Please ensure Javascript is enabled for purposes of website accessibility
Cabot Prime Pro Logo
Cabot Prime Pro

Weekly Summary May 10, 2019

Cabot Prime Pro Week Week Ending May 10, 2019

Stock Recommendation Tracker

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 strong selloff in the market this week—while it’s still a bull market overall, the evidence (even before this week) is growing that the intermediate-term trend is turning down. Mike gives pointers on what to do from a portfolio management standpoint and, while he’s not eager to be buying here, goes over some of the many resilient growth stocks he’s keeping an eye on.

CABOT EVENTS:

SPECIAL FREE WEBINAR OFFER - Hosted by Jacob Mintz

6 Tips for Making Money Trading Options + 2 Hot Trades Now | Thursday, May 23

Register Now

Cabot Wealth Summit 2019

7th Annual Conference | Wed-Fri, Aug 14-16 | Salem, Mass.

We’ve 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.

Learn More and Reserve Your Place

Advisory Services

Cabot Growth Investor

Bi-weekly Issue May 9: In the Model Portfolio, Mike came into this week with 20% in cash, and most of his issues are acting well. But he did downgrade a couple of stocks to hold and have one (Workday) on a tight leash. There are no changes tonight, but he’ll be in touch if that changes.

Special Bulletin May 7: Further bad news on the U.S.-China trade front prompted another sharply lower open today, and unlike Monday, the buyers never showed up. At day’s end, the Dow had fallen 473 points and the Nasdaq plunged 160 points. Bigger picture, Mike remains optimistic that this is a bull market that has further to run in the months ahead, and indeed, our long-term Cabot Trend Lines remain firmly bullish.

Bi-weekly Update May 2: Remain bullish, but keep your eyes open. Our indicators and most of our stocks are still trending up, though we’re seeing some funky action that’s worth monitoring. In the Model Portfolio, Mike sold one-third of his shares of Twilio (TWLO) on a special bulletin this morning, and he has no other changes tonight. Our cash position now stands around 21%.

Other Stocks of Interest May 10: Follow ups to stocks featured December 5, 2018 (issue 1408) to May 9, 2019 (issue 1419). 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 May 10: The weeklong tariff threats and (this morning) levies have caused a consistent wave of selling this week, which, as Mike writes this, has brought most major indexes down to (or a bit below) their 50-day moving averages. While everyone is trying to game out (or guess) what comes next, it’s usually better to just stick to what you see—i.e., go with your system and the action of the market, not gut feels or rumors. Mike’s buy ideas this week are: Lennox (LII), Match.com (MTCH) and Zscaler (ZS). He has 14 outright sells this week.

Weekly Issue May 6: Today, while the major indexes were down, they held well above support, which keeps the intermediate-term trend pointed up. And leading stocks fared even better, with many actually finishing up after horrid opens. Of course, it’s always possible that this is the start of a more meaningful pullback/correction, and if the uptrend is cracked, Mike will take a more cautious stance. But so far, the facts remain bullish, so you should remain heavily invested. This week’s list is relative mixed, with a wide variety of stocks, sectors and growth stories represented. Mike’s Top Pick is Inphi (INPH), a smaller chip and networking firm that looks to be a big beneficiary of the new networking boom.

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 Stocks on Watch May 10: One of the stocks that is showing very impressive strength is our most recent purchase Sea (SE), which is essentially unchanged on the week and which stands out amidst the carnage. Another is semiconductor stock Teradyne (TER) which hit Jacob’s radar following a big earnings beat on April 23rd. TER is on the top of my watch-list for a new position. Other stocks on that list based on stock performance are Match.com (MTCH) and Roku (ROKU), as well as Qualcomm (QCOM) and Walt Disney (DIS) both of which exploded higher on separate company specific events in the last month.

Cabot Options Trader Market and Earnings Update May 10: JD.com (JD) reported blow out earnings this morning, and in early pre-market action the stock traded as high as 30.5. However, the Nasdaq is now down 1.7% on the day on more trade worries, and JD has lost much of its post earnings gains. For now, and Jacob’s opinion can change rather quickly, he believes JD could be a real leader if the market stabilizes and or if a trade deal is finalized. However, he’s not going to trade on his gut feeling, and instead will let the stock performance and option action lead his management of this position in the days to come.

Cabot Options Trader Market and Earnings Update May 9: We are holding half of a position in JD.com (JD), which will report earnings tomorrow before the market open. As he noted on Wednesday, JD and all China related stocks have been hurt by the sudden change in tone regarding U.S.-China trade talks. He is going to hold his half of a position through earnings, as we’ve already took partial profits with the other half.

Cabot Options Trader Market Update May 7: The negative tone surrounding the trade dispute has hurt stocks with exposure to China. Unfortunately we own half positions in two of these stocks as JD.com (JD) is down 10% in two days and Las Vegas Sands (LVS) has fallen 6.5%. The good news is that we have taken partial profits in both positions, and encouragingly, option activity remains very bullish.

Cabot Options Trader Weekly Update May 6: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week at 12.87, or virtually unchanged. However, there was plenty of movement this week as Thursday the VIX spiked just short of 15 as the indexes, and especially leading growth stocks, came under pressure. Those gains for traders long the VIX were short-lived as the “fear index” fell 11% on Friday following the strong Jobs Report.

Cabot Options Trader Weekly Pro Market Update May 6: Jacob has eight long positions: GLW, JD, LULU, LVS, MSFT, RF, SBUX and SE, and one short position, QQQ.

Cabot Undervalued Stocks Advisor

Special Bulletin May 10: Marathon Petroleum (MPC) announces first-quarter results and M&A activity and moves from Strong Buy to Hold and TiVo (TIVO) announces first-quarter results, a dividend decrease and an intention to separate into two companies.

Special Bulletin May 9: Supernus Pharmaceuticals (SUPN) reported a disappointing first quarter yesterday, with revenue and profits nowhere near the consensus estimates. Crista says that risk-tolerant investors should buy now, while the stock is low within its trading range.

Monthly Issue May 7: Today Crista is taking the opportunity to remove two stocks from the portfolios, in the quest to (a) pare back the number of stocks in the portfolios and (b) add new stocks to the portfolios. Clearly, those two goals are not necessarily simultaneously achievable. In addition, she is finding good opportunities among property & casualty insurance stocks, but she has been overweight in financial stocks, limiting her ability to add new ones. Therefore, she is removing some financial stocks today. Here are today’s portfolio changes: Adobe Systems (ADBE) joins the Growth Portfolio as a Buy, Apollo Global Management (APO) moves from Hold to Retired, Axis Capital Holdings (AXS) joins the Buy Low Opportunities Portfolio as a Strong Buy, Comerica (CMA) moves from Hold to Retired, Designer Brands (DBI) moves from Hold to Strong Buy and Supernus Pharmaceuticals (SUPN) moves from Hold to Strong Buy.
Weekly Update April 30: Shares of 3M Co. (MMM) fell last week when first-quarter results revealed revenue and profits that did not meet the market’s expectations. Crista gives you some lessons to be learned that can help you improve your game. And, here are today’s portfolio changes: Alexion Pharmaceuticals (ALXN) moves from Hold to Buy, Apollo Global Management (APO) moves from Strong Buy to Hold, CIT Group (CIT) moves from Buy to Strong Buy, Guess? (GES) moves from Hold to Buy, Southwest Airlines (LUV) moves from Hold to Buy, Total S.A. (TOT) moves from Buy to Hold and Voya Financial (VOYA) moves from Hold to Strong Buy.

Cabot Stock of the Week

Weekly Issue May 7: The market remains in good health, and all Cabot’s market timing indicators are positive, telling us the odds are that the market will be higher in the months ahead.For today’s recommendation Tim has a well-known dividend-paying mega-cap that has a very good chance of providing good capital gains in the months ahead, thanks to a landmark deal with Apple. Qualcomm (QCOM) is a buy. As for the current portfolio, overall, our holdings are performing quite well, with many hitting new highs in recent weeks. Tim is moving two stocks from buy to hold, NextEra Energy (NEE) and Twilio (TWLO).

Cabot Global Stocks Explorer

Bi-weekly Update May 9: With markets expecting a deal right around the corner, the Trump administration signaled its frustration by threatening to raise tariffs on roughly $200 billion of Chinese imports to 25%, from 10%, last Friday. The stakes are high, as neither side wants to appear to be “losing face,” but both sides fear just as much the political costs of a weaker economy. The Chinese may be betting that 2020 campaign pressures will in the end force the U.S. to take less than what they want. Here is the key: an agreement will require some level of trust and an understanding that neither side will try to spin any deal reached as a clear win. This is a tall order indeed. Carl has three portfolio changes today: He is buying a full position of ProShares Short MSCI Emerging Markets (EUM), moving Daimler Benz (DDAIF) from Buy a Half to Hold and moving Baidu (BIDU) from Buy to Hold.

Bi-weekly Issue May 2: Our Emerging Markets Timer is still bullish but, to be fair, it’s also mostly mixed; EEM is hovering around key support near its 50-day line, so the next few days will be key for the intermediate-term trend. Today, Carl’s new recommendation is a familiar name, Baidu (BIDU). The reason to buy Baidu right now is that the stock has been out of favor and on the bench since July of 2018 when it traded at 270 a share. Today, Baidu now trades at 165 (down 40%) despite the robust recovery in Chinese markets so far in 2019.

Cabot Small-Cap Confidential

Weekly Update May 10: Everybody’s focus is on the high-stakes chess game the U.S. and China are playing with respect to trade, and the upcoming Uber IPO. But behind the scenes there’s a nice little rally going on in a certain group of small-cap stocks! Tyler is talking about our portfolio, which is up an average of 4.7% over the past week and 8.7% over the past two weeks. He has one portfolio change today, Arena Pharmaceuticals (ARNA) moves from HOLD to BUY.

Special Bulletin May 9: CareDx (CDNA), Arena Pharmaceuticals (ARNA) and Repligen (RGEN) report earnings. Tyler has no rating changes.

Special Bulletin May 8: Everbridge (EVBG), Codexis (CDXS), Avalara (AVLR) and Q2 Holdings (QTWO) report earnings. Tyler has no rating changes.

Monthly Issue May 3: Today’s stock, Domo (DOMO) is a $1 billion market cap company that has developed a business intelligence (BI) platform that allows every worker in an organization to access real-time data from their mobile device. Tyler also updates all the stocks in the portfolio and has one change today: Bottomline Technologies (EPAY) moves from to Buy to Hold.

Cabot Dividend Investor

Weekly Update May 8: Tom writes that a trade escalation probably wouldn’t be fatal to the bull market, but it would at the very least limit the potential upside for the rest of the year. This is bad news in the near-term at least. But the story can change on a dime. He will certainly keep you posted. In the meantime, earnings season rolls on. Several of the portfolio positions have reported consequential earnings over the last week. Tom has no portfolio changes today.

Monthly Issue April 24: Tom writes that things are good. The economy appears to be stronger than most expected. The Atlanta Fed is estimating first-quarter GDP growth at 2.8%. That’s a sweet number considering that the first quarter tends to be about 1% slower than the rest of the year. Housing starts and consumer confidence are strong and now it appears that the global economy is also in better shape than previously forecast. His featured stock this month is, Intel Corporation (INTC), the largest computer chip maker in the world. The company has over $70 billion in annual revenues and $264 billion in market capitalization. INTC is being added to the Dividend Growth Tier. Tom has no other portfolio changes today.

Cabot Marijuana Investor

Update May 3: Overall, cannabis/marijuana stocks still look fine, even though the stocks were generally soft yesterday, so Tim is not doing a full update, but there has been action, both good and bad, in a few stocks worth mentioning. In today’s update he writes about, CannTrust (CTST), Charlotte’s Web Holdings (CWBHF), Curaleaf Holdings (CURLF) and Turning Point Brands (TPB).

Monthly Issue April 25: The main trend remains up, in both the broad market and the cannabis sector in particular. When these uptrends will end, no one knows, but Tim guarantees that they will someday. Long-term, however, he remains very bullish on both the companies and the stocks in the industry and continue to adjust the portfolio’s holdings to optimize growth (with reasonable security.) Today the portfolio is adding a new position in CannTrust (CTST) and averaging up in HEXO (HEXO), taking the portfolio’s cash down to 10% and splitting the proceeds between both stocks.

Wall Street’s Best Investments

Daily Alert May 10: Invitae Corporation (NVTA) from Cabot Stock of the Week
Daily Alert May 9: EMCOR Group, Inc. (EME) from Validea Hot List Newsletter
Daily Alert May 8: Baxter International Inc. (BAX) from Wall Street Stock Forecaster
Daily Alert May 7: Booz Allen Hamilton Holding Corporation (BAH) from Forecasts & Strategies
Daily Alert May 6: Cabot Microelectronics Corporation (CCMP) from Upside

Monthly Issue April 10: The retail environment is changing rapidly due to e-commerce, with most brick-and-mortar stores trying to find new strategies to survive Amazon. However, Nancy’s Spotlight Stock this month, Costco Wholesale (COST), is one retailer that is finding success in both channels. In her Feature article, she explains a bit more about the company’s strategy and its biggest advantage—consumer loyalty.

Wall Streets Best Dividend Stocks

Daily Alert May 10: The PNC Financial Services Group, Inc. Depositary SHS REP 1/4000TH PERP PFD SER P (PNC-PP) from Income Securities Investor
Daily Alert May 9: Kellogg Company (K) from Directinvesting.com

Monthly Issue May 8: Nancy’s Spotlight Stock, New Residential Investment Corp. (NRZ), is a Real Estate Investment Trust that focuses on the mortgage market. The company has withstood plenty of interest rate cycles, and continues to grow its reach and earnings, internally and by acquisition. Her Feature article further explores the mortgage REIT industry and the frequent confusion about REITs and their responsiveness to interest rate movements.

Daily Alert May 8: Warrior Met Coal, Inc. (HCC) from Dividend Confidential
Daily Alert May 7: Iron Mountain Incorporated (IRM) from Forbes Real Estate Investor
Daily Alert May 6: Comcast Corporation (CMCSA) from Pivotal Point

Ask the Experts

Cabot Undervalued Stocks Advisor

Question: What do you think of Morgan Stanley (MS) stock?

Crista: I’m not thrilled with the moderate earnings growth projections, although I consider the stock to be undervalued based on 2020 numbers. As for the price chart, there’s upside resistance at 50. If I owned it, I’d seriously consider selling there and moving on to a stock with stronger earnings growth. If I owned it in a buy-and-hold portfolio of high quality stocks, I’d leave it there and not worry about it.

Question: What do you think of Gap (GPS) stock?

Crista: Gap (GPS) has not been on my Buy List because the company lacks earnings growth. Profits are expected to fall 5.0% this year and rise 3.3% next year. There’s a consistent six-month trading range with price support at 24, so use a stop-loss below that price. I think the best you can reasonably expect in the near future is that the stock heads toward the top of the range in the 27-28 area.

Cabot Options Trader

Question: Happily I own some ROKU covered calls which you suggested a while back. Thank you! Earlier this week you suggested that we sell out of some covered calls early, which looks like another good call by you. I forget the holding at this moment. I’m wondering if I should do the same with the ROKU calls now that it’s up 20%. Do you have
one of your studies on this scenario of buying to close the calls and selling the stock? I’m not quite sure I really understand it. And when is your book on trading options coming out? (Hint, hint).

Jacob: I’ve flirted with the idea of writing a book in the past as I have yet to find one that does a good job of breaking down the difficult to understand nuances of options ... while not putting the reader to sleep. However, for now I’m just focusing on making good trades, and sharing my educational articles with the Cabot subscribers. As to when to cover a covered call .... there really isn’t a scientific answer. A lot of it is feel and the situation. For example, if you have a position in a slow/steady stock like KO or WMT, and the market is strong, and the call is several dollars out-of-the-money then I wouldn’t worry too much about it. However, if the position is in a high flyer, and there is little premium left to capture, and many weeks till the position expires or if the market is weakening, then I would think the risk/reward is likely tilted to exiting the position.

Premium Reports

Cabot’s 10 Best REIT’s to Buy Now

Special Report

May 2, 2019: JUST UPDATED—REITs are a way for investors to have a diversified portfolio of real estate-related investments even if you don’t have millions of dollars, much like mutual funds did for stocks. And REITs are traded on the market, just like stocks. In this new, exclusive report, you’ll discover how to profit in REITs, even when interest rates are rising.

Cabot Prime Pro Quarterly Report

Special Report

April, 2019: The first quarter of 2019 was as good as the previous one was bad. And that’s not surprising. In fact, in his last quarterly report, Tim concluded by writing, “What the charts are signaling now is quite bullish! So don’t be afraid. Follow your favorite Cabot analyst. Use appropriate risk management tools. And make some money while the market is once again going the right way.”

Cabot’s Ten Best Canadian Small-Cap Stocks

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

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.

StockCabot Small-Cap ConfidentialCabot Global Stocks ExplorerCabot Growth InvestorCabot Marijuana InvestorCabot Stock of the WeekCabot Undervalued Stocks AdvisorCabot Dividend Investor
AAPLBuyStrong Buy
ABBVBuyBuy
ACBSee Advisory
ADBEBuy
ALXN Buy
ANFBuy
APHASee Advisory
APORetired
APPFHold
ARNABuy
AVLRHold
AXPBuy 1/2
AXSStrong Buy
BABABuy 1/2
BHGEBuy
BIDUHold
BIP BuyBuy
BSCJ Buy 1/2
BSCL Buy 1/2
BXStrong Buy
BZUNBuy 1/2
CDNAHold
CDXSBuy
CFStrong Buy
CGCSee Advisory
CHCTHold
CHEFSold
CITBuyStrong Buy
CMARetired
CMCStrong Buy
CMGBuy
CRLBFSee Advisory
CRONSee Advisory
CTSTSee Advisory
CURLFSee Advisory
CVNAHold
CWBHFSee Advisory
DALBuyStrong Buy
DBIStrong Buy
DDAIFHold 1/2
DOMOBuy
DOWStrong Buy
DWDPBuy
ECL Sold
ED Hold 2/3
ELLXFSee Advisory
EPAYBuy
EPDBuy
EUMBuy
EVBGHoldHold
EXASHold
FIVEHold
GESBuy
GSHDBuy
GTBIFSee Advisory
HEXOSee Advisory
HTHTHold
IIPRSee Advisory
INTCBuy
ITHUFSee Advisory
LGORFBuy a Small Position
KNXHold
KSHBSee Advisory
LUVBuy
LXBuy 1/2Buy
MKC Hold
MOBuy
MOSHold
MPCHold
MTCHBuy
NEE HoldHold
NVTA Hold
OGRMFSee Advisory
OKTABuy
PGX Buy 1/2
PLNTBuyBuy
QCOMBuy
QTRXBuy
QTWOBuy
RCLStrong Buy
REMXSold
RGENBuy
RPDHoldHold
SANMStrong Buy
SEHold 1/2
SLBBuy
SSOBuy
STAGHoldHold
SUPNStrong Buy
SYFStrong Buy
TCEHYBuy
TIVOHold
TOTHold
TPBSee Advisory
TSLAHold
TTDHold
TWLOHoldHold
UEICHold
UPLDBuy
VFFSee Advisory
VOYABuyStrong Buy
WDAYHold
XEL Hold 2/3
ZTOBuy 1/2