Please ensure Javascript is enabled for purposes of website accessibility
Cabot Prime Pro Logo
Cabot Prime Pro

Weekly Summary July 19, 2019

Cabot Prime Pro Week Ending July 19, 2019

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, Chief Analyst of Cabot Top Ten Trader and Cabot Growth Investor, talks about his very bullish view of the overall market when looking out a few months due to some fresh blastoff signals triggered by the strong rally since early June. That said, with some stocks chopping around and with earnings season getting underway, he’s a bit choosy on the buy side, looking for some new leadership to emerge (or playing some early-stage pullbacks) in the weeks ahead.

CABOT EVENTS:

SPECIAL FREE WEBINAR OFFER - Hosted by Nancy Zambell

Top Stocks to Make You Money Now, Regardless of Your Investing Style | Tuesday, July 23

Register Now

Cabot Wealth Summit 2019

7th Annual Conference | Wed-Fri, Aug 14-16 | Salem, Mass.

We’ve added a beginning investors workshop to help you understand the terminology and concepts of investing so you will be better prepared to make more money.The cost of the workshop is $197 but as a Cabot Prime member, once you register for the summit, you can attend the additional workshop for FREE.

Learn More and Reserve Your Place

Advisory Services

Cabot Growth Investor

Bi-weekly Issue July 18: In this issue, Mike says that Cabot’s market timing indicators, the action of leading stocks and the 7.5% Rule—all tell us higher prices are likely in the months ahead. In the Model Portfolio, Mike adds a 4% position to the ProShares Ultra S&P (SSO) stake.Portfolio’s cash position will now be 18%, which Mike is aiming to deploy as some fresh leadership emerges.
Bi-weekly Update July 11: Mike says to remain mostly bullish, but continue to pick your spots. The overall market looks great, and our own 7.5% Rule has flashed, portending higher prices in the months ahead. That said, many stocks are extended and/or have earnings coming up soon, so some near-term hesitation isn’t uncalled for. In the Model Portfolio, most of our stocks act well and Mike is close to putting some more money to work, but he’ll stand pat for the moment, maintaining our 23% cash position.

Other Stocks of Interest June 20: Follow ups to stocks featured January 17, 2019 (issue 1411) to June 20, 2019 (issue 1422). 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 19: It’s been a relatively quiet week for the major indexes, which is fine by us given the prior five-week run-up. Overall, nothing has changed with the market’s intermediate- to longer-term outlook—the trends are pointed up, most leading stocks are in good shape and a couple of rare green lights that flashed earlier this month bode well for the bull market when looking months down the road. Mike’s buy ideas are: Ciena (CIEN), Kratos (KTOS) and Match.com (MTCH). On the sell side, Amarin (AMRN) tripped Mike’s loss limit after announcing a good-sized secondary offering and will be sold. If you have a good profit in PagSeguro (PAGS) you probably might want to take some chips off the table.
Weekly Issue July 15: All in all, Mike’s advice remains the same: Hold your strong stocks (though booking partial profits on the way up makes sense) and remain mostly invested, but for new buying, focus on stocks that have shown strong recent accumulation and look for decent entry points, especially if the firm is reporting earnings soon. This week’s list has a bevy of potential leaders, including a few names that are trying to emerge from multi-month rest periods. Mike’s Top Pick is Elastic (ESTC), an IPO from last year that’s racing up the right-hand side of a four-month consolidation.

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 Alert July 19: Exit Existing Position: Sell your Snap (SNAP) Stock and Buy back the July 14.5 Call.

Cabot Options Trader Position Updates July 19: Jacob gives the updates on Microsoft (MSFT), Regions Financial (RF) and Medtronic (MDT) and mentions Ally Financial (ALLY) that he has on his watch list from this past week’s earnings.

Cabot Options Trader Alert July 18: Exit Existing Position: Sell your Corning (GLW) August 34 Calls for $0.50 or more.

Cabot Options Trader Pro Alert July 18: Exit Existing Position: Sell your Corning (GLW) August 34/38 Bull Call Spread for $0.50 or more.

Cabot Options Trader Position Update: July 18: Snap (SNAP) is our lone position expiring tomorrow. Jacob gives exit position instructions however also mentions that he’ll send an update tomorrow.

Cabot Options Trader Earnings July 18: Earnings season kicks off for our portfolio tonight with Microsoft (MSFT), and tomorrow with Regions Financial (RF)
Cabot Options Trader Earnings July 17: Netflix (NFLX) will report earnings today after the close and Blackstone (BX) reports tomorrow before the open.

Cabot Options Trader Earnings July 16: Two of our stocks are attracting interesting call buying activity. Medtronic (MDT) is again trading slightly above 100, which has pushed our November call position to a potential profit of 22%. Our most recent purchase, the Metals & Mining ETF (XME) January 29 Calls got off to a slightly rocky start as the ETF pulled back marginally last week.

Cabot Options Trader Alert July 16: Sell Half of Existing Position: Sell HALF your Sea (SE) August 26 Calls for $9 or more.

Cabot Options Trader Earnings July 16: Bank of America (BAC) reports earnings tomorrow before the open. With the stock trading at 29, the options market is pricing in a move of $0.90, or 28.10 to the downside and 29.9 to the upside.

Cabot Options Trader Earnings Season July 15: As Jacob has noted in the past he has a deep love/hate relationship with earnings season. The hate comes from the potential blow-ups and largely his belief that there is little edge in initiating new trades into the event. The love comes from finding companies that report earnings blowouts and then turn into stock stars. He expects us to initiate many new positions in those stock stars in the coming weeks.

Cabot Options Trader Earnings Update July 15: Financial stocks are kicking off earnings season this morning with Citigroup (C) (stock mostly unchanged) and tomorrow with Goldman Sachs (GS), JPMorgan (JPM) and Wells Fargo (WFC). As Jacob has noted in the past, one way sophisticated traders play these earnings events without taking the premium risk of buying calls/puts in these reporting stocks, is to buy options in these stock’s peers.

Cabot Options Trader Pro Weekly Update July 15: Jacob has 11 long positions: DIS, GLW, JD, LVS, MDT, MSFT, RF, SE, SNAP, XME and Z.

Cabot Options Trader Weekly Update July 15: Having just returned from his vacation this morning, Jacob is focused on reviewing options activity from last week, and then quickly transitioning to the start of earnings season today/tomorrow. He gives you his quick thoughts and updates on all open positions.

Cabot Undervalued Stocks Advisor

Special Bulletin July 19: Blackstone Group (BX), Schlumberger NV (SLB) and Synchrony Financial (SYF) reported second-quarter results. Crista continues to rank Blackstone Group (BX) and Schlumberger NV (SLB) as a buy and Synchrony Financial (SYF) as a strong buy.
Weekly Update July 16: Crista mentions past situations with GE and Boeing because big problems and scandals have a way of growing and lasting much longer than anybody would have anticipated. She knows that when corporations are embroiled in big problems/scandals, their share prices fall. But what about other big scandals that make headlines? Can they affect the stock market, too? She gives you her take on the topic. Here are today’s portfolio changes: Blackstone Group Inc. (BX) moves from Strong Buy to Buy, Delta Air Lines (DAL) moves from Buy to Hold, Guess? (GES) moves from Hold to Strong Buy and Royal Caribbean (RCL) moves from Hold to Buy.

Monthly Issue July 2: Crista is revisiting the topic of Baby Boomers and real estate. You won’t want to miss the conversation she had with a retired Boomer. Featured stocks in this Issue are: Voya Financial (VOYA), Corteva Inc. (CTVA) and Designer Brands (DBI). Here are today’s portfolio changes: Alexion Pharmaceuticals (ALXN) moves from Buy to Strong Buy, Corteva (CTVA) moves from Hold to Buy, Delta Air Lines (DAL) moves from Strong Buy to Buy, Designer Brands (DBI) moves from Buy to Strong Buy, DuPont de neMours (DD) moves from Hold to Sell, Sanmina (SANM) moves from Hold to Buy and Supernus Pharmaceuticals (SUPN) moves from Hold to Buy.

Cabot Stock of the Week

Weekly Issue July 16: Today, with the market rising and most of our stocks are doing well, Tim says it’s time to add another strong growth stock to the mix. Sunrun Inc. (RUN) was originally recommended by Mike Cintolo in Cabot Top Ten Trader. There are two changes in the portfolio this week: Delta Air Lines (DAL) moves from Buy to Hold and The Trade Desk (TTD) from Hold to Sell.

Cabot Global Stocks Explorer

Bi-weekly Update July 18: Carl says that the emerging markets (EEM) signal continues to be positive and right on top of its 20-day moving average as China and other emerging markets are bumping along and lacking a decisive uptrend. The US-China economic conflict no doubt is a significant headwind that is impacting markets as well as raising uncertainty. But it is important to keep in mind that the fundamentals that attract us to emerging and some international markets are still in place. The US-China rivalry will put competition for resources at center stage and this will bring companies in South America, Canada and Australia to Carl’s attention. There are no portfolio changes this week.
Bi-weekly Issue July 11: We are changing the name—but not the mission—of Cabot Emerging Markets Investor to Cabot Global Stocks Explorer. You won’t see any dramatic difference except for more diversification and a more top-down approach before drilling down to specific actionable ideas.

Emerging and global markets had a good week with some standout performers such as NIO (NIO) and Sea Limited (SE). Zero progress on U.S.-China talks was overshadowed by anticipated interest rate cuts. Today Carl recommends a stock from the Watch List, MakeMyTrip Limited (MMYT), to Buy a Half position and upgrades Sea Limited (SE) from Hold a Half to Buy a Half Position.

Cabot Small-Cap Confidential

Weekly Update July 19: This week marks the beginning of the second-quarter earnings season and the third reporting season to occur in calendar year-2019 (Q4 2018 results were reported early in the year). Tyler doesn’t foresee any major changes in the trends in any of our companies. There are no changes in the portfolio this week.
Special Bulletin July 16: Every now and then one of the stocks in the small-cap portfolio is the target of a short report by a myriad of research houses that try to make the case that a company is garbage and its stock is wildly overvalued. The target right now is CareDx (CDNA), which you all know specializes in diagnostic blood tests for organ transplant, namely heart and kidney transplants.

Monthly Issue July 1: Today’s recommendation, Veracyte (VCYT), is another company tapping into the explosive growth in genomic testing. It makes diagnostic tests, which pits it against larger rivals like Illumina (ILMN) and Gardant Health (GH). And, since there’s is only a few days between last Friday’s update and the Issue, Tyler is going to skip the full update section—though, if something major happens with a stock, he will make it a point to discuss it.

Cabot Dividend Investor

Weekly Update July 17: Tom says the upward slog may very well continue for a while. We have a rare situation where the Fed is cutting rates amidst a solid economy and strong market. Usually, the Central Bank cuts rates as an offset when the economy and the market are falling apart. At this point in the cycle, rates are usually rising or remaining at a high level. A good market and falling rates is a rare situation of the market having its cake and eating it too. There are no changes in the portfolio this week.

Monthly Issue June 26: In this issue, Tom highlights Valero Energy (VLO), a stock that is cheap in an expensive market that has a great chance of moving higher in the quarters ahead. There are two rating changes this week. Pharmaceutical company AbbVie (ABBV) is reduced from a BUY to a HOLD as the market digests its purchase of Allergan (AGN). Also, spice maker McCormick and Company (MKC) is lowered from a HOLD to SELL HALF ahead of tomorrow’s earnings announcement.

Cabot Marijuana Investor

Update July 18: Last week Tim discussed the possibility that the sector might be bottoming, after a downturn that has erased nearly all the index’s gains of 2019, and today his position hasn’t changed. The portfolio has survived the downturn pretty well by being underweight in those old leaders, by diversifying into peripheral companies that are less marijuana-centric and by holding cash. Today Tim is adding two new stocks to the portfolio—Alcanna (LQSIF) and Charlotte’s Web (CWBHF). Additionally, he is selling Green Thumb Industries (GTBIF).

Monthly Issue June 27: The cannabis sector is currently in a correction, with both marijuana and CBD stocks trending lower, giving up some of their early-year gains—and perhaps building a bottom here. In fact some of the biggest stocks, those supported best by institutional investors, are already looking stronger, though it will take time to know if they are in real uptrends. In the meantime, Tim continues to build cash, which will come in handy when it’s time to buy again. This week he’s selling portions of two more, HEXO (HEXO) and OrganiGram (OGI), raising the portfolio’s cash level to about 33%.

Wall Street’s Best Investments

Daily Alert July 19: Kelly Services, Inc. (KELYA) 2 for 1 Stock Split Newsletter
Daily Alert July 18: McKesson Corporation (MCK) Sure Dividend
Daily Alert July 17: Agnico-Eagle Mines Limited (AEM) Jack Adamo’s Insiders Plus
Daily Alert July 17: Partial Sale: Kirkland Lake Gold Ltd. (KL) Jack Adamo’s Insiders Plus
Daily Alert July 16: Snap Inc. (SNAP) Cabot Growth Investor
Daily Alert July 15: Vanguard Mid-Cap Growth Fund Investor Shares (VMGRX) Moneyletter

Monthly Issue—Top Picks Mid-Year Update July 10: Our Top Picks mid-year update is here! Nancy writes that it’s been a great year for the markets, with gains of 14.8% on the Dow Jones Industrial Average, 18.9% on the S&P 500 and 22.7% on the NASDAQ. But our contributors beat those numbers by a mile! Nancy gives us a selection of mid-year updates, as well as a collection of new ideas for our review.

Wall Streets Best Dividend Stocks

Daily Alert July 19: Cleveland-Cliffs Inc. (CLF) Nate’s Notes
Daily Alert July 18: Ameriprise Financial, Inc. (AMP) Argus Weekly Staff Report
Daily Alert July 17: Hersha Hospitality Trust (HT) from Sound Advice
Daily Alert July 16: Pason Systems Inc. (PSI.TO) from The Income Investor
Daily Alert July 15: Rio Tinto Group (RIO) from Weiss Stock Ratings Heat Maps

Monthly Issue—Top Picks Mid-Year Update July 3: Nancy writes that it was a great month for the markets, with the Dow Jones Industrial Average gaining more than 1,400 points. The economy remains sound; housing prices have mitigated somewhat; unemployment is healthy; and consumers are still confident. This month’s issue is jam-packed with lots of Top Picks updates, as well as several new ideas for you. Nancy begins with Top Picks Growth & Income, where you’ll find updates on an internet company and a utility. Next, Top Picks Value includes updates on a delivery service and a Spanish bank. In Top Picks REITs, she offers updates on a health care and a marijuana REIT.

Ask the Experts

Cabot Options Trader

Question: Hope all is well and you had a great vacation. I’ve been a cabot prime pro member for a couple of months now and very happy with the great recommendations, education and service level overall. As I’m looking to accelerate growing my wealth, options are naturally attractive. I’ve taken your latest recommendations and been happy; with SE in the mix how could you not be? As I’m looking at the other advisories, I’m thinking that, as everyone knows, especially US stocks are now quite expensive, so being fully in on long term buy and hold positions is probably not a sensible strategy here. Options can accelerate growth and get you return before the next big correction, but here you don’t naturally have options guidance. So I’ve taken what little I’ve learned so far and started thinking about the following for e.g. stocks of the week / global / undervalued stocks that are recommended:
- see that they’re in sensible entry places as regards their 200 / 50 / 25 day moving averages
- see if they have at/near the money options 5-7 months out that are ‘cheap’, e.g. under $2 dollars

I know that volatility etc. play into pricing options so one option $1 out of the money at $1.5 might be ‘cheap’ while another at the same strike and price would be ‘expensive’. But if I’m thinking about stocks that have solid buy / strong buy recommendations and the charts look good, and the prices of options are e.g. $1 - $2, is this strategy at all recommended? Or are the options that you recommend and the stocks in e.g. ‘undervalued’ simply too different in their dynamics and e.g. the period for which returns are expected (e.g. 5-7 months vs 12+ months), that I should just steer clear of options trading with anything other than options recos?

Jacob: First off thanks for the kind words. Now on to your questions/email ... So this is what I will say, sometimes a $1/$2 option is cheap for a reason. And that reason is the stock is not expected to make a big move as its a slow mover. That doesn’t mean it won’t happen, however the based on historical price movements, the odds aren’t great. Though our trades in SE, SBUX, CIEN, CSCO in the past shows that it certainly can work. Conversely, sometimes the $8/$9 option is a better bet as that stock is more likely to make a big move. Think of a NTNX, ZS etc. from last year. Stepping back, I am NOT saying avoid $1/$2 options and only buy $8/$9 options. But what I’m saying is that options are typically priced correctly.A strategy quite a few subscribers use is to buy calls on stocks in Mike Cintolo’s Top Ten Trader. Mike highlights the best charts/stocks and then Cabot Options Traders buy calls 3-9 months until their expiration.

Cabot Growth Investor

Question: I am getting ahead of myself but trying to determine a policy for IQ going into earnings. I have a 400k portfolio. Do you think it is wise to hold onto I Q into earnings. I have 40k on IQ. Thank you for all your help. I have doubled my portfolio due to your expertise.

Mike: Thanks for writing. Well, we always say that holding through earnings (or not) is really all about portfolio management -- if we could predict what was going to happen consistently on earnings, we’d be on our yacht right now, but we’re not. Instead, it’s about taking reasonable risks and playing them out over time. My bigger beef with IQ is that it’s not in an uptrend -- it did see some big-volume buying in late June, so who knows, maybe it’s getting going, but the overall chart isn’t something we’re excited about, nor is the sector. Still, that doesn’t really have anything to do with the short-term, which will come down to earnings. Bottom line, if you’re OK with the risk of a 10% to 15% downmove on earnings (always possible in a volatile name like this), then we’d just hold on and see what comes. If not, we’d probably cut back some. But going forward, it’s probably best to have a plan for your stocks ahead of time and apply these “earnings rules” to all of them.

Cabot Marijuana Investor

Question: What do you think of CGC?

Tim: Canopy Growth (CGC) is the best-known and one of the most over-valued cannabis stocks (thanks in part to the backing of Constellation Brands), but it has been in a downtrend for some time—and most recently the firing of the CEO added momentum to that downtrend. Long-term, I believe it will do well, so my portfolio holds a core position in it (with a huge profit) but it will remain an underweight position until the stock turns around.

Premium Reports

Cabot Prime Quarterly Report

Special Report

July, 2019: After a straight-up first quarter, the second quarter was a good one, though proved far trickier. April was solid, though we saw the broad market stall out. May brought a very sharp correction (10% on the Nasdaq!). And then June was a big winner, with the major indexes and many leading stocks ripping back to their highs. Despite the ongoing worries and uncertainties in the world (U.S.-China trade, what the Fed will do, Iran, politics, you name it), you should listen to the message of the market—and that message remains bullish.

Cabot’s 10 Best REIT’s to Buy Now

Special Report

May 2, 2019: REITs are a way for investors to have a diversified portfolio of real estate-related investments even if you don’t have millions of dollars, much like mutual funds did for stocks. And REITs are traded on the market, just like stocks. In this new, exclusive report, you’ll discover how to profit in REITs, even when interest rates are rising.

Cabot’s Ten Best Canadian Small-Cap Stocks

Special Report

Updated March 6, 2019: 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 relative performance of ex-U.S. markets is showing that’s no longer the case. There are market-beating returns available to those investors willing to step abroad. And one of the easiest steps to take is just over the border with our neighbor to the north, Canada. For the modestly adventurous investor, I think there are quite a few Canadian stocks worth a look right now.

Cabot’s Best Safe Investments for Uncertain Times

Special Report

December 21: This report gives you some suggestions of the safest, productive places to put your money when the market gets bumpy.

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.

StockCabot Small-Cap ConfidentialCabot Global Stocks ExplorerCabot Growth InvestorCabot Marijuana InvestorCabot Stock of the WeekCabot Undervalued Stocks AdvisorCabot Dividend Investor
AAPLHoldStrong Buy
ABBVHold
ACBSee Advisory
ADBEBuy
ALXNStrong Buy
ANFBuy
APHASee Advisory
APPFHold
ARNABuy
AVLRBuy
AXPHold 1/2
AXSSoldHold
BABABuy
BHGEStrong Buy
BIPBuyBuy
BSCJBuy 1/2
BSCLBuy 1/2
BXBuyBuy
CStrong Buy
CCIBuy
CDNABuy
CDXSBuy
CFStrong Buy
CGStrong Buy
CGCSee Advisory
CHCTHold
CITBuyStrong Buy
CMCHold
CMGBuy
COUPBuy
CRLBFSee Advisory
CRONSee Advisory
CURLFSee Advisory
CVTABuy
CWBHFSee Advisory
DALHoldHold
DBIStrong Buy
DOMOHold
DOWStrong Buy
EDHold 2/3
ELLXFSee Advisory
EPDBuy
EVBGHoldHold
EVERBuy
EXASHold
GESStrong Buy
GSHDBuy
GTBIFSee Advisory
HEXOSee Advisory
HTHTHold
IBNBuy 1/2
IIPRSee Advisory
KSHBSee Advisory
LGORFBuy 1/2
LKBuy 1/2Buy
LQSIFSee Advisory
LUVBuy
LXBuy
MKCHold 1/2
MMNFFSee Advisory
MMYTBuy 1/2Buy
MOHold
MOSBuy
MPCBuy
MTCHHold
NEEHoldHold
NIOBuy a Small Position
OGISee Advisory
OKTABuy
PGXBuy 1/2
PLNTHold 1/2Hold
QTRXHold
QTWOBuy
RCLBuy
REMXBuy 1/2
RGENBuy
RPDBuy
RUNBuy
SANMBuy
SEBuy 1/2
SLBBuy
SNAPBuy 1/2Buy
SSOBuy 4% more
STAGHoldHold
SUPNBuy
SYFStrong Buy
TCEHYBuy 1/2
TIVOHold
TOTBuy
TPBSee Advisory
TSLAHold
TTDSell
TWLOBuyBuy
UEICStrong Buy
UPLDBuy
VCYTBuy
VFFSee Advisory
VLOBuyBuy
VOYABuyStrong Buy
XELHold 2/3
ZBuy 1/2Buy
ZTOBuy 1/2