Cabot Prime Pro Week Ending May 29, 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, Tyler Laundon discusses the past week’s market rotation and offers evidence from Cabot’s market timing guru Mike Cintolo for why the market should do well in coming 12 months. He then discusses five stocks worth your attention.
CABOT EVENTS:
The American Income Crisis + 2 High-Yield Stocks to Buy
FREE WEBINAR: Tuesday, June 16, By Tom Hutchinson, Chief Analyst of Cabot Dividend Investor
Sign up now for FREE.
Advisory Services
Cabot Growth Investor
Bi-weekly Update May 28: Remain optimistic. Growth stocks have had a tough week, but the selling hasn’t been abnormal, few (if any) have broken down and today’s stabilization for many is a good sign. Moreover, the 90% Blastoff Indicator has turned green, which is a bullish sign for the overall market. Because of that, Mike is adding a full position in the ProShares Ultra S&P 500 (SSO) Fund tonight, which will leave us with around 24% in cash.
Special Bulletin May 27: Mike has no changes in the Model Portfolio tonight, but he’s sending a special bulletin given the wild action in growth stocks over the past two days. He’s not complacent, and have a couple of names on tight-ish leashes, but given that our stocks are mostly above support, are showing us profits and that the Model Portfolio is one-third in cash, he’s standing pat.
Bi-weekly Issue May 21: Remain optimistic, but don’t get ahead of yourself. Last week, Mike sold one-quarter of our position in both Dexcom (DXCM) and DocuSign (DOCU), but tonight, we’re adding a half-sized (5% of the portfolio) position in Chegg (CHGG), which has a great story and chart. After the buy, our cash position will be around 34%. Also, Chewy (CHWY) moves from Buy to Hold.
Other Stocks of Interest May 8: Follow ups to stocks featured December 19, 2019 (issue 1435) to May 7, 2020 (issue 1445). 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 29: Mike remains optimistic, but he’s keeping his eyes peeled for a further change in the market’s character and are looking for solid entry points. He’ll likely keep the Market Monitor at a level 7 on Monday. Mike’s buy ideas today are: Cloudflare (NET), Fastly (FSLY), MercadoLibre (MELI) and Seattle Genetics (SGEN). Today’s sell recommendations are: Advanced Micro Devices (AMD), Alnylam (ALNY)
Atlassian (TEAM), Barrick Gold (GOLD) and Moderna (MRNA).
Weekly Issue May 26: All in all, the divergent environment isn’t ideal and will probably lead to further crosscurrents; it remains important to pick your stocks and entry points carefully, and taking some partial profits on the way up isn’t a bad idea, either. But overall, most of the evidence remains positive, so you should, too. Our Market Monitor remains at a level 7. This week’s list has many names that have just come to life after long rest periods. Mike’s Top Pick is Spotify (SPOT), which has always had a good story, but now has decisively broken out following a meaningful catalyst.
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 Pro Alert May 29: Sell Half of Existing Position: Sell HALF of your Snap (SNAP) October 18/23 Bull Call Spread for $1.90 or more.
Cabot Options Trader Basic Alert May 29: Sell Half of Existing Position: Sell HALF of your Snap (SNAP) October 18 Calls for $3 or more.
Cabot Options Trader Position Update May 29: Based on the 10-15 emails he received about our DraftKings (DKNG) covered call Jacob figured he would address this position as the stock has gone parabolic to the upside. He is going to continue to hold his position for the time being as he wants to capture an even greater portion of the potential yield.
Cabot Options Trader Basic and Pro Alert May 28: Buy the Peloton (PTON) October 45 Calls (exp. 10/16/2020) for $7 or less.
Cabot Options Trader Position Update May 26: Coming out of the long holiday weekend there is another swift rotation going on in the market as unloved sectors of the past two months are rallying hard, while growth stocks are under pressure. This rotation has helped bring our Financials ETF (XLF) position back to profitability as the ETF is trading higher by 6% on the day. Jacob is going to continue to hold the calls looking for even greater profits.
Cabot Options Trader Basic Alert May 26: Sell Existing Position: Sell your JD.com (JD) June 39 Calls for $14.80 or more.
Cabot Options Trader Pro Weekly Update May 26: Jacob has six Long positions: DKNG, JD, GILD, ON, SNAP and XLF, one position not impacting his decision making: QQQ July Bear Call Spread and one short position: QQQ December Puts
Cabot Options Trader Weekly Update May 26: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week at 28, or lower by 11%. Interestingly, even as the three leading indexes closed at recent highs, and ahead of a long holiday weekend, the VIX did not decline meaningfully last week. This is not terribly surprising to Jacob as he would expect the 25-30 area for the VIX will remain very sticky for the time being.
Cabot Undervalued Stocks Advisor
Special Bulletin May 28: Today’s news: Alexion Pharmaceuticals (ALXN) and Amgen settled a Soliris patent challenge, Tyson Foods (TSN) goes ex-dividend tomorrow, May 29 and moves from Buy to Strong Buy and Crista writes about industry focus: investment, life insurance and annuity stocks; Voya Financial (VOYA).
Weekly Update May 27: The S&P 500 Index and the Dow Jones Industrial Average began new run-ups yesterday, while the NASDAQ Composite Index continues its uptrend. Crista is glad that investors are continuing to make money during this market rebound. Many stocks that are currently rising will cease rising once they retrace their February 2020 highs. They will need to rest and/or pull back, depending on the stock and activity in the broader market. Here are today’s portfolio changes: LGI Homes (LGIH) moves from Hold to Sell, Mercury General Group (MCY) moves from Hold to Buy and Universal Electronics (UEIC) moves from Buy to Strong Buy.
Monthly Issue May 6: As the stock market recovers from the steep downturn in March, Crista would like to stress that this downturn bears no resemblance to any previous stock market downturn. It wasn’t created by corporate excesses or a housing bubble or any specific financial problem. And while she had certainly warned investors, beginning in December 2019, that we were due for a normal correction, simply because the S&P 500 index had risen so rapidly beginning in late October, the eventual downturn had far more to do with the global virus pandemic than anything else. She is more convinced than ever that the U.S. is in for rough seas ahead. Here are today’s portfolio changes: NVIDIA (NVDA) moves from Buy to Strong Buy and Total S.A. (TOT) moves from Hold to Strong Buy.
Cabot Stock of the Week
Weekly Issue May 26: The broad market remains in an uptrend, according to our intermediate-term market timing indicator, but our longer-term timing indicator, while improving, remains in a negative state. Thus, it remains possible that a major pullback is right around the corner—and if one comes, it will be handy to have cash at the bottom. So Tim is still working to avoid being fully invested, though it’s getting tough because the stocks acting so well. For today’s selection, Tim is going with a small company, GFL Environmental (GFL), that’s taken a proven path to growth—consolidating a fractured industry. The stock was originally recommended by Tyler Laundon in Cabot Early Opportunities. He has one change today: Virgin Galactic (SPCE) moves from Hold to Buy.
Cabot Global Stocks Explorer
Bi-weekly Issue May 28: Cabot Global Stocks Explorer positions did well this week, led again by a surging Sea Limited (SE) and after rebound of interest in Virgin Galactic (SPCE) pushed its shares up 16%. Trip.com (TCOM) was up 7.3% yesterday in anticipation of earnings, which are expected after the close today. Carl has no portfolio changes today.
Bi-weekly Update May 21: Carl writes that our positions for the most part performed well this week. Most recent idea Trip.com (TCOM) was up 14% in its first week in the portfolio, Sea Limited (SE) surged 20% after reporting high revenue and user growth, Alibaba (BABA) made a nice move, and problematic Luckin Coffee (LK) resumed trading Wednesday morning. He has two portfolio changes today: Virgin Galactic (SPCE) moves from Hold to Buy and Luckin Coffee (LK) moves from Hold to Sell.
Cabot Small-Cap Confidential
Weekly Update May 28: In the immediate future Tyler is spending a lot of time evaluating our stocks in the context of all the other stocks he monitors for future inclusion, as well as those he considers trusty bellwethers of strength/weakness in their respective markets. All of this will be factored into his new stock for next week. Big picture, he doesn’t think enough has changed to alter our strategy so there are no ratings changes this week.
Special Bulletin May 27: Today, Tyler recommends that you take partial profits in Fiverr (FVRR), by selling one quarter and holding the rest and also selling your remaining stake in Domo (DOMO).
Monthly Issue May 7: This month Tyler is adding a high-growth biotech name that has just begun to commercialize a unique compound for fighting aggressive cancers and other diseases including, potentially, COVID-19. Karyopharm Therapeutics (KPTI) just began booking revenue from its first cancer treatment. That launch significantly de-risks the stock and raises the potential for future approval of the same compound for other indications.
Cabot Dividend Investor
Weekly Update May 27: Tom writes that it looks like a market that wants to go up. Even energy stocks are rallying. In fact, Energy is the top performing S&P 500 sector over the past month. Portfolio positions Enterprise Product Partners (EPD) and Valero Energy (VLO) have been moving higher. Over the last month, EPD has rallied 16% and VLO is up more than 34%. Innovative Industrial Properties (IIPR) has also had a nice move, up over 20% since it was upgraded to a BUY rating just a few weeks ago. There are no rating changes today.
Monthly Issue May 13: Cabot Dividend Investor portfolio is only buying very selectively. While the overall market may be shaky at this point, certain companies are thriving during the pandemic. There are niches where business is actually booming. In this issue Tom highlights two stocks that are selling at bargain prices, have businesses barely affected by the pandemic, and stand to thrive in the post-Covid-19 market as well. He has one portfolio change today, Innovative Industrial Properties (IIPR) moves from HOLD to BUY.
Cabot Marijuana Investor
Monthly Issue May 27: Own the leaders. Sell the losers. And remember that someday, when marijuana is declared legal across the U.S., the institutions will come running. You who are here now, are early. The portfolio averaged up in four of our stocks two weeks ago and is now down to 13% in cash, and that’s where Tim will keep it, waiting for a fresh buying opportunity.
Special Report: April 29, 2020
U.S. Vertically Integrated Multistate Operators (MSOs)Cabot Early Opportunities
Special Bulletin May 28: Shares of Viela (VIE) have taken a hit lately on news of a secondary offering of around $170 million, followed by the pricing announcement, which is placed at 47. The stock closed near 51.50 yesterday. From a technical perspective the stock also fell below its 25-day moving average line today, which may have triggered some additional selling. Tyler is moving the stock to Hold.
Special Bulletin May 27: Tyler has been waiting for a pullback in high-growth names and that looks to have begun this week. While it’s hard to say if this is just a gut-check moment, the beginning of an overdue consolidation phase, or stage one of a deeper correction (and even harder to say how long any of the above could last and what the eventual damage will be) it seems prudent to take a few actions today to lock in partial gains. Today her is taking partial profits in CrowdStrike (CRWD), Datadog (DDOG) and Dynatrace (DT).
Monthly Issue May 20: In this month’s Issue of Cabot Early Opportunities, Tyler sifts through all his ideas to feature a compelling mix of five stocks that still look to have significant upside potential over the coming months. Several of these names should represent new ways for investors to participate in long-term growth trends. The month’s Top Pick, Formula One Group (FWONK). If you want to invest 100% in Formula 1 (along with a smattering of other minority interests, including the Braves MLB team, Drone Racing League and Tastemade), now you can.
Cabot Profit Booster
Weekly Issue May 27: The Stock – Horizon Therapeutics (HZNP) Companies working on COVID treatments are getting most of the attention in the medical field, but lost in the shuffle are those helping patients with underserved diseases. Horizon falls in this category, and a blowout first quarter has helped the stock catch fire. This biopharmaceutical firm acquires, rebrands and reprices drugs for sale in the U.S., with many that treat inflammatory conditions, including a few that take aim at rare diseases. The Covered Call Trade Buy Horizon Therapeutics (HZNP) Stock at 48.5, Sell to Open July 50 Calls (exp. 7/17/2020) for $2.25, or a Net Price of 46.25 or less.
Cabot Micro-Cap Insider
Weekly Update May 27: Since March lows, the market has rallied sharply driven by low interest rates, a seemingly endless supply of fiscal stimulus, and declining concerns about COVID-19. While Rich personally believes we are due for a pullback, he’s finding many micro caps with robust fundamentals and attractive valuations that have been ignored by the market. He has no portfolio changes today.
Monthly Issue May 13: If you have not already, Rich recommends that you read his Cabot Micro-Cap Insider Guide. It will help you get the most out of your Cabot Micro-Cap Insider membership, and make your investing decisions easier and more profitable. It will also explain much of the shorthand we use in Cabot Micro-Cap Insider, and explain our ratings. His newest recommendation is: Medexus Pharmaceuticals (MDP.V), a Canadian specialty pharma company that is growing at a rapid clip.
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 29: Booz Allen Hamilton Holding Corporation (BAH) Dow Theory Forecast
Daily Alert May 28: Fauquier Bankshares, Inc. (FBSS) Hughes Investment Management
Daily Alert May 27: II-VI Incorporated (IIVI) Canaccord Genuity Research
Daily Alert May 26: Sysco Corporation (SYY) Personal Wealth Advisor
Monthly Issue May 21: Nancy’s Spotlight Stock this month, Curaleaf Holdings, Inc. (CURLF), is also one of the few marijuana stocks that sports a strong balance sheet. It has roughly $42 million worth of cash on its balance sheet and nearly $150 million when you count current assets and cash equivalents. It has the financial heft to survive this crisis. And her Feature article delves further into the pot industry.
Ask the Experts
Cabot Options Trader
Question: DKNG has risen meteorically since I bought it for the Buy/Write you recommended. Would you recommend rolling this position or just settling happily for our $300+ profit.
Jacob: DKNG stock has gone ballistic to the upside which is great for our position. This is what I would say, there is another $90 per covered call to profit if the stock stays above 30 by June expiration. So that is a decent percentage of the $320 (approximately) that we were hoping to capture in this trade. For now I am going to go for more profits.That being said, if you would like to take the money and run, I have ZERO issue with you locking in your profits today. Clearly this stock is crazy and could fall apart, so if you would prefer to take off some risk I am fine with that.
Cabot Growth Investor
Question: When I pull up a trade to buy ProShares Ultra S&P 500 Fund (SSO) on Schwab I get a message saying this should only be for daytrading. Thoughts?
Mike: Thanks for asking about SSO. So, first, let me say that there’s nothing wrong with just buying a bigger position in non-leveraged fund (in this case, SPY), and if you’d rather do that, you can. Nothing wrong with that.However, while we don’t touch triple-leveraged funds or leveraged sector funds and certainly not ETNs like USO and stuff like that, we’ve had fine success holding stuff like SSO in uptrends. It’s tracked the 2-to-1 goal fairly closely (never perfect). Either way, the goal is to get a foothold in a market that the odds now favor can head higher over time.
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.
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 |
|---|---|---|---|---|---|---|---|
| ABBV | Hold | Buy | |||||
| ADBE | Hold | ||||||
| ALXN | Hold | ||||||
| AMZN | Buy | ||||||
| APHA | See Advisory | ||||||
| APPF | Hold | ||||||
| ARE | Hold | ||||||
| ARNA | Buy | ||||||
| AVGO | Buy | ||||||
| AVLR | Buy | ||||||
| BABA | Watch | ||||||
| BIP | Buy 2/3 | ||||||
| BKR | Hold | ||||||
| BMY | Strong Buy | ||||||
| BSCL | Buy 1/2 | ||||||
| BUG | Buy 1/2 | ||||||
| CCI | Hold | ||||||
| CDLX | Buy | ||||||
| CGC | See Advisory | ||||||
| CHCT | Hold 1/3 | ||||||
| CHGG | Buy 1/2 | ||||||
| CHWY | Hold 1/2 | ||||||
| CRAK | Strong Buy | ||||||
| CRLBF | See Advisory | ||||||
| CRON | See Advisory | ||||||
| CURLF | See Advisory | ||||||
| DBSDY | Buy 1/2 | ||||||
| DOCU | Hold 3/4 | ||||||
| DOMO | Sell | ||||||
| DOW | Buy | ||||||
| DXCM | Hold 3/4 | ||||||
| EPD | Hold | ||||||
| EQH | Strong Buy | ||||||
| EVBG | Hold | ||||||
| EVER | Hold 1/2 | ||||||
| FANUY | Buy 1/2 | ||||||
| FVRR | Sell 1/4 Hold the Rest | ||||||
| GFL | Buy 1/2 | Buy | |||||
| GILD | Buy 1/2 | ||||||
| GM | Strong Buy | ||||||
| GOLD | Buy | ||||||
| GRWG | See Advisory | ||||||
| GSHD | Hold 3/4 | ||||||
| GTBIF | See Advisory | ||||||
| HTHT | Hold | ||||||
| IIPR | See Advisory | Buy | |||||
| INSP | Hold | ||||||
| KPTI | Buy | ||||||
| LGIH | Sell | ||||||
| LK | Sold | Sold | |||||
| MCY | Buy | ||||||
| MKSI | Strong Buy | ||||||
| MO | Hold | ||||||
| MPC | Buy | Strong Buy | |||||
| NEE | Hold | Hold 1/2 | |||||
| NET | Buy 1/2 | Buy 1/2 | |||||
| NFLX | Buy | ||||||
| NVDA | Hold | Hold | |||||
| NVEE | Strong Buy | ||||||
| OKTA | Buy | ||||||
| PGX | Hold 1/2 | ||||||
| PWR | Hold | ||||||
| QCOM | Hold | ||||||
| QTWO | Buy | ||||||
| RGEN | Hold | ||||||
| RNG | Hold | ||||||
| SE | Hold 1/2 | Hold | |||||
| SPCE | Buy 1/2 | Buy | |||||
| SSO | Buy | ||||||
| STAG | Hold | ||||||
| TCNNF | See Advisory | Buy | |||||
| TCOM | Buy 1/2 | ||||||
| TDOC | Hold | ||||||
| TLRY | Buy | ||||||
| TOT | Strong Buy | ||||||
| TPB | See Advisory | ||||||
| TSLA | Hold | ||||||
| TSN | Buy | Strong Buy | |||||
| TWLO | Buy | ||||||
| UEIC | Strong Buy | ||||||
| VLO | Hold | ||||||
| VOYA | Strong Buy | ||||||
| VRTX | Buy | Buy | |||||
| VZ | Buy | Buy | |||||
| XEL | Hold 2/3 | ||||||
| ZM | Hold | ||||||
| ZS | Hold |