Cabot Prime Pro Week Ending July 10, 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, In this week’s video, Mike Cintolo discusses the continued positive vibes from leading stocks and the Nasdaq … as well as the lagging action from the broad market (including one way he likes to determine if the weakness is spreading). Overall, he remains bullish (about 90% invested) and runs through some stocks and sectors that are recently finding buyers and could be just starting their runs.
UPCOMING CABOT EVENTS:
Cabot Wealth Summit Online — August 18-20, 2020
Take Advantage of our Prime Member Discount
REGISTER NOW
Cabot Prime Members Meeting with the Analysts: 3rd Quarter 2020
FREE WEBINAR FOR PRIME MEMBERS ONLY: Wednesday, July 15 Sign up now.
Three Stocks for Three “Blue Ocean” Global Trends
WEBINAR: Wednesday, July 22, By Carl Delfeld, Chief Analyst of Cabot Global Stocks Explorer Sign up now for FREE.
Cabot Retirement Club Member Call - July 2020
FREE WEBINAR FOR PRIME MEMBERS ONLY: Thursday, July 23 Sign up now.
Advisory Services
Cabot Growth Investor
Bi-weekly Update July 9: Growth stocks remain very strong, and our market timing indicators remain positive, so you should remain mostly bullish. Of course, you should also keep your feet on the ground, as there’s little doubt things are fairly frothy here so some potholes could occur at any time. That said, Mike will continue to mostly ride things higher and look for opportunities to put money to work. Tonight, he’ll fill out our position in Chegg (CHGG) by adding another 5% stake. He’s also restoring a buy rating on Dexcom (DXCM). That will leave us with around 9% in cash.
Bi-weekly Issue July 2: Overall, Mike remains flexible and is keeping his eyes open for danger signs, but with the evidence mostly positive, he remains mostly bullish. In tonight’s issue, he writes about one new liquid leader he’d love to own at the right price, along with all the latest thoughts on our stocks and the market. There are no portfolio changes today.
Other Stocks of Interest June 18: Follow ups to stocks featured February 13, 2020 (issue 1439) to June 18, 2020 (issue 1448). 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.
Cabot Top Ten Trader
Movers & Shakers July 10: Mike is still mostly bullish—leading stocks are strong and the market’s main trends are up, and those are the two most important pieces of evidence to us. That said, it’s vital to keep your feet on the ground here, as the risk of some sharp pullbacks in extended leading stocks (either as part of a rotation into cyclical names or as part of an overall market correction) is rising. He’s likely to pull down our Market Monitor to a level 7 come Monday given the uncertainties, but he advises you to stick with the game plan—look for good entry points on the buy side and hold onto your best performers, but trail stops and don’t be afraid to book some partial (or full) profits on the way up, either. Today’s suggested buys are: Bill.com (BILL), Pan American Silver (PAAS), LGI Homes (LGIH) and Seattle Genetics (SGEN). There are no specific sells today.
Weekly Issue July 6: Coming into last week, the market was at a key juncture, with many indexes testing their key 50-day lines and even the Nasdaq testing its 25-day line, which has contained its post-bottom advance. Happily, those tests were passed, and now we see the Nasdaq at new highs and other indexes getting some daylight above their 50-day lines. Of course, there are still a few issues out there, as the environment remains relatively bifurcated and there are few stocks at great entry points after 15-plus weeks on the upside; sentiment is also getting a touch euphoric. Thus, you should continue to keep your feet on the ground and not pile into stuff sticking straight up in the air, but you should also respect the primary, bullish evidence and stick to a heavily invested stance. This week’s list has a bit of a secondary feel to it, though all the names have enticing stories and charts. For Mike’s Top Pick, he’s going with Ultragenyx (RARE), one of many biotech stocks that’s showing renewed strength.
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 July 10: Peloton (PTON) is breaking out to another all-time high today at 66. This has pushed our October 45 calls that were originally purchased for $6.60 to be worth $23, or a potential profit of 250%. Jacob is going to continue to hold this position looking for more upside … though he is raising his mental stop from $12 all the way to $17 on our calls.
Cabot Options Trader Pro Trade Alert July 9: Adjust Existing Position: Against your Pelaton (PTON) October 45 Calls, Sell the August 85 Calls (exp. 8/21) for $1.50 or more.
Cabot Options Trader Basic and Pro Trade Alert July 8: Sell Half of Existing Position: Sell HALF of your JD.com (JD) November 62.5 Calls for $8.80 or more.
Cabot Options Trader Stock on Watch July 7: Yesterday it was announced that Uber (UBER) would acquire Postmates for $2.65 billion in an all-stock transaction. In reaction to this announcement UBER stock rose nearly $2 yesterday, and is up another $0.75 today. Jacob is intrigued by this stock move and option activity in UBER the last two days as it’s possible that this deal with Postmates may have changed the perception of UBER stock in the minds of investors.
Cabot Options Trader Position Update July 6: Position Update - Peloton (PTON) Today, Jacob wanted to update our Peloton (PTON) October 45 call position. Originally, we bought our calls for $6.60, and today the stock is making a new all-time high at 61. This stock move has helped push our calls to be worth $18.6, or a potential profit of 182%.
Cabot Undervalued Stocks Advisor
Weekly Update July 8: New Chief Analyst Bruce Kaser answers the question: What does an investor do in this two-tier market? First, simply being aware of this distortion is valuable. When thinking about a stock, asking “which bucket does it fall into… the beneficiary bucket or the all-others bucket” can be illuminating. Riding a beneficiary can work exceptionally well. Avoiding stocks in the all-others bucket can, too. However, trends don’t continue forever, and the momentum will change, perhaps abruptly. So, check to see how much you have in each bucket – are you too concentrated in one (either one) and too light in the other? Think today about what would push you to shift your positions, when “enough is enough.” Here are today’s portfolio changes: Bruce is Relocating Marathon Petroleum (MPC) to the Special Situations and Movie Star Portfolio and VanEck Vectors Oil Refiners ETF (CRAK) moves from Buy to Hold.
Monthly Issue July 1: As the new Chief Analyst for the Undervalued Stock Advisor, Bruce Kaser, would like to thank you for reading this month’s letter. He knows you have many sources of investment ideas and advice, and he appreciates your interest in our service. Today’s featured companies include an undervalued but high-quality and well-capitalized consumer apparel company, Columbia Sportswear (COLM), as well as Quanta Services (PWR), Dow Inc (DOW) and Equitable Holdings (EQH). Here are today’s portfolio changes: Columbia Sportswear (COLM) is a new Buy, Quanta Services (PWR) moves to Buy from Hold and Marathon Petroleum (MPC) moves to Hold from Buy.
Cabot Stock of the Week
Weekly Issue July 6: The market remains in good health and trending higher, so while there’s always a possibility of a big correction starting any day, the important thing is to remain heavily invested, because the trend is your friend. As for the newest recommendation, SelectQuote (SLQT), after last week’s dividend-payer, this week qw swing back to the small and aggressive side of the market, with a fast-growing company that’s thriving by providing a great consumer service in the cloud. Tim has two changes today: Tyson Foods (TSN) moves to Sell and Vertex Pharmaceuticals (VRTX) moves to Hold.
Cabot Global Stocks Explorer
Bi-weekly Issue July 9: Today’s new recommendation, Swire Pacific (SWRAY), is a blue-chip Hong Kong conglomerate with roots going back to the early 19th century. It is a value play in a Hong Kong that is moving from being the Asian and perhaps even the global capital of financial markets to just another important Chinese city. The ramifications of the new Chinese national security law and administration will take time to play out but no doubt will be significant. China is definitely a momentum market that can be both volatile and unpredictable. Carl doesn’t know how long this current rally will last but for aggressive traders, he suggests adding a small allocation to Direxion Daily FTSE China Bull 3X Shares (YINN) leveraged ETF that moves three times the market in either direction. Please put in place a 20% trailing stop loss for some protection in case the market goes the other way.
Bi-weekly Update July 2: Today Carl writes that as we move into the third quarter, analysts at Goldman Sachs write that their baseline forecast is for the S&P 500 to gain 5% in the second half of the year. In their “vaccine upside” scenario, stocks rise by 14% from here; in the “virus downside” scenario, they drop 30%. This is all speculative, of course. As companies begin releasing second-quarter earnings reports, we will find out just where things stand. According to FactSet, analysts estimate that profits at blue-chip American companies fell 44% in the second quarter. Carl has two portfolio changes today: FANUC (FANUY) Moves from Hold to Sell and TRIP.COM (TCOM) Moves from Buy to Hold a Half.
Cabot Small-Cap Confidential
Weekly Update July 9: Looking forward, the big next big thing is earnings season. That will give us some sense of whether or not growth expectations for all these soaring technology stocks are completely out of whack with reality. Out of that we’ll have to try to determine if growth expectations validate valuations, or if those are moving into the stratosphere too. In the meantime, let’s continue to take our guidance from the market. We have a couple more weeks before things start to get crazy (earnings season heats up) and Tyler suggests we all try to enjoy the relative calm. He has has one portfolio change today: Avalara (AVLR) moves to HOLD.
Monthly Issue July 2: Digital payments were already a big trend prior to Covid-19. But the pandemic has pulled forward demand for solutions that help businesses pay and get paid whenever, wherever, and however. Today Tyler is profiling a small company, Repay Holdings (RPAY), that specializes in payment processing solutions. It’s relatively new to the public markets and has a market cap well under $2 billion. While areas of its business have been harmed by the pandemic, the big-picture story remains great. And management reported record sales activity in both March and April. And the stock’s looking great.
Cabot Dividend Investor
Monthly Issue July 8: While everyone is focused on the near-term risks and inconveniences of this pandemic, lasting changes are being forged. Major events have a way of reshaping the American psyche and changing behavior. This pandemic ordeal is forever altering aspects of our culture, creating an a unique opportunity for investors. In this month’s issue Tom highlights a stock that directly benefits from the fact that people will continue to do more things from home than they did before the pandemic. B&G Foods Inc. (BGS), sells popular packaged food brands. Business is booming and should stay good for a long time. He has no other portfolio changes.
Weekly Update July 1: Tom likes the prognosis for the market longer term. But it may knock around for a while and be subject to headline risk in the weeks ahead. He doesn’t expect a big selloff. But he sees more downside risk than upside potential in the weeks ahead. For that reason, he is being cautious. Several portfolio positions were partially sold two weeks ago. And he’s still being stingy with the BUY ratings. There are no rating changes today.
Cabot Marijuana Investor
Update July 1: The stocks in the marijuana sector have pretty much traded in sync with the broad market since the March bottom, climbing strongly to late-May or early-June peaks and consolidating those gains since, with many stocks pulling back to sensible support levels. To simplify matters further, this week Tim has divided these stocks into four categories: Weak, Average, Strong and Strongest. For new buying, he suggests focusing on the Strong and Strongest. And if you own stocks in the other categories, at the moment, he doesn’t see any that deserve to be sold, but he is downgrading three to Hold. Akerna (KERN), Cresco Labs (CRLBF) and Tilray (TLRY) to Hold.
Monthly Issue June 24: Our long-term goal is to own the leading stocks in the marijuana industry, so that five and ten years from now, our profits will be spectacular. The stocks in our portfolio today are absolutely your best bet to achieve that goal. But this is a volatile sector, so buying at the right time is key—and Tim thinks today presents a good buying opportunity, but he might be wrong. Luckily, the solution to that is diversification, not only by geography and company but also by time. So buy some now, but don’t put it all in today. Time is your ally and we are still early in this race. The portfolio holds a cash position of 14% and he’s now going to use one-third of that cash to average up in Aphria (APHA).
Special Report: April 29, 2020
U.S. Vertically Integrated Multistate Operators (MSOs)Cabot Early Opportunities
Special Bulletin June 29: With a portfolio flush with positions and the market having gotten a little choppy lately we’re going to move incrementally more conservative today. Tyler is taking the following actions: Axonics Modulation (AXNX), Sunnova Energy (NOVA) and Tela Bio (TELA) all move to SELL. Solaredge Technologies (SEDG) and Viela Bio (VIE) Move to Hold.
Monthly Issue June 17: This month’s Issue of Cabot Early Opportunities features a fresh group of stocks that all have their own merits, but which have remained reasonably strong through the recent volatility. Tyler has a newly public company selling health insurance directly to consumers, a rapid growth software company enabling automation for small businesses, an emerging MedTech innovator and a company benefitting from surging demand for boats. His top pick is Purple Innovations (PRPL), one of several emerging bed-in-a-box companies.
Cabot Profit Booster
Weekly Issue July 7: The Stock – Upwork (UPWK) UPWK came public in early October 2018 (terrible timing for the stock, though good for the company); from the low 20s then, the stock sank steadily all the way to 5 at the March 2020 market low. But now it’s a different animal—shares exploded higher over a six-week stretch starting in early April, consolidated tightly in the 12 area for five weeks and resumed their advance the past two weeks. UPWK is thinly traded (~$40 million per day) and choppy, so aim to buy on weakness. Stop – 11.5. The Covered Call Trade Buy Upwork (UPWK) Stock at 14.50, Sell to Open August 15 Strike Calls (exp. 8/21/2020) for $1.10, or a Net Price of 13.40 or less.
Cabot Micro-Cap Insider
Monthly Issue July 8: This issue, Rich profiles Greystone Logistics (GLGI), a classic micro-cap company that is growing earnings 140% this year but only trades at 6.6x earnings. The current recommendations have performed very well and, importantly, the long-term performance of micro caps as a group speaks for itself (18% annual CAGR). Rich continues to find many attractive, growing micro caps trading at cheap valuations, and look forward to sharing them in future issues.
Weekly Update July 1: Over the past few weeks, Rich has gotten several inquiries about a company called Genius Brands International (GNUS). After reviewing GNUS, he wants to share his thoughts with all subscribers because the stock is the perfect example of what he avoids when evaluating micro caps. Here are the changes this week: Rich is Upgrading PIOE to Buy below 2.50 and HPTO moves to Hold.
Special Report
A Defensive Healthcare Stock with 100% UpsideSpecial Report
The Best Way to Play the Oil Market DislocationCabot Income Advisor
Weekly Update July 8: Tom writes that the good news is that there are still a lot of high yields out there. The overall market has moved a lot higher in the last several months, but many stocks are still cheap and high yielding. There are still some of the highest yields in a decade. All things considered, it’s still a good environment for income. Today’s change: Sell EPD August 21 $21 call at $0.65 or higher – REMOVE TRADE.
Monthly Issue June 24: In this issue, Tom highlights three stocks to buy and at the same time offer covered call ideas on those same stocks. The simultaneous purchase of a stock and the writing of a call is called a buy/write. The current environment is ripe for such a strategy. As usual, he recommends selling a call that represents the position. If you buy 500 shares, write 5 calls. If you have 1,000 shares, write 10 calls.
Special Report:
Off the Radar Cash GeneratorsSpecial Report:
The Covered Call Income MachineWall Street’s Best Investments
Top Pick Update Daily Alert July 10: EnLink Midstream, LLC (ENLC) Cotton’s Technically Speaking
Top Pick Update Daily Alert July 9: Qorvo, Inc. (QRVO) Cabot Top Ten Trader
Top Pick Update Daily Alert July 8: The Walt Disney Company (DIS) Cabot Stock of the Week
Top Pick Update Daily Alert July 7: Predictive Technology Group, Inc. (PRED) S.A. Advisory
Top Pick Update Daily Alert July 6: Sell: Inovio Pharmaceuticals, Inc. (INO) Cotton’s Technically Speaking
Monthly Issue June 18: Advisors and consumers are back on the bullish track, as you’ll see in our Barometer, as well as Market Views. Despite the market’s rise, there are still plenty of undervalued stocks in the marketplace. And Nancy begins this issue with our Spotlight Stock, Okta, Inc. (OKTA), a technology company that is gaining market share in the highly competitive field of cybersecurity—in this case, specializing in ID authentication for employees and customers. Her feature article explores the industry in more depth, as well as additional reasons for adding the Spotlight Stock to your portfolio.
Ask the Experts
Cabot Stock of the Week
Question: Dear Tim, My stocks are doing so well right now---thank you, Elon Musk---that I have more money than I have ever seen. So much that I am feeling nervous about it. Should I just be happy with what I have and sell everything? Sell half and start over with new stocks over the next few weeks? Or stay patient and do nothing?Or something else? This is an amazingly wonderful problem for me to have, but entirely unfamiliar. Were there no pandemic, no riots in the streets, I would feel only joy. But given the current state of affairs, I would appreciate a few words of your wisdom.
Tim: The time-tested answer is…sell down to the sleeping point. That is, if you’re losing sleep, reduce your risk by selling some. Your health is more important than money. The more complex answer is: The market is a bit frothy near-term (and TSLA is certainly ripe for a pullback), but it’s very hard to pick tops, so if you have time (years of investing ahead), and your stocks have upside potential (as all my recommendations do), holding is recommended. There are several technical indicators that say the market will actually be higher in the months ahead. However, if you want to take SOME action, sell a piece of something that you think is too high. Hold the cash. Then wait a while (at least a week). And if your action appears worthwhile at that time, do it again (or something similar). I would not recommend trying to switch horses in mid-stream. If you’ve got stocks that are working, stick with them; don’t try to sell high and buy something else that is low. Sure, the world is a mess, but it’s well known that “bull markets climb a wall of worry” so try not to let the world’s current challenges interfere with sound investing practice. The fact is, when the news is “good” the market is likely to top.
Cabot Profit Booster
Question: My Pelaton stock was assigned/sold today, 10 days before the option expiration date . Given that Pelaton does not pay a dividend, I was surprised it was assigned early. Do you have any thoughts on why the option holder exercised the stock purchase, rather than just selling his call option? Just curious.
Jacob: Why someone would exercise his calls early is anyone’s guess as it’s typically not economically beneficial to do so. However, if I were to speculate he probably wanted to control a PTON stock position, and the only way to do that is to exercise his call.That being said, it doesn’t impact you one way or another. You get your full profit of approximately 10% a week and a half early.
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts from April 15, 2020 is now available for you to listen to at your convenience—click here for access. This private call with our analysts is one of your exclusive Cabot Prime Pro member benefits.
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 | Hold | Buy | |||||
| ADBE | Hold | ||||||
| AMZN | Hold | ||||||
| APHA | See Advisory | ||||||
| APPF | Hold | ||||||
| ARE | Hold | ||||||
| ARNA | Buy | ||||||
| AVGO | Hold | ||||||
| AVLR | Hold | ||||||
| BABA | Hold | ||||||
| BGS | Buy | ||||||
| BIG | Buy | ||||||
| BIP | Buy | Buy 2/3 | |||||
| BMY | Strong Buy | ||||||
| BSCL | Buy 1/2 | ||||||
| BUG | Hold 1/2 | Buy | |||||
| BYND | Buy | ||||||
| CCI | Hold 1/2 | ||||||
| CDLX | Hold | ||||||
| CGC | See Advisory | ||||||
| CHGG | Buy another 1/2 | Buy | |||||
| CHWY | Sold | ||||||
| COLM | Buy | ||||||
| CRAK | Hold | ||||||
| CRLBF | See Advisory | ||||||
| CRON | See Advisory | ||||||
| CURLF | See Advisory | ||||||
| DBSDY | Buy 1/2 | ||||||
| DOCU | Hold | ||||||
| DOW | Buy | ||||||
| DXCM | Buy | ||||||
| EPD | Hold | ||||||
| EQH | Strong Buy | ||||||
| EVBG | Buy | ||||||
| EVER | Hold 1/2 | ||||||
| FANUY | Sold | ||||||
| FVRR | Hold 3/4 | ||||||
| GFL | Buy | ||||||
| GILD | Buy 1/2 | ||||||
| GM | Strong Buy | ||||||
| GRWG | See Advisory | ||||||
| GSHD | Hold 3/4 | ||||||
| GTBIF | See Advisory | ||||||
| HTHT | Hold | ||||||
| IIPR | See Advisory | Hold 2/3 | |||||
| INSP | Hold | ||||||
| KERN | See Advisory | ||||||
| KL | Buy 1/2 | ||||||
| KPTI | Buy | ||||||
| MKSI | Hold | ||||||
| MO | Buy | ||||||
| MPC | Hold | ||||||
| NEE | Hold | Hold 1/2 | |||||
| NET | Buy | Buy | |||||
| NFLX | Hold | ||||||
| NVDA | Hold | Strong Buy | |||||
| OKTA | Buy | ||||||
| PGX | Hold 1/2 | ||||||
| PLMR | Buy | ||||||
| PWR | Buy | ||||||
| QCOM | Hold 2/3 | ||||||
| QTWO | Buy | ||||||
| REMX | Buy 1/2 | ||||||
| RGEN | Buy | ||||||
| RNG | Hold | ||||||
| RPAY | Buy | ||||||
| SE | Hold 1/2 | Hold | |||||
| SLQT | Buy | ||||||
| SPCE | Buy | Buy | |||||
| SSO | Buy | ||||||
| STAG | Hold 1/2 | ||||||
| SWRAY | Buy | ||||||
| TCNNF | See Advisory | Buy | |||||
| TCOM | Hold 1/2 | ||||||
| TDOC | Buy | ||||||
| TLRY | See Advisory | ||||||
| TOT | Hold | ||||||
| TPB | See Advisory | ||||||
| TSLA | Hold | ||||||
| TSN | Sell | Buy | |||||
| TWLO | Buy | ||||||
| UEIC | Strong Buy | ||||||
| VLO | Hold 1/2 | ||||||
| VOYA | Strong Buy | ||||||
| VRTX | Hold | Hold | |||||
| VZ | Sold | Buy | |||||
| WING | Buy | ||||||
| XEL | Hold 2/3 | ||||||
| YINN | Buy a Small Position | ||||||
| ZM | Hold | ||||||
| ZS | Hold |