Cabot Prime Pro Week Week Ending January 4, 2019
Cabot Weekly Review (Video)
In this week’s stock market video, Mike Cintolo says not much has changed with the market from a trend perspective; he’s still defensive and holding plenty of cash, as he has since early October. That said, he’s encouraged by some of the historic oversold and sentiment readings seen at the Christmas low that increase the odds the market is starting (or will soon start) a bottoming process. Mike looks at key indexes and sectors, and reviews some themes he’s seeing emerge as favorites for the next advance.
Advisory Services
Cabot Growth Investor
Bi-weekly Issue January 3: In tonight’s issue, Mike has no changes, but he does talk about one simple sell tool he’s adding to our arsenal, dives into three intriguing stocks and updates our expanded watch list.
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.
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 4: The market’s been all over the place in this holiday-shortened week, continuing the wild action we’ve seen of late. Net-net, after this morning’s jobs-inspired bounce, the major indexes are up decently on the week, with the S&P 500 up 1% and Nasdaq up 1.6%. Mike says it’s still best to stay mostly defensive until the trends turn up, which will take at least a couple of weeks even if the indexes rise from here. Today’s Buy ideas: Etsy (ETSY), Kirkland Lake Gold (KL) and Pinduoduo (PDD).
Weekly Issue December 31: Mike says that he’s still seeing a good number of resilient ideas, including many with great growth stories. If you’re looking to nibble, his Top Pick this week is Planet Fitness (PLNT), which has a unique, independent growth story that continues to attract big investors.
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 Sector on Watch January 4: In June of 2018 speculative Chinese internet stocks exploded higher. Jacob was fortunate enough to spot the trend early, and we rode one of those stocks iQIYI (IQ) for a gain of over 300%. Since then, the sector has been a total mess as most of these stocks have essentially crashed. That said, there may be the start of a tone change for this group as many of these stocks are seeing call buying activity today.
Cabot Options Trader Alert January 4: Buy the Zscaler (ZS) May 44 Calls (exp. 5/17/2019) for $6 or less.
Cabot Options Trader Market Update January 3: For the bulls, the news the last 24 hours probably couldn’t be much worse. First Apple (AAPL) cut its revenue outlook last night. Then Delta Airlines (DAL) warned fourth quarter unit revenue would be below prior forecasts, which caused the stock to drop 10%. And perhaps of greater concern for traders, the U.S. ISM Manufacturing Index dropped by the most since 2008, falling to a two-year low and raising concerns about the state of the U.S. economy.
Cabot Options Trader Stocks on Watch December 31: Not surprisingly, options trading is fairly quiet today as 2018 wraps up. That said, Jacob is very closely watching how options traders are positioning for 2019, and one trend that he’s picking up on today is call buyers in “defensive/slow” stocks.
Cabot Options Trader Weekly Market Update December 31: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week at 28.34, though well off its highs above 36 on Monday. This break above 36 was a 10-month high for the “fear index” as the market was aggressively falling to new recent lows. What Jacob will focus on in the early days of 2019, after the tax-loss selling and re-positioning has stopped, will be if the hot money rotates into the beaten sectors such as Financials and Oil Services and out of Software and Cloud stocks, or if those 2018 trends continue.
Cabot Options Trader Pro Weekly Market Update December 31: Jacob has four long positions: CIEN, ON, RF, TWTR and one position not impacting his decision making: PSTG.
Cabot Undervalued Stocks Advisor
Special Bulletin January 4: GameStop (GME) rose 11% this morning upon a Reuters report that private equity firms Sycamore Partners and/or Apollo Global Management (APO) might announce a buyout of GameStop in February. Crista’s suggestion is that shareholders hold GME and await the potential buyout announcement. She also reports that Bristol-Myers Squibb (BMY) has agreed to acquire Celgene (CELG). (Neither stock is featured in the Cabot Undervalued Stocks Advisor portfolios.)
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.
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.
Cabot Stock of the Week
Weekly Issue January 2: December was a terrible month for investors, but that’s now in the rearview mirror, and Tim’s job going forward is to ensure that our portfolio holds onto the stocks with the best prospects while ditching those that won’t move up soon. One way to compare stocks is to look at when they bottomed; we have a number that bottomed in November or even October and the fact that they weren’t pulled down by the market in December is encouraging. Another way is to compare the way stocks bounce off the recent bottom. The bounce has been fairly universal so far, but in the weeks ahead, Tim expects some of our stocks to falter, and those are likely to be sold. Today’s recommendation from Crista Huff, chief analyst of Cabot Undervalued Stocks Advisor, is Apollo Global Management (APO). And there is one portfolio change: General Motors (GM) moves from Buy to Hold.
Cabot Emerging Markets Investor
Bi-weekly Update January 3: Cabot’s Emerging Markets Investor new Chief Analyst Carl Delfeld reviews the basics of investing in emerging markets and updates us on all the stocks in the portfolio. Today he is recommending two stocks to be Sold. Autohone (ATHM) moves from Hold a Half to Sell and BilliBilli (BILI) from Hold to Sell.
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.
Cabot Small-Cap Confidential
Weekly Update January 4: Due to the New Year’s Day holiday this month’s Issue of Cabot Small-Cap Confidential will be published next Monday, January 7. Today’s Weekly Update (included below) is being published on its normal schedule. Tyler writes that one potential positive for small caps is that the asset class has less exposure to international trade than large caps. While growth in the U.S. is likely to slow some, and access to capital is tightening, this domestic focus should still provide some insulation from trade headwinds. He has one portfolio change today: Altair Engineering (ALTR) Moves to Sell Second Half.
Special Bulletin December 31: Tyler writes that the market appears to have firmed up a little over the last week. It’s hard to say what the reason(s) is/are. Perhaps sentiment got too negative and is rebounding, maybe the computer programs blamed for some of the market weakness took some time off over the holiday, or maybe investors are finally done tax loss selling and/or see compelling values out there. Whatever the reasons, it looks like time to take a small step back into the market. He’s filling the second half of our two most recent positions, both of which were added to the portfolio during historically awful months! Buy Second Half of Positions in Repligen (RGEN) and Codexis (CDXS).
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 January 2: Our new Chief Analyst, Tom Hutchinson writes that it is likely that we have not yet seen the bottom but the market will recover nicely into the first part of this year. The economy is still way too strong for a recession in the foreseeable future. The market is oversold and once the panic subsides we should rally. But things may get worse before they get better. Tom has one rating change today, McCormick & Co (MKC) 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
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
Top Picks Daily Alert January 4: Planet Fitness, Inc. (PLNT) from Equity Research & Portfolio Evaluation, Inc.
Top Picks Daily Alert January 3: Catasys, Inc. (CATS) from Nate’s Notes
Top Picks Daily Alert January 2: Twilio Inc. (TWLO) from Cabot Growth Investor
Top Picks Daily Alert December 31: Green Dot Corporation (GDOT) from Cabot Stock of the Week
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 January 4: Clearway Energy Inc (CWEN) from Conrad’s Utility Investor
Top Picks Daily Alert January 3: AbbVie Inc. (ABBV) from Cabot Dividend Investor
Top Picks Daily Alert January 2: Tekla Life Sciences Investors (HQL) from Nate’s Notes
Top Picks Daily Alert December 31: Cardinal Health, Inc. (CAH) from Sure Dividend
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.
Ask the Experts
Cabot Options Trader
Question: Thanks for the information. It certainly looks as though you have quite a successful strategy in buying calls. I am looking for more of a covered call writing strategy as I would think the premiums would enable a good rate of return using names that Mike Cintolo uses and others who use the Cabot market timing and stock selection model. It looks as though your covered call strategy is sporadic and that you see greater use of your time looking for successful buying of calls. Rather than buying the GLW call on 11/7/17, would you have done well producing a >5% yield on a covered call trade? I really think there is a need for a covered call writing service using the Cabot methodology, thereby ensuring a high current income with growth. Would love to know if you or the publisher will be open to such a service.
Jacob: Thanks for the email. And yes in the past I have used stock selections from Mike’s service, as well as other Cabot editors, to great success with a covered call strategy. In fact, every morning as part of Cabot Options Trader you get two covered call ideas. Often times these picks are based on Cabot editors picks, as well as stocks in which I am seeing bullish option activity. Here is an example from this morning’s email to Cabot Options Trader subscribers: Buy Zscaler (ZS) Stock at 40, Sell February 40 Calls for $3, Static Return: 8.1%, Breakeven: 37, Covered Call Return (if assigned): 8.1% and Buy PayPal Holdings (PYPL) Stock at 86, Sell February 87.5 Calls for $4, Static Return: 4.87%, Breakeven: 82, Covered Call Return (if assigned): 6.7%. Though I would note, these are just ideas, and I don’t track these trades going forward.
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.
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.