Cabot Prime Pro Week Ending January 31, 2020
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 talks about the long-awaited market pullback that finally got underway this week. While he still sees an overall bull market, he’s also thinking now’s a time to trim your sails, as further tough trading is likely as the market consolidates its heady gains since October.
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The 5 Best Stocks to Buy in March
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By Mike Cintolo, Chief Analyst of Cabot Growth Investor and Cabot Top Ten Trader | Space is limited so sign up now for FREE.
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Advisory Services
Cabot Growth Investor
Bi-weekly Issue January 30: Mike writes that we came into this week with around 11% in cash, but he went ahead and boosted that to 20% by taking two partial profits—selling one-third each of DocuSign (DOCU) and ProShares Ultra S&P 500 Fund (SSO), while also placing Qorvo (QRVO) on Hold. From here, he’ll just take his cue from the market and leading stocks, but he’s standing pat tonight, there are no additional changes to the portfolio.
Special Bulletin January 27: It’s still a bull market, but our Cabot Tides are close to the fence and the odds are that the recent burst in selling pressures probably won’t go away overnight. Thus, Mike is going to trim a bit in the Portfolio tonight, selling one-third of our positions in both DocuSign (DOCU) and ProShares Ultra S&P 500 Fund (SSO), which will leave us with 20% in cash. He’s also placing Qorvo (QRVO) on Hold.
Bi-weekly Update January 23: Remain bullish, but keep your feet on the ground. The market has been extremely resilient despite many worries this year (including the recent China virus), and while the risk of a retreat is still elevated, Mike is content to ride our winners and follow the plan. His only change tonight is that he’s adding another half-sized position to Sea (SE), which has decisively gotten going this week. That will leave us with around 12% in cash.
Other Stocks of Interest January 21: Follow ups to stocks featured August 29, 2019 (issue 1427) to January 16, 2020 (issue 1437). 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 January 31: Mike is following the usual correction/pullback playbook—holding a little cash, trimming back any huge positions, tightening stops on losers/laggards, but holding his strong, resilient names and looking for new leaders, including those getting going on earnings In other words, he’s still bullish overall, but is trimming a bit and being choosier on the buy side. Mike’s buy ideas today are: Dynatrace (DT) and Splunk (SPLK) and he has five sells today: Apollo Global (APO), Crocs (CROX), Jabil (JBL), Luckin Coffee (LK) and Novocure (NVCR).
Weekly Issue January 27: The rapid spread of China’s coronavirus provided the impetus for a selloff that began last Friday and exploded onto the scene today. Beyond the charts, it’s likely that more time is needed for investors to trim/hedge after four months of straight-up action. As for leading stocks, Mike is taking it on a case-by-case basis—some are looking ragged and ripe for a deeper correction, but most are pulling back normally. If you’re heavily invested, his advice is to follow the usual plan: Hold most of your shares in your strong, profitable stocks, while selling or keeping tight leashes on losers and laggards. He’s moving our Market Monitor down to a level 6. On the buy side, newer names that are holding up well should be near the top of your shopping list. This week features plenty of those, with Mike’s Top Pick being Kansas City Southern (KSU), a reliable grower that just reacted well to 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 Market Update January 31: The market is getting hit hard today as the S&P 500 is down 1.75% and the VIX is trading above 19 for the first time in many months. Jacob has received quite a few emails about the Chinese coffee company Luckin Coffee (LK), which had run from 19 in November all the way to a high of 51 just two weeks ago. He gives us his latest thoughts.
Cabot Options Trader Position Update January 30: The one position that is giving us a real problem the past couple of days is Microchip (MCHP) as the stock has fallen along with its semiconductor peers. Jacob is very close to cutting this position in half, though of note, option players have been buying MCHP calls and bull call spreads yesterday and today, along with bullish positions in some of its semiconductor peers.
Cabot Options Trader Market Update January 30: Jacob writes that not surprisingly earnings season is turning into a volatile mixed bag. What does all of this mean for us? Not much, as so far earnings season has been mixed and big picture, historically, reporting season turns into a stock by stock story. Also, he updates us on Amazon (AMZN) which is reporting earnings after the close today.
Cabot Options Trader Pro Alert January 29: Buy the Zillow (Z) May 50/65 Bull Call Spreads (exp. 5/15/2020) for $4 or less
Cabot Options Trader Alert January 29: Buy the Zillow (Z) May 50 Calls (exp. 5/15/2020) for $4.80 or less
Cabot Options Trader Earnings Update January 29: Tonight and tomorrow morning are huge days of earnings reports as market leaders such as FB, MSFT, PYPL, QRVO, TSLA and others will report. The stocks reaction to these announcements should give us a great read if we are in a risk-on or risk-off environment. In addition there are plenty of other companies announcing their earnings including Coca-Cola (KO) which we recently sold, and Blackstone (BX) which we still own. Jacob gives earnings updates on these stocks.
Cabot Options Trader Earnings January 28: Jacob updates us on three stocks that are reporting earnings: Apple (AAPL), Advanced Micro Devices (AMD) and Starbucks (SBUX) are reporting earnings today after the close.
Cabot Options Trader Stocks on Watch January 27: Stocks on Watch – Sea (SE), Zillow (Z) and Peloton (PTON)
Cabot Options Trader Pro Weekly Update January 27: Jacob has 4 Long positions: BX, JD, MCHP, TSM and 1 Short position: SPY.
Cabot Options Trader Weekly Update January 27: While the growing coronavirus scare and earnings will likely get the biggest headlines this week, traders will also focus on the Federal Reserve’s interest rate decision Wednesday (no rate change expected) as well as the first estimate for fourth-quarter GDP on Thursday.
Cabot Undervalued Stocks Advisor
Special Bulletin January 31: Today’s News: Alexion Pharmaceuticals (ALXN) reported a good fourth quarter; disappointed on 2020 guidance; moves from Buy to Strong Buy, Amazon.com (AMZN) reported an unexpected, tremendous surge in fourth-quarter profit; moves from Strong Buy to Buy, Blackstone Group (BX) reported a fourth-quarter profit and revenue beat, Brunswick Corp. (BC) reported a great fourth quarter. (This stock appears in the Cabot’s 10 Best Buy and Hold Stocks for 2020 publication.) and Corteva (CTVA) reported a great fourth quarter and higher 2020 guidance.
Special Bulletin January 29: Dow Inc. (DOW) reports fourth quarter earnings and revenue beat and Marathon Petroleum (MPC) reports a huge fourth quarter earnings beat. Crista is keeping them both at Buy.
Weekly Update January 29: The stock market’s uptrend finally cracked late last week. Is this the beginning of the official market correction, or a prelude, or just a hiccup? Crista thinks it’s more than a hiccup. In her opinion, the market’s not falling because of the scary coronavirus that’s emerged from China, as news headlines might lead us to believe. The virus is just the catalyst for a correction that was overdue after the S&P 500 ran up 10% since late November. Here are today’s portfolio changes: Citigroup (C) moves from Hold to Retired, Mercury General Group (MCY) moves from Buy to Strong Buy, Quanta Services (PWR) moves from Strong Buy to Hold, Total SA (TOT) moves from Strong Buy to Hold and Tyson Foods (TSN) moves from Strong Buy to Hold.
Monthly Issue January 8: We are almost past a very quiet time period on Wall Street that featured a lack of major company news, M&A activity and earnings reports. As such, this will likely be the last recent issue where Crista has had to scour the internet for new information on our portfolio companies. Today’s featured stocks are those that she senses are most likely to rise this month: AXA Equitable (EQH), Broadcom (AVGO), LGI Homes (LGIH) and Tyson Foods (TSN). Today’s portfolio changes are: Alexion Pharmaceuticals (ALXN) moves from Strong Buy to Buy, Designer Brands (DBI) from Hold to Buy and Mosaic Company (MOS) from Hold to Buy.
Cabot Stock of the Week
Weekly Issue January 27: The long-awaited market correction has finally begun, and while you may be tempted to tie the correction to fundamental events, Tim doesn’t find any value in that—because all that news is public information so it has no real value to him. Instead, he prefers to watch the action of the stocks carefully, to judge where the money is flowing. As for this week’s recommendation, Axonics Modulation (AXNX), it’s a high-potential little medical stock that most investors haven’t heard of. It’s not for everyone, but it does provide diversity to our portfolio and it may be perfect for yours. Here are tonight’s changes: Citigroup (C) moves from Buy to Sell, Disney (DIS) from Buy to Hold, Dow, Inc. (DOW) from Buy to Sell, Enterprise Products Partners (EPD) from Buy to Sell and Pinduoduo (PDD) from Hold to Sell.
Cabot Global Stocks Explorer
Bi-weekly Update January 30: Carl’s recommendation right now is to do little and keep your powder dry as this virus scare plays out. It could really ramp up or, as we all hope, be contained soon with complete international cooperation. He has no portfolio changes today.
Special Bulletin January 27: To follow up on last Thursday’s issue that highlighted the worsening China virus, Carl believes it is appropriate for us to hedge China risk and volatility with an inverse China exchange-traded fund (ETF). This issue is impacting all markets but Chinese stocks are particularly vulnerable. He is adding a new half position to the Pro Shares Ultra Short China 50 ETF (FXP), which trades inversely to the China index by 200%.
Bi-weekly Issue January 23: This week’s leading issue is the China virus, which is impacting markets. Carl writes that we will need to keep an eye on this breaking issue. Our emerging market timer is clearly positive and today’s recommendation, Direxion Mexico 3X Bull ETF (MEXX), is in an emerging country that is the overlooked big winner from the two recent trade deals. It is in a nice uptrend and has fuel to burn going forward, backed by several positive trends. There is one portfolio change today: Freeport-McMoRan (FCX) from Buy a Half to Sell.
Cabot Small-Cap Confidential
Weekly Update January 30: Tyler is headed north this afternoon so this week’s update is coming a little early. As far as the market goes, there’s no doubt this coronavirus has thrown a wrench into things. But if it wasn’t the coronavirus, it would have been something else. Not that he’s wants to downplay the potential impacts of the virus – like most people he finds it more than a little alarming how these things pop up and spread. He has no portfolio changes today.
Monthly Issue January 3: Today’s addition is a familiar story, Model N (MODN) is a small software company with a purpose-built solution that works better than the patchwork of legacy solutions many companies still rely on, but which don’t work very well. But there is another angle. This company is transitioning from an on-premise to a Software-as-a-Service (SaaS) business model. The switch should accelerate growth and make the stock a lot more attractive to investors. Tyler has one portfolio change today: Construction Partners (ROAD) moves from BUY to HOLD.
Cabot Dividend Investor
Weekly Update January 29: Regardless of the impact of the coronavirus, earnings will be a big story going forward. It will be important to determine if after a period of declining earnings there is a rebound, which will be necessary to justify the market at current levels. Earnings will also have an impact on individual stocks in the portfolio, and Tom will certainly keep you posted in the weeks ahead. He has no rating changes today.
Monthly Issue January 8: In this issue Tom highlights a shipping stock that has remained profitable and paid dividends every single quarter through an industry depression. SFL Corp. Ltd. (SFL) is yielding a massive 9.6%. And industry conditions are improving. It may be 2020 in the overall market, but Tom found a place where it’s 2009 again. He has no portfolio changes today.
Cabot Marijuana Investor
Monthly Issue January 29: While most growth-oriented Cabot analysts are now advising an increasing dose of caution as the coronavirus correction develops, Tim is actually going to take some more of the cash that he’s had on the sideline, and put it back in the market by averaging up in three of our best stocks. He’ll increase our investment in Canopy Brands (CGC) by 3%, increase our investment in Cronos (CRON) by 3%, and increase our investment in Curaleaf (CURLF) by 2%. This will reduce our cash position to roughly 12%. Also, Turning Point Brands (TPB) is downgraded to Hold.
Update January 22: Tim’s game plan remains unchanged. Hold your strong stocks and sell the weak ones, with an eye to developing a portfolio of the leading stocks in the sector over the long run. As he writes this, the portfolio is 22% in cash, and he will use a bit of that (3% of the portfolio) to take a pilot position in Akerna (KERN).
Cabot Early Opportunities
Update January 29: The market has gotten a little jumpy given the potential impacts of a broader coronavirus outbreak and the trickle of earnings-related announcements, which have the grounding effect of telling us what’s actually going on inside companies these days. Given all this, Tyler wanted to provide a brief update on our stocks, as well as make a couple of ratings adjustments to reflect the crosscurrents in the market right now. He’s making these changes today: 10x Genomics (TXG) moves to HOLD, Cryoport (CYRX) moves to SELL for a roughly 25% gain, Digital Turbine (APPS) moves to HOLD and Frontdoor (FTDR) moves to HOLD.
Monthly Issue January 15: Today’s issue features five stocks across the market cap spectrum and from a wide variety of industries. Tyler has a young but rather large online retailer that’s crushing it in the pet supplies market, a supplier of industrial supplies that you’ve probably never heard of, a solar stock and an innovative software company that’s growing through viral use of its products. Then there’s this month’s Top Pick, Axonics Modulation (AXNX), a MedTech stock that’s just launched an innovative device that’s grabbing market share from the incumbent.
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Bonus Report: Secrets To Early-Stage Stock Profits
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Cabot Profit Booster
Weekly Issue January 28: STMicroelectronics is one of the world’s largest semiconductor companies, delivering solutions that are key to the smartphone and automotive markets. Major customers include Apple and Tesla, though the firm (which is based in Switzerland) sports more than 100,000 customers around the globe. Buy STMicroelectronics (STM) Stock at 29.25, Sell to Open March 30 Calls (exp. 3/20/2020) for $0.90, or a Net Price of 28.35 or less.
Frequently Asked Questions Report:
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Daily Alert January 31: Direxion Daily MSCI Mexico Bull 3X Shares Direxion Daily MSCI Mexico Bull 3 (MEXX) Cabot Global Stocks Explorer
Daily Alert January 30: Waste Management, Inc. (WM) The Personal Capitalist
Daily Alert January 29: CBOE Vest S&P 500 Dividend Aristocrats Target Income Index ETF (KNG) Safe Money Report
Daily Alert January 28: B2Gold Corp. (BTG) Forecasts & Strategies
Daily Alert January 27: ICFI International, Inc. (ICFI) Canaccord Genuity Research
Top Picks Issue January 16: It was a great year for the markets with the DJIA gaining 22.3%, the S&P 500 up 28.9% and the Nasdaq rose 35.2%. But it was even a better year for us! Our Top 5 Picks for 2019 averaged returns of 131%! William Velmer of S.A. Advisory was our big winner. His stock idea gained an astonishing 332%! In this year’s Top Picks issue, Nancy’s contributors are primarily focused on growth, technology and healthcare. But, she also offers several other categories for your review.
Ask the Experts
Cabot Options Trader
Question: If XYZ May 30 Call is Asking $3.50, with the Stock at $28 and I purchase 1000 contracts will my purchase cause the ASK/BID price of the Option to change?
Is there a correlation between the number of contracts purchased and the subsequent Option price.
Jacob: The answer is it depends on the stock. 1,000 contracts bought in BAC or KO won’t move the option price as those are very liquid stocks. 1,000 contracts bought in JD or TSM might move the option price $0.10 to $0.20 as those are less liquid stocks. 1,000 contracts bought in a random small cap or bio-tech will move that option price $0.50 - $1. And this has actually become an issue for the Cabot Options Trader service, and why we closed the service to new subscribers. Because of the success of COT over the last couple of years, when I’ve made recommendations we have moved the price dramatically at times. For example, on average when I make a recommendation my readers buy approximately $2 million worth of calls/puts. And because of this I have had to close the service as well as stick to slightly more liquid stocks. That being said, we are working on something new, that will allow me to make recommendations on less liquid stocks. Be on the look out for that in the weeks to come.
Cabot Marijuana Investor
Question: Hi Tim, I don’t know whether you remember but we met at the Cabot Wealth Summit last summer. What are your current thoughts on KushCo (KSHB)? It looks like it’s trying to bottom out (although it hasn’t made a full reversal yet). Given the business it is in, it seems a nice “side-door” entrance to the cannabis market, somewhat similar to IIPR which we have recently got in and is (so far!) going nicely for us. Thanks for an input you may have on KSHB
Tim: Thanks for writing. My portfolio used to own KSHB, but sold the last for a nice profit back in August at 3.76, just as the big decline was getting under way. The company’s latest quarterly report reveals the fundamental problem—the vaping crisis. So what comes next? The stock is cheap compared to many in the sector, and while it is not strong, it does have a slightly positive trend since the bottom. Like you, I like the diversification aspect of the business. But can the company continue to grow at a good pace? Probably, as management is quite creative about adapting to market forces of the industry (hemp trading was a surprise) —and the industry is growing. Thus my overall conclusion is positive.
Premium Reports
Quarterly Cabot Analyst Meeting
The recording of the quarterly Cabot Analyst Meeting from January 15, 2020 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 | Hold | ||||||
| ALXN | Strong Buy | ||||||
| AMZN | Buy | ||||||
| ANF | Strong Buy | ||||||
| APHA | See Advisory | ||||||
| APPF | Buy | ||||||
| ARE | Hold | Hold | |||||
| ARNA | Buy | ||||||
| AVGO | Strong Buy | ||||||
| AVLR | Buy | ||||||
| AXNX | Buy | ||||||
| BABA | Buy | ||||||
| BIP | Hold | Hold | |||||
| BKR | Buy | ||||||
| BSCL | Buy 1/2 | ||||||
| BX | Hold | ||||||
| C | Sell | Retired | |||||
| CCI | Buy | ||||||
| CDLX | Hold | ||||||
| CGC | See Advisory | ||||||
| CHCT | Hold 1/3 | ||||||
| CRAK | Hold | ||||||
| CRLBF | See Advisory | ||||||
| CRON | See Advisory | ||||||
| CTVA | Hold | ||||||
| CURLF | See Advisory | ||||||
| CZZ | Buy 1/2 | ||||||
| DAVA | Hold | ||||||
| DBI | Buy | Buy | |||||
| DIS | Hold | ||||||
| DOCU | Sell 1/3 | ||||||
| DOMO | Hold | ||||||
| DOW | Sell | Buy | |||||
| DXCM | Buy | ||||||
| EPD | Sell | Buy | |||||
| EQH | Strong Buy | ||||||
| EVBG | Buy | ||||||
| EVER | Hold 1/2 | ||||||
| FCX | Sold | ||||||
| FXP | Buy 1/2 | ||||||
| GES | Strong Buy | ||||||
| GM | Buy | ||||||
| GRWG | See Advisory | ||||||
| GSHD | Buy | ||||||
| GTBIF | See Advisory | ||||||
| HCAT | Buy | ||||||
| HTHT | Hold | ||||||
| IIPR | See Advisory | Buy | |||||
| INSP | Hold | ||||||
| IPHI | Buy | Buy | |||||
| KERN | See Advisory | ||||||
| LGIH | Hold | ||||||
| LK | Buy 1/2 | Hold | |||||
| MCY | Strong Buy | ||||||
| MEDIF | See Advisory | ||||||
| MEXX | Buy 1/2 | ||||||
| MO | Buy | ||||||
| MODN | Buy | ||||||
| MOS | Hold | ||||||
| MPC | Sold | Buy | |||||
| MRVL | Buy 1/2 | ||||||
| NEE | Hold | Hold 1/2 | |||||
| NFLX | Strong Buy | ||||||
| NVCR | Buy 1/2 | ||||||
| OGI | See Advisory | ||||||
| PDD | Sell | ||||||
| PGX | Buy 1/2 | ||||||
| PLNHF | See Advisory | ||||||
| PNGAY | Buy | ||||||
| PWR | Hold | ||||||
| QCOM | Buy | ||||||
| QRVO | Hold | Buy | |||||
| QTWO | Buy | ||||||
| RGEN | Buy | ||||||
| RIO | Buy | ||||||
| RKUNY | Hold 1/2 | ||||||
| RNG | Hold | ||||||
| ROAD | Hold | ||||||
| RPD | Buy | ||||||
| SE | Buy 1/2 | Buy | Buy | ||||
| SFL | Buy | ||||||
| SPCE | Buy a Half | Buy | |||||
| SSO | Sell 1/3 | ||||||
| STAG | Hold | ||||||
| TCNNF | See Advisory | Hold | |||||
| TDOC | Buy | ||||||
| TOT | Hold | ||||||
| TPB | See Advisory | ||||||
| TSLA | Hold | ||||||
| TSN | Hold | ||||||
| UEIC | Buy | ||||||
| VLO | Buy | ||||||
| VOYA | Buy | ||||||
| VRTX | Buy | Buy | |||||
| XEL | Hold 2/3 |