Cabot Prime Pro Week Ending June 26, 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, Mike Cintolo reiterates his bullish stance, but he also highlights some near-term potential potholes; he remains heavily invested, but it’s important to have a plan and keep your feet on the ground. Mike goes through all of what he’s seeing in the market and various leaders, including a few that could be nearing decent entries.
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Three Stocks for Three “Blue Ocean” Global Trends
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Advisory Services
Cabot Growth Investor
Bi-weekly Update June 25: You should remain bullish and flexible. Most of the evidence remains positive, including the trends of the major indexes and action of leading growth stocks. That said, the bifurcated environment is still in effect, and few stocks are at attractive entry points after big runs. As we have been all year, Mike remains open to anything, but tonight he’s standing pat in a heavily invested position (8% cash).
Bi-weekly Issue June 18: Continue to follow the plan—holding your strong performers and putting money to work as opportunities arise. In the Model Portfolio, Mike is adding a full position in Wingstop (WING) today, which looks to be at a solid entry point. Our cash position will now be around 10%. He’s also moving Teladoc (TDOC) from Hold to Buy.
Cabot Top Ten Trader
Movers & Shakers June 26: In the near-term, there are a few things to keep an eye on. First, the latest upmove (coming after the June 11 shot across the bow) has seen the Nasdaq hit a fresh high and many growth stocks light up the sky, but not much else joined the party—every other index and most sectors (even chip stocks) failed to confirm the move to virgin turf. In fact, a 2% to 3% drop from here could actually put the intermediate-term trend of the market as a whole on the fence. Mike’s buy recommendations today are: Big Lots (BIG), Elastic (ESTC), Inphi (IPHI) and Thor Industries (THO). Today’s sells are: Schrodinger (SDGR) and Square (SQ).
Weekly Issue June 22: While the endless rotation isn’t ideal, it hasn’t changed the big picture—most of the evidence remains bullish, so Mike is still optimistic the path of least resistance is higher. That said, it’s important to keep your feet on the ground, too; looking for solid entry points and not hesitating to book some partial profits on the way up are still good ideas, as some selling pressure or another bout of rotation isn’t out of the question. This week’s list has a bit of a secondary feel to it, but many are showing solid setups; ideally some of these will be the next wave of names big investors focus on. Mike’s Top Pick is Restoration Hardware (RH), which has a strong story and is resting nicely after a very strong run.
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 26: A quick note before Jacob dives into a look at the market, our positions and a Stocks on Watch: Next week his family will be at the beach and he will do his best to unplug from the markets. This is one of the two weeks he tries to get away each year, and it’s timed to a four-day week that’s traditionally slow (ahead of the 4th of July)—though as we know 2020 is not your average year.
Cabot Options Trader Basic and Pro Trade Alert June 25: Covered Call: Buy Sonos (SONO) Stock and Sell the July 15 Strike Call (exp. 7/17) for a Net Price of $13.40 or less.
Cabot Options Trader Basic and Pro Trade Alert June 24: Roll Existing Position: Sell your Nasdaq (QQQ) December 220 Puts, and Buy the QQQ December 240 Puts (exp. 12/18).
Cabot Options Trader Position Update June 23: Peloton (PTON) is breaking out to a new high today at 56.25. This has pushed our October 45 calls that were purchased for $6.60 to be worth 15.50, or a potential profit of 135%.
Cabot Options Trader Position Update June 22: This morning shortly before the open Stifel raised their price target on Peloton (PTON) from $55 to $62. Jacob is going to continue to hold the position as the stock performance and option activity are very bullish.
Cabot Options Trader Pro Weekly Update June 22: Jacob has six long positions: GLUU, GILD, JD, PTON, SNAP and XLF, and two short positions: QQQ Bear Call Spread and QQQ December Puts.
Cabot Options Trader Weekly Update June 22: This week’s watchlist is made up of three stocks that have greatly outperformed the market in the last two months, though one of these stocks saw put buying into strength on Friday. The stocks are: Crowdstrike (CRWD) Facebook (FB) and Etsy (ETSY).
Cabot Undervalued Stocks Advisor
Weekly Update June 24: There have been so many changes in 2020, it pains me to heap another change onto your laps, and yet it is time for me to do so. I’ve implemented the next phase of my longtime career plan by establishing a U.S. equity hedge fund for which I am the portfolio manager. It is now, therefore, time for Crista to leave her analyst position with Cabot Wealth Network and concentrate solely on managing the Fund’s assets. In that light, this is the last week of her five-year tenure with Cabot. At this time, she is handing the reins over to a very experienced analyst, Mr. Bruce Kaser, Managing Director at The Turnaround Letter. Here are today’s portfolio changes: Adobe Systems (ADBE) moves from Buy to Hold, Amazon.com (AMZN) moves from Buy to Hold and Netflix (NFLX) moves from Strong Buy to Hold.
Monthly Issue June 3: Three of today’s featured companies seem most obviously ready to begin or continue run-ups in the coming days: Equitable Holdings (EQH), Mercury General Group (MCY) and Tyson Foods (TSN). The fourth featured company, Bristol-Myers Squibb (BMY), is sitting at the bottom of a steady trading range, offering attractive opportunities for growth investors, dividend investors and traders. Here are Crista’s portfolio changes: Dow Inc. (DOW) moves from Buy to Strong Buy and Quanta Services (PWR) moves from Hold to Buy.
Cabot Stock of the Week
Weekly Issue June 22: The market remains in good health, so Tim continues to recommend that you be heavily invested in a diversified portfolio of the best stocks, both strong momentum stocks and lower-risk dividend-paying slower growers. In the portfolio this week, the only change is an upgrade of Vertex Pharmaceuticals (VRTX) from Hold to Buy. As for the newest recommendation, Global X Cybersecurity ETF (BUG), it’s unusual in that it’s not one stock; it’s actually an ETF of a market sector that I think holds spectacular promise in the long term.
Cabot Global Stocks Explorer
Bi-weekly Issue June 25: Markets, led by Nasdaq’s leading companies, had an impressive winning streak broken by concerns over an acceleration of coronavirus cases. Our Emerging Markets signal (EEM) stays positive as the virus is being handled well in Asia outside of China but is exploding in Latin America. The Explorer portfolio is well positioned with cash to deploy and stocks holding up well. Today, Carl looks inside the indexes to see what’s working and also explore what more participation by individual investors in 2020 might mean for markets. Then he moves north to Canada for a promising new recommendation, Kirkland Lake Gold (KL), that has all the characteristics of a winning gold stock. Here are today’s portfolio changes: Cloudflare (NET) moves from Buy a Half to Buy a Full Position and Fanuc (FANUY) moves from Buy a Half to Hold a Half.
Bi-weekly Update June 18: Today Carl writes that U.S. and global markets continue to be fueled by substantial amounts of liquidity washing over the world. According to Lipper, the amount in American money market funds has reached $4.6 trillion. This is a record going back to 1992. Carl has two portfolio changes today: Alibaba (BABA) moves from the Watch List to a Hold recommendation and Global X Cybersecurity ETF (BUG) moves from Buy a Half to Hold.
Cabot Small-Cap Confidential
Weekly Update June 25: Our portfolio the last week has been unremarkable, which is fine by Tyler. Our stocks were flat, on average, with returns spread from -8% to +6%. Our average gain is hovering around +200%, and our two most recent additions are still trading around our entry point. News flow in the coming weeks will probably continue to be more health, macro-economic and politically driven. Tyler has two portfolio changes today: Cardlytics (CDLX) and Inspire (INSP) both move from BUY to HOLD.
Monthly Issue June 4: This month, Tyler is breaking into a familiar market by going back to the insurance industry. But today’s addition is very different from our other rapid growth insurance companies in a major way. The stock, Palomar Holdings (PLMR), is acting strong and the fundamentals remain great, despite COVID-19.
Cabot Dividend Investor
Weekly Update June 24: While there are growing signs of risk, the market is, as always, difficult to predict in the near term. If it does selloff, that’s okay. Stocks in this portfolio are well positioned to endure further hardship and thrive beyond this crisis. Another down leg in the market will represent an opportunity to better position ourselves ahead of the ultimate recovery. Don’t fear further downside. Embrace it and exploit it if it happens. There are no rating changes today.
Monthly Issue June 10: There are bargains and high yields out there. But you have to be careful to find those with a safe dividend. Stocks still selling at bargain prices that pay high yields that are safe represent the best buying opportunities in the market right now. In this issue, Tom highlights one of the few diamonds in the rough. He has seven portfolio changes today, Community Healthcare Trust (CHCT) moves from HOLD to SELL, STAG Industrial (STAG) from HOLD to SELL 1/2, Altria (MO) from HOLD to BUY, Crown Castle International (CCI) from HOLD to SELL 1/2, Innovative Industrial Properties (IIPR) form BUY to SELL 1/3, Qualcomm Inc. (QCOM) from HOLD to SELL 1/3 and Valero Energy Corp. (VLO) from HOLD to SELL 1/2.
Cabot Marijuana Investor
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)Special Report: April 29, 2020
U.S. Vertically Integrated Multistate Operators (MSOs)Cabot Early Opportunities
Special Bulletin June 18: Yesterday we decided to sell Enphase (ENPH) due to lackluster performance over the last month. Unfortunately, the timing of this decision coincided with a shoddy short report that pummeled the stock, sending it down over 25% yesterday. To be 1,000% clear … our sell notice was NOT because Tyler believes the short report to be valid.
Monthly Issue June 17: This month’s Issue of Cabot Early Opportunities features a fresh group of stocks that all have their own merits, but which have remained reasonably strong through the recent volatility. Tyler has a newly public company selling health insurance directly to consumers, a rapid growth software company enabling automation for small businesses, an emerging MedTech innovator and a company benefitting from surging demand for boats. His top pick is Purple Innovations (PRPL), one of several emerging bed-in-a-box companies.
Cabot Profit Booster
Weekly Issue June 23: The Stock – Big Lots (BIG) BIG had been the dog’s dinner for years, but the action after the market’s low has been stunning, with shares ripping higher eight of nine weeks and tagging multi-year highs in late May. The stock has finally begun to pull in, which is normal, and so far the selling has been orderly, allowing the 50-day line to begin to catch up. If you don’t own any, we’re OK taking a swing at BIG around here. Stop - 27.5. The Covered Call Trade Buy Big Lots (BIG) Stock at 34.50, Sell to Open July 35 Calls (exp. 7/17/2020) for $1.50, or a Net Price of $33 or less.
June Expiration June 18: Tomorrow is the expiration of June options and we are going to close five positions for full profits ranging from 9.75% to 17.64%. Meanwhile, we have one position that will be interesting to see where the stock closes tomorrow. Jacob gives us the details.
Cabot Micro-Cap Insider
Weekly Update June 24: Rich personally don’t think the forward returns for U.S. large cap stocks look very attractive due to several reasons: 1) Valuations are elevated on an absolute and relative basis, 2) A Democrat could win the U.S. presidential election, which may result in higher corporate taxes and 3) We could see a significant spike in COVID-19 cases this fall.Nonetheless, he sees many opportunities in the micro-cap space! Here are the changes this week Increasing PDDPF buy limit to Buy Below 2.50 and Move HPTO toSell Half Above 0.49.
Special Bulletin June 23: This morning, Medexus Pharmaceuticals (PDDPF) reported results for the fiscal year ending March 31, 2020. More importantly, PDDPF reported quarterly results for the quarter ending March 31, 2020. Previously, Rich recommended buying under 2.32, but given the excellent execution by the company and its clear undervaluation, he’s raising his buy under target to Buy under 2.50.
Monthly Issue June 10: This issue, Rich profiles Liberated Syndication (LSYN), an under-the-radar podcast hosting company in secular growth that is about to announce the results of a strategic review. Our micro-cap recommendations have performed well in aggregate. Nonetheless, he believes his open BUY recommendations remain significantly undervalued as they have been left behind in this surging market. He has no portfolio changes.
Special Report
A Defensive Healthcare Stock with 100% UpsideSpecial Report
The Best Way to Play the Oil Market DislocationCabot Income Advisor
Monthly Issue June 24: In this issue, Tom highlights three stocks to buy and at the same time offer covered call ideas on those same stocks. The simultaneous purchase of a stock and the writing of a call is called a buy/write. The current environment is ripe for such a strategy. As usual, he recommends selling a call that represents the position. If you buy 500 shares, write 5 calls. If you have 1,000 shares, write 10 calls.
Weekly Update June 17: If the market continues to rise, Tom writes that we can still generate a strong income with covered calls, albeit with less appreciation than just owing the stock. If the market pulls back, we can still collect dividends and call premiums and probably be able to write more calls on the same stocks in the future (as they won’t get called away). Today he has a “Special Alert” for the writing of a call in our Altria (MO) position, Sell MO July 31 $42 call at $1.60 or higher.
Special Report:
Off the Radar Cash GeneratorsSpecial Report:
The Covered Call Income MachineWall Street’s Best Investments
Daily Alert June 26: Inari Medical, Inc. (NARI) Canaccord Genuity Research
Daily Alert June 25: SEI Investments Company (SEIC) Hendershot Investments
Daily Alert June 24: Anthem, Inc. (ANTM) Dow Theory Forecasts
Daily Alert June 23: First US Bancshares, Inc. (FUSB) Contra the Heard Investment Letter
Daily Alert June 22: Sell: BJ’s Restaurants, Inc. (BJRI) SmallCap Informer
Daily Alert June 22: Essent Group Ltd. (ESNT) SmallCap Informer
Monthly Issue June 18: Advisors and consumers are back on the bullish track, as you’ll see in our Barometer, as well as Market Views. Despite the market’s rise, there are still plenty of undervalued stocks in the marketplace. And Nancy begins this issue with our Spotlight Stock, Okta, Inc. (OKTA), a technology company that is gaining market share in the highly competitive field of cybersecurity—in this case, specializing in ID authentication for employees and customers. Her feature article explores the industry in more depth, as well as additional reasons for adding the Spotlight Stock to your portfolio.
Ask the Experts
Cabot Growth Investor
Question: Hi Mike, Sorry to bother you and tell me if I am… In trying to better understand a stocks Institutional position, with the inserted graphic, WING - % Held by Institutions
- For growth stocks, is it your position Positive or Negative to see this high a level already owned by institutions?
- I don’t understand how the # of shares are this high 113% by the definition…”the percentage of outstanding shares are owned by institutional investors”. How do you get over 100% of outstanding shares? Can you offer a brief explanation? Thanks
Mike: Thanks for writing. I don’t really follow the % owned – I look at the total number of funds and which ones own it. The case here is a good example – my experience, some of these numbers are bunk. Either way, for WING, it strikes me as having a good amount of institutional support but if anything could use a bit more. We use an institutional program to see the number of funds that own shares, and that’s a more relevant statistic, though to be honest, it’s not a be-all, end-all number for us. Much more important is trading volume, sales/earnings, chart, market, sector, etc.
Question: Great newsletter (Cabot Growth) last week, spot on. Can’t pick them all but the ones you’ve recommended are certainly some of the better performers this year, so far. Thanks Other than SSO, are there specific ETF’s that would be recommended in this market? I have an account in my 401k that allows “self-directed” platform but only using ETF’s, not individual securities. Just curious, Where can I get market sector suggestions in broad ETF’s for this market cycle? I could research the ETF’s that hold some of the suggestions in the newsletter, I guess.
Mike: Good to hear from you, and thanks for the kind words. A bull in growth stocks helps of course. So I haven’t really dug into the minutiae of all the ETFs – we simply think it’s a bull market and this gives us a foothold. We’d probably stay fairly broad (SPY) or go with a mix (IWM, QQQ and SPY). We sort of like owning something tied to the S&P as our other stuff is NOT tied to it too closely – a bit of diversification. Long story short, anything broad – SPY, Wilshire 5000, etc. – fits in with the purpose of why we added SSO.
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts from April 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 | |||||
| ADBE | Hold | ||||||
| AMZN | Hold | ||||||
| APHA | See Advisory | ||||||
| APPF | Hold | ||||||
| ARE | Hold | ||||||
| ARNA | Buy | ||||||
| AVGO | Hold | ||||||
| AVLR | Buy | ||||||
| BABA | Hold | ||||||
| BIP | Buy | Buy 2/3 | |||||
| BKR | Sold | ||||||
| BMY | Strong Buy | ||||||
| BSCL | Buy 1/2 | ||||||
| BUG | Hold 1/2 | Buy | |||||
| BYND | Buy | ||||||
| CCI | Hold 1/2 | ||||||
| CDLX | Hold | ||||||
| CGC | See Advisory | ||||||
| CHGG | Buy 1/2 | Buy | |||||
| CHWY | Hold 1/2 | ||||||
| CRAK | Buy | ||||||
| CRLBF | See Advisory | ||||||
| CRON | See Advisory | ||||||
| CURLF | See Advisory | ||||||
| DBSDY | Buy 1/2 | ||||||
| DOCU | Hold 3/4 | ||||||
| DOW | Buy | ||||||
| DXCM | Hold 3/4 | ||||||
| EPD | Hold | ||||||
| EQH | Strong Buy | ||||||
| EVBG | Buy | ||||||
| EVER | Hold 1/2 | ||||||
| FANUY | Hold 1/2 | ||||||
| FVRR | Hold 3/4 | ||||||
| GFL | Buy 1/2 | Buy | |||||
| GILD | Buy 1/2 | ||||||
| GM | |||||||
| GRWG | See Advisory | ||||||
| GSHD | Hold 3/4 | ||||||
| GTBIF | See Advisory | ||||||
| HTHT | Hold | ||||||
| IIPR | See Advisory | Hold 2/3 | |||||
| INSP | Hold | ||||||
| KERN | See Advisory | ||||||
| KL | Buy 1/2 | ||||||
| KPTI | Buy | ||||||
| MKSI | Hold | ||||||
| MO | Buy | ||||||
| MPC | Buy | ||||||
| NEE | Hold | Hold 1/2 | |||||
| NET | Buy | Buy | |||||
| NFLX | Hold | ||||||
| NVDA | Hold | Strong Buy | |||||
| OKTA | Buy | ||||||
| PGX | Hold 1/2 | ||||||
| PLMR | Buy 1/2 | ||||||
| PWR | Hold | ||||||
| QCOM | Hold 2/3 | ||||||
| QTWO | Buy | ||||||
| REMX | Buy 1/2 | ||||||
| RGEN | Buy | ||||||
| RNG | Hold | ||||||
| SE | Hold 1/2 | Hold | |||||
| SPCE | Buy | Buy | |||||
| SSO | Buy | ||||||
| STAG | Hold 1/2 | ||||||
| TCNNF | See Advisory | Buy | |||||
| TCOM | Buy 1/2 | ||||||
| TDOC | Buy | ||||||
| TLRY | Buy | ||||||
| TOT | Hold | ||||||
| TPB | See Advisory | ||||||
| TSLA | Hold | ||||||
| TSN | Hold | Buy | |||||
| TWLO | Buy | ||||||
| UEIC | Strong Buy | ||||||
| VLO | Hold 1/2 | ||||||
| VOYA | Strong Buy | ||||||
| VRTX | Hold | Buy | |||||
| VZ | Buy | Buy | |||||
| WING | Buy | ||||||
| XEL | Hold 2/3 | ||||||
| ZM | Hold | ||||||
| ZS | Hold |