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Weekly Summary October 25, 2019

Cabot Prime Pro Week Ending October 25, 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 topsy-turvy market environment. While he’s currently cautious, Mike still sees many setups out there for the major indexes and many stocks and sectors—earnings season will be key, and if all goes well, some upside breakouts could emerge.

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Advisory Services

Cabot Growth Investor

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?

Special Bulletin October 23: The weakness in growth stocks in general, and cloud-related stocks in particular, continued today, which caused RingCentral (RNG) to trip our loss limit. Thus, Mike is selling the half position here; our cash position will now be around 66%.

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.

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 25: It’s been mostly more of the same this week, with solid action among the major indexes (S&P 500 and Nasdaq are up a bit less than 1% as we write this), while the broad market has done OK (the number of new highs has picked up some) but growth stocks have generally languished. Mike’s buy ideas are: SolarEdge (SEDG), Pinduoduo (PDD) and Visteon (VC). There are three sells this week: Medpace (MEDP), Proofpoint (PFPT) and RingCentral (RNG).

Weekly Issue October 21: With few stocks in sustained uptrends and the major indexes effectively trending sideways, Mike continues to advise a mostly cautious stance, with small new positions and plenty of cash on the sideline. That said, you shouldn’t stick your head in the sand, either—he continues to see a good number of setups out there, and he believes a lot will come down to earnings season. A spate of breakouts would be encouraging, but as usual, he has to see it first. This week’s list is mostly full of the steady growers and special situations that the market is favoring these days. Mike’s Top Pick is Temper Sealy (TPX), which looks like a solid turnaround situation, with surprisingly big growth numbers to boot.

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 October 24: Buy the Blackstone (BX) March 52.5 Calls (exp. 3/20/2020) for $3.40 or less.

Cabot Options Trader Position Update and Earnings Preview October 23: Snap (SNAP) reported earnings last night that mostly met expectations. The stock received several upgrades this morning, and in reaction to these earnings and analyst notes, SNAP has largely traded plus or minus $0.25 of $14. Jacob also gives us earnings previews on Microsoft (MSFT), Tesla (TSLA), Paypal (PYPL) and Xilinx (XLNX).

Cabot Options Trader Position Update October 22: After Jacob sent his trade alert to sell the Snap (SNAP) November 16.5 call against our stock position yesterday, and thus turning the trade into a covered call, he received a good question from a subscriber that he wanted to share with the bigger group.

Cabot Options Trader Pro Alert October 22: Adjust Existing Position: Against your Medtronic (MDT) November 100 Call, Sell the November 111 Call (exp. 11/15) for $0.35 or more.

Cabot Options Trader Alert October 21: Adjust Existing Position: Against your Snap (SNAP) Stock Position, Sell the November 16.5 Call (exp. 11/15) for $0.45 or more.

Cabot Options Trader Alert October 21: Adjust Existing Position: Against your Regions Financial (RF) Stock position, Sell the November 16 Calls for $0.42 or more.

Cabot Options Trader Pro Weekly Update October 21: 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 21: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week at 14.25, or lower by 8%. The VIX was mostly quiet even as the indexes made a run at new highs early in the week, and then barely rose as the intense selling moved into growth stocks later in the week. Jacob’s interpretation of this lack of movement in either direction for the VIX last week is that traders are not necessarily worried about the short-term day-to-day gyrations and rotation, and are instead focused on earnings season, and the market’s reaction to those earnings.

Cabot Undervalued Stocks Advisor

Special Bulletin October 24: Adobe Systems (ADBE) moves from Buy to Hold, Carlyle Group (CG) moves from Hold to Retired, Dow Inc. (DOW) reports earnings beat and Southwest Airlines (LUV) reports earnings beat and moves from Buy to Strong Buy.

Special Bulletin October 23: Alexion Pharmaceuticals (ALXN) delivered a strong earnings beat and Crista’s recommendation is raised to Strong Buy, Blackstone Group (BX) delivered a strong earnings beat and it’s recommendation is also raised to Strong Buy and Commercial Metals (CMC) delivered a strong earnings beat.

Special Bulletin October 22: Bristol-Myers (BMY) is up on news of a successful drug trial and CIT Group (CIT) reported a strong earnings beat.

Weekly Update October 22: Crista explains Growth Stocks vs. Value Stocks and updates us on Boeing. There are four portfolio changes today are: Alaska Air Group (ALK) moves from Strong Buy to Hold, Baker Hughes Company (BKR) moves from Strong Buy to Buy, Carlyle Group (CG) moves from Buy to Hold and Citigroup (C) moves from Strong 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 22: The indexes look good, and high-yielding low-risk stocks look good, but there are a lot of potholes. Happily, Tim says that we’ve not fallen in any big ones for a long time and for that he credits the talented Cabot analysts, who originally selected the stocks that he highlights in this portfolio. Today’s recommendation, RingCentral (RNG), is at what looks like an attractive entry point. It was first recommended by Mike Cintolo in Cabot Growth Investor. Tim has three changes today: Alaska Air (ALK) moves from Buy to Hold, Citigroup (C) moves from Buy to Hold and Coupa Software (COUP) moves from Hold to Sell.

Cabot Global Stocks Explorer

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.

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.

Cabot Small-Cap Confidential

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).

Special Bulletin October 24: Veracyte (VCYT) recently reported and shares have been selling off. Tyler has pored over the earnings report, the data on the nasal swab test, and listened to the conference call again to try and pull out the reasons why the stock has been weak after reporting Q3 results. VCYT moves to Hold.

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 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.

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 25: Middlefield Banc Corp. (MBCN) 2 for 1 Stock Split Newsletter
Daily Alert October 24: Piedmont Lithium Limited (PLL) The National Investor
Daily Alert October 23: The RealReal, Inc. (REAL) Ian Wyatt’s Million Dollar Portfolio
Daily Alert October 22: Constellation Brands, Inc. (STZ) Argus Weekly Staff Report
Daily Alert October 21: Discover Financial Services (DFS) AlphaProfit Sector Investors’ Newsletter

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: Before MSFT earnings you listed that huge earnings play for 150 calls. Is there any way that would not be a bullish play, ie. could it be some kind of hedge against a bigger put buy?Such a buy, if it were bullish, would clearly indicate prior knowledge of the good results, to me, as I can’t see anyone risking such huge $ without firm knowledge.But I probably don’t know the scale of many of these trader’s complete positions, so that’s why I’m wondering how to read such a play before earnings.

Jacob: I would doubt its a bearish play as that would be a terrible hedge against a short stock position.Somewhat similarly, I don’t know how it would be a play on an existing bullish position.Really I’m guessing it was a trader taking a big shotAnd as you know based on my style, I hate that type of setup. Short term call buy, far out-of-the-money, is a great way to lose money ... though to be honest if MSFT ripped via earnings or a takeover of a competitor it would have been a MONSTER home run.

Cabot Dividend Investor

Question: I read your report today ---Excellent as usual! I have question about ABBV. I would like to buy more shares but am not sure whether to do it now or after earnings next week. What are your thoughts? Thank you

Tom: Earnings are always tricky. You never know. There is always a risk of bad news. But AbbVie isn’t really an earnings driven story right now. Much depends on the merger with Allergan and the future success of the pipeline, neither of which will be determined in the earnings report. The stock is very cheap here with the stock price factoring a negative scenario on almost all fronts. As well, if you buy the stock here you will hold it right through several more earnings reports in the future, right? As long as you have a relatively long term perspective, like year or more, I wouldn’t be afraid to buy it now.

Question: Thanks for the review. I didn’t even think of the recession testing. This is why I pay Cabot. I do plan on a tighter stop because it would be without any oversite in a Cabot Advisory. I may try a small position and average up overtime if things go well.

Tom: KBWD looks good to me. It has come as advertised, delivering a high income and less volatility than the overall market. That said, incepted in 2010 after the last recession, it has never been really stress tested. It’s done well during a bull market. Of course you realize that a 9% yield comes with more risk than PGX. This ETF will likely have some ugly downside in the next recession and bear market. It’s OK for now but you might want to lighten up when the storm clouds gather. Be aware of your risk parameters. I hope this helps.

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
BANDSoldHold
BIPHoldBuy
BKRBuy
BMYBuy
BSCJBuy 1/2
BSCLBuy 1/2
BXStrong Buy
CHoldHold
CCIBuy
CDLXBuy
CFStrong Buy
CGRetired
CGCSee Advisory
CHCTHold 2/3
CITBuy
CMCBuy
CMGHold
COUPSoldSell
CQPBuy
CRAKStrong Buy
CRLBFSee Advisory
CRONSee Advisory
CTVAHold
CURLFSee Advisory
CWBHFSee Advisory
DBIBuyStrong Buy
DBSDYBuy 1/2
DOCUBuy
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
LUVStrong Buy
MCYStrong Buy
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
RNGSellBuy
RPDHold 3/4
SEHold 1/2
SLBBuy
SNAPSoldHold
SSOBuy
STAGHold
SYFBuy
TCNNFSee Advisory
TOTBuy
TPBSee Advisory
TSLAHold
TVBuy 1/2
UEICBuy
VCYTHold
VLOBuy
VOYABuy
XELHold 2/3
YNDXHold 1/2
ZTOSell