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Weekly Summary October 11, 2019

Cabot Prime Pro Week Ending October 11, 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 discusses the market’s wild, news-driven action of the past week, from which he comes away with two main thoughts—first, that the sideways trend is still in effect, but second, that he really likes the market’s setup here given the multi-month correction and consolidation phase. He shares many of his favorite stocks that look ready to get going, but he’s still waiting to see a change in the market’s character before diving in with both feet.

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FREE WEBINAR: Wednesday, October 23

How to Make Money in the Age of U.S.-China Rivalry + 3 Global Stocks to Buy Now

By Carl Delfeld, Chief Analyst of Cabot Global Stocks Explorer | Space is limited so sign up now for FREE.

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2020 Cabot Wealth Summit - August 19-21, 2020

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Advisory Services

Cabot Growth Investor

Bi-weekly Issue October 10: Mikes says, recently, the market environment has been a meat grinder—our Cabot Tides plunged back into negative territory last week, but really, the trend is mostly sideways and choppy, with the major indexes making no net progress for the past five to seven months, next-to-no individual stocks hitting new highs and vicious moves nearly every day (even intraday and overnight!) based on whatever is hitting the headlines. Thus, you should lay low and keep your eyes open for a change in the market’s character. In the Model Portfolio, Mike sold Blackstone and Teladoc since the last issue and is sitting with a 54% cash position while he continues to hone our watch list.

Bi-weekly Update October 3: Be cautious. The selling pressure has spread to the rest of the market, with the recent decline cracking a bunch of stocks and causing our Cabot Tides to turn negative. That said, Mike is not super bearish (longer-term trend still up, fair number of stocks acting well), but he continues to think making any real money is very difficult—hence, he advises holding plenty of cash and cutting back on new buying. Tonight, Mike is placing ProShares S&P 500 Fund (SSO) on Hold.

Other Stocks of Interest October 2: Follow ups to stocks featured May 9, 2019 (issue 1419) to September 26, 2019 (issue 1429). 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 October 11: The ping-pong action of the market has continued this week, with quick, sharp fluctuations based on daily (and often intraday and even overnight) news and rumors of the progress (or not) of the U.S.-China trade negotiations, including this morning’s good-looking pop. Mike is encouraged by the action, but to this point his stance hasn’t changed. Today’s buy ideas are: Burlington Stores (BURL), Chipotle Mexican Grill (CMG) and KB Home (KBH). There are three sells today: GDS Holdings (GDS), KeySight (KEYS) and Sanderson Farms (SAFM).

Weekly Issue October 7: Overall, the trend of the major indexes remains effectively sideways, with no net progress for five-plus months at this point. And for individual stocks, it’s mostly the same story—Mike is still seeing many that are holding up well, but few are going up, so no real money is being made. He’s still game for holding your strong, resilient stocks, especially if they’ve already taken some hits and held support. But he also thinks it’s best to mostly lay low, holding plenty of cash and being choosy on the buy side until the buyers flex their muscles. This week’s list has a good number of names that have recently shown strong accumulation and have held most of their gains, despite the soft environment. Mike’s Top Pick is RingCentral (RNG), which announced a game-changing deal last week that lit a fire under the stock. Dips would be tempting.

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 Education October 10: Jacob explains a Long Straddle.

Cabot Options Trader Stocks on Watch October 9: Big picture, as Jacob has written before, no money is being made unless you own one of the handful of stocks that are actually advancing (TGT is working well for us as it is making a new high today). That being said, there are certainly stocks that traders are buying calls on positioning for the market to finally break out of this brutal range.

Cabot Options Trader Stocks on Watch October 7: As Jacob highlighted this morning in his weekly Market Update, Teradyne (TER) was a stock that he had on his watch list following months of relative outperformance, as well as intriguing upside call buying. A stock that has been similarly strong but is likely less susceptible to trade headlines is MasTec (MTZ), which jumped from 50 to 58 in August following a strong earnings report.

Cabot Options Trader Pro Weekly Update October 7: Jacob has 8 Long positions: CRM, KO JD, LSCC, MDT, RF, SNAP and TGT and one short position, SPY.

Cabot Options Trader Weekly Update October 7: Two semiconductor stocks hit Jacob’s radar last week for bullish option activity, Teradyne (TER) and Lattice Semiconductor (LSCC) and one former high-flying growth stock, GrubHub (GRUB), saw repeated put buying early in the week. However, option order flow flipped somewhat bullish on Friday.

Cabot Undervalued Stocks Advisor

Weekly Update October 8: The markets have been quiet, heading into earnings season, which begins next week with financial stocks. Crista’s portfolio changes today are: Alexion Pharmaceuticals (ALXN) moves from Hold to Buy, Apple (AAPL) moves from Hold to Retire, Blackstone Group (BX) moves from Hold to Buy and Carlyle Group (CG) moves from Hold to Buy.

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 8: The market is no longer as healthy as it was, but the bull market is not dead, either, just going through a change of character—a change that helps some of our stocks and hurts others. That’s investing! Tim’s recommendation for this week’s stock, Pinduoduo (PDD) is a name you may not have heard of yet—it’s young—but lots of Chinese have, as it serves the mass market. It’s one of Mike Cintolo’s current favorites, a stock he recently highlighted in Cabot Growth Investor. Here are today’s portfolio changes: Apple (AAPL) moves from Hold to Retired and MakeMyTrip (MMYT) moves from Hold to Sell.

Cabot Global Stocks Explorer

Bi-weekly Update October 10: Carl give us his take on the first face-to-face talks between senior officials from America and China since July. There are two portfolio changes: Tencent (TCEHY) Moves From Hold to Sell and Luckin Coffee (LK) Moves From Buy a Half to Hold a Half.

Bi-weekly Issue October 3: Some weak economic numbers and political uncertainty such as Hong Kong roiled markets a bit but emerging and international stocks rebounded a bit today. China stocks are getting some scrutiny in Washington amidst U.S.-China rivalry. Nevertheless, our new recommendation, Huya (HUYA) is from the Middle Kingdom and is centered on a high growth theme that has a lot of momentum behind it. Carl has it rated Buy a Half. There is one portfolio change today: MakeMyTrip (MMYT) moves from Hold to Sell.

Cabot Small-Cap Confidential

Special Bulletin October 9: This week’s update is both early and much shorter than normal. Tyler will be away from the office Thursday and Friday. The good news is that, on average, our portfolio is slightly up from last Thursday’s close. Veracyte (VCYT) has jumped 7%, Goosehead Insurance (GSHD) is up 6% and Avalara (AVLR) is up 5%. The bad news is that the trend since the beginning of September has been down. That’s hit all the stocks and cast a bit of a shadow over the broader growth stock universe. There’s no real trend out there. So even though there are small pockets of strength, the market’s just not giving us a lot to work with. Tyler has no portfolio changes today.

Monthly Issue October 4: Today’s recommendation, Inspire Medical (INSP), is a $1.3 billion market cap company that’s developed a better solution for people with obstructive sleep apnea (OSA). Tyler has it rated Buy a Half. He has no portfolio changes today.

Cabot Dividend Investor

Weekly Update October 9: While stocks are still the only game in town to earn a decent return in today’s low interest rate world, there is a much better game within the market. And investors may be wising up already. The neglected value stocks are starting to outperform the overall market after years in the wilderness. Today, Tom is selling American Express (AXP). The stock is falling below its moving averages. It is also a significant risk that the global economy is sputtering and could get much worse, as this company has a lot of international exposure. The remaining one half position is still up 17% and he’s going to take that profit here.

Monthly Issue September 25: This month’s featured buy, Cheniere Energy Partners (CQP), operates the first and largest U.S. LNG terminal, while LNG is the fastest growing commodity in the world. The stock has blown away the returns of the S&P 500 at a time when stocks in the energy sector were the worst performing on the market. Yet the stock is still reasonably valued and pays monstrous and growing 5.15% yield.

Cabot Marijuana Investor

Update October 11: Yesterday was the worst day of the year for cannabis stocks, with HEXO (no longer in our portfolio) leading the way down with a plunge of 22.5% after the company announced that revenue for the fiscal fourth quarter, ended July, would be $14.5 to $16.5 million, well short of analysts’ expectations of $24.8 million. Tim suggests taking things on a stock-by-stock basis, the portfolio will now sell half of its positions in three stocks—Alcanna (LQSIF), Innovative Industrial Properties (IIPR) and OrganiGram (OGI)—and all of its position in Village Farms (VFF).

Monthly Issue September 26: The cannabis sector remains in a correction, weighed down in part by fears of vaping illness, but many stocks are doing considerably better than the sector and Tim’s challenge is to own the right ones—so that we can succeed both short-term and long-term. Today that means selling one of our positions, MedMen (MMNFF), and returning to a stock we sold in July, Green Thumb Industries (GTBIF). Both are multi-state operators (MSOs) in the U.S., but MedMen is losing ground, while Green Thumb is gaining—and its stock pattern is attractive.

Cabot Early Opportunities

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.”

Monthly Issue September 18: In this inaugural Issue of Cabot Early Opportunities, Tyler features several growth-oriented, early-stage companies that could offer good entry points right now. He also sprinkles in a few opportunities to gain exposure to growth trends beyond U.S. borders. This month’s Top Pick is Digital Turbine (APPS). It’s a small-cap stock, that used to be a penny stock, but which is emerging as a more sustainable growth story due to a content distribution platform for mobile devices running the Android OS.

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 October 11: Riviera Resources, Inc. (RVRA) The Stock Spin-off Investing Newsletter
Daily Alert October 10: Maxar Technologies Inc. (MAXR) The Wealth Advisory
Daily Alert October 9: Perficient, Inc. (PRFT) Upside
Daily Alert October 8: TC Energy Corporation (TRP.TO) The Income Investor
Daily Alert October 7: FONAR Corporation (FONR) SmallCap Informer

Monthly Issue September 18: The economy remains strong and all eyes are on the Fed, as the governors wrap up their 2-day meeting this week. Most Fed watchers believe we’ll see another interest rate cut. And that should help to boost Nancy’s Spotlight Stock, Meritage Homes (MTH) a homebuilder specializing in first time homes. Her Feature article further explores this housing niche, as well as the improved fundamentals in the housing market.

Wall Streets Best Dividend Stocks

Monthly Issue September 11: Nancy’s issue this month begins with her Spotlight Stock, which is actually two stocks who used to reside in the same company, split up, and are now reuniting. They are CBS Corporation (CBS) and Viacom (VIAB), scaling up to battle some fierce competition. Her Feature article further explores what the new company may look like.

Ask the Experts

Cabot Marijuana Investor

Question: I am a brand new subscriber to your Cabot Marijuana Investor. It looks like each stock in your model portfolio is purchased as a percentage of the portfolio total. My question is; are the stocks ever adjusted to keep them at those percentages or are they just left alone after the initial purchase?

Tim: Thanks for asking. The portfolio’s weightings are ever-evolving. Given that there are a limited number of investable companies in the sector, my strategy is to get readers invested in the stocks that will likely be the industry leaders five and ten years from now. However, knowing that there will be big uptrends and downtrends in individual stocks along the way, I want readers to be overweight in the stocks that are moving in the right direction while underweighting stocks that are moving in the wrong direction (like CGC and CRON recently). The current weightings have come to be from such processes—either additional buys of a position or partial sells. My most recent buy was GTBIF, starting at 5% ( a little light), and if that improves I will add more. Thus, in your case, there’s no need to start with the overweight positions I have. Focus on buying pilot positions of what’s rated buy, and then rewarding stocks that do what you want them to by buying more. Hope that helps.

Premium Reports

Cabot Prime Quarterly Report

Special Report

July, 2019: After a straight-up first quarter, the second quarter was a good one, though proved far trickier. April was solid, though we saw the broad market stall out. May brought a very sharp correction (10% on the Nasdaq!). And then June was a big winner, with the major indexes and many leading stocks ripping back to their highs. Despite the ongoing worries and uncertainties in the world (U.S.-China trade, what the Fed will do, Iran, politics, you name it), you should listen to the message of the market—and that message remains bullish.

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
AAPLRetireRetire
ABBVBuy
ACBSee Advisory
ADBEBuy
ALKBuyStrong Buy
ALXNBuy
ANFBuy
APHASee Advisory
APPFHold 3/4
APPSBuy
AREBuyBuy
ARNABuy
AVLRHold 3/4
AXPSell
BABABuy
BANDBuyHold
BHGEStrong Buy
BIPHoldBuy
BMYBuy
BSCJBuy 1/2
BSCLBuy 1/2
BXSoldBuy
CBuyStrong Buy
CCIBuy
CDLXBuy
CFStrong Buy
CGBuy
CGCSee Advisory
CHCTHold 2/3
CITBuy
CMCBuy
CMGHold
COUPHoldHold
CQPBuy
CRLBFSee Advisory
CRONSee Advisory
CTVAHold
CURLFSee Advisory
CVNASold
CWBHFSee Advisory
DBIBuyStrong Buy
DBSDYBuy 1/2
DOCUBuy 1/2
DOMOHold
DOWStrong Buy
DVAStrong Buy
EPDBuyBuy
EVBGHold
EVERHold 3/4
GESStrong Buy
GOSold
GSHDBuy
GTBIFSee Advisory
HTHTHold
HUYABuy 1/2
IBNHold 1/2
IIPRSee Advisory
IPHIHold
LKHold 1/2Hold
LQSIFSee Advisory
LUVBuy
LXSold
MCYStrong Buy
MKCSold
MMYTSoldSell
MOHold
MOSHold
MPCStrong Buy
MRVLBuy 1/2
NEEHoldHold 1/2
OGISee Advisory
OKTAHold
PDDBuy
PGXBuy 1/2
QTRXHold 1/2
QTWOBuy
RCLBuy
RGENBuy
RKUNYBuy 1/2
RPDHold 3/4
SEHold 1/2
SLBBuy
SNAPBuyHold
SSOBuy
STAGHold
SYFBuy
TCEHYSell
TDOCSold
TOTBuy
TPBSee Advisory
TSLAHold
UEICBuy
VCYTBuy
VFFSell
VLOBuy
VOYAStrong Buy
XELHold 2/3
YNDXBuy 1/2
ZTOHold 1/2