Cabot Prime Pro Week Week Ending May 31, 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, Mike Cintolo takes a deep dive into the current market, discussing the ongoing intermediate-term downtrend and how he’s handling it—but also relaying many of the positives (sentiment, resilient growth stocks) and what it all means. Whether it’s leading stocks, key sectors, near-term possibilities or longer-term outlooks, Mike covers it all in this week’s in-depth report.
CABOT EVENTS:
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Smart Marijuana Investing + 2 Stocks to Buy and 1 to Avoid | Wednesday, June 19
Cabot Wealth Summit 2019
7th Annual Conference | Wed-Fri, Aug 14-16 | Salem, Mass.
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Advisory Services
Cabot Growth Investor
Bi-weekly Update May 30: Mike says to remain cautious. Our Cabot Tides are still clearly negative, and in recent days the selling pressure has broadened out, causing more stocks and sectors to take on water. The longer-term evidence is still positive, so we’re not selling wholesale, but we have been paring back as the selling continues. In last night’s special bulletin, Mike sold half our shares of Workday (WDAY) and placed Twilio (TWLO) back on Hold. The Model Portfolio’s cash position now stands at 38%.
Special Bulletin May 29: The market was hit hard again today as investors continued to discount a protracted trade war between China and the U.S., with fears of slowing growth bringing out the sellers.We came into today with a 33% cash position in the Model Portfolio, and tonight Mike is going to boost that further by selling half our stake in Workday (WDAY), which reported a solid quarter last night but was hit hard today nonetheless. He’s also going to place Twilio (TWLO) back on Hold as the stock’s strength two weeks ago has faded.
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.
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 31: Mike thinks it’s still OK to hold most of your shares of your resilient, profitable stocks, but partial profits make sense, new buying should be limited (and/or kept to small positions) and holding a chunk of cash is advised. If and when the bulls retake control, there should be plenty of opportunities, but until then, continue playing it safe. Mike’s buy ideas this week are: Armstrong World (AWI), Harris (HRS) and Paycom Software (PAY). He has 5 sells this week, Kansas City Southern (KSU), Lennox (LII), Lululemon (LULU), Manpower (MAN) and Transdigm (TDG). Mike also advices to take partial profits in Workday (WDAY) and use a stop in the 190 area (give or take) for your remaining shares.
Weekly Issue May 28: The song remains the same: Mike advises holding most of your strong, profitable stocks, but also holding a good-sized chunk of cash and being very choosy on the buy side. The onus remains on the bulls to retake control—until then, step lightly. This week’s list has another strong group of stocks; a nibble here or there is fine, or simply put your favorites on your watch list. Mike’s Top Pick is Array Biopharma (ARRY), which emerged on big volume last week, and it helps that many biotech names are acting resiliently.
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 Alert May 31: Buy HALF a Position: Buy the Zillow (Z) November 45 Calls (exp. 11/15/2019) for $5.90 or less.
Cabot Options Trader Earnings May 30: This afternoon three companies that Cabot Options Traders and other Cabot subscribers may have an interest in are reporting earnings. They are: Zscaler (ZS) earnings today after the close, Okta (OKTA) earnings today after the close and Uber (UBER) earnings today after the close.
Cabot Options Trader Market Update May 29: If Jacob wanted to make a bear case for the market he would point to the ugly action in the Russell 2000 (IWM), Oil Services (OIH), Metals and Mining (XME), Semiconductors (SMH), Transports (IYT) and more recently Retail (XRT). Essentially the selling is spreading and taking down one to two sectors at a time. If he wanted to be more optimistic, he would point to the fairly mixed option activity (his Options Barometer is trending to a 5 again today) as well as the VIX, which continues to trade marginally higher at 18, but isn’t exploding or showing signs of panic.
Cabot Options Trader Stock on Watch May 28: As Jacob wrote last week the Oil Services (OIH) stocks have been under immense pressure for the past several weeks, and Halliburton (HAL) is the perfect example of this sector’s weakness as the stock is down 14.5% year-to-date and lower by 54.5% over the past year.
Cabot Options Trader Weekly Update May 28: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week at 15.85, or virtually unchanged. It’s interesting that the VIX barely flinched even as the market again came under pressure. Jacob is becoming a bit intrigued by the lack of fear shown in the VIX even as the market has declined.
Cabot Options Trader Pro Weekly Update May 28: Jacob has eight long positions: DIS, GLW, JD, LVS, MSFT, RF, SBUX and SE, and one short position, QQQ.
Cabot Undervalued Stocks Advisor
Special Bulletin May 29: Shares of Abercrombie & Fitch (ANF) are down dramatically today subsequent to reporting first-quarter 2019 results. There is no significant problem with Abercrombie’s operations or outlook but Crista is moving Abercrombie & Fitch (ANF) from Buy to a Hold while she waits for the share price to settle down.
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 28: Short-term, the market remains under pressure, and this corrective phase could easily go longer, but long-term, the market’s main trend remains up, so Tim continues to recommend that you be heavily invested in a diversified portfolio of stocks that are performing well. Today’s recommendation is a recent IPO, Zoom Video Communications (ZM). Zoom appears to be revolutionizing the videoconferencing industry with what by accounts is a better, easier-to-use solution, but be careful; volatility is to be expected. As for the portfolio’s current holdings, several are hitting new highs—and none are performing so badly that they deserve to be sold. So this week Tim has no changes.
Cabot Emerging Markets Investor
Bi-weekly Issue May 30: The MSCI Emerging Markets ETF (EEM) remains in a negative position, just below 20-day and 50-day moving averages. Our portfolio has a 35% cash position and maintains 10% allocation to an ETF that moves opposite the EEM. In today’s issue Carl is bringing back his previous rare earths recommendation, VanEck’s Rare Earth/Strategic Metals (REMX), an exchange-traded fund (ETF) launched in 2010. It’s now in an uptrend and it’s rated Buy a Half. He has one portfolio change today: Daimler (DDAIF) moves from Hold to Buy a Half.
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.
Cabot Small-Cap Confidential
Weekly Update May 31: Considering the worsening performance of the S&P 600 Small Cap Index, which broke below its comfort zone, and the S&P 500, now 6% off its high, Cabot Small-Cap Confidential portfolio’s resiliency continues to stand out. That said, Tyler is suggesting to pull back on buying a little. He has one portfolio change today, Codexis (CDXS) moves from Buy to Hold.
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
Monthly Issue May 29: Tom writes about the new technology called 5G. The term means “fifth generation” as it represents the fifth generation of cellular wireless technology. 5G will pave the way for autonomous vehicles artificial intelligence, smart houses and cities and much more. In short, it will pave the way for a new wave of technological advancement. His featured recommendation this month is, Crown Castle International Corp. (CCI), a REIT that leases cellular wireless technology infrastructure (cell towers, small cells, fiber optic cables). It is a huge player that is front and center of the 5G build out and the business is likely to grow rain or shine and regardless of the economy.
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.
Cabot Marijuana Investor
Monthly Issue May 30: The main trend remains up, in both the broad market and the cannabis sector in particular, but in the intermediate-term, we are now in a correction, and thus a little more caution is advised. The portfolio is 17% in cash and Tim is going to increase that today via three actions—He’s selling half of our positions in both Cresco Labs (CRLBF) and Curaleaf (CURLF), which up until now have both been overweight; and he’s doubling our position in Turning Point Brands (TPB), making that position slightly overweight. The result of it all is that the portfolio will be about 22% in cash.
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.
Wall Street’s Best Investments
Daily Alert May 31: T-Mobile US, Inc. (TMUS) from Pivotal Point
Daily Alert May 30: Patrick Industries, Inc. (PATK) from SmallCap Informer
Daily Alert May 29: CSX Corporation (CSX) from Dow Theory Forecasts
Daily Alert May 28: ICICI Bank Limited (IBN) from Cabot Emerging Markets Investor
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 31: Aircastle Limited (AYR) from The Dividend Hunter
Daily Alert May 30: India Fund, Inc. (IFN) from The Personal Capitalist
Daily Alert May 29: Sell: B&G Foods, Inc. (BGS) from Forbes Dividend Investor
Daily Alert May 29: Olin Corporation (OLN) from Forbes Dividend Investor
Daily Alert May 28: JPMorgan Chase & Co. (JPM) from DRIP Investor
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: Tim, I’m so glad I subscribe to your Marijuana newsletter. Your writing is concise and to the point - and I appreciate that you send unscheduled updates when warranted. A question that confuses me is when you make changes to holdings - either averaging up or down - and mention that the holding is “over” or “underweight” - the newsletter also includes a chart - but I’m not clear on whether the chart is of the present portfolio BEFORE the new changed weightings - or reflects the new weightings. Apologies if this is clearly explained elsewhere, but if so I’ve missed it. Thanks again for your terrific newsletter. Cheers, GS
Tim: Thanks for asking. The table of holdings reflects the current standing of the portfolio. Our policy is to buy and sell at the average price that a subscriber would get in the trading period AFTER we send out the update. If the update goes at after the market close, we take the average of the next day. If the update goes out around noon, we take the average price of that same afternoon. Thus, the recommended actions are not reflected in the current table.
Cabot Options Trader
Question: Concerning the bullish order flow, how does it work exactly? I know the thinking is, if there was large chunk of call buying from an individual, the stock could potentially go up, which I guess it’s due to the upward momentum. On the other hand, I’m thinking, it won’t necessarily do any good if NOT MANY people knew about it, consequently not many people would jump on board and perform the same buying to built up the momentum. So, how or when do you decide to jump in? Let’s take for an example SMAR & Z, which are on your watch list.
Jacob: The strategy is not based on momentum. Instead its essentially getting an inside look at how the top hedge funds and institutions are positioning. For example, Jacob isn’t buying $10 million of calls. However, Carl Icahn or Warren Buffett has the ability to do so.
Premium Reports
Cabot’s 10 Best REIT’s to Buy Now
Special ReportMay 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 ReportApril, 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 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 | Buy | |||||
| ACB | See Advisory | ||||||
| ADBE | Buy | ||||||
| ALXN | Buy | ||||||
| ANF | Hold | ||||||
| APHA | See Advisory | ||||||
| APPF | Hold | ||||||
| ARNA | Buy | ||||||
| AVLR | Buy | ||||||
| AXP | Hold 1/2 | ||||||
| AXS | Strong Buy | ||||||
| BABA | Buy 1/2 | ||||||
| BHGE | Hold | ||||||
| BIDU | Sold | Sold | |||||
| BIP | Buy | Buy | |||||
| BSCJ | Buy 1/2 | ||||||
| BSCL | Buy 1/2 | ||||||
| BX | Strong Buy | ||||||
| CCI | Buy | ||||||
| CDNA | Buy | ||||||
| CDXS | Hold | ||||||
| CF | Strong Buy | ||||||
| CG | Strong Buy | ||||||
| CGC | See Advisory | ||||||
| CHCT | Hold | ||||||
| CIT | Buy | Strong Buy | |||||
| CMC | Hold | ||||||
| CMG | Hold | ||||||
| CRLBF | Sell 1/2 | Buy | |||||
| CRON | See Advisory | ||||||
| CURLF | Sell 1/2 | ||||||
| DAL | Buy | Strong Buy | |||||
| DBI | Strong Buy | ||||||
| DDAIF | Buy 1/2 | ||||||
| DOMO | Buy | ||||||
| DOW | Strong Buy | ||||||
| DWDP | Hold | ||||||
| ED | Hold 2/3 | ||||||
| ELLXF | See Advisory | ||||||
| EPAY | Sold | ||||||
| EPD | Buy | ||||||
| EUM | Buy | ||||||
| EVBG | Hold | Hold | |||||
| EXAS | Hold | ||||||
| FIVE | Hold | ||||||
| GES | Buy | ||||||
| GSHD | Buy | ||||||
| GTBIF | See Advisory | ||||||
| HEXO | See Advisory | ||||||
| HTHT | Hold | ||||||
| IBN | Buy 1/2 | ||||||
| IIPR | See Advisory | ||||||
| INTC | Sold | ||||||
| KNX | Hold | ||||||
| KSHB | See Advisory | ||||||
| LGORF | Buy 1/2 | ||||||
| LUV | Buy | ||||||
| LX | Buy 1/2 | Buy | |||||
| MKC | Hold | ||||||
| MO | Buy | ||||||
| MOS | Hold | ||||||
| MPC | Hold | ||||||
| MTCH | Buy | ||||||
| NEE | Hold | Hold | |||||
| OGI | See Advisory | ||||||
| OKTA | Buy | ||||||
| PGX | Buy 1/2 | ||||||
| PLNT | Buy | Buy | |||||
| QCOM | Sold | ||||||
| QTRX | Buy | ||||||
| QTWO | Buy | ||||||
| RCL | Hold | ||||||
| REMX | Buy 1/2 | ||||||
| RGEN | Buy | ||||||
| RPD | Hold | Hold | |||||
| SANM | Strong Buy | ||||||
| SE | Hold 1/2 | ||||||
| SLB | Hold | ||||||
| SSO | Hold | ||||||
| STAG | Hold | Hold | |||||
| SUPN | Strong Buy | ||||||
| SYF | Hold | ||||||
| TCEHY | Buy 1/2 | ||||||
| TIVO | Hold | ||||||
| TOT | Hold | ||||||
| TPB | See Advisory | ||||||
| TSLA | Hold | ||||||
| TTD | Hold | ||||||
| TWLO | Hold | Buy | |||||
| UEIC | Hold | ||||||
| UPLD | Buy | ||||||
| VFF | See Advisory | ||||||
| VOYA | Buy | Strong Buy | |||||
| WDAY | Sell 1/2 | ||||||
| XEL | Hold 2/3 | ||||||
| ZM | Buy | ||||||
| ZTO | Buy 1/2 |