rapidly for years and attract hundreds of institutional investors along the way. Tim has three sells today: Alexion Pharmaceuticals (ALXN) from Buy to Sell, Guess? (GES) from Hold to Sell and WNS Holdings (WNS) from Hold to Sell.
Cabot Emerging Markets Investor
Bi-weekly Issue December 27: Paul wishes he could have done his final issue as Chief Analyst of Cabot Emerging Markets Investor when markets were in an exciting uptrend, but markets are known for setting their own courses and paces. He wishes every subscriber a Happy New Year and he gratefully hands off his mantle to Carl Delfeld, who will take it from here. Today’s featured stock is AngloGold Ashanti (AU), a South African mining company that’s medium sized (market cap is $5.1 billion), profitable (the last two semi-annual reports have featured earnings gains of 1,300% (Q1 and Q2 of 2017) and 209% (the first six months of 2018)), and environmentally responsible (it’s a top performer in the FTSE/JSE Responsible Investment Index). It’s rated Buy a Half. The only other change is Bilibili (BILI) moves from Buy to Hold.
Bi-weekly Update December 20: The usual suspects—trade war, Brexit and the Fed—continue to dog the market, and the situation for emerging market stocks has worsened. Paul is making substantial changes to the portfolio to protect capital and limit exposure. He’s selling our half position in Petrobras (PBR), moving Alibaba (BABA), Mix Telematics (MIXT) and Autohome (ATHM) to Hold ratings and dropping Baidu (BIDU) and WNS Holdings (WNS) from the watch list.
Cabot Small-Cap Confidential
Weekly Update December 21: Tyler writes about one big picture thing worth mentioning: We’ve all seen various data points about just how bad this market is and how it’s “the worst” in this dimension or that. All of this stuff is just saying what we know—the market stinks and is breaking a bunch of undesirable records. He has one change today: Chefs’ Warehouse (CHEF) Moves to BUY.
Special Bulletin December 18: Tyler has held on to quarter-sized stakes in a few positions in the event that the market firms up and turns north. That hasn’t happened, so it’s time to step completely aside from both AxoGen (AXGN) and IntriCon (IIN). Sell the last quarter of both stocks.
Monthly Issue December 7: Today’s recommendation, Codexis (CDXS), is an industrial biotechnology stock. And the secret to its success lies in a proprietary technology platform that uses artificial intelligence and machine learning to create new proteins for use in various industries. Tyler is buying a half position. There is only one portfolio change this week, Chefs’ Warehouse (CHEF), moves to Hold.
Cabot Dividend Investor
Weekly Update December 26: Our new Chief Analyst, Tom Hutchinson writes that it will be his absolute pleasure to be your reliable partner in this crazy world that also offers so much opportunity. He will try to offer the best possible advice in plain English and enable you to invest with confidence and success. Today, he is making several changes to the portfolio: STAG Industrial (STAG) moves from Buy to Hold, he is selling the rest of CSX Corp (CSX) and Dunkin’ Brands (DNKN) and is also selling, Invesco BulletShares 2020 High Yield Corporate Bond ETF (BSJK) and Invesco Bulletshares 2022 High Yield Bond ETF (BSJM). UnitedHealth Group (UNH) moves from Hold to Buy and Xcel Energy (XEL) moves from Buy to Hold.
Monthly Issue December 19: Chloe writes that it’s time for her to move on, but Cabot Dividend Investor isn’t going anywhere. She’s excited to pursue new opportunities in the New Year, and she’ll be leaving you in great hands. Tom Hutchinson, the new Chief Analyst of Cabot Dividend Investor, introduces himself in this month’s issue, with his take on the market and an exciting new stock pick. Here are today’s portfolio changes: BB&T Corp (BBT) Hold to Sell, Broadridge Financial Solutions (BR) Hold to Sell, CME Group (CME) Buy to Hold, Dunkin’ Brands (DNKN) Hold to Sell Half, Invesco Preferred ETF (PGX) Buy to Sell Half and UnitedHealth Group (UNH) Buy to Hold. Tom’s featured stock this month is: Altria Group (MO) is the largest U.S. domestic cigarette maker and one of the largest in the world.
Cabot Marijuana Investor
Monthly Issue December 27: In today’s issue, there are no new buy and sell recommendations, but you’ll find updates on all the stocks, including the two stocks Tim added to the portfolio last week. And as we head toward the end of 2018, he’s very optimistic that the sector will have another great run in 2019—just when most investors least expect it!
Update December 19: Tim is adding two new stocks to the portfolio. But first he’s going to sell a third of CV Sciences (CVSI), which has become a bit overweight. This will raise our cash position to about 26%. And then he’s going to take half the cash and split it between the two new stocks, Cresco Labs (CRLBF) and Curaleaf (CURLF). When all is done, then, the portfolio will be roughly 13% in cash.
Wall Street’s Best Investments
Daily Alert December 28: Adobe Inc. (ADBE) from Canaccord Genuity Research
Top Picks Daily Alert December 27: Alibaba Group Holding Limited (BABA) from Cotton’s Technically Speaking
Top Picks Daily Alert December 26: First US Bancshares, Inc. (FUSB) from Contra the Heard Investment Letter
Monthly Issue December 19: Nancy’s Spotlight Stock Matador Resources Company (MTDR), is an independent energy company that explores, acquires, develops, and produces crude oil and natural gas resources in both the Delaware portion of the Permian Basin in southeast New Mexico and the Eagle Ford shale in Texas. In her Feature article, Nancy writes that energy stocks have lagged other categories in 2018, but with oil prices estimated to recover somewhat, we should see companies like Matador—who has consistently beat earnings forecasts and is increasing production—show some price appreciation in the new year.
Wall Streets Best Dividend Stocks
Top Picks Daily Alert December 28: Sanchez Midstream Partners LP (SNMP) from Cotton’s Technically Speaking
Top Picks Daily Alert December 27: JPMorgan Chase & Co. (JPM) from Income Securities Investor
Top Picks Daily Alert December 26: United Parcel Service, Inc. (UPS) from Hendershot Investments
Monthly Issue December 12: This month’s Spotlight Stock, Bank of Hawaii Corporation (BOH) is a 120-year-old regional financial services company with $16.9 billion in assets. Through its subsidiaries, the company provides a broad range of financial products and services to businesses, consumers and governments in Hawaii, Guam and other Pacific Islands. In her Feature article, Nancy delves further into the Regional Banking industry, discussing its recovery since the worldwide recession, as well as the pros of investing in our Spotlight Stock.
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Premium Reports
Cabot’s Best Safe Investments for Uncertain Times
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Cabot’s 10 Favorite Low-Priced Stocks for 2019
Special ReportDecember 13: Welcome to Cabot’s 10 Favorite Low-Priced Stocks for 2019, our annual pick of some little-known stocks that, for one reason or another, have a great shot of tacking on some great gains in the short-term (and, if things go well, longer-term, too). Of course, the market environment hasn’t been following the usual script—instead of a strong November-December, the market is scuffling. That will require some patience and picking your spots on the buy side, but ideally will work to our advantage (creating more advantageous entry points), too.
Cabot’s 10 Best Canadian Small-Cap Stocks
Special ReportAugust 31: 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 there are market-beating returns available to investors willing to step abroad too. And one of the easiest places to find them is just over the border with our neighbor to the north, Canada.
10 Monthly Dividend Stocks to Buy for Year-Round Income
Special ReportAugust 9: Dividend-paying stocks are favorites of retirees and other investors who live off income from their investing portfolios. Like bonds, dividend-paying stocks provide a steady income stream that you can spend without eroding your principal. Unlike bonds, many stocks increase their dividends over time, so your income stream can actually rise each year. This report includes profiles of Chloe’s 10 favorite monthly dividend payers, each of which offers a unique mix of yield, capital appreciation and safety. If you’re looking for monthly income, you’re sure to find at least one that’s right for you.
Cabot’s 10 Best REITs to Buy Now
Special ReportJuly 18: Nancy has always loved real estate; in fact, she owns a small real estate franchise. But she loves the idea of a diversified real estate portfolio and REITs fit the bill. They have been excellent investments for her subscribers over the years as they offer the perfect opportunity to buy real estate with very little capital. And she believes the boom cycle in real estate is far from over. With that in mind, she set out to find the 10 Best REITs for today’s economy and market. She looked at growth, valuation, dividend yield, and fundamental and technical strength.
Cabot’s 10 Best Covered Calls on Dividend Stocks
Special Report April 12: With interest rates just coming off of historically low levels, income investors have been desperately searching for alternative sources of yield. Dividend stocks are the obvious answer. But there’s an even better way to create yield: by executing a covered call strategy on stocks that pay dividends.
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.