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Weekly Summary June 21, 2019

Cabot Prime Pro Week Ending June 21, 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, Tyler Laundon, Chief Analyst of Cabot-Small Cap Confidential, discusses one of the biggest tech IPO’s of the year in Slack Technologies (WORK). He also takes you north of the border to look at a couple of speculative small-cap stocks in Canada. Then wraps things up with a quick look at two more small companies here in the U.S.

CABOT EVENTS:

Prime Quarterly Analyst Call

Wednesday, July 17, 2019

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SPECIAL FREE WEBINAR OFFER - Hosted by Nancy Zambell

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

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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.

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Advisory Services

Cabot Growth Investor

Bi-weekly Issue June 20: Mike says to put some more money to work. Our Cabot Tides turned positive yesterday, and on a special bulletin this morning, he added a full position in Blackstone (BX) and a half position in Zillow (Z), which has left us with around 23% in cash. He’s also restoring the buy rating on Twilio and ProShares Ultra S&P 500.

Special Bulletin June 20: Today, Mike is making two moves. First, he’s buying a full-sized position in Blackstone (BX), which is his favorite Bull Market stock that should benefit from a strong environment for asset values as well as its conversion into a C-Corp. Second, he’s going to buy a half-sized position (5%) in Zillow (Z), the leading online real estate outfit.

Special Bulletin June 17: This morning, we were handed a pleasant gift; Array Biopharma (ARRY), which we bought a half position in on June 7, has agreed to a takeover offer by Pfizer for a whopping $48 per share in cash. As expected, the stock is bidding up north of 47 on the news, which would represent a huge gain of around 60% on the day. Mike advises selling ARRY and taking your windfall profit; he’ll hold the cash for now.

Bi-weekly Update June 13: Mike remains cautiously optimistic. The market and growth stocks have generally handled themselves well in recent days, holding most of their sharp, quick gains following last Monday’s low. Mike thinks the odds favor the next major move being up, however, our Cabot Tides are yet to flash a green light, and thus we’re content to hold our strong, profitable stocks, but also to keep a chunk of cash on the sideline. There’s one change in the portfolio today: Chipotle (CMG) is moving back on Buy.

Other Stocks of Interest June 6: Follow ups to stocks featured December 19, 2018 (issue 1409) to June 6, 2019 (issue 1421). Since they’re not in the Model Portfolio, you don’t see them followed on a regular basis. However, we are monitoring these stocks, and this listing gives their current momentum status.

Cabot Top Ten Trader

Movers & Shakers June 21: As for the market, Mike says it’s been a great week, with the major indexes up solidly (2.3% on the week for the S&P 500, and 3.3% for the Nasdaq) heading into Friday’s trading. This action represents solid upside follow-through from the explosive early-June move off the market’s correction low. As always, he’ll simply take things day to day, and if the evidence changes, he’ll change along with it. But right now, after a tough five-week dip, the buyers are back in control, so he’s likely to bump our Market Monitor up to a level 8 in Monday’s issue. Mike’s buy ideas this week are: Anaplan (PLAN) and Novocure (NVCR). There are three sells this week, Lennox (LII), Ollie’s Bargain Outlet (OLLI)and TopBuild (BLD).

Weekly Issue June 17: Holding your strong stocks and nibbling on some good-looking charts is fine by Mike, but he also advises sitting with a chunk of cash and patiently waiting to see if the market can follow through on its recent strength. This week’s list is a bit broader than those he’s seen recently, with a lot of good charts and growth stories. His Top Pick is Blackstone (BX), which has shown great power of late.

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 June 21: Sea (SE) is trading higher by 5.5% today at 34. This has pushed our August 26 calls, originally purchased for $2.30, to a current value of $8.40, or a potential profit of 265%. Jacob is going to continue to hold his position looking for more upside. However, taking profits is also a fine choice.

Cabot Options Trader Position Updates June 21: Today is the expiration of June options, of which we have three positions. Jacob lets you know how he is going to manage each position: Regions Financial (RF), Nasdaq ETF (QQQ) and Snap, Inc. (SNAP).

Cabot Options Trader Alert June 20: Sell Half of Existing Position: Sell HALF your Medtronic (MDT) November 100 Calls for $4.20 or more.

Cabot Options Trader Sector on Watch June 19: While the market is very likely to move on today’s Fed announcement, and sectors will likely move in and out of favor in the short term, Jacob wants to share some longer-term bullish positioning in the Metals & Mining ETF (XME) the past two days.

Cabot Options Trader Alert June 18: Buy HALF a Position: Buy the Medtronic (MDT) November 100 Calls (exp. 11/15/2019) for $4 or less.

Cabot Options Trader Position Update June 18: Microsoft (MSFT) is trading this morning at a new all-time high at 135. At this level in the stock our October 115 calls that were originally purchased for $7.31 are worth $21.90, or a potential profit of 200%. Jacob is setting a new mental stop on the October 115 calls at $15. Should the stock continue to rise, he will update that stop along the way.

Cabot Options Trader Market Update June 17: Ahead of Wednesday’s Federal Reserve meeting trading action today is painfully slow. For better or worse this might be the case tomorrow and Wednesday as well, as traders don’t want to step in front of a potential Fed-related steam roller.

Cabot Options Trader Pro Weekly Update June 17: Jacob has nine long positions: DIS, GLW, JD, LVS, MSFT, RF, SE, SNAP and Z and one short position, QQQ.

Cabot Options Trader Market Update June 17: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week marginally lower at 15.28. Interestingly the VIX remained calm last week even as there was plenty of worries floating around and despite this week’s big Federal Reserve meeting on Wednesday. Jacob would have expected the VIX to rise to 17 or above given those conditions.

Cabot Undervalued Stocks Advisor

Special Bulletin June 20: Commercial Metals (CMC) reports third quarter earnings beat, CMC is an undervalued growth stock with an attractive dividend yield. CMC is rebounding from the May pullback, and could rise as high as 18—where it traded in May—before pulling back and resting. Crista is apt to give CMC a Buy recommendation when that pullback occurs. Hold. Also,Baker Hughes (BHGE) moves from Hold to Strong Buy.

Special Bulletin June 20: Results of the annual Dodd-Frank Act stress test (DFAST) and the Comprehensive Capital Analysis and Review (CCAR) are due on June 21 and June 27, respectively, after the markets close. These tests examine large banks’ abilities to withstand disastrous economic scenarios and are focused on banks that have assets above $250 billion. The bank stock that reviewed most favorably for Crista was Citigroup (C) so she is adding it to the Growth & Income Portfolio with a Strong Buy recommendation.

Special Bulletin June 19: Digital media leader Adobe Systems (ADBE) reported second-quarter results yesterday afternoon (November year end). Record revenue of $2.74 billion beat the consensus estimate of $2.70 billion, and non-GAAP EPS of $1.83 beat the expected $1.78. Adobe Creative Cloud, Adobe Document Cloud and Adobe Experience Cloud all performed with strength. Risk-tolerant growth stock investors and traders should buy ADBE now. Crista expects immediate share price growth that could continue for an extended period of time during the current growth phase at Adobe Systems.

Weekly Update June 18: Early this month, Crista read a 68-page report by Wall Street analysts on population demographics, lifestyle trends and spending habits that’s projected out several decades. What she read about real estate was so significant—and in line with broad assumptions she’d been making—that she would be remiss if she did not share it with you. She also provides her latest update on all stocks. Here are today’s portfolio changes: Abercrombie & Fitch (ANF) moves from Hold to Buy, CIT Group (CIT) moves from Hold to Strong Buy, Designer Brands (DBI) moves from Strong Buy to Buy,Marathon Petroleum (MPC) moves from Hold to Buy, Schlumberger (SLB) moves from Hold to Buy, Synchrony Financial (SYF) moves from Hold to Strong Buy and Total SA (TOT) moves from Hold to Buy.

Monthly Issue June 4: This week Crista points out that the stock market recently rose a ridiculously large amount in a very short amount of time and that it cannot continue rising until it pulls back and rests for a while. That process could normally take 2-6 months. (That’s a rough estimation.) We’re one month into the pullback, which means we’re one month closer to the eventual market rebound. She concludes that the stock market will eventually offer up new, lucrative opportunities. Here are today’s portfolio changes: CIT Group (CIT) moves from Strong Buy to Hold, Corteva Inc. (CTVA) spun off from DowDuPont (DWDP) and joined the S&P 500 index, DowDuPont (DWDP) changed its name to DuPont de neMours (DD), Guess? (GES) moves from Buy to Hold, Sanmina (SANM) moves from Strong Buy to Hold, Southwest Airlines (LUV) moves from Buy to Hold.

Cabot Stock of the Week

Weekly Issue June 18: While we don’t officially have a new buy signal from our intermediate-term trend-following indicator, Tim says we are very close. Stocks in general have recovered quite well from the May correction, with the best hitting new highs—and the broad market remains in a healthy long-term uptrend. Thus Tim continues to recommend that you be heavily invested in a diversified portfolio of high-potential stocks—while selling those that disappoint. Today’s recommendation is a fast-growing Chinese coffee company with the potential to beat king-of-the-hill Starbucks. Luckin Coffee (LK) was originally recommended by Carl Delfeld in Cabot Emerging Markets Investor. There are no other changes in the portfolio this week.

Cabot Emerging Markets Investor

Bi-weekly Update June 20: Carl writes that emerging markets got a boost this week as it appears that there will be a high level meeting between the U.S. and China at the upcoming G-20 meeting. One of the biggest drivers of emerging markets closing the gap with more developed countries has been the combo of the internet and smartphones. He says this story still has legs. There are no portfolio changes this week.

Bi-weekly Issue June 13: The Emerging Markets Timer is still pointed down, but the next few days could tell us whether this recent upmove is the start of something more. For now, with the trend still being down, going slow is still a good idea. In this week’s issue, Carl adds a HALF position in Luckin Coffee (LK) and makes two additional changes in the portfolio: LexinFintech (LX) is moving from Hold a Half to Buy a full position and ProShares Short MSCI Emg Mkts (EUM) is moving from Buy to Sell.

Cabot Small-Cap Confidential

Weekly Update June 21: Tyler says to keep doing what you’re doing. Average up in the stocks that are strong, but not too strong. Establish full positions in buy rated stocks that you like but don’t yet own. Hold the rest. And let’s keep a watchful eye on any shift in market perception of what the Fed is doing, and this escalation with Iran, which is evolving into the biggest single near-term issue in his mind. Tyler has one portfolio change today, Codexis (CDXS) moves from Hold to Buy.

Monthly Issue June 7: Today’s stock, EverQuote (EVER) runs an online marketplace that matches insurance buyers with sellers where over $120 billion is spent each year. It is a simple concept with big potential. Tyler also updates all the stocks in the portfolio and has one change today: Quanterix (QTRX) moves from Buy to Hold.

Cabot Dividend Investor

Weekly Update June 19: Tom still feels good about the market over the remainder of the year. The economy is still strong—he believes stronger than the current consensus opinion is suggesting. But the relatively high level of uncertainty combined with the lack of more Fed rate hikes will continue to favor the defensive oriented dividend stocks. There are no changes in the portfolio this week.

Monthly Issue May 29: Tom writes about the new technology called 5G. The term means “fifth generation” as it represents the fifth generation of cellular wireless technology. 5G will pave the way for autonomous vehicles artificial intelligence, smart houses and cities and much more. In short, it will pave the way for a new wave of technological advancement. His featured recommendation this month is, Crown Castle International Corp. (CCI), a REIT that leases cellular wireless technology infrastructure (cell towers, small cells, fiber optic cables). It is a huge player that is front and center of the 5G build out and the business is likely to grow rain or shine and regardless of the economy.

Cabot Marijuana Investor

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%.

Monthly Issue May 30: The main trend remains up, in both the broad market and the cannabis sector in particular, but in the intermediate-term, we are now in a correction, and thus a little more caution is advised. The portfolio is 17% in cash and Tim is going to increase that today via three actions—He’s selling half of our positions in both Cresco Labs (CRLBF) and Curaleaf (CURLF), which up until now have both been overweight; and he’s doubling our position in Turning Point Brands (TPB), making that position slightly overweight. The result of it all is that the portfolio will be about 22% in cash.

Wall Street’s Best Investments

Daily Alert June 21: First US Bancshares, Inc. (FUSB) from Contra the Heard Newsletter
Daily Alert June 20: Invesco DB Agriculture Fund (DBA) from Stock Trader’s Almanac
Daily Alert June 19: Sell: Workday, Inc. (WDAY) from Cabot Growth Investor
Daily Alert June 19: Coupa Software Incorporated (COUP) from Cabot Growth Investor
Daily Alert June 18: FleetCor Technologies, Inc. (FLT) from Dow Theory Forecasts
Daily Alert June 17: MongoDB, Inc. (MDB) from Canaccord Genuity Research

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

Daily Alert June 21: DoubleLine Income Solutions Fund (DSL) from Brinker Fixed Income Advisor
Daily Alert June 20: Steel Dynamics, Inc. (STLD) from Forbes Dividend Investor
Daily Alert June 19: Greif, Inc. (GEF) from AlphaProfit Sector Investors’ Newsletter
Daily Alert June 18: The Carlyle Group L.P. (CG) from Cabot Undervalued Stocks Advisor
Daily Alert June 17: Aflac Incorporated (AFL) from DRIP Investor

Monthly Issue June 5: Nancy’s Spotlight Stock, Gilead Sciences (GILD), is a major biopharmaceuticals producer focusing on life-threatening diseases. Founded in 1987 by Michael Riordan, a 29-year-old medical doctor, Gilead has grown to over $22 billion in revenues through both internal growth and by acquisitions. Her Feature article uses Gilead as an example of when to sell and when to buy and Nancy provides two lessons learned.

Ask the Experts

Cabot Small-Cap Confidential

Question: What do you suggest as trailing stops for your portfolio stocks? Incidentally, you have done wonders for my portfolio. I’ve been with you from the beginning. Keep up the good work.

Tyler: I don’t use them. I watch the market closely enough that I tend to have a decent feel for what’s going on and just act on that. That said, I don’t have anything against them, per se. If you find they work for you, by all means, use them! My only advice would be to consider a partial sale (rather than an entire position), just so you have the option to review the remaining position if and when a automated trailing stop is hit. Sometimes news affects small caps in dramatic ways and a thoughtful interpretation of events can be worthwhile. Also consider adjusting the trailing stop based on the size of the position, and how much you are up. More profit = more wiggle room (my opinion). Less profit = less wiggle room. I do sell a stock if its down 25% to 30% from my entry point. That’s a hard and fast rule.

Cabot Options Trader

Question: I have and been watching SHOP climb to a new high this am at $320. What is your thought on this company that has a major percentage of the market? Thank you for this Great Year in Cabot Options

Jacob:I have to be honest that kind of bigger picture call is more Mike and Tim’s specialty at Cabot. However, if I was looking to play SHOP for more upside using options I might look at the October 320 calls for $36.50. Unfortunately calls in SHOP are very expensive as it is an expensive stock with a lot of price volatility. Though should the stock continue to rise those calls should work out nicely.

Premium Reports

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 Prime Pro Quarterly Report

Special Report

April, 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 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 Emerging Markets InvestorCabot Growth InvestorCabot Marijuana InvestorCabot Stock of the WeekCabot Undervalued Stocks AdvisorCabot Dividend Investor
AAPLHoldStrong Buy
ABBVBuyBuy
ACBSee Advisory
ADBEBuy
ALXNBuy
ANFBuy
APHASee Advisory
APPFHold
ARNABuy
ARRYSell
AVLRBuy
AXPHold 1/2
AXSBuyStrong Buy
BABABuy 1/2
BHGEStrong Buy
BIPBuyBuy
BSCJBuy 1/2
BSCLBuy 1/2
BXBuyStrong Buy
CStrong Buy
CCIBuy
CDNAHold
CDXSBuy
CFStrong Buy
CGStrong Buy
CGCSee Advisory
CHCTHold
CITHoldStrong Buy
CMCHold
CMGBuy
COUPBuy 1/2
CRLBFSee Advisory
CRONSee Advisory
CURLFSee Advisory
CVTAHold
DALBuyStrong Buy
DBIBuy
DDHold
DDAIFBuy 1/2
DOMOHold
DOWStrong Buy
EDHold 2/3
ELLXFSee Advisory
EPDBuy
EUMSold
EVBGHoldHold
EVERBuy
EXASHold
FIVEHold
GESHold
GSHDBuy
GTBIFSee Advisory
HEXOSee Advisory
HTHTHold
IBNBuy 1/2
IIPRSee Advisory
KNXHold
KSHBSee Advisory
LGORFBuy 1/2
LKBuyBuy
LUVHold
LXBuy
MKCHold
MOBuy
MOSHold
MPCBuy
MTCHBuy
NEEHoldHold
OGISee Advisory
OKTABuy
PGXBuy 1/2
PLNTBuyBuy
QTRXHold
QTWOBuy
RCLHold
REMXBuy 1/2
RGENBuy
SANMHold
SEHold 1/2
SLBBuy
SNAPBuy
SSOBuy
STAGHoldHold
SUPNHold
SYFStrong Buy
TCEHYBuy 1/2
TIVOHold
TOTBuy
TPBSee Advisory
TSLAHold
TTDHold
TWLOBuyHold
UEICStrong Buy
UPLDBuy
VFFSee Advisory
VOYABuyStrong Buy
XELHold 2/3
ZBuy 1/2
ZMBuy
ZTOBuy 1/2