Cabot Prime Pro Week Ending July 24, 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, Tyler Laundon talks about what he’s watching in the technology and MedTech areas of the market ahead of the main reporting season for the companies he follows. He touches on the recent volatility and how investors should view that in the grand scheme of all the uncertainty in the world.
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Advisory Services
Cabot Growth Investor
Bi-weekly Update July 23: Remain bullish, but don’t get too aggressive. Growth stocks and the market are still in uptrends, so we’re sticking with a heavily invested stance, but many leaders have wobbled of late, the number of stocks hitting new highs has dried up a bit and earnings reports are coming up for a ton of names. Overall, we’re willing to move in either direction (buy or sell), but right here, we think our current stance (20% cash, some hold ratings, some buy ratings) makes sense as we see what earnings reports bring. Mike has no changes tonight.
Bi-weekly Issue July 16: Overall, Mike thinks it’s reasonable to pare back, reduce risk and, as always, stay flexible for what the market throws at us. But he’s also willing to give some of our winners (especially those we’ve taken a couple rounds of partial profits in) some room to consolidate. In the Model Portfolio, we booked our profit in Vertex (VRTX) earlier this week and sold one-third of our position in Okta (OKTA), leaving us with 20% in cash. There are no additional changes tonight.
Other Stocks of Interest July 16: Follow ups to stocks featured March 12, 2020 (issue 1441) to July 16, 2020 (issue 1450). 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 24: The key now isn’t to anticipate (doing that will eventually lead you very astray in the market), but to have your plan in place—update your stops, know what names you might take partial profits in, so on and so forth. Right now, Mike remains mostly bullish, but it’s likely the next two or three weeks of earnings will tell the intermediate-term tale for the market and many leading stocks. Today’s suggested buys are: Crispr Therapeutics (CRSP), Farfetch (FTCH), Nu Skin (NUS) and Zoom Video (ZM). There are two recommended sells today: MercadoLibre (MELI) and Sunrun (RUN).
Weekly Issue July 20: Growth stocks suffered another shot across the bow last Monday, and for the next three days, most didn’t bounce much. But last Friday and today’s action was far more encouraging, with leading stocks rebounding nicely and the broad market doing decently, too. Of course, we never put too much emphasis on just a day or two; the market wasn’t hanging by a thread before the latest bounce, and today’s action doesn’t necessarily mean it’s up and away from here, either. This week’s list has a broad mix of cyclical and growth issues to choose from. For Mike’s Top Pick, he’s going a bit speculative—Plug Power (PLUG) is low priced, but very liquid, and the recent pattern (huge-volume rally, controlled pullback) looks very tempting.
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 Stock on Watch July 24: Intel (INTC) is trading lower by $9 today at 51.5 following a disappointing update on a product that could be delayed by a year. And while Jacob is not going to buy this dip, he did want to bring to your attention an interesting call buy made shortly after the open looking for the stock to rebound.
Cabot Options Trader Basic Trade Alert July 23: Sell Existing Position: Sell your Snap (SNAP) October 18 Calls for $4.30 or more.
Cabot Options Trader Basic and Pro Trade Alert July 23: Buy the Micron (MU) January 55 Call (exp. 1/15/2021) for $6.30 or less.
Cabot Options Trader Earnings Update July 22: Snap (SNAP) reported earnings yesterday afternoon that were “ok.” The stock is trading lower by 6% this afternoon, though off of the lows. Option activity is largely mixed in SNAP, and Jacob will continue to watch for how the hedge funds and institutions are positioning following the quarterly report.
Cabot Options Trader Earnings Update July 21: Snap (SNAP) is the first of our positions to report earnings tonight after the close. Because we have profits on half of the position in the bank, as well as the recent stock strength and bullish option activity Jacob is going to take the risk and hold my position through earnings. However, there is no doubt that SNAP has been a violent mover on earnings the past several quarters (more on that below) and if you would prefer to not take the risk, you must Sell to Close your position before the end of the trading day today.
Cabot Options Trader Basic and Pro Trade Alert July 20: Adjust Existing Position: Against your Glu Mobile (GLUU) Stock, Sell the August 10 Call for $0.60 or more.
Cabot Options Trader Pro Weekly Update July 20: Jacob has seven long positions: GLUU, GILD, JD, PTON, SNAP, XLF, ZNGA and one short position: QQQ December Puts
Cabot Options Trader Weekly Update July 20: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week down marginally at 25.5. And while the VIX was somewhat quiet last week, option activity was fairly wild as Jacob’s barometer started the week bearish, but then swung bullish the rest of the week.
Cabot Undervalued Stocks Advisor
Weekly Update July 22: As companies in the Cabot Undervalued Stocks Advisor portfolio start reporting earnings this week, Bruce looks into what is behind the results and estimates. He has one portfolio change today: Netflix (NFLX) – Moves from Hold to Retired.
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 20: The market remains in good health and trending higher, though the rotation out of the leading Nasdaq glamour stocks may have further to go—or may be just a false alarm. In any case, it’s the stocks YOU own that matter, and if you’ve been choosing from our portfolio, you’ve been doing pretty well! Today’s recommendation, Columbia Sportswear (COLM), is a well-known and well-run company in the apparel business that should benefit from the trend toward more casual clothing. As for the current portfolio, Tim has two changes, a sell recommendation for Beyond Meat (BYND), which has lost momentum and a move to hold for Big Lots (BIG).
Cabot Global Stocks Explorer
Bi-weekly Issue July 23: Today’s new recommendation, Novocure Ltd. (NVCR), is in the spirit of the mission of the Cabot Explorer, to scour the world for the best companies on the edge of the new: from green energy and transportation, emerging and frontier markets, financial technology (fintech), medicine and science, space, and rare resource as well as digital payments and e-commerce. Carl has one change today: Trip.com (TCOM) moves from HOLD A HALF to SELL.
Bi-weekly Update July 16: Today Carl writes that we’ll stay the course with selective trimming and adding new positions in sectors that are demonstrating relative strength. When you step back and look at markets since the March lows, one takeaway is unmistakable. The market is particularly rewarding investors who invest in certain high-growth sectors. The Explorer portfolio will seek to take advantage of that momentum as it focuses in on a number of promising global trends. Carl has one portfolio change today: Direxion Daily FTSE China Bull 3X Shares (YINN) Moves from Buy to Sell.
Cabot Small-Cap Confidential
Weekly Update July 23: For us, this is a time of “taking it all in” and not trying to pre-judge any of our companies. It’s better to simply let management tell us what’s going on and go from there. First up on our earnings docket is Repligen (RGEN), which will report late next week. The following week, action really heats up as we’ll hear from at least seven more portfolio companies. Take a deep breath and be prepared for more volatility as these earnings reports come in. Tyler has has no portfolio changes today.
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
Weekly Update July 22: The CDI REITs and Utilities have special qualities that enable them to thrive even when the rest of the sector struggles. Crown Castle (CCI) has a portfolio of cell towers. Alexandria Real Estate (ARE) invests in niche research lab properties. Innovative Industrial Properties (IIPR) has marijuana farms. And the Utilities, NextEra (NEE) and Excel (XEL), both have a strong alternative energy presence. The only eyesore in the portfolio are the energy stocks, Enterprise Product Partners (EPD) and Valero Energy (VLO). It appears that, unlike the overall market, these sectors will need to see tangible proof of a strong recovery before they rally. There is also uncertainty about how some of these companies will cope with the financial fallout into the recovery as well. Tom has no rating changes today.
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.
Cabot Marijuana Investor
Update July 22: The strength in marijuana stocks that began two weeks ago with breakouts by the stocks of the four leading U.S. providers has continued this week, so now Tim is going to take the portfolio to a fully invested position. But first he’s going to sell Akerna (KERN), the software stock that never got going and that now presents us with an intolerable loss. The proceeds from that sale plus the portfolio’s remaining 8% cash will be split equally, used to average up in current holding Cresco Labs (CRLBF), which looks great, and to establish a new position in GW Pharmaceuticals (GWPH).
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 July 24: Volatility is coming back into the market and one of our most affected stocks today is SelectQuote (SLQT). This isn’t random. Peer Ehealth (EHTH) reported last night and had a good quarter but a very messy conference call. It is a little risky, but Tyler is keeping SLQT at buy. He doesn’t necessarily expect a blowout quarter when the company reports but with shares now well off their highs and below the IPO price he thinks more investors will be kicking the tires on the stock. BUY
Special Bulletin July 22: With our portfolio having swelled to 29 positions it’s time to trim a little around the edges to keep things manageable. As in the past, many of these decisions are based on lackluster recent performance and uncertainty regarding the near-term. Today, Tyler is taking the following actions: Smartsheet (SMAR) and Y-mABs (YMAB) both move to SELL.
Monthly Issue July 15: This month’s Issue of Cabot Early Opportunities features a fresh group of stocks that offer varying risk profiles and exposure to rapid-growth markets. Tyler has a company with a disruptive security platform that acts as a guardian of the internet, a MedTech innovator, Schrodinger (SDGR), (his top pick) with two exciting growth businesses, a clean-energy stock looking to put a troubled past behind it, a little-known gaming company and another software player that’s offering crucial communication services during the pandemic.
Cabot Profit Booster
Weekly Issue July 21: The Stock – Plug Power (PLUG) PLUG broke out from a good-looking four-month base in June and had a quick, powerful, giant-volume advance, lifting from 6 to 10.5 before finally pulling in. But so far, Jacob is impressed with the pullback—volume has been drying up, and the depth of the dip certainly isn’t abnormal given the prior run. If you’re game, we think you can start small around here. Stop - 6.60. The Covered Call Trade Buy Plug Power (PLUG) Stock at 9.25, Sell to Open August 9.5 Strike Calls (exp. 8/21) for $0.80, or a Net Price of 8.45 or less.
Update July 17: It was another fantastic month for the Cabot Profit Booster portfolio, and with today being the expiration of July options we are likely going to close seven positions for full profits ranging from 5.4% to 12.3%. Jacob updates us with the details and instructions.
Cabot Micro-Cap Insider
Weekly Update July 22: Before we get to our weekly update, Rich wants to spend some time talking about the broader market. Most people have been surprised by the strength S&P 500’s rally off its March lows. While the S&P 500 is up slightly on the year, it’s important to remember that its return is skewed by the strong performance of Facebook, Amazon, Alphabet, Microsoft, and Apple, which together make up ~23% of the S&P 500. The equal weighted S&P 500 index is down 8% on the year. Will the market rally continue? Rich gives us his thoughts. He is making one portfolio change today: He is increasing our buy limit on P10 Holdings (PIOE) to 2.80. The new rating is Buy under 2.80.
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.
Special Report
A Defensive Healthcare Stock with 100% UpsideSpecial Report
The Best Way to Play the Oil Market DislocationCabot Income Advisor
Monthly Issue July 22: Although the prices of all the portfolio positions are higher than when originally purchased, they all still represent good value at current prices and are BUY rated. The market is still trending higher and has shown strong resilience in the face of bad virus news. The trend is good but things can change. Tom’s featured stock today is: U.S. Bancorp (USB), the fifth largest bank in the United States and the country’s largest regional bank with over 3000 bank branches in 25 states in the Western and Northern U.S.
Weekly Update July 15: Tom writes that at this point, it looks as though, in the absence of some horrible development, the market should have an upward bias going forward. We’ll see if it lasts as the election comes more into focus. But the market looks solid, at least for now. Today’s change: Sell ABBV September 18 $100 call at $4.60 or higher.
Special Report:
Off the Radar Cash GeneratorsSpecial Report:
The Covered Call Income MachineWall Street’s Best Investments
Daily Alert July 24: Sell: Thor Industries, Inc. (THO) The Turnaround Letter
Daily Alert July 24: GCP Applied Technologies Inc. (GCP) The Turnaround Letter
Daily Alert July 23: Apple Inc. (AAPL) The Personal Capitalist
Daily Alert July 22: Stantec Inc. (STN) Safe Money Report
Top Pick Update Daily Alert July 21: Anavex Life Sciences Corp. (AVXL) BI Research
Daily Alert July 20: Swire Pacific Limited (SWRAY) Cabot Global Stocks Explorer
Monthly Issue July 16: Nancy writes that the markets are certainly keeping us on our toes! She really didn’t know what to expect when she began calculating the returns for this Mid-Year Top Picks issue. We’ve had so much volatility; a big disruption in March, as coronavirus took hold; and many sectors that just haven’t bounced back. Despite the ongoing devastation of COVID-19, our contributors have broken all of our records, averaging a gain of 16.41%, while the Dow fell 8.6%, the S&P 500 is down 1.2% and only the Nasdaq is in positive territory, with gains of 18.3%. Even better, our Top 5 picks averaged 221.48%! In this month’s issue, she brings you an update on many of our 2020 Top Picks, along with several new non-Top Picks ideas.
Ask the Experts
Cabot Dividend Investor
Question: Back in February I was adding more shares to BGS, one of my many positions that I had come up on my own a couple years ago. It had been trending down, so I thought I might get some 2nd advice. I realize everyone has their own strategy. I tend to look for dividend paying value stocks. I was deep in a hole with my BGS position, and the it seemed ripe for doubling down (or more). This is the response I got back. “I looked at BGS for you. But first, know that I try to focus all my trading on FINANCIALLY HEALTHY companies. Then, no matter which strategy I’m employing -- chasing breakouts or buying low or grabbing big dividends, etc. -- my risk is lower than if I were employing the strategy on a financially unhealthy company. BGS is expected to experience lower profits and stagnant revenues in 2020 and 2021. The debt ratio is quite high. The dividend is at risk because, in theory, the company needs to redirect that money toward paying down debt. Lastly, the price chart appears to be breaking short-term support, heading to new multi-year lows. Under no circumstances would I buy more of this stock, and in fact, I would sell it. While I definitely appreciate expert advice, I went with my own basic research. I also sometimes use “SimplyWallSt” app as a sanity check. I went ahead a doubled down on my position. Recently, I sold BGS for a great profit. The extra shares I bought had doubled. So, I often wonder, why is Cabot’s advice seem dependent on stocks that have been trending up for a length of time. It would have been even better, to advise subscribers to have bought BG Foods in the $11 range. I do realize canned food has become more popular with the pandemic. We have lots of friends that don’t have extra freezer and refrigerator space.. I’m not complaining about the advice I got from this person. Almost all the advice from Cabot is great. I just find it difficult to buy when stocks hit all time highs.
Tom: I’m buying PGS because the pandemic has changed the math. The company should have a higher level of growth for some time and now the high dividend is safe. I realize the stock is near the high but it is still reasonably priced in terms of valuation.
Cabot Income Advisor
Question: I am enjoying your news letters. I follow a few now and added Income Investor last month. Excellent. It has helped me identify the right stocks, strike prices and dates to do my buy/writes. Question: BIP is a MLP and I prefer not to work with them since I also prepare income taxes and the K1’s Are a hassel. How do you like BIPC?
Tom: I like BIPC very much. A lot of investors, including institutions, love the idea of a good infrastructure company but can’t or don’t want to buy an MLP. That’s why it is performing better than BIP. But there are no options traded on it. At least not yet.
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts from July 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 | |||||
| AMZN | Hold | ||||||
| APHA | See Advisory | ||||||
| APPF | Hold | ||||||
| ARE | Hold | ||||||
| ARNA | Buy | ||||||
| AVGO | Hold | ||||||
| AVLR | Hold | ||||||
| BABA | Hold | ||||||
| BGS | Buy | ||||||
| BIG | Hold | ||||||
| BIP | Buy | Buy 2/3 | |||||
| BMY | Strong Buy | ||||||
| BSCL | Buy 1/2 | ||||||
| BUG | Hold 1/2 | Buy | |||||
| BYND | Sell | ||||||
| CCI | Hold 1/2 | ||||||
| CDLX | Hold | ||||||
| CGC | See Advisory | ||||||
| CHGG | Buy | Buy | |||||
| COLM | Buy | Buy | |||||
| CRLBF | See Advisory | ||||||
| CRON | See Advisory | ||||||
| CURLF | See Advisory | ||||||
| DBSDY | Buy 1/2 | ||||||
| DOCU | Hold | ||||||
| DOW | Buy | ||||||
| DXCM | Hold | ||||||
| EPD | Hold | ||||||
| EQH | Strong Buy | ||||||
| EVBG | Buy | ||||||
| EVER | Hold 1/2 | ||||||
| FVRR | Hold 3/4 | ||||||
| GFL | Buy | ||||||
| GILD | Buy 1/2 | ||||||
| GM | Strong Buy | ||||||
| GRWG | See Advisory | ||||||
| GSHD | Hold 3/4 | ||||||
| GTBIF | See Advisory | ||||||
| GTLS | Buy | ||||||
| GWPH | See Advisory | ||||||
| HTHT | Hold | ||||||
| IIPR | See Advisory | Hold 2/3 | |||||
| INSP | Hold | ||||||
| KERN | Sell | ||||||
| KL | Buy 1/2 | ||||||
| KPTI | Buy | ||||||
| LGIH | Buy | ||||||
| MKSI | Hold | ||||||
| MO | Buy | ||||||
| MPC | Hold | ||||||
| NEE | Hold | Hold 1/2 | |||||
| NET | Buy | Buy | |||||
| NFLX | Retired | ||||||
| NVCR | Buy | ||||||
| NVDA | Hold | Strong Buy | |||||
| OKTA | Hold | ||||||
| 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 | Sell | ||||||
| TDOC | Buy | ||||||
| TLRY | See Advisory | ||||||
| TOT | Hold | ||||||
| TPB | See Advisory | ||||||
| TSLA | Hold | ||||||
| TSN | Buy | ||||||
| TWLO | Buy | ||||||
| UEIC | Strong Buy | ||||||
| VLO | Hold 1/2 | ||||||
| VOYA | Strong Buy | ||||||
| VRTX | Sold | Hold | |||||
| VZ | Buy | ||||||
| WING | Buy | ||||||
| XEL | Hold 2/3 | ||||||
| YINN | Sold | ||||||
| ZM | Hold | ||||||
| ZS | Hold |