Cabot Prime Pro Week Week Ending January 18, 2019
Cabot Weekly Review (Video)
In this week’s stock market video, Mike Cintolo discusses the market’s continued good vibes—this was the fourth week in a row of constructive action, which Mike believes bodes well for the intermediate- to longer-term. That said, he’s still watching for the intermediate-term trend to turn up (could happen early next week) and thus is holding cash, but with the evidence turning positive, putting some money to work is advised.
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Advisory Services
Cabot Growth Investor
Bi-weekly Issue January 17: Mike is optimistic but still practicing patience and following the system. Last week, he bought half-sized positions (5% of the portfolio) in Ciena (CIEN), ProShares Ultra S&P Fund (SSO) and Workday (WDAY). That still leaves us with 67% in cash—enough to withstand a bottom-building process should one occur, but also providing plenty of buying power should this nascent uptrend gather steam.
Bi-weekly Update January 9: Mike says to do a little buying. The market’s trends are still pointed down, so he still thinks going slow and stepping lightly makes sense. But much of the recent action—including the flashing of a rare blast-off signal today—hints that the worst may be behind us. In the Model Portfolio, he’s restoring Buy ratings on FIVE and TWLO (try to buy on dips), and in a slightly unusual move, he’s going to buy half-sized positions in three stocks—Ciena (CIEN), ProShares Ultra S&P 500 Fund (SSO) and Workday (WDAY), with each position being about 5% of the portfolio to start. Our cash position will now be around 67%. Please Note: Due to a variety of scheduling factors, going forward, all Cabot Growth Investor issues and regular updates will be sent THURSDAY instead of Wednesday. Thus, your next issue will be sent to you next Thursday (January 17).
Other Stocks of Interest January 4: Follow ups to stocks featured August 1, 2018 (issue 1399) to January 3, 2019 (issue 1410). 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 January 18: It’s been yet another constructive week for the market—four in a row by our count. As of mid-morning Friday, the S&P 500 is sitting on a gain of 2.6% for the week, while the Nasdaq is up 2.7%. Mike’s Buy ideas this week are: Bilibili (BILI), CyberArk (CYBR) and Incyte (INCY). There are no explicit sells today, but Mike is keeping a close eye on Tesla (TSLA), Buenaventura (BVN), Franco-Nevada (FNV) and Tableau Software (DATA).
Weekly Issue January 14: Mike is OK with extending your line a bit, doing some new buying in high-potential stocks, but he’s also still keeping a good chunk of cash on the sideline and waiting for more strength to develop (maybe after a retrenchment) before turning bullish. His Market Monitor moves to a level 5 this week. As for the list, today is another batch of good-looking stocks from a variety of sectors, albeit with a heavier emphasis on medical. Mike’s Top Pick is old favorite Dexcom (DXCM)—start small and build if the recent strength continues.
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 Position Update January 18: Shortly after Jacob sent the Parsley Energy (PE) buy-write alert, PE, and the whole market really, took off on U.S./China trade rumors. And because of this, he has not yet been filled on his buy-write.
Cabot Options Trader Alert January 18: Buy-Write: Buy Parsley Energy (PE) Stock and Sell the February 20 Calls (exp. 2/15) for a net price of $18.55 or less.
Cabot Options Trader Earnings January 17: Netflix (NFLX) will reports earnings today after the close. With the stock trading at 352.5, the options market is pricing in a move of $30, or 322.5 to the downside and 382.5 to the upside.
Cabot Options Trader Stock on Watch January 17: Workday (WDAY) has been on Jacob’s radar for a new bullish position since the company crushed earnings in late November. And of greater interest to him is the relative strength the stock showed during the market malaise of December.
Cabot Options Trader Sector on Watch January 17: Homebuilders (XHB) had a brutal 2018, posting a loss of 28%. That said, the sector has gotten off to a good start to 2019 with a gain of 6.5% year-to-date. This morning, though, a trader is betting against the sector’s early 2019 rebound.
Cabot Options Trader Education January 16: The stock market will be closed on Monday, January 21st for Martin Luther King Day—a nice three-day weekend. But it’s not generally good for options prices.
Cabot Options Trader Alert January 16: Adjust Existing Position: Against Regions Financial (RF) stock position Sell the February 16 Calls (exp. 2/15) for $0.25 or more.
Cabot Options Trader Position Update January 15: Ciena (CIEN) is making another new high today at 37.5, which has pushed our calls to a potential profit of 83%. Jacob is going to set a mental stop on this position at our original buy price of $2.08, which is $1.72 below the current price.
Cabot Options Trader Earnings January 15: Bank of America (BAC) and Goldman Sachs (GS) will report earnings tomorrow before the open.
Cabot Options Trader Earnings January 14: JPMorgan (JPM) will announce earnings tomorrow before the open. With the stock trading at 100.5, the options market is pricing in a move of $3, or 97.5 to the downside and 103.5 to the upside.
Cabot Options Trader Weekly Market Update January 14: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week at 18.2, or lower by 15%. Interestingly the VIX close below 20 on Wednesday was the first time it had closed below 20 in 23 trading days.
Cabot Options Trader Pro Weekly Market Update January 14: Jacob has five long positions: CIEN, ON, RF, TWTR and ZS and one position not impacting his decision making: PSTG.
Cabot Undervalued Stocks Advisor
Special Bulletin January 17: Knight-Swift Transportation Holdings (KNX) issued new quarterly adjusted earnings guidance this morning, pleasing investors and sending the stock up 6% upon the market’s open.
Special Bulletin January 16: Comerica (CMA) and Delta Air Lines (DAL) report earnings beats.
Weekly Update January 15: Crista is adding a stock to the Growth Portfolio. CF Industries Holdings (CF – yield 2.7%), one of the world’s largest producers of nitrogen products, serving customers on six continents. The company operates nine nitrogen production complexes in Canada, the U.K. and the U.S. And there is one change to the growth and income portfolio, Schlumberger (SLB) moves from Buy to Hold.
Special Bulletin January 14: SYNNEX (SNX) is now Retired from the Buy Low Opportunities Portfolio. Crista is retiring SNX from the portfolio because it met her investment objective and the fundamental outlook is now more moderate than before.
Monthly Issue January 2: Crista is adding Apollo Global Management, LLC (APO) to the Growth & Income Portfolio today, due to the extraordinary dividend yield and the eventual capital gain opportunity. Here are today’s portfolio changes: DowDuPont (DWDP) moves from Strong Buy to Buy,Southwest Airlines (LUV) moves from Strong Buy to Hold,Voya Financial (VOYA) moves from Strong Buy to Hold and WestRock (WRK) moves from Strong Buy to Buy.
Cabot Stock of the Week
Weekly Issue January 15: Given how strongly Tim preaches the values of diversification, it seems right that the stock to recommend now is a China-centric fund that specializes in rare earth metals, which are critical to the semiconductor chips and more that will power global technology in the decades ahead. The stock, Van Eck Rare Earths/Strategic Metals (REMX), was originally recommended by Carl Delfeld, chief analyst of Cabot Emerging Markets Investor. Tim has three portfolio changes today: Deckers Brands (DECK) moves from Buy to Sell, Huazhu Group Limited (HTHT) from Hold to Buy and MiX Telematics (MIXT) from Hold to Sell.
Cabot Emerging Markets Investor
Bi-weekly Update January 17: The Emerging Markets Timer (EEM) has managed to maintain its positive stance this week as most of our positions moved forward. While this is a good sign, Carl remains somewhat cautious and awaiting a stronger signal to put more of our cash to work. Today’s portfolio change: MiX Telematics (MIXT) moves from Hold a Half to Sell.
Bi-weekly Issue January 10: In the first week of 2019, a better overall stock market, weaker U.S. dollar, bargain hunting, and hopeful signs of a temporary truce in the U.S.-China trade war have all helped push our Emerging Markets Timer back into a bullish mode. As with our prior signals, Carl is not advising you to jump in with both feet since there is still a fair amount of uncertainty out there and the iShares EM Fund (EEM) needs to demonstrate staying power and work through some resistance. Still, he’s extending our line a bit with our two new buys in today’s issue: VanEck Rare Earths/Strategic Metals (REMX) and TAL Education Group (TAL). Both are rated Buy a Half.
Cabot Small-Cap Confidential
Weekly Update January 18: Tyler says the market looks a lot better less than three weeks into 2019. Granted, it looked downright awful in late 2018 and at times seemed it couldn’t get much worse. But over the last 18 days the index has climbed up to 918, which is more than an 8% gain year-to-date. But, he still wouldn’t say it is time to wave the all-clear flag. There are no portfolio changes today.
Monthly Issue January 7: Today’s stock, CareDx (CDNA), is another specialized medical device company. It plays in the highly specialized market for organ transplant surveillance. It has all the attributes of a good stock—it’s expanding its end market potential with new products, is almost profitable, and the chart looks great!
Cabot Dividend Investor
Weekly Update January 16: Tom writes that if the market continues to recover here, it will be in a guarded and cautious state for another year or two. Beyond that, there will be fantastic opportunities to get aggressive. But, for now, he remains cautious but not fearful. There are no rating changes today.
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
Update January 4: Stocks in the marijuana sector are off to a flying start this year. Our portfolio is already up more than 7% since the close of 2018—after being up 15% last year—and one of our latest buys, Cresco Labs, is up 32% since our late December purchase. As Tim mentioned previously, his position in Cronos (CRON) was overweight and he’s been looking to sell at a higher point—and he thinks this is it. So he’ll sell half of CRON today and hold the cash, which will bring our portfolio cash level to nearly 20%.
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!
Wall Street’s Best Investments
Daily Alert January 18: Intuitive Surgical, Inc. (ISRG) from Shortex Market Letter
Daily Alert January 17: Civeo Corporation (CVEO) from The Turnaround Letter
Top Picks Issue January 16: In this issue, Nancy recaps the big winners from last year. For our Top Picks 2019, she has a huge variety of investments for your review.
Top Picks Daily Alert January 16: AMC Networks Inc. (AMCX) from Validea Hot List Newsletter
Top Picks Daily Alert January 15: Achillian Pharmaceuticals, Inc. (ACHN) from The Cheap Investor
Top Picks Daily Alert January 14: Global X Robotics & Artificial Intelligence ETF (BOTZ) from Positive Patterns
Wall Streets Best Dividend Stocks
Daily Alert January 18: Penske Automotive Group, Inc. (PAG) from Contrarian Outlook
Daily Alert January 17: Deere & Company (DE) from Directinvesting.com
Daily Alert January 16: Bristol-Myers Squibb Company (BMY) from Canaccord Genuity Research
Daily Alert January 15: Kulicke and Soffa Industries, Inc. (KLIC) from The Prudent Speculator
Top Picks Daily Alert January 14: AT&T Inc. (T) from The Inger Letter
Top Picks 2019 Issue January 9: In this issue, Nancy recaps our big winners from last year, and has a very nice—and diversified list—of a group of stocks that promise great potential for 2019.
Ask the Experts
Cabot Growth Investor
Question: Hey, where’s my issue of Cabot Growth Investor this week?
Mike: Thanks for writing -- as we wrote in last week’s update, we’re going with a tweak to our regular schedule: From now on, all regular Growth Investor updates and issues will be sent to you on Thursday, after the close. Of course, if we have any Special Bulletins, those can still be sent any time, but plan on getting CGI material on Thursdays now. That tweak is a big help to me, as some personnel changes (Paul left us!) has me writing like a madman for a few days early in some weeks--this way I’ll have more time and a clearer head to put together the best issue possible.
Question: Do you think the recent action of NTNX or TDOC in this mini-New Year rally warrant another possible look-see?
Mike: They don’t really fit my methodology chart-wise, but they probably work their way higher if the market does. Follow-up Q: ‘Chart-wise’ meaning the depth and severity of the pullback in both NTNX and TDOC, post September, relative to, say, CIEN and TWLO? A: Yes, but also just where they are on the chart -- below their 200-day lines, still with overhead resistance, etc. Not negative on them at all, they could easily do very well. But at this point the stock are basically still in downtrends (though I would say NTNX is now more sideways and trying to turn up).
Cabot Options Trader
Question: Hello Jacob, I have a few questions: - Can you please provide earnings related info for AMD? - How can I avoid stocks like AMD? I always loose a lot of money on it even when the stock market is good. What’s the criteria to avoid it and avoid similar stocks?
Jacob: AMD - I will give a breakdown on AMD earnings as we get closer to the actual earnings date. If I were to give it to you today the information would be of little value as earnings aren’t expected until 1/29 and much can change between now and then. AMD part 2 - If you have had bad luck with a stock, just cross it off your list. I have stocks like that. For example, I lost money trading Green Mountain Coffee (GMCR) three times, so I just avoided it as I had too many mental scars and biases to trade it rationally. There are plenty of other stocks to trade!
Premium Reports
Cabot’s 10 Best Stocks to Buy and Hold for 2019
Special ReportJanuary 3: Crista has designed this portfolio of 10 stocks to compete with the S&P 500 during the coming year, with no trading, no buying and no selling whatsoever.
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.
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.
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.