Cabot Prime Pro Week Week Ending March 29, 2019
We’ve Added a New Feature
By request, we have added a new feature to your Cabot Prime Weekly Summary—the Stock Recommendation Tracker. It 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 to the portfolios or any changes to our recommendations over the previous week. We will 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, Mike Cintolo discusses the mixed market outlook—short-term, it remains a bit of a coin flip, so he’s taking things on a stock-by-stock basis, but longer-term, he remains very bullish as very little abnormal action has appeared. Besides highlighting some setups, Mike also hands out a bit of education surrounding handling a good winner and also how to view sharp shakeouts in some glamour names.
CABOT EVENTS:
Cabot Prime Quarterly Analyst Update & Q&A
Prime & Prime Pro Members | April 17, 2019
SPECIAL FREE WEBINAR OFFER - Hosted by Crista Huff
Great Growth & Value Stocks That Are Poised for Immediate Upside | Thursday, April 18
Cabot Wealth Summit 2019
7th Annual Conference | Wed-Fri, Aug 14-16 | Salem, Mass.
We’ve just 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 March 28: In the Model Portfolio, Mike placed some stocks on hold and, this week, sold one stock as it broke down on huge volume. He’s holding 18% cash now, though should the market and growth stocks firm up, he’ll be looking to put that to work in stronger leaders. In tonight’s issue, Mike looks at prior environments after blastoff signals to see what’s normal and what’s not (hint: so far, we’re still in good shape).
Special Bulletin March 27: Growth stocks were hit hard today, though they found some support in the afternoon. At day’s end, the Dow was down a modest 32 points, but the Nasdaq was off a more severe 48 points. In the Model Portfolio, Mike is selling Exact Sciences (EXAS), which will boost the cash level to around 18%.
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%.
Other Stocks of Interest March 28: Follow ups to stocks featured October 24, 2018 (issue 1405) to March 28, 2019 (issue 1416). 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 29: Mike remains mostly bullish and isn’t changing his stance much—he’s likely to keep the Market Monitor at a level 7. But he also thinks it’s prudent to step carefully until we see the major indexes, the broad market and leading stocks firm up. His buy ideas this week are: Incyte Corp. (INCY), ServiceNow (NOW) and Universal Display (OLED). There are four sells today, Cronos (CRON), Exact Sciences (EXAS), iQIYI (IQ) and Kirkland Lake (KL).
Weekly Issue March 25: Right now, most of the evidence remains positive, so we remain mostly bullish. But it’s fair to say Mike’s antennae are up and the next few days will be important—the intermediate-term trend is basically on the fence (another bad day could turn it down) and many leading stocks have been running for many weeks and are extended to the upside. The good news is we’re seeing a decent amount of strong stocks that hit new highs recently and are pulling back normally. This week’s list is full of them, and Mike’s Top Pick is iRobot (IRBT), a stock with a solid growth story and a good-looking setup on the chart.
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 Video Position Update March 28: In this video, Jacob discusses two short volatility trades. The first was a trade recommendation for Cabot Options Trader Pro in Lululemon (LULU) this morning. And the second short volatility trade discussed was a big put sale made in Canada Goose (GOOS).
Cabot Options Trader Position Update March 28: Yesterday Jacob added a bullish position in JD.com (JD) following several days of bullish option activity. And then in the hours after he initiated the position, the call buying spree exploded higher as traders aggressively bought upside calls expiring in the next week, as well as the “normal” April expiration and several May expirations.
Cabot Options Trader Pro Alert March 28: Bull Put Spread: Sell the Lululemon (LULU) May 150/145 Bull Put Spread (exp. 5/17) for $0.50 or more.
Cabot Options Trader Alert March 27: Buy the JD.com (JD) September 30 Calls (exp. 9/20/2019) for $3.20 or less.
Cabot Options Trader Pro Alert March 27: Buy the JD.com (JD) September 30/38 Bull Call Spreads (exp. 9/20/2019) for $2.55 or less.
Cabot Options Trader Stocks on Watch Update March 26: Because of the wobbles Jacob has limited new buying recently. However, one stock that’s on his radar for a new position is JD.com (JD), which has seen fairly consistent call buying in the last week.
Cabot Options Trader Position Update March 26: Jacob gives position updates on Zscaler (ZS), Starbucks (SBUX) and Cronos Group (CRON).
Cabot Options Trader Earnings Update March 25: Cronos Group (CRON) will report earnings before the market open tomorrow. The stock is trading higher by 7% this morning as the market is trading marginally lower, after an ugly day for the market last Friday.
Cabot Options Trader Weekly Market Update March 25: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week at 16.5, or higher by 28%. And while the market had its worst day in many months on Friday, and the VIX spiked aggressively, Jacob would characterize option order flow as mixed to slightly bearish as his options barometer registered a 4.
Cabot Options Trader Pro Weekly Market Update March 25: Jacob has six long positions: CRON, GLW, MSFT, RF, SBUX and ZS and one short position, QQQ.
Cabot Undervalued Stocks Advisor
Weekly Update March 26:The March flooding in Nebraska and neighboring Midwest and Great Plains states is devastating to farmers, crops and livestock. Consumers can expect prolonged food price inflation that reaches around the globe. Food prices affect the headline consumer price index (CPI) numbers, which can certainly influence a Federal Reserve decision to raise interest rates. Crista doesn’t expect this potential scenario to play out quickly. Here are today’s portfolio changes: Apollo Global Management (APO) moves from Buy to Strong Buy, Apple (AAPL) moves from Buy to Strong Buy and CF Industries (CF) moves from Strong Buy 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 26: The market has softened over the past week, and we’ve seen some high-volume selling in former leading stocks, so Tim is now pulling back a bit on risk, which is one reason today’s recommendation is a low-risk utility stock. Technically part of the Safe Income portfolio of Cabot Dividend Investor, NextEra Energy (NEE) pays a healthy 2.6% yield and it has decent upside potential as well. Today Tim has two sell recommendations: NIO (NIO) moves from Buy to Sell and Teladoc Health (TDOC) from Hold to Sell.
Cabot Emerging Markets Investor
Bi-weekly Update March 28: As we close out the first quarter, this is a good time to look at how emerging markets have fared. The MSCI Emerging Market index (EEM) is up 9% so far in 2019 but has basically hit the pause button in March. Our EEM market signal is still positive but is now trading in the ballpark of both the 20-day and 50-day moving averages. While this is probably just a pause before the next move upward, Carl feels we need some caution in case the market has other ideas. After the sale yesterday of Nio (NIO) there are no additional portfolio changes today.
Special Bulletin March 27: Rather than wait until Thursday, Carl is letting you know that he’s moving Nio Inc. (NIO) to a sell following its 7% decline Tuesday following disappointing news that electric vehicle subsidies in China are being cut 50%.
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.
Cabot Small-Cap Confidential
Weekly Update March 29: With the exception of one small partial position sale, this week’s update has no ratings changes, so Tyler says to just keep executing on the stock-specific strategies that he had in place last Friday. Also, since stock-specific news flow has slowed to a trickle, he’s included a high-level overview of what each of our stocks does. There is one change to the portfolio today: CareDx (CDNA) moves to SELL A QUARTER.
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
Monthly Issue March 27: Tom writes that this is a tricky environment. He believes dividend stocks are in the sweet spot of this late stage economic cycle market. The December selloff gave most investors a hangover and increased the appetite for income and recession resistant businesses. His featured stock this month is, Brookfield Infrastructure Partners L.P. (BIP) , a company that owns and operates infrastructure assets all over the world. It particularly focuses on high quality, long-life properties that generate stable cash flows, have low maintenance expenses and are virtual monopolies with high barriers to entry. Tom has three rating changes since last week’s update, General Motors (GM) moves from Hold to Sell, American Express (AXP) from Hold to Buy and UnitedHealth Group (UNH) from Buy to Hold.
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.
Cabot Marijuana Investor
Monthly Issue March 28: Tim says that CBD is hot, and acquisitions in the cannabis industry seem to occur daily, but the biggest marijuana stocks are cooling, at least for a while. Long-term, however, he remains very bullish on both the companies and the stocks in the industry and is truly enjoying staying on top of the developments. Tim is making one small change in the portfolio by averaging up in Kush Bottles (KSHB), increasing our position by one-third its current size.
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.
Wall Street’s Best Investments
Daily Alert March 29: Rapid7, Inc. (RPD) from Cabot Stock of the Week
Daily Alert March 28: Sprouts Farmers Market, Inc. (SFM) from The Buyback Letter
Daily Alert March 27: Fidelity Select Defense & Aero Port (FSDAX) from Forecasts & Strategies
Daily Alert March 26: iShares Expanded Tech-Software Sect ETF (IGV) from Pearson Investment Letter
Daily Alert March 25: LKQ Corporation (LKQ) from SmallCap Informer
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 29: Baird Core Plus Bond Fund Class Investor (BCOSX) from Dow Theory Forecast
Daily Alert March 28: Texas Roadhouse, Inc. (TXRH) from Stock Pickers Digest
Daily Alert March 27: Solar Senior Capital Ltd. (SUNS) from Sure Dividend
Daily Alert March 26: DoubleLine Emerging Markets Fixed Inc I (DBLEX) from Bob Carlson’s Retirement Watch
Daily Alert March 25: ABB Ltd (ABB) from Internet Wealth Builder
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 Small-Cap Confidential
Question: Hi. What do you mean by the phase average in relative to Upland Software? Thank you
Tyler: It just means to spread out your purchases over time. Another term is to “dollar cost average”. It just reduces the risk of buying at the wrong time, so to speak. A typical strategy is to buy in 2-4 blocks. Say you’re desired total investment was $4,000. You could buy $1,000 dollars worth of shares at four different dates (over weeks or months, whatever feels best - monitor Weekly Updates for buy or hold ratings).
Cabot Options Trader
Question: I am an options trader subscriber and appreciate your perspective on the market. I wonder if you could offer some advice on Boeing near/long term, assuming that news over the next weeks moves favorably for them, how would you approach an options play?
Jacob: If I was looking for bullish exposure to BA I could attack it a couple different ways: I wouldn’t go with April options as the decay is going to be tough to overcome unless BA explodes higher soon. So the earliest expiration cycle I might target is May. With that in mind perhaps .... Buy to Open the May 385 Calls for $15 or longer term ... July 390 Calls for $21 or even longer term ... November 390 Calls for $31. Unfortunately volatility/price of options is sky high. Why? Because you aren’t the only trader looking to play a bounce. That said, longer term, should this issue pass, I like the November trade best.
Premium Reports
Cabot’s Ten Best Canadian Small-Cap Stocks
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.
Cabot’s Best Safe Investments for Uncertain Times
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
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.
| Stock | Cabot Small-Cap Confidential | Cabot Emerging Markets Investor | Cabot Growth Investor | Cabot Marijuana Investor | Cabot Stock of the Week | Cabot Undervalued Stocks Advisor | Cabot Dividend Investor |
|---|---|---|---|---|---|---|---|
| AAPL | Buy | Strong Buy | |||||
| ABBV | Buy | ||||||
| ACB | See Advisory | ||||||
| ALXN | Buy | ||||||
| ANF | Hold | ||||||
| APHA | See Advisory | ||||||
| APO | Buy | Strong Buy | |||||
| APPF | Buy | ||||||
| ARNA | Hold | ||||||
| AVLR | Buy | ||||||
| AXP | Buy | ||||||
| BABA | Buy 1/2 | ||||||
| BHGE | Buy | ||||||
| BIP | Buy | ||||||
| BSCJ | Buy 1/2 | ||||||
| BSCL | Buy 1/2 | ||||||
| BX | Buy | ||||||
| BZUN | Buy 1/2 | ||||||
| CDNA | Sell 1/4 | ||||||
| CDXS | Buy | ||||||
| CF | Buy | ||||||
| CGC | See Advisory | ||||||
| CHCT | Hold | ||||||
| CHEF | Buy | ||||||
| CIEN | Hold | ||||||
| CIT | Buy | ||||||
| CMA | Buy | ||||||
| CMC | Strong Buy | ||||||
| CMG | Buy | ||||||
| CRLBF | See Advisory | ||||||
| CRON | See Advisory | ||||||
| CURLF | See Advisory | ||||||
| DAL | Strong Buy | ||||||
| DDAIF | Buy 1/2 | ||||||
| DHI | Hold | ||||||
| DSW | Strong Buy | ||||||
| DWDP | Strong Buy | ||||||
| ECL | Hold 1/2 | ||||||
| ED | Hold 2/3 | ||||||
| ELLXF | See Advisory | ||||||
| EPAY | Buy | ||||||
| EPD | Buy | ||||||
| EVBG | Hold | Hold | |||||
| EXAS | Sell | Buy | |||||
| FIVE | Hold | ||||||
| GES | Strong Buy | ||||||
| GM | Hold | Sell | |||||
| GSHD | Buy | ||||||
| GTBIF | See Advisory | ||||||
| HEXO | See Advisory | ||||||
| HRL | Hold | ||||||
| HTHT | Hold | ||||||
| IIPR | See Advisory | ||||||
| ITHUF | See Advisory | ||||||
| KLXE | Sold | ||||||
| KNX | Hold | ||||||
| KSHB | See Advisory | ||||||
| LUV | Strong Buy | ||||||
| MKC | Hold | ||||||
| MLM | Hold | ||||||
| MPC | Strong Buy | ||||||
| MTCH | Buy | ||||||
| MO | Buy | ||||||
| MOS | Buy | ||||||
| NEE | Buy | Buy | |||||
| NIO | Sell | Sell | |||||
| PGX | Buy 1/2 | ||||||
| OGRMF | See Advisory | ||||||
| OKTA | Hold 1/2 | ||||||
| PLNT | Buy | Buy | |||||
| PWR | Hold | ||||||
| QTWO | Buy | ||||||
| RCL | Strong Buy | ||||||
| REMX | Hold 1/2 | Hold | |||||
| RGEN | Buy | ||||||
| RPD | Hold | Buy | |||||
| SANM | Strong Buy | ||||||
| SE | Hold 1/2 | ||||||
| SLB | Hold | ||||||
| SSO | Buy | ||||||
| STAG | Hold | Hold | |||||
| SUPN | Strong Buy | ||||||
| SYF | Hold | ||||||
| TAL | Buy 1/2 | ||||||
| TCEHY | Buy 1/2 | ||||||
| TDOC | Sell | ||||||
| TIVO | Hold | ||||||
| TOT | Buy | ||||||
| TPB | See Advisory | ||||||
| TSLA | Hold | ||||||
| TTD | Buy | ||||||
| TWLO | Buy | Buy | |||||
| UEIC | Strong Buy | ||||||
| UNH | Hold | ||||||
| UPLD | Buy | ||||||
| VOYA | Buy | Buy | |||||
| WDAY | Buy | ||||||
| WRK | Buy | ||||||
| XEL | Hold 2/3 | ||||||
| ZTO | Buy 1/2 |