Cabot Prime Pro Week Week Ending March 22, 2019
Cabot Weekly Review (Video)
In this week’s stock market video, Mike Cintolo remains bullish on the bigger picture, but shorter-term he talks about a handful of yellow flags he’s seeing—no reason to panic, but a reminder to have stops in place, to take some partial profits on the way up and to follow your plan. The good news is that, should the market pull in from here, he’s seeing a bunch of potential buys on weakness, and he shares some of his favorite targets.
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Cabot Growth Investor
Bi-weekly Update March 21: Remain bullish. The market continues to act well, and while the broad market has been futzing around for nearly a month, our market timing indicators are positive and most leading stocks are in good shape. Mike could put the rest of our cash to work in the days ahead, preferably on a pullback, but tonight, his only change is restoring the Buy rating on Workday (WDAY). Our cash position remains around 9%.
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.
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 22: Mike remains bullish when looking down the road because most of the big-picture evidence is pointed up, including the longer-term trend, the blastoff indicators from earlier this year and the action of leading stocks, which, despite today’s wobbles, are almost all still in intermediate-term uptrends. His buy ideas this week are: Acacia Comm. (ACIA), Match.com (MTCH), MercadoLibre (MELI) and Veeva Systems (VEEV). There is one sell today, LPL Financial (LPLA).
Weekly Issue March 18: At this point, that action is more descriptive than predictive; it does raise the odds that the market could throw us another curveball over the next week or two, but it’s not something we’d necessarily trade off of. Big picture, we remain mostly bullish, though for new buying, we still favor entering on weakness. This week’s list is just about all tech, med tech and biotech, and Mike is happy to see some improved setups after the past two to three weeks of action. His Top Pick is Zendesk (ZEN), which looks like it wants to continue its breakout from a few weeks back.
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 Market Update March 22: While Jacob obviously don’t want the market to get whacked too badly, with pain oftentimes comes opportunity. And while he’s not yet in the mood to buy, he does have a long list of stocks on his watch list that he could take a swing at should the right opportunity present itself. One of those stocks is Tandem Diabetes (TNDM). The stock jumped from 49 to 62 on earnings in late February and has continued to rise since, trading at a 52-week high of 75 yesterday before pulling back 5% today.
Cabot Options Trader Position Update March 21: While Jacob likes the way the market and many of our stocks look, he also knows that there is the risk that a cooling off period could also be around the corner. For that reason he setting/raising stops on a few of his positions. Zscaler (ZS) stop moves from $16 to $19 and Microsoft’s (MSFT) new mental stop at $8.
Cabot Options Trader Alert March 21: Sell Existing Position: Sell your ON Semiconductor (ON) April 20 Calls for $2.30 or more.
Cabot Options Trader Stocks on Watch March 19: One stock that is on Jacob’s radar for a new position is Sea Limited (SE). The stock jumped from 16.20 to 22 on earnings in late February and has steadily risen since. Ahead of SE’s great earnings report, when the stock was trading at 15, Carl Delfeld, Chief Analyst of Cabot Emerging Markets Investor, recommended the stock.
Cabot Options Trader Weekly Market Update March 18: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week at 12.88, or lower by 20%. This dramatic decline was a BIG surprise to Jacob as he had thought the VIX would not likely fall much below 15 given recent market weakness. However, starting Monday, and throughout the remainder of the week, the VIX kept falling and falling. With the VIX below 13, the price of puts is again becoming fairly attractive to hedge a bullish portfolio.
Cabot Options Trader Pro Weekly Market Update March 18: Jacob has seven long positions: CRON, GLW, MSFT, ON, RF, SBUX and ZS and one short position, QQQ.
Cabot Undervalued Stocks Advisor
Special Bulletin March 22: Commercial Metals (CMC) reported second-quarter results and remains a Strong Buy. Designer Brands Inc. (DSW) held an Investor Day and Guess? (GES) reported fourth-quarter results.
Special Bulletin March 19: DSW (DSW) joins the Buy Low Opportunities Portfolio. DSW Inc. is a footwear, accessories and apparel retailer that joins the Buy Low Opportunities Portfolio today. DSW has been a favorite apparel retailer of Crista’s due to its excellent growth and value fundamentals. The stock is also featured in my Top Ten Stocks to Buy & Hold for 2019 portfolio, which is up 11.65% year-to-date, excluding dividends.
Weekly Update March 19: U.S. stocks markets are now continuing their rebound from the horrendous fourth-quarter 2018 market action. The S&P 500 and NASDAQ indexes look quite bullish, while the Dow Jones Industrial Average (DJIA) lags a bit. And that makes sense because Boeing (BA)—the highest-priced stock in the DJIA—has been falling in conjunction with bad news about recent crashes of its 737 Max jet. Crista is making these portfolio changes today: Blackstone Group LP (BX) moves from Strong Buy to Buy, Comerica (CMA) from Hold to Buy, KLX Energy Services (KLXE) from Hold to Sell and Quanta Services (PWR) from Strong Buy to Hold.
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 19: The bull market of 2019 continues, though most major indexes have yet to break out to new highs. Thus, the risk remains that the correction that tried to get going two weeks ago will return for another try. But that’s a risk we can bear, as we focus on cultivating a portfolio of the leading growth stocks—those hitting new highs—as well as selecting undervalued and high-quality dividend-paying stocks. So far, it’s been a great year, and this week Tim adds another strong growth stock to the portfolio. The stock, Rapid7 (RPD), was originally recommended by Mike Cintolo in Cabot Top Ten Trader. Tim has two portfolio changes today: Everbridge (EVBG) and Van Eck Rare Earths/Strategic Metals (REMX) both move from Buy to Hold.
Cabot Emerging Markets Investor
Bi-weekly Issue March 21: Institutional investors are underweighting Europe so in today’s Issue Carl goes against the grain for his new recommendation. Daimler AG (DDAIF), is a great brand that offers a nice combination of high quality, value price of entry, strong growth in emerging markets and a 7.8% dividend yield. It’s rated Buy a Half. Carl has one change for you today, he is moving Nio, Inc. (NIO) from Hold a Half to Buy a Half.
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.
Cabot Small-Cap Confidential
Weekly Update March 22: Tyler writes that right now, keep new positions small and don’t get fooled into thinking we’re on a one-way conveyor belt higher. If this bull market is to stay healthy and continue, we’ll need to see a pause in leading stocks and some catch up performance from areas of the market that haven’t done much lately. There is one change to the portfolio today: Bottomline Technologies (EPAY) moves from HOLD to BUY.
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 20: Tom says that we have the ideal environment for the relative performance of dividend stocks. This late-stage economic cycle is where dividend-paying stocks typically thrive. As well, they generally hold up much better if there is a bear market. In today’s update Tom is moving Hormel Foods (HRL) from Sell Half to Hold.
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 20: This update which does include some updates on our portfolio stocks farther down, is mainly a reminder to you to exercise some caution. While the long-term prospects for this industry remain very bright, and Tim is thrilled to be your guide to these opportunities, the short-term risks are now high. Which means that someday, there will be a correction, and some investors, particularly those who bought at the top, will lose a lot of money. And he doesn’t want you to be one of them. So, if you’re a newcomer to the sector, take your time. Don’t do all your buying in one day. Buy one or two stocks, then wait. When you have some profits, do some more buying. In the portfolio Tim will now average up in Elixinol (ELLXF), the smallest position, doubling the size of the position.
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 22: Sell: CME Group Inc. (CME) from Cabot Dividend Investor
Daily Alert March 22: Generac Holdings Inc. (GNRC) from Dow Theory Forecasts
Daily Alert March 21: salesforce.com (CRM) from Canaccord Genuity Research
Daily Alert March 20: ZTO Express (Cayman) Inc. (ZTO) from Cabot Emerging Markets Investor
Daily Alert March 19: SPDR S&P MidCap 400 ETF (MDY) from The Chartist Mutual Fund/ETF Letter
Daily Alert March 18: Telefonaktiebolaget LM Ericsson (ERIC) from Internet Wealth Builder
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.
Wall Streets Best Dividend Stocks
Daily Alert March 22: Sell: CME Group Inc. (CME) from Cabot Dividend Investor
Daily Alert March 22: Invesco BulletShares 2019 Corp Bd ETF (BSCJ) and Invesco BulletShares 2021 Corp Bd ETF (BSCL) from Cabot Dividend Investor
Daily Alert March 21: WEC Energy Group, Inc. (WEC) from Argus Weekly Staff Report
Daily Alert March 20: Life Storage, Inc. (LSI) from Contrarian Outlook
Daily Alert March 19: Allegiant Travel Company (ALGT) from AlphaProfit Sector Investors’ Newsletter
Daily Alert March 18: U.S. Bancorp PERP PFD SER A (USB-PA) from Jack Adamo’s Insiders Plus
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 Marijuana Investor
Question: Hi Tim, We’re readers of your Stock of the Month and Marijuana Investor letters. Appreciate all your efforts and your counsel. Re the marijuana industry, your thoughts re Village Farms (VFF)?
Tim: VFF is on my watch list, and I expect to write about it in next week’s issue of Cabot Marijuana Investor, along with a few other smaller companies/younger stocks. The weeklong trading halt a few weeks ago was a little worrisome, but in retrospect it was mainly a sign of the company’s lack of expertise in the U.S. capital markets, and the action of the stock since then has been great. Fundamentally, I see some comparisons to Turning Point Brands (TPB), in that an established old-industry company is shifting gears to participate in the new fast-growth cannabis industry.
Cabot Options Trader
Question: My ? for you is how will the breakup of DowDupont affect a call on the option market for the April, May, June, or July options as the company has announced it will break into (3) separate companies starting April 1 and commencing on June 1? Could you cover this ? in one of your articles for your current subscribers? Should we be getting out or selling the options or continue to hold in your estimation? I guess I am really wondering what happens, or how this affects the price of those options.
Jacob: I HATE these company breakups/spinoffs. They are brutal to figure out. Because of that I tend to just sell my options out as I don’t need the headache. Is that the right move? Who knows. But mostly I just don’t want to deal with it. That said, if you do a google search for DWDP OCC there are several PDF’s that breakdown the way the Options Clearing Corporation will manage this situation. Now it will give you a headache trying to figure it out, but the information is out there. Of note, here was a trade made today in DWDP ... Buyer of 10,000 DowDuPont (DWDP) April 57 Calls for $0.95 – Stock at 55.75
Question: I regret I did not buy ZS earlier on. Is it too late to join the party? I have been amazed that it and some other cloud names, like Splunk and Five9 and Twilio have been on a meteoric rise. How would you recommend playing these companies, if at all? Their options tend to be very pricey, but I would like to find some way to participate in the upside. Thanks as always. And congrats on your ZS recommendation.
Jacob: My gut tells me we are getting close to a pullback on these names. But of course I don’t trade on my gut. So if i was looking for upside in these names I might be looking at calls just a hair out-of-the-money with a couple months until their expiration. For example, ZS August 70 calls for $8.50. Or if you are able to trade spreads, something like the August 70/80 bull call spread would reduce your premium at risk to $4.
Premium Reports
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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.
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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
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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.