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Weekly Summary November 1, 2019

Cabot Prime Pro Week Ending November 1, 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.

Quarterly Cabot Analyst Meeting

The recording of the quarterly Cabot Analyst Meeting from October 23, 2019 is now available for you to listen to at your convenience—click here for access. This quarterly private call with our analysts is one of your exclusive Cabot Prime Pro member benefits.

Cabot Weekly Review (Video)

In this week’s stock market video, Mike Cintolo is getting more encouraged—the market isn’t completely out of the woods yet, but the evidence is improving step by step, and he’s seeing more stocks let loose on the upside and hold (or build on those gains)—many of which he talks about here.

CABOT EVENTS:

FREE WEBINAR: Thursday, November 14

Finding Early-Stage Growth Stocks Before the Crowd + Two Early-Stage Stocks to Buy Now

By Tyler Laundon, Chief Analyst of Cabot Early Opportunities and Cabot Small-Cap Confidential | Space is limited so sign up now for FREE.

SAVE THE DATE

2020 Cabot Wealth Summit - August 19-21, 2020

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Advisory Services

Cabot Growth Investor

Bi-weekly Update October 31: Put a little money to work. There are still issues with many growth stocks and plenty of crosscurrents, but the overall market is looking good and Mike has seen some earnings-induced breakouts. He’ll start slow tonight, filling out the position in Inphi (IPHI) and starting a half-sized position in Teladoc (TDOC). Our cash position will still be a large 56%.

Bi-weekly Issue October 24: As Mike has been writing for weeks, the onus remains on the buyers to take control. Until then, less remains more—since the last issue, he’s sold Snap (SNAP), Coupa (COUP) and RingCentral (RNG) and is content to hold plenty of cash until the buyers create some decisive upside breakouts in the market and potential leading stocks. His special feature is: When is it Good to Buy a Stock Back?

Other Stocks of Interest October 29: Follow ups to stocks featured June 6, 2019 (issue 1421) to October 24, 2019 (issue 1431). 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. Feel free to email me directly (mike@cabotwealth.com) with any questions/comments you have.

Cabot Top Ten Trader

Movers & Shakers November 1: The evidence continues to suggest the next major move is up for stocks, and the past week or two adds to the possibility that such an upmove is getting going here. Mike doesn’t advise anything dramatic, but putting some sidelined money to work in (a) big-volume breakouts or (b) pullbacks after persistent runs, makes sense. His buy ideas today are: Casey’s General Stores (CASY), Fastenal (FAST), Garmin (GRMN) and MasTec (MTZ). There are five sells this week.

Weekly Issue October 28: Given the many solid setups out there, a positive earnings season could launch a bunch of new leaders we can hop on (we think we’ve already highlighted some of them), but it’s still up to the bulls to produce a bunch more powerful breakouts in the indexes and individual stocks. This week’s list is a mix of recent earnings winners and others that are set up nicely ahead of reports this week. Mike’s Top Pick is Vertex Pharmaceuticals (VRTX), which might finally be getting going after years of ups and downs. Earnings are due Wednesday evening so handle with care.

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 November 1: Sell HALF of Existing Position: Sell Half your Blackstone (BX) March 52.5 Calls for $3.70 or more.

Cabot Options Trader Pro Alert October 31: Iron Condor: Sell the Facebook (FB) December 215/220 Bear Call Spreads and December 165/160 Bull Put Spreads (exp. 12/20/2019) for $0.52 or more.

Cabot Options Trader Position Update October 30: The position that Jacob is watching very closely is our Medtronic (MDT) November 100 calls. With the stock trading at 108.3, our MDT November 100 calls that we originally bought for $3.475 are worth $8.30, or a potential profit of approximately 140%. Today Jacob is going to set a new mental stop on this position at $6.50. This stop would likely trigger if MDT were to fall to 106.5.

Cabot Options Trader Position and Market Update October 30: Lattice Semiconductor (LSCC) reported earnings last night that beat expectations. In reaction the stock is trading mostly unchanged. This relatively small move is nearly ideal for our short volatility buy-write and Jacob will continue to hold our position to collect even more option decay. He also updates us on other stocks that will report earnings today after the close.

Cabot Options Trader Alert October 29: Sell Half of Existing Position: Sell Half your salesforce.com (CRM) February 155 Calls for $9.80 or more.

Cabot Options Trader Alert October 28: Adjust Existing Position: Against LSCC Stock, Buy Back the November 20 Calls, and Sell the November 17.5 Calls.

Cabot Options Trader Pro Weekly Update October 28: Jacob has 9 Long positions: BX, CRM, KO JD, LSCC, MDT, RF, SNAP and TGT and one short position, SPY.

Cabot Options Trader Weekly Update October 28: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week at 12.65, or lower by 11%. On the one hand, Jacob understands the VIX trading near its 2019 lows as the S&P 500 is just short of all-time highs. On the other hand, he is surprised that it is trading at these low levels ahead of the big Federal Reserve announcement this week. Stocks on Watch: Zoom Video (ZM), Beyond Meat (BYND) and Skyworks (SWKS).

Cabot Undervalued Stocks Advisor

Special Bulletin October 31: Bristol-Myers (BMY), CF Industries (CF) and Corteva (CTVA) reported third quarter results and Marathon Petroleum (MPC) reported third quarter results, announces Speedway spinoff and CEO retirement.

Special Bulletin October 30: Baker Hughes Company (BKR), Royal Caribbean Cruises (RCL) and Total S.A. (TOT) reported third-quarter results and Universal Electronics (UEIC) moves from Buy to Hold.

Special Bulletin October 29: Mercury General Group (MCY) reported third-quarter operating EPS of $0.78 yesterday vs. the consensus $1.04, which disappointed investors. The stock fell 11%. Crista is moving MCY from Strong Buy to Buy.

Weekly Update October 29: Crista writes that we’ve been fairly lucky this earnings season in that every single one of our portfolio companies that reported earnings managed to meet or beat the market’s expectations. Of course, that doesn’t mean share prices will rise. Short-term movements in stock prices can easily resemble a roulette game. Nevertheless, she buys high quality companies and she gives the stocks a chance to enhance our net worth. There are four portfolio changes today are: Commercial Metals (CMC) moves from Buy to Hold, Corteva (CTVA) moves from Hold to Buy, Synchrony Financial (SYF) moves from Buy to Hold and Voya Financial (VOYA) moves from Buy to Hold.

Monthly Issue October 1: October is a significant time for Crista, because that’s when she begins embracing companies that didn’t previously have strong enough numbers to join these portfolios, but now have excellent prognoses for the coming year. Featured stocks this month are: Marathon Petroleum (MPC), Dow Inc. (DOW) and Mercury General Group (MCY). Here are today’s portfolio changes: Abercrombie & Fitch (ANF) moves from Hold to Buy, Apple (AAPL) moves from Strong Buy to Hold, CIT Group (CIT) moves from Hold to Buy, Corteva (CTVA) moves from Strong Buy to Hold, Dow Inc. (DOW) moves from Buy to a Strong Buy and Mercury General Group (MCY) joins the Buy Low Opportunities Portfolio as a Strong Buy.

Cabot Stock of the Week

Weekly Issue October 29: Today, cannabis stocks are not only are they shunned by some individual investors for moral reasons, they’re also avoided by many institutional investors because marijuana is still a Schedule 1 drug under U.S. federal law. The result of this is that while 80% of all U.S. stocks are owned by institutions, only 7% of cannabis stocks are owned by institutions. Yet cannabis is the fastest-growing industry in the U.S., with investment opportunities that dwarf those of more established industries. This is not a sector for beginners; volatility is high and the sector’s stocks make big moves, both up and down. But as we all know, the goal of successful investors is to buy low and sell high, and today, with the sector having corrected a massive 55% from its March high and news of vaping-related deaths still spooking out the weak hands, Tim thinks this is a great time to invest in the sector. Trulieve Cannabis Corp. (TCNNF) is his favorite stock in the sector to buy today. Tim has two changes today: Enterprise Products Partners (EPD) and Ring Central (RNG) both move from Buy to Hold.

Cabot Global Stocks Explorer

Bi-weekly Issue October 31: Carl writes that the chatter concerning the U.S.-China trade deal has gone down considerably and probably reflects a good reset of expectations.
Our emerging markets timer is positive so it pays to be optimistic and keep investing in outstanding companies with strong fundamentals. Today’s new recommendation, NovoCure (NVCR), has steadily rising net revenues, strong market position, robust pipeline of products, extensive family of patents as well as a strong cash flow and balance sheet. There is one portfolio change today: Sea Limited (SE) moves from Hold a Half to Buy a Half.

Bi-weekly Update October 24: Carl gives us his take on strategic takeaways from the latest global news. He has one portfolio change today: ZTO Express (ZTO) moves from Hold to Sell.

Cabot Small-Cap Confidential

Monthly Issue November 1: This month Tyler is venturing into the services sector with a stock that fits the Growth at a Reasonable Price (GARP) strategy that’s come back into favor recently. Construction Partners Inc. (ROAD), isn’t a high-flying stock with a new widget or software solution. It’s a pretty basic business really. In all likelihood, it’s insulated from trade wars, and even recessions too. He has no portfolio changes today.

Special Bulletin November 1: Goosehead Insurance (GSHD) reported this morning and will host a conference call at 8:30 a.m. Tyler is including a quick overview now and will detail any learnings from the conference call later.

Special Bulletin October 31: Repligen (RGEN), a bioprocessing specialist, reported Q3 results this morning that should be good enough to keep the stock stable, and hopefully get it moving back in the right direction. Recall the stock moved out of the small-cap index and into the mid-cap index recently, which likely drove much of the September sell-off. This report should wave the all-clear flag for mid-cap funds that are nibbling around the edges.

Special Bulletin October 29: Appfolio (APPF) reported last night and, as is typical, the company surpassed expectations and gave us a bare bones report. The it continues to execute well and Tyler wants to keep owning the stock, provided it holds up. In the early going today APPF was up as much as 5%. It’s not up as much now but is still higher on the day. It remains a Hold.

Weekly Update October 25: There has been no big picture change in the market over the last week. As expected, everyone is following earnings reports and trying to make broad assumptions based on what individual companies are reporting. Tyler writes that earnings season starts in earnest next week, when there are three companies reporting, Repligen (RGEN), Goosehead Insurance (GSHD) and AppFolio (APPF).

Cabot Dividend Investor

Monthly Issue October 30: In this issue Tom highlights AbbVie Inc. (ABBV), a stock that is one of the best healthcare companies in the world that is perfectly positioned ahead of the world’s most pronounced megatrend. It also offers great value in an expensive market and has recently found upward momentum. The stock is already a “BUY” rated portfolio position. But, under the current circumstances, it still offers a better opportunity than anything else he has found in the market. He has two portfolio changes today: Brookfield Infrastructure Partners (BIP) moves from Buy to Hold and Community Health Trust (CHCT) moves from Hold to Sell 1/3.

Weekly Update October 23: Tom says that the Cabot Dividend Investor portfolio is very well positioned right now. There are several positions in REITs, Utilities and other defensive plays that continue to have strong momentum that are complemented by value plays that appear on the cusp of making up for lost time. There are no portfolio changes today.

Cabot Marijuana Investor

Monthly Issue October 31: The cannabis sector remains in a correction, weighed down particularly by the old crowd favorites that are still being disposed of as we approach the end of the year. But the fundamentals of the industry are better than ever, as increasing numbers of companies turn profitable and as legalization spreads in both Canada and the U.S. Today, Tim will sell one stock, Alcanna (LQSIF), sell half its positions in two others, Aurora (ACB) and Curaleaf (CURLF), and initiate new positions in two new stocks, MariMed (MRMD) and MediPharm Labs (MEDIF).

Update October 16: Coming into today, the portfolio is about one-third in cash, and Tim will use some of that by committing 5% of the portfolio to Trulieve (TCNNF).

Cabot Early Opportunities

Special Bulletin October 17: Tyler has received questions about the stocks in the Special Reports that you have access to as subscribers to Cabot Early Opportunities. Since these stocks are not officially part of any Issue, they’re not included in the Previously Recommended Stocks section on page eight. He won’t be able to cover these stocks indefinitely as his focus will need to be centered on all the stocks featured in Issues. But, for now, he doesn’t want to leave you hanging with stocks that he covered so recently.

Special Bulletin October 9: Here’s what’s new with the stocks Tyler has been following from the September Issue. While the market has been soft and the prices of our stocks are off an average of 3% since the September publishing date, there is no material new news (either hugely positive or negative) that’s affected any of their outlooks. Management teams are likely holding their cards close to their vests given that earnings season is right around the corner. All stocks are still rated at “buy.”

Bonus Report:

3 Cloud Software Stocks to Buy Now

Bonus Report:

3 Canadian Small-Cap Stocks to Buy Now

Bonus Report: Secrets To Early-Stage Stock Profits

Bonus Report:

The 240% Early-Stage Growth Stock

Wall Street’s Best Investments

Daily Alert November 1: Caterpillar Inc. (CAT) The Prudent Speculator
Daily Alert October 31: Athene Holding Ltd. (ATH) Investor Advisory Service
Daily Alert October 30: Sell: Coupa Software Incorporated (COUP) Cabot Growth Investor
Daily Alert October 30: Marathon Petroleum Corporation (MPC) Cabot Undervalued Stocks Advisor
Daily Alert October 29: Viemed Healthcare, Inc. (VMD) Internet Wealth Builder
Daily Alert October 28: Peloton Interactive, Inc. (PTON) Canaccord Genuity Research

Monthly Issue October 16: Nancy’s contributors have a wide array of ideas for you this month, starting with the Spotlight Stock, Palo Alto Networks (PANW), a cybersecurity company that is posting double-digit growth by staying on top of the current—and future—security needs of a world that is fast becoming extremely connected. Her Feature article looks at an overview of the industry, including its biggest threats.

Ask the Experts

Cabot Options Trader

Question: Hope all is well with you. I executed the Buy/Write that was included in your Covered Call Ideas on 10/1/2019Buy Avalara (AVLR) Stock at 67.5, Sell November 70 Calls for $5.50
Static Return: 8.87% Breakeven: 62 Covered Call Return (if assigned): 12.9%. I bought AVLR for $67.30 and sold the November call for $5.60.Today the price of AVLR is $73.51, and I’m wondering if I should roll the call up to 75 with the same expiration date. What are your thoughts?I will make a nice profit if the stock is taken away at $70, so I’m wondering if I’m just being greedy and should leave it alone.

Jacob: If it were me, and with earnings coming on 11/5, I would stick with the existing, and more defensive trade. That way, if AVLR bombs on earnings you have better protection.
Though clearly if AVLR explodes higher not rolling to the 75 strike will be a mistake.Big picture, so far the trade is off to a great start, and if you can make approximately 13% in one months time that is a very impressive return. Great job by you using my idea, and executing the trade to perfection!

Cabot Marijuana Investor

Question: I have 80 shares of ACB (down 60.89%), 60 shares of APHA (down 64.77%, 25 shares of IIPR (up 121.63%), and 500 shares of OGI (down 38.49%). Please advise me whether now is a good time to sell any of these stocks. Are there any cannabis stocks that you recommend buying at this time? Thanks for your help.

Tim: Thanks for asking. I have a full issue of Cabot Marijuana Investor coming out tomorrow, with some current portfolio stocks rated buy and a couple of new buys. In the meantime, I do recommend selling your shares of ACB and APHA, simply because your losses are so large. I always cut losses at 30% or less. IIPR is looking pretty sad; it’s only worth holding because of the big profit, but I’ve taken profits out of it several times on the way down, so you could consider that. OGI is the best of your three, and you can read about that tomorrow—as well as the portfolio’s two new buys.

Premium Reports

Cabot’s 10 Best REIT’s to Buy Now

Special Report

May 2, 2019: 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’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
ABBVBuy
ACBSee Advisory
ADBEHold
ALKHoldHold
ALXNStrong Buy
ANFBuy
APHASee Advisory
APPFHold 3/4
APPSBuy
AREBuyBuy
ARNABuy
AVLRHold 3/4
BABABuy
BANDHold
BIPHoldHold
BKRBuy
BMYBuy
BSCJBuy 1/2
BSCLBuy 1/2
BXStrong Buy
CHoldHold
CCIBuy
CDLXBuy
CFStrong Buy
CGCSee Advisory
CHCTSell 1/3
CITBuy
CMCHold
CMGHold
COUPSold
CQPBuy
CRAKStrong Buy
CRLBFSee Advisory
CRONSee Advisory
CTVABuy
CURLFSee Advisory
CWBHFSee Advisory
DBIBuyStrong Buy
DBSDYBuy 1/2
DOCUBuy
DOMOHold
DOWStrong Buy
DVAStrong Buy
EPDHoldBuy
EVBGHold
EVERHold 3/4
GESStrong Buy
GSHDBuy
GTBIFSee Advisory
HTHTHold
HUYABuy 1/2
IBNHold 1/2
IIPRSee Advisory
IPHIBuy another 1/2
LKHold 1/2Hold
LQSIFSee Advisory
LUVStrong Buy
MCYBuy
MEDIFSee Advisory
MOHold
MOSBuy
MPCStrong Buy
MRMDSee Advisory
MRVLBuy 1/2
NEEHoldHold 1/2
NVCRBuy 1/2
OGISee Advisory
OKTAHold
PDDBuy
PGXBuy 1/2
QTRXHold 1/2
QTWOBuy
RCLBuy
RGENBuy
RKUNYBuy 1/2
RNGSoldHold
ROADBuy
RPDHold 3/4
SEBuy 1/2
SLBBuy
SNAPHold
SSOBuy
STAGHold
SYFHold
TCNNFSee AdvisoryBuy
TDOCBuy 1/2
TOTBuy
TPBSee Advisory
TSLAHold
TVBuy 1/2
UEICHold
VCYTHold
VLOBuy
VOYAHold
XELHold 2/3
YNDXHold 1/2
ZTOSold