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Cabot Weekly Review (Video)
In this week’s stock market video, Mike says that the market’s primary evidence (trend of the indexes and leading stocks) is still positive, but because some hot stocks have begun to come back down to earth, it’s a good time to keep your feet on the ground, have a plan and honor your stops. With that said, Mike is still mostly bullish, and he sees many leaders pulling back normally (and others setting up well) that should offer some solid entry points in the days ahead.
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Cabot Growth Investor
Bi-weekly Issue June 20: Mike says most of our stocks are performing well, but we’re standing pat for the moment, holding about 20% in cash as we look for solid entry points in fresh leading stocks. He touches upon on the sentiment backdrop, while highlighting a few potential new buys if things settle down a bit.
Bi-weekly Update June 12: Mike is putting PayPal (PYPL) and Five Below (FIVE) back on Buy tonight. Our cash position remains at 20%, though we could do new buying if we see a proper setup.
Other Stocks of Interest June 22: Follow ups to stocks featured January 17, 2018 (issue 1385) to June 20, 2018 (issue 1396). 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 Weekly Update June 22: Mike says he’s bullish as the evidence out there is saying just that, but there are certainly some concerns to be aware of. Nothing to be worried about, but there is certainly some mixed action and taking some partial profits as opportunities arise, honoring stops, and tightening up stops on losers and laggards is prudent. Today’s Buy Ideas: E*Trade (ETFC), SVB Financial (SIVB), Illumina (ILMN), Macy’s (M), Penumbra (PEN),and Turtle Beach (HEAR). Mike has ten sells: Serepta Thereapeutics (SRPT) , Foundation Medicine (FMI) , Carpenter Technology (CRS), PBF Energy (PBF), Phillips 66 (PSX), PTC Therapeutics (PTCT), Red Hat (RHT), RingCentral (RNG), Splunk (SPLK) and Valero (VLO).
Weekly Issue June 18: Mike says to remain bullish—it’s hard not to be when the leading indexes (Nasdaq, S&P 600 SmallCap) and stocks are acting well. This week’s list is chock-full of rapidly growing companies with super-strong charts. Mike’s Top Pick is Nutanix (NTNX), which blasted off in March and, after months of up-and-down action, looks to be resuming its uptrend here.
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.
Market Update June 21: Jacob is noticing that there has been an increase in bearish trades, which is forcing him to be patient with his next position. There has been an increase in options activity for oil stocks, which is mostly a mix of bullish and bearish positions. Stocks with activity that caught his attention: Coupa Software (COUP), Splunk (SPLK), Schlumberger (SLB), Halliburton (HAL), Cimarex Energy (XEC), and Occidental Petroleum (OXY).
Position Updates June 20: Jacob addresses a question from a subscriber about hi ‘one stock to buy’. The answer was PagSeguro (PAGS) as the option trading is wildly bullish and it’s demanding his attention.
Market and Position Update June 19: With this market decline our Nasdaq (QQQ) puts have come to life. It’s the latest evidence that having some portfolio protection, especially when the price is right, can be a great way to ride out turbulence in the markets. PagSeguro (PAGS) is trading lower by 13% this morning following a secondary offering. In early trades, buyers are aggressively buying August 30 and August 35 calls. Because of this, and because he has so long until our calls expire, Jacob will give our calls more time.
Stock on Watch June 18: Should the market strengthen, one stock that is on Jacob’s radar is Okta (OKTA). What he finds intriguing is recent call buying activity which are targeting the 60 and 70 strikes in July and August. These buys make little sense and seem unlikely to work, which always raises a red flag to Jacob. Because of this option activity OKTA is on my watch list should the market strengthen.
Cabot Options Trader Pro - Trade Alert June 18: Adjust Existing Position: Against your Microsoft (MSFT) July 92.5 Calls, sell the June 103 Calls (exp. 6/29) for $0.50 or more.
Cabot Options Trader Weekly Market Update June 18: Jacob expects another potentially quiet week but might be some concerns the market is ‘overheating’.
Cabot Options Trader Pro Weekly Market Update June 18: Jacob expects another potentially quiet week but might be some concerns the market is ‘overheating’. Jacob has 6 long positions: EEM, FCAU, INTC, MSFT, PAGS, and RF. Positions not impacting his decision making: KNX, SPY and one Short position: QQQ.
Cabot Undervalued Stocks Advisor
Special Bulletin June 22: With the shocking news that Intel Corp. (INTC) CEO Brian Krzanich is resigning, Crista gives her take on what do with if you own any shares. In short, sell your shares and move to a company with stronger earnings growth.
Special Bulletin June 21: Crista writes about Commercial Metals (CMC) which just reported earning this morning and now rated Strong Buy. She also has Skechers USA Inc. (SKX) as Strong Buy due to recent coverage from UBS.
Weekly Update June 19: In today’s update Crista writes about A Key Concept of Bank Deregulation: One Size Does Not Fit All. And in her Growth portfolio she’s moving PulteGroup (PHM) from Hold to Strong Buy.
Monthly Issue June 5: Crista, with her expertise on trade issues, discusses international trade negotiations and NAFTA. Today, DowDuPont (DWDP) joins the Growth & Income Portfolio as a Strong Buy. Martin Marietta Materials (MLM) moves from Buy to Hold, Schlumberger (SLB) moves from Buy to Strong Buy and Supernus Pharmaceuticals (SUPN) moves from Buy to Strong Buy.
Cabot Stock of the Week
Weekly Issue June 19: Tim’s recommendation this week is G-III Apparel Group (GIII), a stock that recently caught a big wave, and over the past few days, the ripples have pulled it back to what looks like a fine buying area. The stock was originally recommended by Mike Cintolo in Cabot Top Ten Trader. Tonight Tim is moving AllianceBernstein (AB) from Hold to Sell and Zillow (Z)from Buy to Hold.
Cabot Emerging Markets Investor
Bi-weekly Update June 21: Emerging market stocks have had a nasty week, with the iShares EM Fund (EEM) dropping decisively below its 25- and 50-day moving averages. The portfolio has several stocks that are vulnerable, but Paul is going to stand pat for now with no changes to the portfolio.
Bi-weekly Issue June 14: This issue’s featured stock is Momo Inc. (MOMO), a stock Paul recommended twice before, once in September 2016 and again in March 2017, each time recommending buying a half position. Tonight, Paul is moving BeiGene (BGNE) and TAL Education (TAL) from Buy a Half to Hold a Half.
Special Bulletin June 13: This morning, TAL Education (TAL), our longest and most-profitable holding, came under attack by Muddy Waters, a firm that specializes in publishing negative research on a company and selling its stock short. Paul will move TAL to a Hold rating as a precaution, but will keep monitoring the stock’s movement very closely.
Cabot Benjamin Graham Value Investor
Weekly Update June 21: Crista has no rating changes today, but some great news from RV-makers Thor Industries (THO) and Winnebago (WBO), the potential for a near-term breakout in shares of Intercontinental Exchange (ICE), and exciting news about the Disney-Comcast-Fox takeover tussle and how it’s affecting the Discovery Communications (DISCA)
Cabot Small-Cap Confidential
Weekly Update June 22: Tyler is moving incrementally more conservative due to the action in the market and several leading growth stocks turn choppy this week. As a result, Tyler has a few changes to the portfolio with Everbridge (EVBG) and MiX Telematix (MIXT) going from Buy to Hold and AppFolio (APPF) going from Hold to Sell Half.
Monthly Issue June 1: Tyler’s new recommendation is IntriCon (IIN), a $218 million market cap company that designs and manufactures body-worn devices for the hearing, bio-telemetry and professional audio communications markets. There are no changes to the portfolio.
Cabot Dividend Investor
Special Bulletin June 22: Chloe writes about the markets pulling back yesterday with the Dow, S&P 500 and Nasdaq all closing lower. Intel (INTC) and General Motors (GM) were hit particularly hard, so she wanted to send a quick update even though she’s not recommending any action. Continue to Hold these positions.
Weekly Update June 20: Chloe writes that the market’s intermediate-term trend remains up. She advises to stay the course, and resist overreacting to the oscillations. One rating change, with Intel (INTC) being moved back to Hold.
Monthly Issue May 30: This month’s featured buy, Community Healthcare Trust (CHCT) is a real estate investment trust (REIT) that owns healthcare facilities in non-urban areas. It’s being added to the High Yield Tier. Chloe is placing Ecolab (ECL) back on Hold today. In addition, Carnival (CCL) is on the chopping block if it doesn’t shape up soon.
Cabot’s 10 Best Marijuana Stocks
Update June 14: Tim recently attended the Cannabis World Conference and Business Expo in New York City. His main takeaway from that conference was that the trend continues to gain strength, at a faster rate than expected. He also updates the 10 stocks in the portfolio.
Summer Issue May 24: With this issue, Tim is replacing two of the portfolio stocks—Emerald Health (EMHTF) and CannaRoyalty (CNNRF)—with new recommendations—Hydropothecary (HYYDF) and iAnthus Capital (ITHUF).
Wall Street’s Best Investments
Daily Alert June 22: Boston Scientific (BSX) from Sound Advice
Daily Alert June 21: Marathon Oil (MRO) from Energy & Income Adviser
Daily Alert June 20: Adecoagro S.A. (AGRO) from The National Investor
Monthly Issue June 20: Our June Spotlight Stock is, SVB Financial Group (SIVB), financial services company, as well as a bank holding and a financial holding company. Nancy’s Feature article discusses the correlation between venture capitalists and the Spotlight Stock.
Daily Alert June 19: Cleveland-Cliffs Inc. (CLF) from Nate’s Notes
Daily Alert June 18: Fiserv Inc. (FISV) from Upside
Wall Streets Best Dividend Stocks
Daily Alert June 22: Taitron Comoponents (TAIT) from The Bowser Report
Daily Alert June 21: Wyndham Destinations (WYND) and Wyndham Hotels & Resorts (WH) from Stock Pickers Digest
Daily Alert June 20: Park Hotels & Resorts Inc. (PK) from The Intelligent REIT Investor
Daily Alert June 19: Vodafone Group Plc (VOD) from Internet Wealth Builder
Daily Alert June 18: R.R. Donnelley & Sons Co. (RRD) from Sure Dividend
Monthly Issue June 13: The Spotlight Stock is Community Healthcare Trust (CHCT), a real estate investment trust (REIT) paying a high yield, that operates in non-urban locales—a pretty rare find, indeed—as most REITs concentrate their holdings in large cities. Nancy’s Featured article is Equity REITs aren’t Afraid of Rising Rates
Premium Reports
Cabot’s 10 Best Buy and Hold Stocks for 2018
Update June 12, 2018: On June 11, 2018, USG Corporation (USG) announced that its Board of Directors agreed for the company to be acquired by Gebr. Knauf KG for $44 per share in cash. Crista suggestion is that investors sell USG now, rather than wait for the remaining $0.96 per share to accrue from the special dividend and the remaining potential capital appreciation.
Cabot’s 10 Best Takeover Stocks
Special Report May 3: There are a variety of reasons that a corporation might want to purchase another company. They might want to acquire a company’s patents or products to enhance their product lines; access the company’s distribution network and sales relationships; or simply aim to increase their earnings growth rate by purchasing a very profitable company within a related industry. After all, stronger earnings growth leads to better share price appreciation—a topic that boards of directors care very much about. Crista’s investment strategy, which combines both growth and value criteria, inadvertently identifies potential takeover targets. That’s because big companies and she often seek the same thing: stock investments in undervalued, financially thriving companies that can deliver profits to investors. The ten companies are all undervalued growth stocks. What’s more, they’re small enough that big competitors and peers within their sectors could easily finance their acquisitions, often through current cash flow.
Cabot’s 10 Best Covered Calls on Dividend Stocks
Special Report April 12: With interest rates just coming off of historically low levels, income investors have been desperately searching for alternative sources of yield. Dividend stocks are the obvious answer. But there’s an even better way to create yield: by executing a covered call strategy on stocks that pay dividends.
Cabot’s 10 Best Small-Cap Cloud Computing Stocks to Buy Now
Special Report Updated June 18: If you’re a growth investor, you need to own cloud software stocks. It’s just that simple. Cloud computing is changing the world. It’s powering massive growth in companies across sectors, empowering digital transformations, enabling new generations of connected technologies and changing how people live their lives. Tyler Laundon lays out the landscape and names his 10 best small-cap cloud computing stocks.
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.
Ask the Experts
Cabot Options Trader
Question: For a short term trade, your thoughts on buying Puts options for IQ & CVNA since they both have gone up so much in such a short period of time?
Jacob: My response to your email was “hmmmm”. I say this because it’s tough shorting shooting stars. You may end up being right, but you also could be really early. For example, all those traders that shorted internet stocks during the internet boom turned out to be right ... but they had to take years worth of pain. That said, if you want to short via buying puts, the most you can lose on the trade is the premium paid. So the risk is limited, and I have no problem with that. However, I would note, if you are going to short via puts, I would target puts with a couple months until they expire
Question: Bang up job this year. Quick question, do options traders buying premium lose 90% of the time? I keep hearing this and don’t believe it. Is this stat correct?
Jacob: No that is not true. That said if you’re buying calls and puts very far out-of-the money for pennies that could be the case. But we don’t do that. And next time someone says that to you, show them your big winning positions in NTNX, AAXN, IQ, etc.
Cabot Emerging Markets Investor
Question: As a long time subscriber I want to thank you for your work over the last couple of years. Previous to 2017 it must’ve felt like you’re running in quicksand but now the fun is upon us and you been a big help in the world of EM! So Thank you! Now on to IQ.... it’s too new for me to do much fundamental work. I’m trying to understand whether this valuation is crazy expensive or if this is one that can be kept for long-term capital gains. I hate taking S-T Cap Gains but spikes like 16 to 40 over a short period leave me very nervous.....Help! 29B Market Cap seems high for a firm this young but aware of the potential “Netflix of China” but maybe this is a blow-off Top. With a cost basis of 16 and a holding period of a month what should I do?
Paul: I’m afraid nervousness is frequently a price you have to pay to play extremely hot stocks. IQ makes me nervous too, but I can only manage it by what I see in the chart. And the chart tells me that it’s still in an uptrend. Last Friday’s little pullback helped a bit and I don’t yet see the increase in angle of attack that often attends a blow-off top. It makes perfect sense, if you’re really concerned, to sell a portion of your position, book the partial profit and let the stock do whatever it wants.
(And btw, fundamental work on hot growth stocks is not as useful as it is in blue chips or value stocks. Momentum is only partially fueled by the numbers.) Good luck to all of us.
Question:I am a new subscriber to CEM.Bought ZTO last week. I like MOMO more than ZTO. I’m thinking of selling ZTO and buying MOMO. What do you say?
Paul: I like both stocks right now, as each is posting a little sideways action after a big rally. I regard ZTO as a slightly more conservative pick than MOMO because of its Alibaba connection and its nuts-and-bolts exposure to e-commerce. I think it’s probably a good idea to hold both stocks as a way to put a small check on risk. What is it about MOMO that particularly appeals to you?
Cabot’s 10 Best Marijuana Stocks
Question: Hi, Looking forward to joining you as a reader of Cabot’s Ten Best Marijuana Stocks. I own GWPH and have a profit. Since you sold would it be advisable for me to sell? I have a 16% profit but I have $6,000 invested in it... I realize you don’t give advice but since you have sold it, I will be following you.
So you will not be advising on that stock? Thanking you in advance for your help
Tim: Thanks for asking. I will not be advising on GWPH on a regular basis, but you can ask anytime. I sold GWPH mainly to diversify into more cannabis-centric stocks for the portfolio, but if the stock fits your portfolio, I see no reason not to hold on. It is not a small stock and not under-appreciated, so to some extent it has less upside potential than others. On the other hand, it is likely to be less volatile and somewhat lower risk.
Cabot Stock of the Week
Question: You recommended selling Alliance Bernstein (AB) this week, but Chloe still has the stock rated buy. I’m confused.
Tim: Thanks for asking, and I’m sorry about the confusion. AllianceBernstein is a slowing-growing company with a high-yielding stock that has a solid long-term future, and it’s a fine investment for dividend-focused investors who can ride through the intermediate-term ups and downs, as Chloe and many of her readers of Cabot Dividend Investor intend to do. For example, just before I recommended AB for my readers in March, the stock lost 13% of its value in just two weeks. But it recovered that loss in a few weeks, and in the long run, I think it will do well—while providing that fine dividend flow—currently 10.2% per year. But Cabot Stock of the Week has a shorter-term focus, on average, in part because it must recommend a new stock every week. Yes, the advisory has some stocks that have been held for years, but those are growth stocks with great long-term prospects. Most of my stocks are owned more opportunistically, bought when they’re at attractive buying points and sold either after they turn down or—as in the case of BA—preemptively, before they turn down. That’s not saying that I expect BA to turn down immediately; it may or may not. But it is decidedly out of trend to the upside today, as are many, many stocks. Eventually, I know the tide will turn. And, since AB had brought my readers an uncharacteristically quick profit of 11% (including dividends) in just three months (that’s a lot for this stock), I chose to take the money and run, with the intention of redeploying the proceeds in a lower-risk situation, like the stock recommended this week, GIII.
Cabot Dividend Investor
Question: I recently saw a note to sell AllianceBernstein (AB), (maybe to take profit?) but you still have it rated buy?
Chloe: That sell alert you saw was in Stock of the Week. Tim sold AB after he hit his 21-stock limit last week. He wrote: “Holding the stock is fine here if you appreciate the high yield and you have the patience to sit through the gentle but long ups and downs that are inevitable in this kind of stock. But I’d rather not sit through that, especially in a stock that doesn’t have great growth potential. So, with a preemptive sell, I’m going to get out while the getting’s good.” His reasoning is solid from a growth perspective, but from an income perspective we’re with the investors who “appreciate the high yield and ... have the patience to sit through the gentle but long ups and downs.”
Guide to Cabot Prime Pro
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