Cabot Prime Pro Week Ending October 4, 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 his cautious stance due to the market’s latest tumble, and identifies what he’s looking for going forward to begin putting money back to work. In the meantime, he’s honing his list of potential leaders of the next advance, including a few of this year’s winning cloud stocks that may be bottoming out.
CABOT EVENTS:
CABOT PRIME MEMBERS MEETING: Wednesday, October 16
2:00 PM - 3:00 PM EDT
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 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.
Special Bulletin October 2: Mike is also going to sell his half position in Teladoc (TDOC), which is falling apart today. The result will be a cash position of around 54% in the Model Portfolio.
Special Bulletin October 2: Mike is selling Blackstone (BX) today as the stock has broken down and is approaching our entry point. The cash position will now be in the 48% range.
Bi-weekly Issue September 26: You should continue to stick with the game plan: Hold your strong and resilient stocks, and give your winners some room to breathe, but keep new buying on the small side and hold onto a chunk of cash. In the Model Portfolio, Mike added a half-sized position of Teladoc (TDOC) last week but tonight he’s selling our half position in Carvana (CVNA), which will leave us with a cash position of around 34%.
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 4: For most of September, the trend of the major indexes was tilted up, but it was still hard to make much money—just about any stock that was near its peak stagnated and, eventually, hit an air pocket. Meanwhile, stocks that enjoyed solid advances for a few days or couple of weeks quickly met with selling pressure. All told, Mike is back to a cautious stance—he’s likely to pull the Market Monitor down to a 4 or so, and advises holding plenty of cash and being very choosy on the buy side. Today’s buy ideas are: DR Horton (DHI), Lululemon (LULU) and Pinduoduo (PDD). Thirteen stocks tripped our stops during the early-week selling.
Weekly Issue September 30: Making money remains difficult, as the forces of rotation have been sending old leaders to the locker room and trotting out fresher new leaders to take their place. This is actually good for the health of the bull market, but it does make investing more difficult, so you should continue to tread carefully, in particular by choosing low-risk entry points and being ruthless at cutting loose your worst performers. As for the market monitor, Mike will stand pat this week, as the flurry of selling late last week has created some decent entry points. This week’s list includes a great variety of stocks, and our Top Pick is a lower-risk insurance stock, Arthur J. Gallagher (AJG), which has been building a base over the past couple of months and looking ripe to resume its uptrend.
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 Market Update October 4: The major theme of the past month continues to be true this week … unless you are actively scalping, and doing so nearly perfectly, no money is being made.
Cabot Options Trader Alert October 2: Sell Existing Position: Sell your Metals & Mining (XME) January 29 Calls for $0.25 or more.
Cabot Options Trader Market Update October 2: This morning the S&P 500 and Nasdaq are each down 1.6% following a somewhat similarly ugly day yesterday. While the market’s recent slide has not been fun for our bullish positions, when stepping back, most of these positions are holding up reasonably well compared to the stocks/sectors that have been crushed.
Cabot Options Trader Stock on Watch September 30: Avalara (ALVR) is on Jacob’s watch list for a new position should the cloud/software stocks strengthen again.
Cabot Options Trader Pro Weekly Update September 30: Jacob has 9 Long positions: CRM, KO JD, LSCC, MDT, RF, SNAP, TGT and XME and one short position, SPY.
Cabot Options Trader Weekly Update September 30: This week’s Watch List stocks come from a company that recently beat earnings in mid-August, Lowe’s (LOW), and saw two rounds of big call buying last week, and a sector, global asset managers, that came under pressure on Friday, resulting in big put buying activity.
Cabot Undervalued Stocks Advisor
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.
Weekly Update September 24: The S&P 500 index continues to act well, rising to new highs in July, conducting a very orderly pullback in August, and rebounding in September. To Crista’s eyes, the price chart still looks strong. Today’s portfolio changes are: Bristol-Myers (BMY) moves from Strong Buy to Buy and Universal Electronics (UEIC) moves from Strong Buy to Buy.
Cabot Stock of the Week
Weekly Issue October 1: Tim continues to recommend that you remain heavily invested in a portfolio of stocks that meet your investment needs. Today’s recommendation, Digital Turbine (APPS), is a small company you’ve probably never heard of that is growing very fast by providing valuable services to companies in the mobile device universe. The stock was originally recommended by Tyler Laundon in his new service, Cabot Early Opportunities. Here are today’s portfolio changes: Apple (AAPL) moves from Buy to Hold, Carvana (CVNA) from Buy to Sell, Grocery Outlet (GO) from Buy to Sell and Luckin Coffee (LK) from Buy to Hold.
Cabot Global Stocks Explorer
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.
Special Bulletin September 30: You may have noticed media articles last Friday regarding U.S. listed Chinese stocks that had a negative impact on share prices. Carl explains and then highlight how we will deal with these emerging issues in our portfolio. Also, Friday’s pullback pushed LX down below our 20% trailing stop loss so he’s moving Lexinfintech (LX) to Sell despite its strong fundamentals and story.
Bi-weekly Update September 26: Carl writes that the portfolio advanced this week led by India’s ICICI (IBN), which was up 19% on the back of a tax cut and prospects for higher growth. In terms of portfolio changes, he’s moving Infineon Technologies (IFNNY) to a Sell and Tencent (TCEHY) to a Hold.
Cabot Small-Cap Confidential
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.
Weekly Update September 27: Tyler is going to go off on a little tangent this week to share something with you that he thinks will help put this market, and the action in our stocks, into context. We’re hearing a lot of talk about rotation this September. So he wants to share this handy chart from William O’Neill’s PANARAY platform that tries to put this rotation concept into visual terms. There are no portfolio changes today.
Cabot Dividend Investor
Weekly Update October 2: Tom is still positive on the market over the rest of the year because of a still relatively strong U.S. economy and the absence of investment alternatives. But it could stumble in October. He has two portfolio changes today. Tom is selling McCormick & Co (MKC) to secure the 36% profit made in a little over a year and is selling 1/2 of NextEra Energy (NEE) and will book a 34% profit in about 10 months on half and let the other half ride for a while longer.
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 3: This week the broad market hit a pothole—presumably because of weak manufacturing data—so Cabot’s intermediate-term trend indicator has now turned negative—which could be read as a sign that it’s time to increase our cash position to minimize further losses. So what do we do? Tim’s choice is to trust in the long-term, and continue to work to ensure that the portfolio is stocked both with stocks that will be long-term leaders of the industry (like Aphria and Curaleaf) and stocks that are going the right way now (like Charlotte’s Web).
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 September 26: It’s been just over a week since the first Issue of Cabot Early Opportunities became available and Tyler would like to thank all of you for jumping in early, and for the loads of positive feedback he’s received. Tyler gives us a quick update on the five stocks featured in the first issue.
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 NowBonus Report:
3 Canadian Small-Cap Stocks to Buy NowBonus Report: Secrets To Early-Stage Stock Profits
Bonus Report:
The 240% Early-Stage Growth StockWall Street’s Best Investments
Daily Alert October 4: Sell: Kinetics Paradigm Fund No Load Class (WWNPX) Moneyletter
Daily Alert October 4: Artisan Mid Cap Fund Investor Class (ARTMX) Moneyletter
Daily Alert October 3: DocuSign, Inc. (DOCU) Cabot Growth Investor
Daily Alert October 2: Sell: Fidelity Select Defense & Aerospace Portfolio (FSDAX) Forecasts & Strategies
Daily Alert October 2: Invesco Aerospace & Defense ETF (PPA) Forecasts & Strategies
Daily Alert October 1: Novo Nordisk A/S (NVO) DRIP Investor
Daily Alert September 30: Exact Sciences Corporation (EXAS) Canaccord Genuity Research
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 Options Trader
Question: Hi Jacob. Schwab scrapped trade commissions and is now trading 10% lower as a result while TDA is down 20%. Given that only 3-4% of Schwab’s revenue is commission-based, and they’re clearly shooting for getting more traders and investors engaged for much more valuable upselling opportunities, do you think this represents a call buying opportunity? Just interested in your opinion; might not move on anything right now as medium-long term is uncertain to say the least.
Jacob: Hmm, good question. First off I will say this, as usual I would wait at least three days before initiating a full sized position in these stocks. It takes many days for hedge funds/institutions to sell out their positions. Or at least that is my rule for trading these big moves.I don’t think the 3-4% revenue loss is what is driving the stocks down this much. I think instead the issue is that these brokers are in an all out war, and this is just one cut, of what could be many, as these brokers try to outdo themselves.Regardless, if I wanted to play a bounce, I might look at a call with 3-9 months until expiration. Perhaps the SCHW March 38 Calls for $3 or AMTD May 35 Calls for $4.
Cabot Undervalued Stocks Advisor
Question: I see that Charles Schwab (SCHW) is still falling. Is there a buying opportunity here?
Crista: In the latter half of the year, stocks that fall to annual lows tend to remain depressed until the very end of the year. That’s because everybody who bought the stock this year owns it at a loss. A certain percentage of these investors will be frustrated enough that they will sell the stock in November or December for a tax loss, which offsets the tax liability that they’ll otherwise incur on some of their capital gains. With SCHW or any other similar stock, you have plenty of time to assess the situation through December. If you still want to own the stock, buy it during the final week of December or the first week in January. Lastly, these stocks usually rise in January, even if it’s a company that’s mired in problems. That’s because almost everybody who wanted to sell their shares already sold in December so as to take advantage of the capital loss for income tax purposes. When there are only buyers -- even very few buyers -- and no sellers, a stock will invariably rise.
Cabot Top Ten Trader
Question: What do you think about some of the former highfliers like SHOP, OKTA or TWLO? Are they good buys yet?
Mike: So I have two thoughts on most of those stocks. The first is that the vast majority of them are broken on an intermediate-term basis -- I would love to see them just get up and go from here, but the odds strong favor the stocks need a rest after such big, prolonged advances during the past couple of years and meaningful, big-volume breakdowns during August and September. That said, I also think that, short-term, some look a bit sold out -- and some are even finding good buying volume. So if you’re more of a swing trader, by all means sniff around these stocks. But I wouldn’t get your hopes up for an immediate bottom and a steady, prolonged upmove from here.
Premium Reports
Cabot Prime Quarterly Report
Special ReportJuly, 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 ReportMay 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 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 Global Stocks Explorer | Cabot Growth Investor | Cabot Marijuana Investor | Cabot Stock of the Week | Cabot Undervalued Stocks Advisor | Cabot Dividend Investor |
|---|---|---|---|---|---|---|---|
| AAPL | Hold | Hold | |||||
| ABBV | Buy | ||||||
| ACB | See Advisory | ||||||
| ADBE | Buy | ||||||
| ALK | Buy | Strong Buy | |||||
| ALXN | Hold | ||||||
| ANF | Buy | ||||||
| APHA | See Advisory | ||||||
| APPF | Hold 3/4 | ||||||
| APPS | Buy | ||||||
| ARE | Buy | Buy | |||||
| ARNA | Buy | ||||||
| AVLR | Hold 3/4 | ||||||
| AXP | Hold 1/2 | ||||||
| BABA | Buy | ||||||
| BAND | Buy | Hold | |||||
| BHGE | Strong Buy | ||||||
| BIP | Hold | Buy | |||||
| BMY | Buy | ||||||
| BSCJ | Buy 1/2 | ||||||
| BSCL | Buy 1/2 | ||||||
| BX | Sell | Hold | |||||
| C | Buy | Strong Buy | |||||
| CCI | Buy | ||||||
| CDLX | Buy | ||||||
| CF | Strong Buy | ||||||
| CG | Hold | ||||||
| CGC | See Advisory | ||||||
| CHCT | Hold 2/3 | ||||||
| CIT | Buy | ||||||
| CMC | Buy | ||||||
| CMG | Hold | ||||||
| COUP | Hold | Hold | |||||
| CQP | Buy | ||||||
| CRLBF | See Advisory | ||||||
| CRON | See Advisory | ||||||
| CTVA | Hold | ||||||
| CURLF | See Advisory | ||||||
| CVNA | Sold | Sell | |||||
| CWBHF | See Advisory | ||||||
| DBI | Buy | Strong Buy | |||||
| DBSDY | Buy 1/2 | ||||||
| DOCU | Buy 1/2 | ||||||
| DOMO | Hold | ||||||
| DOW | Strong Buy | ||||||
| DVA | Strong Buy | ||||||
| EPD | Buy | Buy | |||||
| EVBG | Hold | ||||||
| EVER | Hold 3/4 | ||||||
| GES | Strong Buy | ||||||
| GO | Sell | ||||||
| GSHD | Buy | ||||||
| GTBIF | See Advisory | ||||||
| HTHT | Hold | ||||||
| HUYA | Buy 1/2 | ||||||
| IBN | Hold 1/2 | ||||||
| IFNNY | Sold | ||||||
| IIPR | See Advisory | ||||||
| IPHI | Hold | ||||||
| LK | Buy 1/2 | Hold | |||||
| LQSIF | See Advisory | ||||||
| LUV | Buy | ||||||
| LX | Sell | ||||||
| MCY | Strong Buy | ||||||
| MKC | Sell | ||||||
| MMNFF | Sold | ||||||
| MMYT | Sell | Hold | |||||
| MO | Hold | ||||||
| MOS | Hold | ||||||
| MPC | Strong Buy | ||||||
| MRVL | Buy 1/2 | ||||||
| NEE | Hold | Sell 1/2 | |||||
| OGI | See Advisory | ||||||
| OKTA | Hold | ||||||
| PGX | Buy 1/2 | ||||||
| QTRX | Hold 1/2 | ||||||
| QTWO | Buy | ||||||
| RCL | Buy | ||||||
| RGEN | Buy | ||||||
| RKUNY | Buy 1/2 | ||||||
| RPD | Hold 3/4 | ||||||
| SE | Hold 1/2 | ||||||
| SLB | Buy | ||||||
| SNAP | Buy | Hold | |||||
| SSO | Buy | ||||||
| STAG | Hold | ||||||
| SYF | Buy | ||||||
| TCEHY | Hold 1/2 | ||||||
| TDOC | Sell | ||||||
| TOT | Buy | ||||||
| TPB | See Advisory | ||||||
| TSLA | Hold | ||||||
| UEIC | Buy | ||||||
| VCYT | Buy | ||||||
| VFF | See Advisory | ||||||
| VLO | Buy | ||||||
| VOYA | Strong Buy | ||||||
| XEL | Hold 2/3 | ||||||
| YNDX | Buy 1/2 | ||||||
| ZTO | Hold 1/2 |