Cabot Prime Pro Week Ending September 14, 2018
Cabot Weekly Review (Video)
In this week’s stock market video, Paul Goodwin is optimistic as the major U.S. indexes are in positive territory with the S&P 500 and the Nasdaq at new all-time highs. Emerging markets, Chinese stocks in particular, are a bit more worrisome. He runs through a few stocks with powerful charts and are a bit extended, but more importantly he covers the ones that are set up well for buying.
Advisory Services
Cabot Growth Investor
Bi-weekly Issue September 12: Mike says the market and growth stocks have had a couple of wobbles so far in September, and given the heady run from leading stocks in August, some further shakeouts are possible. If the selling pressure intensifies enough to turn our Cabot Tides negative, we’ll trim our sails, but right now, the trends of the major indexes and the vast majority of leading stocks are pointed up, so we remain positive. Mike only has one rating change tonight with OKTA (OKTA) going from Hold to Buy.
Other Stocks of Interest September 14: Follow ups to stocks featured April 11, 2018 (issue 1391) to September 12, 2018 (issue 1402). Since they’re not in the Model Portfolio, you don’t see them followed on a regular basis. However, we are monitoring these stocks, and this listing gives their current momentum status.
Bi-weekly Update September 5: Remain mostly bullish. Today was a bad day for growth stocks, but after such a big run during the past three weeks, some hiccups are to be expected. Our trend-following indicators are still positive and most leading stocks are in solid uptrends. Mike has no changes in the Model Portfolio.
Cabot Top Ten Trader
Movers & Shakers Weekly Update September 14: Mike says it’s been a solid week for the major indexes and most major indexes are 1.5% to 3% above their respective 50-day lines. There is still some divergence of course but some areas such as leading growth stocks continue to act well. Pick your spots, focus on what’s working and, as a reminder, take some partial profits on the way up. Today’s buy ideas are Alteryx (AYX), SiteOne Landscape (SITE), and Williams Sonoma (WSM). Today’s sell ideas are Advanced Micro Devices (AMD), Carvana (CVNA), Inogen (INGN), Sonic (SONC) and TransUnion (TRU).
Weekly Issue September 10: This week’s list is focused on growth ideas, including a few that are emerging from rest periods. Mike’s Top Pick is Okta (OKTA), which is a technology company providing secure identity management solutions for on-premise and mobile employees, customers, and partners. The Market Monitor moves to a level 8 (out of 10).
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 September 13: As Jacob noted yesterday, he is going to shut down his market monitoring today to do final preparation for Hurricane Florence. But before he does that, he is providing a quick update in case the service is interrupted the next few days.
Cabot Options Trader Stocks on Watch September 11: Symantec (SYMC) has fallen out of favor recently with investors but Jacob has noticed some bullish accumulation in the last two days. Jacob is putting SYMC on his watch list, but if this strong call buying continues, SYMC is on his radar for a new position.
Cabot Options Trader Position Update September 10: Jacob received a great email from a subscriber in regards to Pfizer (PFE). Jacob includes his response which helps the subscriber lock in their profits.
Cabot Options Trader Pro Weekly Update September 10: Jacob has 7 long positions: BABA, EA, FCAU, PAGS, PFE, SPY, WPX, and one position not impacting his decision making EEM and one short position, QQQ.
Cabot Options Trader Weekly Update September 10: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week at 14.88, or higher by 15.7%. As I mentioned in a note last week the VIX at 15 is a level where my concern tends to grow, but I’m not yet ready to sell our bullish positions and push shorting the market.
Cabot Options Trader Market Update September 6: Jacob has a handful of leading candidates he is eager to add to the portfolio. However, given the ugly action in the Nasdaq the last two days he thinks it is prudent to give the market a bit more time before adding new bullish positions.
Cabot Options Trader Stock on Watch September 5: Because of interesting trades, Jacob is keeping his eyes on both Nutanix (NTNX) and Pure Storage (PSTG)
Cabot Undervalued Stocks Advisor
Weekly Update September 11: As Crista has mentioned in the past, she expects a shortage of truck drivers in the U.S. to be critical for the current economic cycle’s inflations surge. Recently Walmart (WMT) has discussed their driver shortage so she uses this to discuss her theory. Crista has a few portfolio changes with Blackstone Group (BX) and Southwest Airlines (LUV) moving to Buy. Guess? (GES) moving to Strong Buy and Schlumberger (SLB) moving back to Hold.
Monthly Issue September 4: Crista writes that there are a handful of times each year when Wall Street analysts revamp research, earnings estimates and stock recommendations for a majority of the stocks within their purviews. Certainly they do so after companies report quarterly financial results. But there’s a similar surge in updated research reports after summer vacation season ends, and in early January. In that light, she anticipates reporting on many such changes within the next two weekly updates of Cabot Undervalued Stocks Advisor. Today, Synchrony Financial (SYF) joins the Buy Low Opportunities Portfolio, Marathon Petroleum (MPC) joins the Growth Portfolio and Total S.A. (TOT) joins the Growth & Income Portfolio.
Cabot Stock of the Week
Weekly Issue September 11: In selecting today’s stock, CSX Corp. (CSX), Tim took a conservative approach as he wanted to balance the portfolio and found a very old-school company that’s enjoying a phase of above-average earnings growth. There are a few portfolio change today: Alibaba (BABA), Axon Enterprise (AAXN), and Everbridge (EVBG) are SELLS. General Motors is moving to Hold and STAG Industrial is being changed to Buy.
Cabot Emerging Markets Investor
Bi-weekly Update September 13: We are now in the third day of a rebound in emerging market stocks, at least partially in response to reports of renewed trade talks between the U.S. and China. If this turns into a rally, Paul will be ready to jump on it, but not before. There are no rating changes in today’s update.
Bi-weekly Issue September 6: Emerging markets are mired in a selloff that’s been going on since January. That’s not unreasonable after an advance that ran for two full years, but it’s still trying. Today’s featured stock is Colombia-based Ecopetrol (EC), a fairly conventional integrated oil & gas explorer, producer, refiner and transporter with global reach. Paul has it rated Watch. There are no changes in the Model Portfolio.
Cabot Small-Cap Confidential
Weekly Update September 14: Small caps have made no net new progress over the past week but we definitely saw some movement under the surface. This week Tyler is pulling back just a little given some softening in momentum stocks. Tyler has a few rating changes with Rapid7 (RPD), IntriCon (IIN) and AxoGen (AXGN) all being moved to Hold.
Special Bulletin September 12: Tyler has seen an uptick in volatility this week and momentum has stalled in a few of his positions, especially in the medical device arena. As a result, he is placing IntriCon (IIN) and AxoGen (AXGN) on Hold.
Monthly Issue September 7: Tyler’s new recommendation is Goosehead Insurance (GSHD), a unique, rapid-growth player in the insurance industry that is building something entirely new – an independent personal lines insurance sales and support platform. There are no changes to the portfolio.
Cabot Dividend Investor
Weekly Update September 11: The Nasdaq has sold off last week but thankfully the selling was limited to growth stocks and like the Dow, Chloe’s portfolio has been largely unscathed. There’s no reason to panic a Chloe is watching for any more signals of a longer or larger correction at hand. Two rating changes today in the portfolio with AllianceBernstein (AB) going back on Buy and General Motors (GM) moving to Hold due to some recent weakness.
Monthly Issue August 29: This month’s featured buy, to be added to the Dividend Growth tier is CSX Corp. (CSX), the third-largest U.S. railroad. The company recently underwent a major transformation that boosted margins, cash flow and profits. Now, the stock is riding a strong uptrend in the transport sector, and earnings are surging. Today Chloe is selling 1/3 of ONEOK (OKE),
Cabot Marijuana Investor
Update September 11: Tim is providing an update to accomplish three goals. Most importantly, remember this is a marathon, not a sprint. Tim covers every stock in the portfolio and outlines the publishing schedule.
Fall Issue August 30: Tim reminds us that marijuana remains a young and unpredictable industry, with frequent developments on both the legal side and the corporate side, as the players angle for advantage in what is the fastest-growing industry in America (27% per year). What is certain is that the legal market for adult-use marijuana in Canada opens October 17—and all the big players are ready. How big demand will be, both on the first day and in the weeks and months thereafter, we will see. Also to be seen is how marijuana prices change as production of what is essentially a commodity adjusts to meet market demand. Tim has updates on the 10 stocks currently in the portfolio, and gives you three new names to consider.
Wall Street’s Best Investments
Daily Alert September 14: Immunomedics, Inc. (IMMU) from Schaeffer’s Investment Research
Daily Alert September 13: Sell: ProShares UltraShort Bloomberg Crude Oil (SCO) from Stock Trader’s Almanac
Daily Alert September 12: Oak Ridge Dynamic Small Cap I (ORSIX) from Moneyletter
Daily Alert September 11: Insight Enterprises (NSIT) from Upside
Daily Alert September 11: Sell: Winnebago Industries (WGO) from Upside
Daily Alert September 10: Instructure, Inc. (INST) from Cabot Stock of the Week
Monthly Issue August 14: Nancy’s Spotlight Stock is Carvana (CVNA), a company that is taking the market of used cars to places that no one expected. The growth of the company is tremendous! In her Feature article, she report on the company’s stunning second quarter, as well as the catalysts keeping this market growing at significant rates.
Wall Streets Best Dividend Stocks
Daily Alert September 14: Las Vegas Sands (LVS) from Forbes Dividend Investor
Daily Alert September 13: KeyCorp (KEY-PI) from Forbes/Lehmann Income Securities
Daily Alert September 12: iShares MSCI Turkey ETF (TUR) from High Yield Wealth
Daily Alert September 11: Bank of America Corporation (BAC) from The Wealth Advisory
Daily Alert September 10: Vector Group Ltd (VGR) from Sure Dividend
Monthly Issue September 12: This month’s Spotlight Stock is Cypress Energy Partners which is an oilfield services firm seeing a global increase in demand of their services. Nancy delves more into how demographics are driving the opportunities in the energy sector in her Feature article.
Premium Reports
Cabot’s 10 Best Canadian Small-Cap Stocks
Special ReportAugust 31: 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 there are market-beating returns available to investors willing to step abroad too. And one of the easiest places to find them is just over the border with our neighbor to the north, Canada.
10 Monthly Dividend Stocks to Buy for Year-Round Income
Special ReportAugust 9: Dividend-paying stocks are favorites of retirees and other investors who live off income from their investing portfolios. Like bonds, dividend-paying stocks provide a steady income stream that you can spend without eroding your principal. Unlike bonds, many stocks increase their dividends over time, so your income stream can actually rise each year. This report includes profiles of Chloe’s 10 favorite monthly dividend payers, each of which offers a unique mix of yield, capital appreciation and safety. If you’re looking for monthly income, you’re sure to find at least one that’s right for you.
Cabot’s 10 Best REITs to Buy Now
Special ReportJuly 18: Nancy has always loved real estate; in fact, she owns a small real estate franchise. But she loves the idea of a diversified real estate portfolio and REITs fit the bill. They have been excellent investments for her subscribers over the years as they offer the perfect opportunity to buy real estate with very little capital. And she believes the boom cycle in real estate is far from over. With that in mind, she set out to find the 10 Best REITs for today’s economy and market. She looked at growth, valuation, dividend yield, and fundamental and technical strength.
Cabot’s 10 Best Buy and Hold Stocks for 2018
Update July 13, 2018: Today, Crista updates investors on portfolio news and performance of the stocks in Cabot’s 10 Best Buy and Hold Stocks for 2018. In terms of individual stock performance, Supernus Pharmaceuticals (SUPN) is up 34.6% YTD through July 12, while Universal Electronics (UEIC) is down 28.0% YTD. The performance of the remaining stocks ranges between +19.5% and -18.2%.
Update June 12, 2018: On June 11, 2018, USG Corporation (USG) announced that its Board of Directors agreed for the company to be acquired by Gebr. Knauf KG for $44 per share in cash. Crista suggestion is that investors sell USG now, rather than wait for the remaining $0.96 per share to accrue from the special dividend and the remaining potential capital appreciation.
Cabot’s 10 Best Takeover Stocks
Special ReportUpdated August 10: There are a variety of reasons that a corporation might want to purchase another company. They might want to acquire a company’s patents or products to enhance their product lines; access the company’s distribution network and sales relationships; or simply aim to increase their earnings growth rate by purchasing a very profitable company within a related industry. After all, stronger earnings growth leads to better share price appreciation—a topic that boards of directors care very much about. Crista’s investment strategy, which combines both growth and value criteria, inadvertently identifies potential takeover targets. That’s because big companies and she often seek the same thing: stock investments in undervalued, financially thriving companies that can deliver profits to investors. The ten companies are all undervalued growth stocks. What’s more, they’re small enough that big competitors and peers within their sectors could easily finance their acquisitions, often through current cash flow.
Cabot’s 10 Best Covered Calls on Dividend Stocks
Special Report April 12: With interest rates just coming off of historically low levels, income investors have been desperately searching for alternative sources of yield. Dividend stocks are the obvious answer. But there’s an even better way to create yield: by executing a covered call strategy on stocks that pay dividends.
Cabot’s 10 Best Small-Cap Cloud Computing Stocks to Buy Now
Special ReportUpdated August 10: If you’re a growth investor, you need to own cloud software stocks. It’s just that simple. Cloud computing is changing the world. It’s powering massive growth in companies across sectors, empowering digital transformations, enabling new generations of connected technologies and changing how people live their lives. Tyler Laundon lays out the landscape and names his 10 best small-cap cloud computing stocks.
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.
Ask the Experts
Cabot Options Trader
Question: Fantastic conversation on Pfizer (PFE). As I was reading this, I am trying to figure out if there is a good way to manage the position using trailing stop loss orders. Would you advocate me putting a trailing stop loss order for this position or any other position in the future? I have not been doing that. What price would you think is best for a trailing stop loss?
Jacob: This is a kind of tough question. Yes I use trailing stops/mental stops. However, in this case, if this is a big drug event, and IF the stock drops pre-market, the trailing stop won’t “save you” as the market will already happen before the options market opens. I will keep my mental stop at the original buy price at 1.44.
Cabot Emerging Markets Investor
Question: How are you digesting the departure of Jack Ma? As you know Alibaba is down 25% in three months. Not knowing the infrastructure of Alibaba, I don’t know if the company is totally dependent on Ma. Would you risk a buy at this level after the -2% news today?
Paul: At this point, it’s hard to sort out the news-related declines from the overall downtrend in emerging-market stocks. Jack Ma has clearly been the big idea man behind the expansion of Alibaba via Singles Day and the architect of its program of strategic partnerships and equity positions. But I don’t think he’s all that indispensable, as the company’s strategy versus Tencent, Baidu and JD.com is pretty well set. Now it’s just a matter of turning the crank and waiting for all the investment to bear fruit. I’m reluctant to advise anyone to buy a stock in a downtrend. Chart bottoms are impossible to identify as they’re happening. So if you want to do a little speculative buying, I’d keep it small. There will be plenty of time to jump in when the general trend of the emerging markets turns up.
Cabot Dividend Investor
Question: You have XEL recommended in your Safe Income Tier. Which is good. But I also have SO, PPL, and D in the same sector. What are your thoughts on these 3?
Chloe: A: That’s a lot of utilities, but I assume you’re holding them long-term and largely for income, so diversification is good. And the utility sector is doing well right now; people aren’t worried about rate hikes in 2019 but are worried about a correction in the stock market, especially the Nasdaq. As far as the individual stocks: SO has a great dividend history, the stock has no momentum but decent support around 43 (and, below that, 40). Earnings growth is expected to be negative this year but turn positive next year, so it’s a fine long-term hold, especially since the yield is generous. PPL has a much stronger chart, more like XEL. Earnings growth expectations are much better, and dividend history and yield are both solid. D has the strongest earnings expectations of the three, but suffered a big drawdown earlier this year. It just popped back above the 200-day though, so the recovery is gaining strength. Could actually be an even better bet than PPL for capital gains (though PPL still has a lower P/E). And, again, strong dividend history and high yield.
Guide to Cabot Prime Pro
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