Cabot Prime Pro Week Ending May 1, 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 talks about the market’s tricky week, which featured plenty of news-driven moves and rotation. A majority of the evidence remains positive, so he’s still thinking the path of least resistance remains up, but he wants to see more stocks build on their rallies to extend his line. In the meantime, he does see some solid setups developing and relays a bunch of his favorites.
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Cabot Growth Investor
Bi-weekly Update April 30: Remain optimistic, but keep some powder dry, too. The overall market continues to look good, though this week Mike has seen most growth stocks take hits as money has flowed into the broad market. Still, to this point, the action is normal, with leading stocks holding key support. He could have new buys next week if growth stocks stabilize, but tonight, he has no changes on the buy or sell side. Our cash position stands at 47%.
Bi-weekly Issue April 23: As always, if things change, then Mike will change along with it, but the Tides buy signal and other positives prompted him to add a full position in Okta (OKTA) and half positions in both Cloudflare (NET) and Chewy (CHWY) earlier this week. That leaves us with a cash position of 46%. Also, DocuSign (DOCU), Dexcom (DXCM) and Vertex (VRTX) all move from Hold to Buy.
Other Stocks of Interest April 24: Follow ups to stocks featured December 5, 2019 (issue 1434) to April 23, 2020 (issue 1444). Since many of the stocks written about in Other Stocks of Interest don’t make their way into the Model Portfolio, you won’t see them followed on a regular basis in the issues. However, we are monitoring these stocks, and this listing gives you a quick view of our latest thoughts.
Cabot Top Ten Trader
Movers & Shakers May 1: Following the intermediate-term green light a couple of weeks ago, Mike thinks the market is still in a feeling-out process—there have been some ups, some downs, lots of rotation and plenty of news-driven moves. He’s still OK putting some money to work, but (a) it’s best to be discerning, and (b) remember to let the market pull you into a more heavily invested position; don’t be in too much of a hurry to plow a bunch more money into the market until you’ve developed some profits on your last few purchases. Mike’s buy ideas today are: American Tower (AMT), Five9 (FIVN), Inphi (IPHI) and Smartsheet (SMAR). Also, in general, it’s good to remember to take a few chips off the table if you have a stock that’s been running quickly higher over the past few weeks.
Weekly Issue April 27: Right now, with the intermediate-term trend still up and many stocks acting well, you should be putting some money to work, and then see what comes—further upside would be a sign to do some follow-on buying, while a couple of sharp, big-volume selloffs in the market would tell you to hold off. This week’s list again has plenty of good-looking names to choose from. Mike’s Top Pick is Pinduoduo (PDD), which has turned powerful after a five-month rest. You can start a position here or (preferably) on dips of a couple of points.
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 Earnings Update April 30: This afternoon Gilead (GILD) will report earnings. Jacob hasn’t been writing up as many earnings updates as in quarters past, mostly because he largely thinks earnings will be a throwaway this quarter, but he will address stocks in the portfolio (and AAPL).
Cabot Options Trader Basic and Pro Trade Alert April 29: Sell Half of Existing Position: Sell Half of your Financials ETF (XLF) January 23 Calls for $2.75 or more.
Cabot Options Trader Basic and Pro Trade Alert April 29: Covered Call: Buy ON Semiconductor (ON) Stock and Sell the May 17 Call for a net price of $16.10 or less.
Cabot Options Trader Position Update April 29: Gilead (GILD) reported that a trial of its Covid related drug Remdesivir met its primary endpoint. In early pre-market trade GILD is trading higher by $8 at 86. Only time will tell where GILD stock will open and trades throughout the day. However, Jacob wanted to bring this early action to your attention.
Cabot Options Trader Position Update April 28: The S&P 500 is unchanged today, though that doesn’t tell the story of the action under the surface. Shortly after the open a sharp rotation began as the recently red-hot Growth and Biotech stocks came under pressure, while money flowed into the unloved Financials and Industrials. Jacob is seeing some of this action in option order flow as well, including a trade shorting Biotech, and buying calls in a Financial.
Cabot Options Trader Stocks on Watch April 27: As we know the Airlines, along with the Cruise, Hotel and Restaurant sectors are on the front lines of the coronavirus situation. And while Jacob has picked up on some put buying in many of these stocks, the one from this group that most routinely attracts put buying is American Airlines (AAL). He gives you just a few of these puts buys made today.
Cabot Options Trader Pro Weekly Update April 27: Jacob has 4 Long positions: JD, GILD, XLF and Z.
Cabot Options Trader Weekly Update April 27: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week at 36, or lower by 6%. Despite some market weakness early last week, and some strength to end it, the VIX continues to be relatively range-bound between 36 and 46. And when looking at this range, even when the VIX moved to 36 or 46, the moves were slow and without any feeling of panic.
Cabot Undervalued Stocks Advisor
Special Bulletin April 30: Today’s news: Dow Inc. (DOW) reports first-quarter results and moves from Hold to Buy, MKS Instruments (MKSI) reports first-quarter results and moves from Buy to Hold, Total SA (TOT) – Crista had the date wrong on the earnings release, Tyson Foods (TSN), Universal Electronics (UEIC) and Voya Financial (VOYA) all move from Hold to Buy recommendations, and Crista gives her outlook for the S&P 500 Index and Portfolio Stock Price Action.
Weekly Update April 29: Crista has been receiving questions recently that essentially ask, “Why did this stock go up when the company reported bad news?” and “Why did this other stock go down when the company reported good news?” Those are valid questions that serve to emphasize a point that you frequently hear: over the short-term, a stock price can do literally anything. She gives you her take on these questions. Here are today’s portfolio changes: Broadcom (AVGO) moves from Hold to Buy, Equitable Holdings (EQH) moves from Buy to Strong Buy, LGI Homes (LGIH) moves from Hold to Buy and NV5 Global (NVEE) moves from Hold to Strong Buy.
Special Bulletin April 28: Today’s news: Equitable Holdings (EQH) reported preliminary first-quarter results and moves from Hold to Buy and Equitable’s subsidiary AllianceBernstein (AB) reported first-quarter results.
Special Bulletin April 27: Today’s news: Adobe Systems (ADBE) – trading alert; stock moves from Hold to Buy, Alexion Pharmaceuticals (ALXN) – trading alert, Apple Inc. (AAPL) – earnings report due April 30; stock moves from Hold to Buy, Marathon Petroleum (MPC) – trading alert; stock moves from Hold to Buy, MKS Instruments (MKSI) – earnings report on April 28; trading alert; stock moves from Hold to Buy, Nvidia (NVDA) – trading alert; stock moves from Hold to Buy, VanEck Vectors Oil Refiners ETF (CRAK) – trading alert; ETF moves from Hold to Buy and Economic Commentary – sell retail apparel stocks: Abercrombie & Fitch (ANF), Designer Brands (DBI) and Guess? Inc. (GES).
Monthly Issue April 1: Crista’s featured companies today are benefiting from the current focus on healthcare, online commerce, dining at home and limited travel behaviors. These companies are Amazon.com (AMZN); Bristol-Myers Squibb (BMY), a new addition to the Growth & Income Portfolio; Mercury General Group (MCY) and Tyson Foods (TSN). Here are today’s portfolio changes: Abercrombie & Fitch (ANF) moves from Hold to Buy, Adobe Systems (ADBE) moves to the Special Situation and Movie Star Portfolio, Bristol-Myers Squibb (BMY) joins the Growth & Income Portfolio as a Strong Buy, General Motors (GM) moves from Hold to Buy, Goldman Sachs Group (GS) moves from Hold to Retired, MKS Instruments (MKSI) moves from Hold to Strong Buy, Netflix (NFLX) moves from Strong Buy to Hold, Quanta Services (PWR) moves from Hold to Buy, Total SA (TOT) moves from Hold to Buy, Universal Electronics (UEIC) moves from Hold to Strong Buy and VanEck Vectors Oil Refiners ETF (CRAK) moves from Hold to Strong Buy.
Cabot Stock of the Week
Weekly Issue April 27: The market’s rebound continues and thus Cabot’s intermediate-term market timing indicator remains in a positive mode, telling us some buying is definitely warranted. At the same time, our long-term market timing indicator remains in a negative mode, telling us it’s still prudent to hold some cash. For this advisory, the bottom line is that new buying is fine, but Tim is on high alert to be prepared for weakness should a serious correction begin. As for this week’s stock, Trulieve (TCNNF), it comes from his other advisory, Cabot Marijuana Investor, which is full of generally high-risk, high-reward stocks that are in line to benefit from the country’s fastest-growing industry (at least it was the fastest-growing before the coronavirus came along). He has one portfolio change today: AbbVie (ABBV) moves from Buy to Hold.
Cabot Global Stocks Explorer
Bi-weekly Issue April 30: Today, Carl follows up last week’s focus on big tech and big data with a cybersecurity theme and two new investment ideas. His recommendations today are: Global X Cybersecurity ETF (BUG) and Cloudflare, Inc. (NET), they’re both rated Buy a Half. Today’s one portfolio change is to Sell LexinFintech (LX).
Bi-weekly Update April 23: Carl writes that what we may see developing in markets is a rather broad trading range – say from 21,000 to 25,000 in the Dow. This could be our reality until we work our way through the real but uncertain impact of the shutdown on the economy. He has several portfolio changes today: Per his special bulletin from Tuesday, sell half your position in Virgin Galactic (SPCE), Sea Limited (SE) sell half your position and hold the rest, and move Alibaba (BABA) to the Watch List.
Cabot Small-Cap Confidential
Special Bulletin May 1: Goosehead Insurance (GSHD) reported Q1 results after the close yesterday that should have investors feeling pretty good about the company’s ability to weather this pandemic. The stock remains a Hold.
Weekly Update April 30: The market continues to remain strong in the face of economic data that’s anything but. As Tyler has already discussed at great length, this is because the market is forward looking and there’s been enough potential positive news around treatments and the timeline to a vaccine that the path of least resistance has been higher. Here are his changes this week: Fiverr (FVRR), Ping Identity (PING) and Q2 Holdings (QTWO) all move to Hold.
Monthly Issue April 2: This month Tyler is looking past all the current uncertainty in the market at a profitable, young company that should hold its own during this rough patch then accelerate growth into the back half of 2020 (assuming the pandemic eases as we move into the summer months). Ping Identity Holding Corp. (PING) offers intelligent identity solutions for global enterprises. These solutions are strategic imperatives because they help workers do their job from anywhere and help companies streamline customer experiences. Tyler is starting with a half position.
Cabot Dividend Investor
Weekly Update April 29: Will the good times last? Tom doubts it. That isn’t to say that the outlook is gloomy. He believes in this country and this economy. We will overcome this virus and come back strong. Good times are ahead for the market and there are still many undervalued opportunities out there. But there is a strong chance that we aren’t out of the woods yet. There are two rating changes today: Crown Castle International (CCI) and Invesco Preferred ETF (PGX) both move from BUY to HOLD.
Monthly Issue April 8: While Tom believes the economy and the markets will recover, there is a good chance of another down leg in the market. In this issue, he seeks to take advantage of that possibility by targeting great companies to buy at below current prices. These are fantastic companies to own that are only ever cheap in bear markets like this. He has one portfolio change today, Verizon (VZ) moves from HOLD to BUY.
Cabot Marijuana Investor
Monthly Issue April 29: Tim’s advice is to aim long-term, and remember that the best way to complete a long trip is to make a smart start. Try to buy on dips. Diversify, spreading your investments both geographically and among business models. As both the marijuana sector bear market and the flash coronavirus bear market recede into history, and investors again look forward to economic progress, it’s appropriate to put some of our cash to work. The portfolio will now use a third of its cash to buy equal dollar amounts of Aphria (APHA), Cresco Labs (CRLBF), Green Thumb Industries (GTBIF) and Tilray (TLRY). This will take our cash position down to roughly 30%.
Special Report: April 29, 2020
U.S. Vertically Integrated Multistate Operators (MSOs)Update April 16: The long-term prospects for the sector look great from here, both because the stocks have fallen so far, and because the fundamental growth in the industry is still exceptional. For example, in the latest reported quarter, the average revenue growth of the companies in the portfolio was up 120% from the year before. Also promising—many of these companies are now solidly profitable on an operating basis. But Tim is not adding any new stocks to the portfolio yet (he did a little averaging up three days after the bottom).
Cabot Early Opportunities
Special Bulletin April 24: COVID-19 likely sounds the death knell for many companies, like slow-to-adjust retailers. But it also represents a likely accelerant for others, including those exposed to trends such as work from home (WFH), cloud, e-commerce, internet, digital transformation, streaming, etc. There are no specific actions Tyler is recommending today. More, he just wanted to pass some thoughts on as food for thought as we (hopefully) begin to see consistent decreases in new cases and think longer term about what investment trends we want to be putting our hard-earned money in.
Monthly Issue April 15: This isn’t to say it’s time to get super-aggressive. There are still big hurdles to get over. But the trends suggest we could be in the early to middle stages of a market recovery, complete with expected bouts of volatility, and that means continue to average into select opportunities. So, this month’s Issue of Cabot Early Opportunities features a variety of stocks across the risk spectrum. Tyler has a company working on immune medicines, including antibody testing for COVID-19, as well as a conservative MedTech stock that’s been punished but should bounce back. The month’s Top Pick, Datadog (DDOG), is a way to play surging demand for a specific type of cloud computing technology.
Cabot Profit Booster
Weekly Issue April 28: The Stock – Snap (SNAP) One of 2019’s biggest turnaround stories was Snap, and while it stalled out in the second half of last year, it’s making waves again thanks to a blowout Q1 report. Known for its popular social media app, Snapchat, the company has seen accelerated user growth among the coveted 13-to-34-year-old demographic (it reaches more of that age group than Instagram), with user engagement (and revenue per user) dramatically improving over the past year. The Covered Call Trade — Buy Snap (SNAP) Stock at 17.2, Sell to Open June 18 Calls (exp. 6/19/2020) for $0.85, or a Net Price of 16.35 or less.
Update April 27: On April expiration the Nuance Communications (NUAN) calls that Jacob sold for $0.70 expired worthless. At that time the stock was still recovering from the sharp market sell-off, and he didn’t yet want to sell a new call. Since then NUAN has rebounded nicely, and today he wants to sell a new call to create even more yield against our stock position ahead of the companies earnings on May 7th. Sell to Open the June 21 Calls for $0.50 or more.
Cabot Micro-Cap Insider
Monthly Issue April 28: Welcome to Cabot Micro-Cap Insider! This inaugural issue is a little different than future editions. In this issue, Rich Howe has profiled his initial five recommendations. In future issues, he will profile one new idea in depth, and provide updates on all open recommendations.
Special Report
A Defensive Healthcare Stock with 100% UpsideSpecial Report
The Best Way to Play the Oil Market DislocationWall Street’s Best Investments
Daily Alert May 1: Omega Healthcare Investors, Inc. (OHI) Forecasts & Strategies
Daily Alert April 30: Twitter, Inc. (TWTR) Technology & Opportunity
Daily Alert April 29: Alexandria Real Estate Equities, Inc. (ARE) Contrarian Outlook
Daily Alert April 28: Fanuc Corporation (FANUY) Cabot Stock of the Week
Daily Alert April 27: Phillips 66 Partners LP (PSXP) Forbes Dividend Investor
Monthly Issue April 16: Nancy’s Spotlight Stock this month, Amazon (AMZN), certainly fits the growth category. One of the FANG stocks, the company is seeing expansion on all levels, including e-commerce, streaming, and its web services. This month, she also has a second opinion on the stock, also very positive. And her Feature article is a bit more numbers-based as to why she believes this company will continue to be a major online force.
Ask the Experts
Cabot Options Trader
Question: Isn’t all the potential good new out now on GILD? Other than Remdesivir, their earnings outlook was not particularly rosy nor do I know of any other drug news pending before Aug, however I’m not an expert on GILD. Didn’t see anything pending on the FDA calendar. As far as earnings estimates, the last estimate I saw had them projected to earn less in 2020 than in 2019 (6.43 est vs 2019 6.53 at Zacks.com). Their earnings estimates have also been dropping. 90 days ago the mean estimate was 7.03 and not down to 6.43. Their P/E none the less is 18 according to brokerage platform. Yield is 3.5% but we don’t get that.What is your rational for holding it? It was a speculation play and we lost. Move on?
Jacob: Only time will tell on GILD though I will say this ... I’m not really that worried about earnings tonight. This is a virus play. And from everything I’ve read there is much more data still to come in May. Also, option activity playing a big move higher is CRAZY. Day after day traders are buying calls looking for a big move higher. Our position is at a small loss right now. Though with so much time until expiration, and the wild call buying, I am going to continue to hold my position as a Speculative Play.
Premium Reports
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.
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 Global Stocks Explorer | Cabot Growth Investor | Cabot Marijuana Investor | Cabot Stock of the Week | Cabot Undervalued Stocks Advisor | Cabot Dividend Investor |
|---|---|---|---|---|---|---|---|
| AAPL | Buy | ||||||
| ABBV | Hold | Buy | |||||
| ADBE | Buy | ||||||
| ALXN | Hold | ||||||
| AMZN | Hold | ||||||
| ANF | Sell | ||||||
| APHA | Buy | ||||||
| APPF | Hold | ||||||
| ARE | Hold | ||||||
| ARNA | Buy | ||||||
| AVGO | Buy | ||||||
| AVLR | Hold | ||||||
| BABA | Watch | ||||||
| BIP | Buy 2/3 | ||||||
| BKR | Hold | ||||||
| BL | Buy | ||||||
| BMY | Hold | ||||||
| BSCL | Buy 1/2 | ||||||
| BUG | Buy 1/2 | ||||||
| CCI | Hold | ||||||
| CDLX | Buy | ||||||
| CGC | See Advisory | ||||||
| CHCT | Hold 1/3 | ||||||
| CHWY | Buy 1/2 | ||||||
| CRAK | Buy | ||||||
| CRLBF | Buy | ||||||
| CRON | See Advisory | ||||||
| CURLF | See Advisory | ||||||
| DBI | Sell | ||||||
| DBSDY | Buy 1/2 | ||||||
| DOCU | Buy | ||||||
| DOMO | Hold 1/2 | ||||||
| DOW | Buy | ||||||
| DXCM | Buy | ||||||
| EPD | Hold | ||||||
| EQH | Strong Buy | ||||||
| EVBG | Hold | ||||||
| EVER | Hold 1/2 | ||||||
| FANUY | Buy 1/2 | ||||||
| FVRR | Hold | ||||||
| GES | Sell | ||||||
| GM | Hold | ||||||
| GRWG | See Advisory | ||||||
| GSHD | Hold 3/4 | ||||||
| GTBIF | Buy | ||||||
| HCAT | Hold 1/2 | ||||||
| HTHT | Hold | ||||||
| IIPR | See Advisory | Hold | |||||
| INSP | Buy | ||||||
| LGIH | Buy | ||||||
| LK | Hold | Hold | |||||
| LX | Sell | ||||||
| MCY | Hold | ||||||
| MKSI | Hold | ||||||
| MO | Hold | ||||||
| MPC | Buy | Buy | |||||
| NEE | Hold | Hold 1/2 | |||||
| NET | Buy 1/2 | Buy 1/2 | |||||
| NFLX | Hold | ||||||
| NVDA | Buy | Buy | |||||
| NVEE | Strong Buy | ||||||
| OKTA | Buy | ||||||
| PGX | Hold 1/2 | ||||||
| PING | Hold 1/2 | ||||||
| PNGAY | Buy | ||||||
| PWR | Hold | ||||||
| QCOM | Hold | ||||||
| QTWO | Hold | ||||||
| RGEN | Hold | ||||||
| RNG | Hold | ||||||
| SE | Hold 1/2 | Hold | |||||
| SPCE | Hold 1/2 | Hold | |||||
| SPDN | Buy | ||||||
| STAG | Hold | ||||||
| TCNNF | See Advisory | Buy | |||||
| TDOC | Hold | ||||||
| TLRY | Buy | ||||||
| TOT | Hold | ||||||
| TPB | See Advisory | ||||||
| TSLA | Hold | ||||||
| TSN | Buy | ||||||
| UEIC | Buy | ||||||
| VLO | Hold | ||||||
| VOYA | Buy | ||||||
| VRTX | Buy | Hold | |||||
| VZ | Buy | ||||||
| XEL | Hold 2/3 | ||||||
| ZM | Buy | ||||||
| ZS | Buy |