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Weekly Summary October 18, 2019

Cabot Prime Pro Week Ending October 18, 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 jumps into the IPO market to alert viewers to three high potential names that have recently hit the public market. He also shares a few simple tips about how to increase your odds of success when investing in IPOs.

CABOT EVENTS:

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.

SAVE THE DATE

2020 Cabot Wealth Summit - August 19-21, 2020

Click Here for More Information.

Advisory Services

Cabot Growth Investor

Special Bulletin October 18: Mike says to sell the rest of your shares in Coupa (COUP). In the Model Portfolio, that will leave us with a cash position just north of 60%.

Bi-weekly Update October 17: While Mike is growing more optimistic that the next big move will be up, he continues to advise a cautious stance as the market’s numerous crosscurrents continue—the indexes are still range bound, there’s rotation under the surface and relatively few stocks are hitting new highs. There are no new changes tonight.

Special Bulletin October 14: Mike is selling Snap (SNAP), which hasn’t been able to get off its knees, but he’s going to reinvest the proceeds in two steps—first, by adding another half-sized position in DocuSign (DOCU), and second, by initiating a half-sized position in RingCentral (RNG). Our cash position will still be in the low 50% range after these moves.

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.

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 18: The market’s had another rotational week—the big-cap indexes have done OK (S&P 500 and Nasdaq up around 1%), small-cap indexes have done even better (up nearly 2%), but growth stocks have suffered another round of heavy selling, with many falling to new correction lows. Mike’s buy ideas are: Jabil (JBL), MasTec (MTZ) and Medicines Co. (MDCO). There are two outright sells today: Coupa Software (COUP) and Floor & Décor (FND).

Weekly Issue October 14: Last Friday’s surge higher by the broad market was a powerful sign that the lack of progress by growth stocks in recent months might be over, and for that reason alone, Mike is raising our market gauge one notch above neutral to the 6 level. But until he sees true follow-through, and numerous growth stocks hitting new highs, he can’t be sure. His Top Pick this week is the world leader in electronic signature technology, DocuSign (DOCU), which is making it easier to do business securely as the world turns increasingly digital.

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 Position Update October 18: Earnings season is going to ramp up in a big way the next two weeks. For now Jacob’s plan is to hold off on any new buys until some earnings winners stand out. But once they do, and if the market looks strong, he will very quickly add to the portfolio.

Cabot Options Trader Position Updates October 18: Jacob gives position updates on Coca-Cola (KO), Snap (SNAP), Regions Financial (RF) and Medtronic (MDT).

Cabot Options Trader Earnings October 17: Coca-Cola (KO) will report earnings tomorrow before the open. Jacob is holding half of a position having sold the first half for a profit of 22%. The balance of the position is at a loss, though mostly that loss could be attributed to the stocks lack of movement and decay, instead of a stock decline. He is going to hold his position through earnings as the stock, while not rocketing higher, has held up reasonably well despite some market wobbles.

Cabot Options Trader Alert October 16: Roll Existing Buy-Write: Against your LSCC Stock, Buy Back your October 20 Calls and Sell the November 20 Calls.

Cabot Options Trader Earnings October 16: Netflix (NFLX) reports earnings today after the close. With the stock trading at 282.5, the options market is pricing in a move of $30, or 252.5 to the downside and 312.5 to the upside.

Cabot Options Trader Stocks on Watch October 15: The S&P 500 is trading higher by 1% today, which is helping push many of our positions to recent highs. One of those stocks is JD.com (JD) which while not yet at a new high, is within $1 of its 2019 high, and has seen big call buying nearly every day for weeks, including a buy of 12,000 December 32 Calls last Friday. And today, two other Chinese internet stocks are seeing big call buying as they too are approaching recent highs.

Cabot Options Trader Pro Weekly Update October 14: 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 14: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week at 15.6, or lower by 8.5%. Not surprisingly, option activity was mixed Monday through Thursday ahead of the U.S.-China trade talks. However, what Jacob did find interesting is that on Friday the option action remained mixed/quiet, even as it appeared that a “partial deal” had been made. This would lead him to believe that traders aren’t yet believers in a deal or the market’s move higher to end the week.

Cabot Undervalued Stocks Advisor

Special Bulletin October 18: Baker Hughes changes their corporate name and stock symbol. Synchrony Financial (SYF) and Schlumberger (SLB) report third-quarter earnings beats.

Special Bulletin October 17: Citigroup (C) reported good third-quarter results; Alexion Pharmaceuticals (ALXN) reported another acquisition and Carlyle Group (CG) and Universal Electronics (UEIC) are rising again.

Weekly Update October 15: Crista sorts through the latest airline industry news for us and she has a new addition to the Special Situations portfolio, VanEck Vectors Oil Refiners ETF (CRAK). There are two other portfolio changes today are: Mosaic (MOS) moves from Hold to Buy and Voya Financial (VOYA) moves from Strong Buy 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 15: Recent months have seen the market rewarding safer, dividend-paying stocks and undervalued stocks, while growth stocks have been churning, making no real headway. Maybe that will change, given the recent market strength. But until Tim sees more confirmation that growth stocks are truly growing, he’s going to continue to lean to the lower-risk end of the spectrum. Today’s recommendation, Marathon Petroleum (MPC), is undervalued, has a good yield, and is going up! It was first recommended by Crista Huff in Cabot Undervalued Stocks Advisor. Tim has two sells today: Bandwidth (BAND) and Snap (SNAP) both move from Hold to Sell.

Cabot Global Stocks Explorer

Bi-weekly Issue October 17: Last week’s U.S.-China trade truce fell flat but the tone of emerging market and international stocks remains positive. The EEM began 2019 at 40 and moved nicely to 44 in late spring before coming back to 39 in late summer. Since then, EEM has been in a choppy uptrend to reach 42. Today Carl moves south of the border for a new recommendation, Grupo Televisa (TV), a stock that is in a strong uptrend and way off its high. There is one portfolio change today: Yandex (YNDX) moves from Buy a Half to Hold.

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.

Cabot Small-Cap Confidential

Weekly Update October 18: Tyler says there is a lot of uncertainty out there, which isn’t an entirely new scenario. He’ll continue to try and play it a little safe right now by keeping all stocks previously rated hold at the same rating. And continuing to average into new positions like Inspire (INSP), which is rated “Buy a Half.”

Special Bulletin October 16: It’s time to step aside from Bandwidth (BAND) for the simple reason that the stock has broken below support and we don’t have a clear idea of where the slide will stop. Tyler has had it at buy but has also cautioned in Weekly Updates that he’ll quickly move to sell if things deteriorate.

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 16: The main event going forward is likely to be third quarter earnings. In general, Tom doesn’t expect earnings to drive the overall market significantly higher or lower. While expectations are fairly low, Wall Street is very good at setting a low bar that companies can clear. At this point he still expects the market to forge slowly higher over the rest of the year. Earnings will be more important on an individual basis for each portfolio position. There are no portfolio changes today.

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 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).

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 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 October 18: Cheniere Energy Partners, L.P. (CQP) Cabot Dividend Investor
Daily Alert October 17: iShares U.S. Medical Devices ETF (IHI) Internet Wealth Builder

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.

Daily Alert October 16: Third Avenue Real Estate Value Fund Investor Class (TVRVX) Sound Advice
Daily Alert October 15: Cirrus Logic, Inc. (CRUS) Nate’s Notes
Daily Alert October 14: Bank OZK (OZK) Sure Dividend

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 Options Trader

Question: I just started subscribing to Cabot Options Trader. Where can I start learning about options? I’m a true beginner. My interest is growth stocks. Not a great interest to have the past few months, so am looking for an area where some success is possible. Was at the August program and really enjoyed it!!!!!! Can u tell me the success rate of your recommendations this year? I realize this is a difficult year. how does it compare to the past two years? Am wondering how the increased volatility over the past few years has affected your trading results and choices? Thanking u in advance,

Jacob: First off welcome to Cabot Options Trader, and the wonderful world of options.
I’m thrilled that you are making the jump into options, and you have come to the right place as teaching about options is my passion.2018 I might have been the smartest/hottest trader in the world as I could do almost no wrong.
2019 has been a great year as well as we had many trades yield profits of between 200 -500% ... though admittedly the last couple months has mostly been choppy as the sector rotation has had some positions work, and others not so much.Volatility in the short term, especially if we have a portfolio full of bullish positions is rarely fun. However, our biggest winning trades the last couple years have come after the market unwinds, and then we start to buy.This is what I would say in terms of learning. First learn what Buying a Call means. Then move on to Buying a Put. Those are the building blocks of learning about options.I have attached my options education articles on those two subjects, and if you have any follow up questions don’t hesitate to email me.

Cabot Options Trader

Question: I sold my position in SPY a couple weeks ago for about 45% profit, considering how hard it has been to make money I couldn’t pass it up. My question is would this be a good spot to reestablish the long put position?

Jacob:Good trade by you. Almost perfectly timed! So I will say this .. growth stocks look AWFUL today, which could be a warning sign for the market. Though on the other side of the coin, its just one day, and big picture the SPY and Dow are holding up just fine. The next couple of days could get super interesting as Tuesday most were assuming we were headed for new highs, and now today the market is sending mixed messages.

Cabot Early Opportunities

Question: The recent issues was very helpful with your five simple tips for investment. The 20% stop loss recommendation was very helpful as a rough guide. However, what are your thoughts regarding when to sell (partially or all) when at stock is moving up? If a stock moves up 50% or 100% do you sell half the position and let the rest ride hoping it continues to increase? If it increases 100% do you pull out your investment and let the rest continue? Any suggestions as to a guide when stocks you recommended are moving up?

Tyler: Good question. It totally depends on the circumstances. Since these are early-stage and/or small cap stocks we want to make big gains, and that almost certainly means holding through some significant pullbacks (20% to 30% isn’t uncommon every year to 18 months). So there isn’t a golden rule for trailing stops. That all said, I do start to consider a partial sale (one quarter to one half position size) when the stock is up 50% to 100% from our entry point. Since I tend to follow the business trends and the technical indicators on the chart, plus factor in some of what’s going on in the broader market, I’ll begin to look at a partial sale within that profit range.

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
ABBVBuy
ACBSee Advisory
ADBEBuy
ALKBuyStrong Buy
ALXNBuy
ANFBuy
APHASee Advisory
APPFHold 3/4
APPSBuy
AREBuyBuy
ARNABuy
AVLRHold 3/4
AXPSold
BABABuy
BANDSellHold
BHGEStrong Buy
BIPHoldBuy
BMYBuy
BSCJBuy 1/2
BSCLBuy 1/2
BXBuy
CBuyStrong Buy
CCIBuy
CDLXBuy
CFStrong Buy
CGBuy
CGCSee Advisory
CHCTHold 2/3
CITBuy
CMCBuy
CMGHold
COUPSellHold
CQPBuy
CRAKStrong Buy
CRLBFSee Advisory
CRONSee Advisory
CTVAHold
CURLFSee Advisory
CWBHFSee Advisory
DBIBuyStrong Buy
DBSDYBuy 1/2
DOCUBuy another 1/2
DOMOHold
DOWStrong Buy
DVAStrong Buy
EPDBuyBuy
EVBGHold
EVERHold 3/4
GESStrong Buy
GSHDBuy
GTBIFSee Advisory
HTHTHold
HUYABuy 1/2
IBNHold 1/2
IIPRSee Advisory
IPHIHold
LKHold 1/2Hold
LQSIFSee Advisory
LUVBuy
MCYStrong Buy
MMYTSold
MOHold
MOSBuy
MPCStrong Buy
MRVLBuy 1/2
NEEHoldHold 1/2
OGISee Advisory
OKTAHold
PDDBuy
PGXBuy 1/2
QTRXHold 1/2
QTWOBuy
RCLBuy
RGENBuy
RKUNYBuy 1/2
RNGBuy 1/2
RPDHold 3/4
SEHold 1/2
SLBBuy
SNAPSellHold
SSOBuy
STAGHold
SYFBuy
TCEHYSold
TCNNFSee Advisory
TOTBuy
TPBSee Advisory
TSLAHold
TVBuy 1/2
UEICBuy
VCYTBuy
VLOBuy
VOYABuy
XELHold 2/3
YNDXHold 1/2
ZTOHold 1/2