Cabot Prime Pro Week Week Ending January 25, 2019
Cabot Quarterly Market Report and Teleconference
4Q 2018 ReportTrying to forecast what will happen to stocks in the next three months, much less the next year, is folly. After all, just look at how much things changed on Wall Street from the beginning of the fourth quarter (unrelenting bull market) until the end of the year, when stocks were on the cusp of a bear market. To listen to the Quarterly Analyst Teleconference click the red button below.
Cabot Weekly Review (Video)
In this week’s stock market video, Mike Cintolo discusses the mounting bullish evidence—this week, his intermediate-term trend model turned positive, adding another arrow to the bulls’ quiver. Mike talks about some different possibilities in the short-term, but spends most of his time wading through the increasing number of setups among growth stocks as earnings season continues.
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Cabot Prime Quarterly Analyst Update & Q&A
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Cabot Wealth Summit 2019
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Advisory Services
Cabot Growth Investor
Bi-weekly Update January 24: Mike says to do some more buying. Our Cabot Tides has flashed a new buy signal, and while the near term could easily see some retrenchment, the evidence is building that the worst of the market’s downturn is over and that another bull phase could be starting. Tonight he’s buying a 10% position (i.e., full-sized initial position) in Planet Fitness (PLNT) and buying another 5% position in both Ciena (CIEN) and ProShares Ultra S&P Fund (SSO), bringing us up to “full” positions in each. The cash position will now be around 45%.
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.
Other Stocks of Interest January 22: Follow ups to stocks featured August 15, 2018 (issue 1400) to January 17, 2019 (issue 1411). 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 25: After four weeks of straight-up action, the major indexes and most leading (and potential leading) stocks are basically holding firm, with the S&P 500 and Nasdaq relatively flat on the week. Mike’s Buy ideas this week are: CyberArk (CYBR), Incyte (INCY), Tableau Software (DATA), Tencent Music (TME) and Vertex Pharmaceuticals (VRTX). There are three sells today, Tesla (TSLA), Buenaventura (BVN) and Kirkland Lake (KL), which looks like the top gold stock on the market, and it’s pushed ahead strongly this week. If you have a good profit, you could consider selling some (maybe one-third of your shares) and hold the rest.
Weekly Issue January 21: Overall, Mike is optimistic and he is bumping up our Market Monitor to a level 6, but it’s best to step (not plunge) into stocks and keep looking for lower-risk entry points. This week’s list contains another batch of great stories, with a variety of strong charts (some coming off lows, others at new highs, others setting up). Mike’s Top Pick is Coupa Software (COUP), which is in a strong group and has seen superb buying volume in recent days.
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 Pro Alert January 25: Adjust Existing Position Ciena (CIEN): Against your CIEN April 36 Calls, Sell the April 44 Calls for $1 or more.
Cabot Options Trader Position Update January 24: Ciena (CIEN) is trading higher by another 1.20 today at 39.45. Jacob is raising his mental stop on this position from $2.08 to $3. As the stock continues to rise, he will continue to raise the stop. ON Semiconductor (ON) is trading higher by 8.5% today and is at a 2019 high following positive earnings reports from two of ON’s semiconductor peers.
Cabot Options Trader Earnings January 24: Intel (INTC) and Starbucks (SBUX) report earnings today after the close.
Cabot Options Trader Market Update January 23: Today is day two of bearish option activity as Jacob’s Options Barometer is likely to register a 3 again. However, while there is certainly enough put buying today to raise a yellow flag, the one trend that sticks out in terms of bearish activity is large upside call selling.
Cabot Options Trader Market Update January 23: This afternoon Xilinx (XLNX) will report earnings. The reaction to XLNX earnings should give Jacob another good look at how traders are positioning in growth stocks this earnings season following somewhat disappointing reactions to Netflix (NFLX) and Atlassian (TEAM) last week.
Cabot Options Trader Earnings Trades January 22: When Jacob is evaluating option order flow, one of the critical components (especially in the next few weeks) is the options expiration date combined with earnings dates. He cites several examples.
Cabot Options Trader Alert January 22: 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 Weekly Market Update January 21: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week virtually unchanged at 17.8. The lack of a decline for the “fear index” was somewhat surprising as the indexes continued their surge higher, and ahead of a long weekend. Under normal conditions the combination of a market rally and a holiday would have caused the VIX to be hit very hard.
Cabot Options Trader Pro Weekly Market Update January 21: Jacob has five long positions: CIEN, ON, RF, TWTR and ZS, one position not impacting his decision making, PSTG and one short position, QQQ.
Cabot Undervalued Stocks Advisor
Special Bulletin January 24: Southwest Airlines (LUV) reports a strong earnings beat and Abercrombie & Fitch (ANF) joins the Buy Low Opportunities Portfolio as a Strong Buy.
Special Bulletin January 23: Synchrony Financial (SYF) reports big fourth-quarter earnings beat and moves from Hold to Strong Buy.
Weekly Update January 22: Crista writes that the U.S. stock markets is exhibiting all kinds of recognizable patterns, which can be very beneficial for traders, but also for people who plan to make the occasional near-term purchase or sale. Here are today’s portfolio changes: Quanta Services (PWR) moves from Buy to Hold and Total SA (TOT) moves from Strong Buy to Hold.
Special Bulletin January 21: Crista has five rating changes today: Baker Hughes, a GE Co. (BHGE) moves from Hold to Buy; BB&T Corp. (BBT) and Regions Financial (RF) are now Retired from the Growth & Income Portfolio and Supernus Pharmaceuticals (SUPN) moves from Hold to Buy.
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 22: The portfolio has made great progress over the past few weeks, mainly, of course, due to the strong and broad market advance. And the new buy signal from our Blastoff Indicator says that stocks will be even higher in the months ahead—notwithstanding the usual bumps in the road. Today’s recommendation, Everbridge (EVBG) is a repeat of a stock that we did quite well with last year, selling very near the top. But it has a great growth story, and Tim is happy to jump back on board again. As for portfolio management, he has only one change today, Voya Financial (VOYA) is downgraded from Buy to Hold.
Cabot Emerging Markets Investor
Bi-weekly Issue January 24: The Emerging Markets Timer remains positive, as the buyers are slowly wresting control from the sellers. The iShares EM Fund (EEM) has participated in this year’s nascent rally, briefly pushing to its highest level since early October before a little giveback this week. With EEM well over its lower (now 50-day) moving average, the intermediate-term trend is up. Today’s recommendation Brasil Foods (BRSF), is the largest exporter of poultry in the world and supplies food products to McDonalds, Pizza Hut and Burger King. The company is also Brazil’s largest maker of frozen microwave dinners and meats. Carl has no portfolio changes today.
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.
Cabot Small-Cap Confidential
Special Report: 2019 Small Cap Outlook January 25: The S&P 600 Small Cap Index is back above its 50-day line and at the low end of the 900 to 975 range where the index traded for most of the first half of 2018. Tyler would like to see the index camp out in this same range for a while as I think it’s a healthy area for small caps to consolidate, and would set us up well for a sustained rally into the back half of the year. There are no portfolio changes today.
Weekly Update January 25: The S&P 600 Small Cap Index is back above its 50-day line and at the low end of the 900 to 975 range where the index traded for most of the first half of 2018. Tyler would like to see the index camp out in this same range for a while as I think it’s a healthy area for small caps to consolidate, and would set us up well for a sustained rally into the back half of the year. 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 23: Tom believes the market will likely trend higher but not by a lot, favoring the more recession-resistant plays. That’s the story right now but things can change. As always, he’ll keep you posted. There are two rating changes today, Altria (MO) was lowered from a BUY to a HOLD and American Express (AXP) was changed from a HOLD to SELL HALF.
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 23: Time writes that we are in the midst of a cultural shift, but still far from through it. Marijuana is still far from universally accepted, and until it is, the sector will continue to have great growth potential. That’s how investing works. In this update he reviews all the sales, full and partial, of the Cabot Marijuana Investor Portfolio since inception and gives you the results.
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 25: TRI Pointe Group, Inc. (TPH) from The Buyback Letter
Daily Alert January 24: Sell: MiX Telematics Limited (MIXT) from Hughes Investment Management
Daily Alert January 24: Best Hometown Bancorp, Inc. (BTHT) from Hughes Investment Management
Daily Alert January 23: PTC Inc. (PTC) from Pivotal Point
Daily Alert January 22: G-III Apparel Group, Ltd. (GIII) from AlphaProfit Sector Investors’ Newsletter
Daily Alert January 21: Workday, Inc. (WDAY) from Cabot Growth Investor
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.
Wall Streets Best Dividend Stocks
Daily Alert January 25: VanEck’s Rare Earth/Strategic Metals Fund (REMX) from Cabot Emerging Markets Investor
Daily Alert January 24: Macy’s, Inc. (M) from The Turnaround Letter
Daily Alert January 23: CF Industries Holdings, Inc. (CF) from Cabot Undervalued Stocks Advisor
Daily Alert January 22: McDonald’s Corporation (MCD) from Internet Wealth Builder
Daily Alert January 21: Hanesbrands Inc. (HBI) from Sure Retirement Newsletter
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 Undervalued Stocks Advisor
Question: How does Bank of America (BAC) look for 2019?
Crista: The earnings prognosis is good, although not nearly as strong as in 2018. The market expects profits to rise 10.3%. The stock remains undervalued, with a 2.1% dividend yield. BAC is up 27% from its December lows, and trading at price resistance, which means I think it’s done rising for the time being. Traders should sell and move on to stocks that didn’t already make a huge move this year, and longer-term investors still own a very successful company that will almost certainly increase its dividend payout again in 2019.
Cabot Options Trader
Question: Boy we sure blew it with xlnx when we got shook out. Hopefully Cien will prove to be as big by April! Thanks for your advice!
Jacob:You got that right! I’m fuming. But at the end of the day, I had to stick to my stop. And the only upside to this is we sold our QQQ puts for a 111% profit at the same time as we sold the XLNX calls for a 75% gain. But yes, I am not thrilled. The XLNX profits would have been much more today. Trading will humble all over time (and today I’m HUMBLED).
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.