Cabot Prime Pro Week Ending July 5, 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 gives his pre-BBQ view of the environment for the market (looking better and better, with some indexes coming out of 17-month ranges) and individual stocks (more mixed, but still mostly positive). As usual, Mike reviews key indexes, sectors and some new leaders that are looking vibrant during the latest push higher.
CABOT EVENTS:
Prime Quarterly Analyst Call
Wednesday, July 17, 2019
SPECIAL FREE WEBINAR OFFER - Hosted by Nancy Zambell
Top Stocks to Make You Money Now, Regardless of Your Investing Style | Tuesday, July 23
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 3: Since the last issue, Mike has sold half of Planet Fitness (PLNT) and all of Five Below (FIVE), but he’s also filled out our position in Coupa (COUP) and, in tonight’s issue, is starting a half position in Snap (SNAP), which looks likes a new leader that could attract many big investors going forward. The cash position will now be near 23%.
Bi-weekly Update June 27: Mike says to lean bullish. The market’s evidence remains mostly positive, though the action of growth stocks over the past two weeks has been less than stellar. Overall, he’s taking things on a stock-by-stock basis, selling names that act abnormally but are willing to put money to work in stocks that look like “fresher” leaders.There’s one change in the portfolio today: Mike is going to fill out the position in Coupa Software (COUP), adding another half-sized position. Our cash position will now be around 28%.
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
Weekly Issue July 1: It’s not perfect, but Mike says from a top-down perspective, the market remains in good shape. That said, under the surface, things are a bit disjointed, with selling on strength seen in some extended growth leaders and buying picking up in names that are either cyclical (oils, financials) or fresher (those that haven’t had huge runs). That doesn’t mean you should chase every stock and sector that’s moving and ditch those that are wobbling, but it is important to avoid complacency with your winners (honor stops and take partial profits when offered) and, on the buy side, focus on stocks showing outstanding accumulation in recent weeks. Mike’s Top Pick this week is Anaplan (PLAN), which looks like a new leader in the software space.
Movers & Shakers June 28: The major indexes had a relatively quiet week ahead of the G20 summit, which is (mostly) taking place over the weekend. As Mike writes this, the S&P 500 and Nasdaq are down about 0.7% on the week, which is more than reasonable given the recent gains. In his mind, this makes it four straight constructive weeks following the market low. But from a top-down perspective, most of the evidence (intermediate- and longer-term trends pointed up) is positive, so he continues to lean bullish. Mike’s buy ideas this week are: First Solar (FSLR) and Smartsheet (SMAR). There are five outright sells this week, Ascendis Pharma (ASND), Five Below (FIVE), GW Pharmaceuticals (GWPH), LPL Financial (LPLA) and Zoom Communications (ZM).
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 Stocks on Watch July 3: Canopy Growth (CGC) is in the news this morning as the company unexpectedly announced that the Co-CEO was fired. In reaction, the stock initially fell two points (about 5%) to a low of 38 this morning. However, into that decline, a trader added to a position he has been building recently. Also, Sea (SE), which we hold a position in, there was a big options trade in that name this morning. Jacob continues to like the stock’s strength, as well as the options action in SE, and will hold our position which is up over 300%, looking for even greater profits.
Cabot Options Trader Pro Alert July 3: Adjust Existing Position: Buy back your JD.com (JD) September 38 Call and Sell the September 36 Call.
Cabot Options Trader Position Update July 3: Yesterday Jacob initiated a new position in the Metals & Mining ETF (XME) with a buy of the January 29 Calls. In this update he gives you some additional thoughts on why he liked this set-up.
Cabot Options Trader Alert July 2: Buy the Metals & Mining ETF (XME) January 29 Calls (exp. 1/17/2020) for $1.80 or less.
Cabot Options Trader Market Update July 1: Many of our stocks are trading today at new recent highs, including Sea (SE). This strength in SE has pushed our August 26 Calls to be worth $9, or a potential profit of 291%. Today Jacob is going to set a mental stop on this position at $5.
Cabot Options Trader Pro Weekly Update July 1: Jacob has ten long positions: DIS, GLW, JD, LVS, MDT, MSFT, RF, SE, SNAP and Z.
Cabot Options Trader Weekly Update July 1: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week at 15, or virtually unchanged. Jacob was quite surprised the VIX closed at 15 ahead of the G-20, which traders viewed as the next big event that could set the tone for the market for the next several weeks.
Cabot Undervalued Stocks Advisor
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.
Weekly Update June 25: Crista writes that the June 21 Dodd-Frank Act stress test (DFAST) results conclude that all U.S. banks passed this year’s bank stress tests conducted by the Federal Reserve. In total, results were significantly stronger than last year’s results. Banks that are heavily into the credit card business, such as Capital One (COF), did not fare nearly as well as the other banks that the Fed reviewed. Crista has three portfolio changes today: Knight-Swift Transportation (KNX) moves from Hold to Retired, Mosaic Company (MOS) moves from Hold to Buy and Southwest Airlines (LUV) moves from Hold to Buy.
Cabot Stock of the Week
Weekly Issue July 2: Every single one of Cabot’s market timing indicators is telling us that the market’s main trend is up. Additionally, market sentiment among investors is not excessive; there’s still worry, not euphoria. Conclusion: this market is going higher. For today’s recommendation Tim swings back to the lower-risk, dividend-paying side with a recent recommendation of petroleum refiner, Valero Energy (VLO), in a sector with a lot of fundamental tailwinds today. The stock was first recommended by Tom Hutchinson in Cabot Dividend Investor. There is one change in the portfolio this week: Match Group (MTCH) moves from Buy to Hold.
Cabot Emerging Markets Investor
Bi-weekly Update July 3: Carl writes that the G-20 meetings in Japan yielded only incremental progress. This was grudgingly accepted as a positive by markets with most emerging market stocks getting a boost as we headed into a slow and short week. He also gives you his take on Hong Kong, Alibaba, demographics and debt. There are no portfolio changes this week.
Bi-weekly Issue June 27: The Emerging Markets Timer turned positive a couple of weeks ago and remains so today, a good sign despite the global uncertainties. The iShares EM Fund (EEM) bottomed in late May, accelerated higher last week and stands well above its lower (25-day), rising moving average. Thus, the intermediate-term trend is pointed up. In this week’s issue, Carl adds a small position in NIO (NIO); has an addition to the watch list with MakeMyTrip Limited (MMYT); is selling Daimler (DDAIF) and moves Alibaba (BABA) from Buy a Half to Buy a Full Position.
Cabot Small-Cap Confidential
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.
Weekly Update June 28: Not surprisingly, this week wasn’t a great one for our portfolio. Tyler had a feeling the party was winding down last week, when he had an average gain of 105% going and had just seen our stocks pop an average of 6% over five days. This past week, the stocks declined by an average of 3%, led down by Upland Software (UPLD), down 14%, Everbridge (EVBG), down 10%, and AppFolio (APPF), down 7%. Tyler has one portfolio change today, Rapid7 (RPD) moves from Hold to Buy.
Cabot Dividend Investor
Weekly Update July 3: Tom believes the economy is stronger than it is getting credit for. Sure, second quarter GDP will likely be a lot lower than the first quarter. But that’s the normal ebb and flow in an economy that is trending strong generally. GDP growth in the second half should be solid. That’s a good fundamental backdrop for the market. Plus, money that wants to earn a decent return has no place to go but stocks. There is one change in the portfolio this week, Altria (MO) moves to HOLD because of technical deterioration in the stock chart.
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
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%.
Update June 20: Tim will now make three changes to the portfolio, selling partial positions in Green Thumb Industries (GTBIF), Innovative Industrial Properties (IIPR) and KushCo Holdings (KSHB). These actions will raise our cash level to about 24%.
Wall Street’s Best Investments
Top Pick Update Daily Alert July 3: Advanced Micro Devices, Inc. (AMD) from The Inger Letter
Top Pick Update Daily Alert July 2: Global X Robotics & Artificial Intelligence ETF (BOTZ) from Positive Patterns
Top Pick Update Daily Alert July 1: Apple Inc. (AAPL) from The Personal Capitalist
Monthly Issue June 12: Nancy begins this issue with our Spotlight Stock, Pivotal Software, Inc (PVTL), which is becoming a top competitor in the platform as a service (PaaS) industry. The company was founded in 2013 to create a platform that would make it easier for developers to design and launch new programs and other platforms. You’ll find the details in her Feature article.
Wall Streets Best Dividend Stocks
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 offer supdates on a health care and a marijuana REIT.
Top Pick Update Daily Alert July 3: Banco Santander, S.A. (SAN) from Cabot Emerging Markets Investor
Top Pick Update Daily Alert July 2: United Parcel Service, Inc. (UPS) from Hendershot Investments
Top Pick Update Daily Alert July 1: AbbVie Inc. (ABBV) from Cabot Dividend Investor
Ask the Experts
Cabot Growth Investor
Question: In Cabot Growth Investor, have you considered putting the Two-Second Indicator back in? I miss seeing the new lows in every issue!
Mike: It’s a fair question, and I do keep an eye on the new lows every day or two. But the whole reason we de-emphasized the Two-Second Indicator was because it wasn’t working—if we had followed its message, we would have been defensive for lots of 2017 (one of our best years of the past decade) and even parts of the early-year uptrend this year. If it fixes itself in the future, we could revisit it, but we think sticking with the trends of the indexes, the action of leading growth stocks and some sentiment measures to lean against the wind make up a better market timing approach.
Cabot Marijuana Investor
Question: I’m a new subscriber to Cabot Marijuana Investor. I literally signed up for it after the webinar last week. I have enjoyed several of the Cabot services, and I think very highly of the group as a whole. However, I have to say that I was a little disappointed in the quick reversal of your recommendations. I realize that markets change quickly, and it’s your job to relay that information to your subscribers, but what’s frustrating are the changes in recommendation specifically for OGI and VFF. On the webinar, you specifically cited these as the 2 “stocks to buy.” On June 20th, I decided to follow those suggestions based on comments between the 22:30 and 24:00 minute mark on the webinar, suggesting that OGI was a “good stock to get in, in this area” The stock is basically unchanged since then (maybe 10 cents difference) but based on this issue, you’re now saying that you’re selling half of the portfolio’s position? Just seems a little odd. VFF on the other hand has pulled back more since the webinar, by about $1.00 Although again I reference the 24:35 minute mark on the webinar where you suggested it was a “good entry point somewhere in here” You spoke highly of both of these stocks, so I’m just trying to understand better why the change so quickly. I’m new to investing in this sector, so I’m looking for the Cabot guidance. I appreciate your time and feedback.
Tim: Thanks for asking. I’m sorry for the confusion. Investing in these marijuana stocks is less like investing in the stocks of our other advisories for one simple reason. This is a rather limited universe, and in the long run, I expect most of these companies to succeed. Long-term, all the stocks could be rated buy for the investor with a ten-year horizon. Short-term, however, my strategy has been to try to overweight the leaders while underweighting (or selling) those that are lagging. And so far it’s been working. When I highlighted OGI and VFF for the webinar two weeks ago, both looked like they were basing, and thus were at good entry points (assuming the base led to a renewed advance). In the week that followed, however, OGI fell through the bottom of its base (at 6.25) and threatened to fall lower. (The whole sector weakened, as well, while the broad market strengthened!) Thus I chose to reduce OGI’s overweight position in the portfolio to slightly underweight by selling half. This does not mean that everyone should sell half; everyone’s portfolio is different. But it is an indication that OGI is not behaving, technically, as well as I would like. Since then, OGI has bounced, but the advance has been on light volume, so I cannot say that it’s out of the woods yet. As to VFF, it’s behaved similarly, but remains in the base-building pattern, with support at 11. As a new subscriber, I suggest you take it slow until the sector strengthens. When the wind is once again at our back, investing will be much easier and more rewarding. Until then, keep an eye on your OGI and VFF. If they make progress and eventually develop new uptrends, you will be happy to average up. Alternatively, OGI still has the potential to fall to its 200-moving average at 5.7, while VFF still has the potential to fall to its 200-moving average at 8.4—and if you see the stocks rolling over and heading lower, you might want to cut your losses short. Hope that helps.
Premium Reports
Cabot’s 10 Best REIT’s to Buy Now
Special ReportMay 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 Prime Pro Quarterly Report
Special ReportApril, 2019: The first quarter of 2019 was as good as the previous one was bad. And that’s not surprising. In fact, in his last quarterly report, Tim concluded by writing, “What the charts are signaling now is quite bullish! So don’t be afraid. Follow your favorite Cabot analyst. Use appropriate risk management tools. And make some money while the market is once again going the right way.”
Cabot’s Ten Best Canadian Small-Cap Stocks
Special ReportUpdated 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 ReportDecember 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.
| Stock | Cabot Small-Cap Confidential | Cabot Emerging Markets Investor | Cabot Growth Investor | Cabot Marijuana Investor | Cabot Stock of the Week | Cabot Undervalued Stocks Advisor | Cabot Dividend Investor |
|---|---|---|---|---|---|---|---|
| AAPL | Hold | Strong Buy | |||||
| ABBV | Sold | ||||||
| ACB | See Advisory | ||||||
| ADBE | Buy | ||||||
| ALXN | Strong Buy | ||||||
| ANF | Buy | ||||||
| APHA | See Advisory | ||||||
| APPF | Hold | ||||||
| ARNA | Buy | ||||||
| AVLR | Buy | ||||||
| AXP | Hold 1/2 | ||||||
| AXS | Buy | Strong Buy | |||||
| BABA | Buy | ||||||
| BHGE | Strong Buy | ||||||
| BIP | Buy | Buy | |||||
| BSCJ | Buy 1/2 | ||||||
| BSCL | Buy 1/2 | ||||||
| BX | Buy | Strong Buy | |||||
| C | Strong Buy | ||||||
| CCI | Buy | ||||||
| CDNA | Hold | ||||||
| CDXS | Buy | ||||||
| CF | Strong Buy | ||||||
| CG | Strong Buy | ||||||
| CGC | See Advisory | ||||||
| CHCT | Hold | ||||||
| CIT | Hold | Strong Buy | |||||
| CMC | Hold | ||||||
| CMG | Buy | ||||||
| COUP | Buy | ||||||
| CRLBF | See Advisory | ||||||
| CRON | See Advisory | ||||||
| CURLF | See Advisory | ||||||
| CVTA | Buy | ||||||
| DAL | Buy | Buy | |||||
| DBI | Strong Buy | ||||||
| DD | Sell | ||||||
| DDAIF | Sold | ||||||
| DOMO | Hold | ||||||
| DOW | Strong Buy | ||||||
| ED | Hold 2/3 | ||||||
| ELLXF | See Advisory | ||||||
| EPD | Buy | ||||||
| EVBG | Hold | Hold | |||||
| EVER | Buy | ||||||
| EXAS | Hold | ||||||
| FIVE | Sold | ||||||
| GES | Hold | ||||||
| GSHD | Buy | ||||||
| GTBIF | See Advisory | ||||||
| HEXO | See Advisory | ||||||
| HTHT | Hold | ||||||
| IBN | Buy 1/2 | ||||||
| IIPR | See Advisory | ||||||
| KSHB | See Advisory | ||||||
| LGORF | Buy 1/2 | ||||||
| LK | Buy | Buy | |||||
| LUV | Buy | ||||||
| LX | Buy | ||||||
| MKC | Hold 1/2 | ||||||
| MO | Hold | ||||||
| MOS | Buy | ||||||
| MPC | Buy | ||||||
| MTCH | Hold | ||||||
| NEE | Hold | Hold | |||||
| NIO | Buy a Small Position | ||||||
| OGI | See Advisory | ||||||
| OKTA | Buy | ||||||
| PGX | Buy 1/2 | ||||||
| PLNT | Hold 1/2 | Hold | |||||
| QTRX | Hold | ||||||
| QTWO | Buy | ||||||
| RCL | Hold | ||||||
| REMX | Buy 1/2 | ||||||
| RGEN | Buy | ||||||
| RPD | Buy | ||||||
| SANM | Buy | ||||||
| SE | Hold 1/2 | ||||||
| SLB | Buy | ||||||
| SNAP | Buy 1/2 | Buy | |||||
| SSO | Buy | ||||||
| STAG | Hold | Hold | |||||
| SUPN | Buy | ||||||
| SYF | Strong Buy | ||||||
| TCEHY | Buy 1/2 | ||||||
| TIVO | Hold | ||||||
| TOT | Buy | ||||||
| TPB | See Advisory | ||||||
| TSLA | Hold | ||||||
| TTD | Hold | ||||||
| TWLO | Buy | Buy | |||||
| UEIC | Strong Buy | ||||||
| UPLD | Buy | ||||||
| VCYT | Buy | ||||||
| VFF | See Advisory | ||||||
| VLO | Buy | Buy | |||||
| VOYA | Buy | Strong Buy | |||||
| XEL | Hold 2/3 | ||||||
| Z | Buy 1/2 | Buy | |||||
| ZM | Sold | ||||||
| ZTO | Buy 1/2 |