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Weekly Summary March 15, 2019

Cabot Prime Pro Week Week Ending March 15, 2019

Cabot Weekly Review (Video)

In this week’s stock market video, Mike Cintolo discusses the market’s excellent snap back from its two-week pullback, with the big-cap indexes and many leading stocks moving back to new highs. Besides going into the short- and intermediate market view, Mike spends some time talking about selling (on the way up and down), on former high-fliers that are coming back to life and, of course, on some solid setups among current leaders.

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Advisory Services

Cabot Growth Investor

Bi-weekly Issue March 14: Stay bullish, but be sure to look for solid entry points on the buy side and keep mental stops in place on anything that’s lagging. In the Model Portfolio, Mike has no changes tonight—he’s holding onto nine stocks with a cash position of around 10%. In tonight’s issue, Mike writes about a couple of simple tips for handling some off-the-bottom names in last year’s high-fliers, as well as reviewing our nine stocks and a couple others that look tempting.

Bi-weekly Update March 7: Remain bullish, but take things on a stock-by-stock basis. The market has begun to pull back after a great couple of months, and stocks could easily correct and consolidate further. That said, to this point, the market’s evidence remains bullish, and even the growth stocks that have been dented are so far holding key support. Tonight, Mike is sticking with his collection of stocks, though he’s watching the situation closely. In the Model Portfolio tonight, we’re placing Ciena (CIEN) on Hold but restoring our Buy rating on Planet Fitness (PLNT). The cash position is around 9%.

Other Stocks of Interest March 6: Follow ups to stocks featured September 26, 2018 (issue 1403) to February 28, 2019 (issue 1414). 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 March 15: All in all, the evidence remains bullish, so you should as well. At this point, Mike doesn’t advise jumping into things that have just had big runs (conversely, you can continue to take partial profits on some stocks that are sticking straight up in the air), but you should be holding most of your shares in strong performers and looking to add new leaders, preferably on pullbacks. His buy ideas this week are: Exact Sciences (EXAS), Invitae (NVTA), iRobot (IRBT) and Zendesk (ZEN). There are four sells today, Elastic (ESTC), iRhythm Tech (IRTC), LGI Homes (LGIH) and Pinduoduo (PDD).

Weekly Issue March 11: The recent action looks normal to Mike—none of the major indexes and very few leading stocks cracked any meaningful intermediate-term support, and today’s sharp rally is a good sign that buyers are still lurking. Be sure to watch your stops and loss limits, and it’s a good idea to be discerning on the buy side, focusing on strong stocks that have pulled back to solid entry points. Market-wise, though, he remains bullish and are keeping our Market Monitor at a level 7. This week’s list has stocks from all corners of the market, which we see as an encouraging sign. Mike’s Top Pick is RingCentral (RNG), a leader in a new cloud communications field with a stock that’s acting great.

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 Alert March 15: Buy back your Regions Financial (RF) March 16 Calls and Sell the April 16 Calls.

Cabot Options Trader Alert March 15: Sell Half of Existing Position: Sell Half your Microsoft (MSFT) October 115 Calls for $8.50 or more.

Cabot Options Trader Position Update March 14: Our Zscaler (ZS) May 44 calls, which were originally purchased for $5.60, are now worth $23, or a potential profit of 310%. Jacob is going to set a new mental stop on this position at $16. He’s adding this mental stop so that he protects our massive gains, though still giving the stock some wiggle room so we can potentially capture a bigger gain.

Cabot Options Trader VIDEO March 14: In the wake of the second Boeing 737 plane crash, Boeing (BA), has become extremely volatile and of interest to Cabot Options Traders. Because of this Jacob wanted to look at Bullish and Bearish Options plays.

Cabot Options Trader Pro Alert March 13: Sell Existing Position: Sell your Ciena (CIEN) April 36/44 Bull Call Spreads for $3.40 or more.

Cabot Options Trader Alert March 13: Sell Existing Position: Sell your Ciena (CIEN) April 36 Calls for $3.60 or more.

Cabot Options Trader Alert March 12: Buy the Microsoft (MSFT) October 115 Calls (exp. 10/18/2019) for $7.80 or less.

Cabot Options Trader Education March 11: Last week Jacob received a great question about rolling big winning positions, and he thought he would use Zscaler (ZS), which is making another new all-time high today at 63, as an example. The question was essentially, “Can you provide any guidelines or rule of thumb as to when you roll positions up and out?”

Cabot Options Trader Weekly Market Update March 11: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week at 16.12, or higher by 18.79%. As Jacob theorized in this Volatility section last week, there seemed to be air pockets in the VIX the previous week which led him to believe that traders were largely unhedged, and because of that, we could see a spike in the VIX.

Cabot Options Trader Pro Weekly Market Update March 11: Jacob has seven long positions: CIEN, CRON, GLW, ON, RF, SBUX and ZS and one short position, QQQ.

Cabot Undervalued Stocks Advisor

Weekly Update March 12: Crista has quite a few portfolio changes today: Alexion Pharmaceuticals (ALXN) moves from Hold to Buy, Apple (AAPL) from Hold to Buy, CIT Group (CIT) from Hold to Buy, Martin Marietta Materials (MLM) from Buy to Hold, The Mosaic Company (MOS) from Strong Buy to Buy, TiVo (TIVO) from Strong Buy to Hold and Voya Financial (VOYA) from Hold to Buy.

Monthly Issue March 5: Crista is adding three stocks to the portfolios today – The Mosaic Company (MOS) joins the Buy Low Opportunities Portfolio as a Strong Buy, Royal Caribbean Cruises (RCL) joins the Growth & Income Portfolio as a Strong Buy and Sanmina Corp. (SANM) joins the Growth Portfolio as a Strong Buy. She is selling Delek U.S. Holdings (DK) and Blackstone Group LP (BX) moves from Buy to Strong Buy.

Cabot Stock of the Week

Weekly Issue March 12: The market’s major trends remain up, and the odds are still good that the market will be higher months from now. Short-term, however, the correction that began last week will likely last a bit longer and, ideally, lead to an increased level of fear, uncertainty and doubt before the market resumes its uptrend. Tim is recommending Apple (AAPL) today because Crista Huff, Chief Analyst of Cabot Undervalued Stocks Advisor, makes a good argument and because AAPL has a very favorable long-term chart, which shows major corrections that bottomed in 2013 and 2016 right on the stock’s 50-month moving average, and kicked off multi-year runs to new highs, and if the pattern holds, the correction that ended in December will do the same. He has two portfolio changes today: Voya Financial (VOYA) and Nio Inc (NIO) both move from Hold to Buy.

Cabot Emerging Markets Investor

Bi-weekly Update March 14: Carl writes that week to week, it’s important to keep in mind why we as investors are interested in global emerging markets. In short, it’s growth. Economies with high growth rates fueling companies that are growing revenue and profits at a brisk pace. And when we can get growth at a value price—so much the better. There are two portfolio changes today: AngloGold Ashanti (AU) moves from Hold a Half to Sell and Van Eck Rare Earths/Strategic Metals (REMX) from Buy a Half to Hold a Half.

Bi-weekly Issue March 7: Emerging market stocks remain in a confirmed uptrend with the support of generally upbeat earnings. Investors have piled about $86 billion into emerging market stocks and bonds already this year, more than in the last nine months of 2018 combined. Carl’s new recommendation today is, ZTO Express (ZTO), a well-managed, fast-growing transportation company set to generate huge profits despite China’s slowdown. In the model portfolio today, Carl is moving AngloGold Ashanti (AU) from Buy a Half to Hold a Half.

Cabot Small-Cap Confidential

Weekly Update March 15: Tyler writes that in many individual stocks he’d say the action is starting to lean more towards frothy, than bearish. That’s why he’s been pulling on the reins in recent weeks, moving more stocks to hold and suggesting taking smaller positions if you’re buying. There are two changes to the portfolio today: CareDx (CDNA) and Everbridge (EVBG) both move to HOLD.

Monthly Issue March 1: Today’s stock, Upland Software (UPLD) is a $761 million market cap company that provides cloud-based Enterprise Work Management (EWM) software to companies where collaboration and teamwork are critical to their operations. Tyler also updates all the stocks in the portfolio and has one change for today: Q2 Holdings (QTWO) moves back to Buy.

Cabot Dividend Investor

Weekly Update March 13: Tom writes that despite a slight pullback over the past couple of weeks, the market is showing a slow and steady upward slog. The economy is in solid shape but the market won’t run away because it keeps getting talked down. It’s an ideal environment for defensive dividend stocks. As a result, those portfolio positions are at or near 52-week highs. He updates all the stocks in the portfolio, and has several rating changes today: CME Group (CME) moves from Hold to Sell, Hormel Foods (HRL) moves from Hold to Sell Half and Invesco Preferred ETF (PGX) moves from Hold to Buy.

Monthly Issue February 27: Tom writes that in just a few years this country has gone from a state of hopeless dependency on foreign energy to the world’s largest producer of both oil and natural gas. It is a global economic phenomenon of staggering proportions that will materially affect the economic well-being of the country for many decades to come. Who knew? As an investor, you need to know this story. His featured stock this month is, Enterprise Product Partners (EPD), one of the largest midstream energy companies in the country, with a vast portfolio of service assets connected to the heart of American energy production. There are no rating changes since last week’s update.

Cabot Marijuana Investor

Update March 13: In selling two weeks ago, Tim raised the portfolio’s cash position to 30%, which is rather high for this bull market, so he doesn’t want to keep it there long. Thus he’s going to buy one new stock, Green Thumb Industries (GTBIF) and average up in some of our current holdings. Specifically, he will take half our cash, using a third of it (a sixth) to buy Green Thumb and spreading the remainder equally among APHA, CGC, CRON, ITHUF, OGRMF and TPB. That will take the portfolio’s cash position down to about 15%.

Monthly Issue February 28: While the S&P 500 is up 11.1%, year-to-date, the Marijuana Index is up 40.0%, and our own Marijuana Portfolio is up 44.4%. Times are good. Demand for marijuana stocks continues to exceed supply, as new investors are drawn to the sector by a combination of a desire to buy the hottest stocks and a growing acceptance of this increasingly legal American industry. Today Tim is selling all of CV Sciences (CVSI), MedMen (MMNFF) and Tilray (TLRY) and a third of Cresco Labs (CRLBF) and Innovative Industrial Properties (IIPR). After the sales, the portfolio will be about 30% in cash, which he hopes to reinvest soon—and at more advantageous buy points.

Wall Street’s Best Investments

Daily Alert March 15: Mohawk Industries, Inc. (MHK) from The Turnaround Letter
Daily Alert March 14: Amphenol Corporation (APH) from Pivotal Point

Monthly Issue March 13: This month, Nancy’s Spotlight Stock, ShotSpotter, Inc. (SSTI), focuses on an unhappy subject—mass shootings. And while the company she is recommending isn’t pioneering a solution to that tragedy, it is finding a niche in mitigating the losses that come with it. In her Feature article, she further explores the technology behind its products.

Daily Alert March 13: Balchem Corporation (BCPC) from Positive Patterns
Daily Alert March 12: Granite Construction Incorporated (GVA) from PAD System Report
Daily Alert March 11: Sell: The Ensign Group, Inc. (ENSG) from 2 for 1 Stock Split Newsletter
Daily Alert March 11: Altius Minerals Corporation (ALS.TO) from Adrian Day’s Global Analyst

Wall Streets Best Dividend Stocks

Daily Alert March 15: Sell: MB Financial, Inc. (MBFIO) from Income Securities Investor
Daily Alert March 15: The Hartford Financial Services Group, Inc. (HIG-PG) from Income Securities Investor
Daily Alert March 14: Arbor Realty Trust, Inc. (ABR) from The Dividend Hunter
Daily Alert March 13: Utilities Select Sector SPDR ETF (XLU) from Stock Trader’s Almanac
Daily Alert March 12: B&G Foods, Inc. (BGS) from Forbes Dividend Investor
Daily Alert March 11: SunTrust Banks, Inc. (STI) from The Prudent Speculator

Monthly Issue March 6: In this issue Nancy welcomes Douglas Gerlach, who is a new regular contributor to our newsletters. Doug is with Investor Advisory Service and is the editor of the SmallCap Informer newsletter. Doug contributed our Spotlight Stock this month, Silicon Motion Technology (SIMO), a powerhouse in the data storage industry. In her Feature article, Nancy delves further into the sector, noting its expansion as well as future potential.

Ask the Experts

Cabot Undervalued Stocks Advisor

Question: What do you think of Alphabet (GOOGL)?

Crista: If I owned GOOGL right now, I’d keep it while it’s currently rising, and possibly use a stop-loss order, because the high P/E adds risk. I’d sell somewhere around 1260-1280, where it traded last summer. Then I’d buy a more undervalued growth stock, to lower my investment risk. If I were a buy-and-hold investor, with less concern about the specifics of growth or value, I’d keep GOOGL long term.

Cabot Small-Cap Confidential

Question: Tyler, good morning! Do you still follow NSTG? If so, what is your opinion? Thank you!

Tyler: Interesting you should ask. I don’t follow NSTG anymore, but have been looking at it from time to time as the price action improves. Technically, it looks good. Don’t have a clue on the current fundamentals though. I think a lot of the interest is due to the new GeoMx Digital Spatial Profiler and the potential for that solution, which I believe is just beginning to have beta installations now and ramping up to commercial launch in Q2 2019. Seems like a good one to own at the moment!

Cabot Marijuana Investor

Question: Your views on Cannabix Technologies (BLOZF) would be helpful. They are developing a breathylizer for marijuana; seem to be making good progress.

Tim: Thanks for bringing this to my attention. Cannabix certainly has interesting technology, and is almost certainly in the lead, assuming there will be a market, either in law enforcement or workplace enforcement. But the stock, now trading just above a dollar, has spent the past 14 months digesting its previous advance, so it’s not likely to be a near-term performer. In the meantime, I’ll be watching it.

Premium Reports

The Five Best Canadian Stocks to Buy Now

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

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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.