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Weekly Summary May 24, 2019

Cabot Prime Pro Week Week Ending May 24, 2019

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, Tyler Laundon, chief analyst of Cabot Small-Cap Confidential, discusses how the market has bent, but not broken over the last two weeks. He runs through five small and mid-cap software stocks that have strong fundamentals and good looking charts.

CABOT EVENTS:

SPECIAL FREE WEBINAR OFFER - Hosted by Timothy Lutts

Smart Marijuana Investing + 2 Stocks to Buy and 1 to Avoid | Wednesday, June 19

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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.

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Advisory Services

Cabot Growth Investor

Bi-weekly Issue May 23: Mike says to be cautious. The Model Portfolio has hung in there pretty well during this month’s correction, but the ongoing weakness is causing him to trim a bit more tonight—he’s selling one-third of our ProShares S&P 500 Fund (SSO), giving us nearly 32% in cash. He’s also going to place Chipotle (CMG) on Hold.

Bi-weekly Update May 16: The market’s three-day rally has been solid, but even better than that has been the action of growth stocks, many of which have zoomed to new highs. Even so, our Cabot Tides remain negative. While a bit more strength could have Mike doing a little buying, he thinks our current stance (27% cash, lots of strong stocks) is appropriate for now. His only change tonight is placing Twilio (TWLO) back on Buy.

Other Stocks of Interest May 24: Follow ups to stocks featured December 19, 2018 (issue 1409) to May 23, 2019 (issue 1420). 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 24: The odds continue to favor this being a bull market, and the resilience (so far) of many leading stocks and quickly worsening sentiment tell us the next leg up should be a good one. But right now, the sellers are still in control, and there’s nothing that says that can’t continue for a while longer, so it’s best to play some defense and patiently wait for the bulls to retake control. Mike’s buy ideas this week are: Disney (DIS) and LPL Financial (LPLA). He has three sells this week, Abercrombie & Fitch (ANF), Teradyne (TER) and Universal Display (OLED).

Weekly Issue May 20: With the intermediate-term trend down and with the market having just enjoyed four months up without any pullback, it’s best to practice some caution—limiting new buying, not letting losses getting away from you and holding some cash makes sense. It wouldn’t take all that much strength to produce a new green light, and when one comes, Mike will adjust. But the evidence remains iffy here, and he thinks you should respect that. Encouragingly, for the second straight week, the list is heavy on growth-oriented ideas that have held up pretty well. Mike’s Top Pick, though, is Blackstone (BX), the huge Bull Market stock that’s benefiting from a company-specific change and the overall longer-term uptrend in asset values.

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 24: Right now Jacob’s top two candidates for new positions, if the market can stabilize, are Zillow (Z) and Smartsheet (SMAR).

Cabot Options Trader Stocks on Watch May 23: While the indexes are “only” 6% below all-time highs there are plenty of sectors and stocks that have been crushed so far this year. And while Jacob is NOT going to try to bottom tick these sectors and stocks, the risk/reward is becoming compelling.

Cabot Options Trader Position Update May 22: Jacob writes that Sea (SE) is trading at 31, and our position is worth $6, or a potential profit of 160%. As he wrote earlier this morning, taking profits or partial profits is a fine strategy. In fact, if you are concerned that the stock will drop and snatch away some of those gains, then you could consider selling 1/4 or 1/2 of your position.

Cabot Options Trader Earnings May 22: Last night Sea (SE) reported earnings and revenues that easily beat expectations. In early Wednesday trading SE is higher by 15% at 29.25. Jacob is going to hold his position for the time being.

Cabot Options Trader Earnings May 21: Sea (SE) will report earnings after the close today. Jacob is holding half of a position in the August 26 Calls.

Cabot Options Trader Stocks on Watch May 20: Jacob is watching two stocks that have seen some put selling.

Cabot Options Trader Weekly Update May 20: Extreme volatility to the downside as well as the upside returned last week as the trade war headlines and rumors swung the market in both directions. For the week, the S&P 500 lost 0.73%, the Dow declined 0.69% and the Nasdaq fell 1.08%.

Cabot Options Trader Pro Weekly Update May 20: Jacob has eight long positions: DIS, GLW, JD, LVS, MSFT, RF, SBUX and SE, and one short position, QQQ.

Cabot Undervalued Stocks Advisor

Weekly Update May 21: Knowing in advance that our stocks will fall periodically, through no real fault of their own, Crista has a combination of investment strategies that she recommends. She has one portfolio change today: Commercial Metals (CMC) moves from Strong Buy to Hold.

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.

Cabot Stock of the Week

Weekly Issue May 21: Short-term, the market remains under pressure, notwithstanding today’s strength, so certain defensive measures remain appropriate. But long-term, the market’s main trend remains up, so Tim doesn’t recommend any wholesale changes, just minor fine-tuning. Today’s recommendation, Cresco Labs (CRLBF), is a high-risk stock with great long-term potential—if we can just get on board at the right time! Here are today’s portfolio changes: Baidu (BIDU) and Qualcomm (QCOM) both move from Buy to Sell and Twilio TWLO is moving from Hold to Buy.

Cabot Emerging Markets Investor

Bi-weekly Update May 23: Emerging and global markets struggled this week as our Emerging Market Timer remained negative, with the EEM clearly trading below its 20-day and 50-day moving averages. The portfolio already has a sizable cash allocation but Carl is going to trim some positions, and leave the 10% allocation to the ProShares Short MSCI Emerging Markets ETF (EUM) in place.Carl has three portfolio changes today: Baidu (BIDU) moves from Hold to Sell, Sea Limited (SE) moves from Buy a Half to Hold and Tencent (TCEHY) moves from Buy to Sell Half, Hold the Rest.

Bi-weekly Issue May 16: U.S.-China turbulence led to a rollercoaster week for global stocks with some recovery during the past couple of days. Our Emerging Market Timer has turned negative, as EEM has fallen below both its 25-day and 50-day moving averages. Several of our portfolio companies posted strong earnings this week and the portfolio is already in a conservative stance. Carl’s new recommendation today is a stock that will diversify the portfolio and give us exposure to a country with a youthful population and a robust economy. It’s ICICI Bank (IBN) and Carl recommends that you Buy a Half position. Here are today’s portfolio changes: Baozun (BZUN) moves from Buy a Half to Sell, Largo Resources (LGORF) from Buy a Small Position to Buy a Half Position and Sea Limited (SE) moves from Hold a Half to Buy a Half.

Cabot Small-Cap Confidential

Weekly Update May 24: The S&P 600 Small Cap Index dropped below support in the 920 range Thursday, when it fell by 2.2%. If the index doesn’t recover quickly this could signal a change in a trading range that’s persisted since the beginning of February. Going back even further, to last fall and to the beginning of 2018, this same trading range seemed to mark something of a comfort zone for the small-cap index. In Tyler’s mind, it’s something to watch closely over the next week. He has one portfolio change today, Bottomline Technologies (EPAY) moves from Hold to Sell.

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 22: In terms of the overall market, Tom says to consider this. After a lot of up and downs, the S&P 500 is still about where it was at the end of 2017. In nearly a year and a half the overall market has gone nowhere while earnings have increased significantly. Valuations have moderated. There is also less trade war headline risk going forward, as the situation has already blown up. And now, there is a much higher possibility of a Fed rate cut later this year. Tom has one portfolio change today. Intel Corporation (INTC ) moves from Hold to Sell. The long-term prognosis for the stock remains excellent. However, the company is in the direct line of fire in the China trade war.

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 22: The market’s larger, longer-term trend remains up, and the odds are that the market will be higher later this year. But short-term, the market remains in a correction, and marijuana stocks, as a whole, are not fighting the trend. Still, our portfolio is in great shape, currently 19% in cash, and the prospects for the industry remain spectacular. The biggest news for the portfolio this week was the Nasdaq listing of OrganiGram (OGI), a move that reliably brings new investors to the table. Also, Tim likes the action of Village Farms (VFF) recently, so now the portfolio will average up.

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 24: Cree, Inc. (CREE) from Canaccord Genuity Research
Daily Alert May 23: Anthem, Inc. (ANTM) from AlphaProfit Sector Investors’ Newsletter
Daily Alert May 22: American Tower Corporation (AMT) from Argus Weekly Staff Report
Daily Alert May 21: Teradyne, Inc. (TER) from Cabot Top Ten Trader
Daily Alert May 21: Sell 1/3: Twilio Inc. (TWLO) from Cabot Growth Investor
Daily Alert May 21: Sell 1/3: Five Below, Inc. (FIVE) from Cabot Growth Investor
Daily Alert May 20: iShares Global Tech ETF (IXN) from The Chartist Mutual Fund/ETF Letter

Monthly Issue May 15: Nancy begins this issue with our Spotlight Stock, Facebook (FB) a social media company that used to be a media darling, but became its favorite punching bag in the last couple of years, and not unjustly. The company stumbled when it neglected to care for its members, while allowing fraudulent invasions by not-so-nice folks. But, with an exciting new venture, it’s ready to take on some pretty big competitors in the payments business. You’ll find the details in her Feature article.

Wall Streets Best Dividend Stocks

Daily Alert May 24: Invesco Ltd. (IVZ) from Sure Retirement Newsletter
Daily Alert May 23: International Business Machines Corporation (IBM) from Dividend Advisor
Daily Alert May 22: Watsco, Inc. (WSO) from Positive Patterns
Daily Alert May 21: Manulife Financial Corporation (MFC, MFC.TO) from Internet Wealth Builder
Daily Alert May 20: Tapestry, Inc. (TPR) from Canaccord Genuity Research

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.

Ask the Experts

Cabot Marijuana Investor

Question: Hi Tim, what’s your opinion on:- Harvest One: HVT.V- Agra Flora: AGRA.CN- Empower Clinics: CBDT.CN I would appreciate your opinion on these stocks.

Tim: All three stocks trade for less than a dollar, and thus are higher risk. But all three have charts that are OK (neither good nor bad), though CBDT.CN’s trading halt since May 5 is a red flag. The other two, you could nibble here, if you truly see fundamental promise. But don’t bet the rent money; your odds are better in the solid stocks I recommend in Cabot Marijuana Investor.

Cabot Undervalued Stocks Advisor

Question: I was just reviewing your update and did not see AIG listed/commented on. Did you remove it from your coverage and if so was it due to having reached your price objective? Are there any P&C Insurance companies on your watch list as P&C insurance is a somewhat stable business?

Crista: American International Group (AIG) was featured in my webinar recently, and I’ve spoken of it on radio and TV, but I did not add it to my Cabot Undervalued Stocks Advisor portfolios. (I just have too many stocks in there already, which is a frustrating situation for me.) I expect AIG to climb to about 54, where it last traded in October 2018, and then cease the current run-up. (Traders should sell there, and watch for subsequent opportunities to buy on pullbacks. Longer-term investors should hold for additional capital gains down the road.) As for other property & casualty insurance companies, I still love Axis Capital Holdings (AXS), which was featured in the May issue of Cabot Undervalued Stocks Advisor. In the May 21 issue I wrote, “AXS is an undervalued, small-cap stock. The stock broke free from a 13-month trading range in May. AXS could now rise to its March 2017 all-time high of 66 before resting again. Buy AXS now. Strong Buy.” Then on May 23, UBS upgraded AXS to a Buy recommendation, which caused the stock to jump a bit during an otherwise ugly morning in the market. I foresee about 10% upside in the very near term; with more profit potential down the road.

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 Emerging Markets InvestorCabot Growth InvestorCabot Marijuana InvestorCabot Stock of the WeekCabot Undervalued Stocks AdvisorCabot Dividend Investor
AAPLBuyStrong Buy
ABBVBuyBuy
ACBSee Advisory
ADBEBuy
ALXN Buy
ANFBuy
APHASee Advisory
APPFHold
ARNABuy
AVLRBuy
AXPBuy 1/2
AXSStrong Buy
BABABuy 1/2
BHGEHold
BIDUSellSell
BIP BuyBuy
BSCJ Buy 1/2
BSCL Buy 1/2
BXStrong Buy
BZUNSold
CDNABuy
CDXSBuy
CFStrong Buy
CGStrong Buy
CGCSee Advisory
CHCTHold
CITBuyStrong Buy
CMCHold
CMGHold
CRLBFSee AdvisoryBuy
CRONSee Advisory
CTSTSold
CURLFSee Advisory
CVNASold
CWBHFSold
DALBuyStrong Buy
DBIStrong Buy
DDAIFHold 1/2
DOMOBuy
DOWStrong Buy
DWDPHold
ED Hold 2/3
ELLXFSee Advisory
EPAYSell
EPDBuy
EUMBuy
EVBGHoldHold
EXASHold
FIVEHold
GESBuy
GSHDBuy
GTBIFSee Advisory
HEXOSee Advisory
HTHTHold
IBNBuy 1/2
IIPRSee Advisory
INTCSell
ITHUFSold
KNXHold
KSHBSee Advisory
LGORFBuy 1/2
LUVBuy
LXBuy 1/2Buy
MKC Hold
MOBuy
MOSHold
MPCHold
MTCHBuy
NEE HoldHold
NVTA Sold
OGISee Advisory
OKTABuy
PGX Buy 1/2
PLNTBuyBuy
QCOMSell
QTRXBuy
QTWOBuy
RCLHold
RGENBuy
RPDHoldHold
SANMStrong Buy
SEHold 1/2
SLBHold
SSOSell 1/3 Hold the Rest
STAGHoldHold
SUPNStrong Buy
SYFHold
TCEHYSell 1/2, Hold 1/2
TIVOHold
TOTHold
TPBSee Advisory
TSLAHold
TTDHold
TWLOBuyBuy
UEICHold
UPLDBuy
VFFSee Advisory
VOYABuyStrong Buy
WDAYHold
XEL Hold 2/3
ZTOBuy 1/2