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Weekly Summary September 21, 2018

Cabot Prime Pro Week Ending September 21, 2018

Cabot Weekly Review (Video)

In this week’s stock market video, Mike Cintolo discusses the tedious, tricky environment for growth stocks that’s been in place all of September--to this point, most of the evidence is still bullish, but there’s enough iffy action to have your antennae up and to tighten a couple of stops. Still, many stocks still look fine, and Mike goes through both cyclical names (that are benefitting from the recent rotation out of growth) and many growth titles that are handling themselves very well.

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Cabot Growth Investor

Bi-weekly Update September 19: Remain bullish, but keep your antennae up. Mike has seen repeated bouts of selling in leading growth stock so far this month, and while most evidence remains bullish, a few yellow flags have appeared. In tonight’s issue, he has no major changes, but he’s holding our 16% cash position and placing Grubhub (GRUB) and Neurocrine Biosciences (NBIX) on Hold, as well as tightening a couple of mental stops.

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.

Cabot Top Ten Trader

Movers & Shakers Weekly Update September 21: When it comes to growth stocks, Mike has seen a lot of iffy action (repeated high-volume selling right off the top, lots of volatility after big runs), but not necessarily any clear negative action (breakdowns or gap downs, etc.). And the rest of the market is shaping up, with some lagging sectors finding buyers. Today’s buy ideas are Autodesk (ADSK), Exact Sciences (EXAS) and Paycom Software (PAYC). Today’s sell ideas are Darden (DRI), Horizon Pharma (HZNP), SiteOne Landscape (SITE), Splunk (SPLK) and Workday (WDAY).

Weekly Issue September 17: This week’s list is focused yet again on growth ideas and Mike is optimistic as the intermediate trend for the major indexes is still up. Mike’s Top Pick is CarGurus (CARG), which is aiming to be the TripAdvisor of car information and whose stock is under accumulation after a four-week dip. The Market Monitor moves to a level 7 (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 Position Updates September 21: The portfolio has three positions expiring today. The second half of the Emerging Markets (EEM) September 48 calls will expire worthless and we will be left without a position on Monday. The next two positions, WPX Energy (WPX) and Fiat Chrysler (FCAU) are buy-writes which are likely to close above the short strike prices.

Cabot Options Trader Market Update September 20: Interestingly, Jacob says that today’s bullish option order flow is not in recent growth leaders, which are underperforming again today, but in a wide variety of sectors. If this activity continues, will likely add a new bullish position tomorrow.

Cabot Options Trader Pro Trade Alert September 19: Exit Existing Position: Sell your Electronic Arts (EA) January 135/155 Bull Call Spreads for $0.80 or more.

Cabot Options Trader Trade Alert September 19: Exit Existing Position: Sell your Electronic Arts (EA) January 135 Calls for $1.00 or more.

Cabot Options Trader Stock on Watch September 18: Acxiom (ACXM) is a stock that Jacob was unfamiliar with until recently. However, because of call buying the last three days, and an intriguing write-up by a fellow Cabot analyst, it is quickly shooting to the top of his watch list.

Cabot Options Trader Position Updates September 18: Oil-related stocks are back in vogue, which is helping our WPX Energy (WPX) buy-write just a couple days ahead of expiration. With the stock trading at 18.5, Jacob says we are in good shape. And he is raising his mental stop on Pfizer (PFE) from $1.83 to $2.25.

Cabot Options Trader Stock on Watch September 17: Antero Resources (AR) has seen a series of trades last week that caught Jacob’s attention. It’s an interesting one for three reasons and if the activity continues, Jacob will look to enter a position soon.

Cabot Options Trader Video Market Update September 17: Tilray (TLRY) is one of the hottest stocks in the marijuana sector. However, traders are using Put options to get bearish exposure to the stock.

Cabot Undervalued Stocks Advisor

Weekly Update September 18: In reviewing the charts of the major U.S. stock market indexes, Crista noticed that the Dow, the S&P 500 and the NASDAQ each look as if somebody is slogging uphill in deep thick mud. That’s a bit like a “two steps forward one step back” pattern. Here are the portfolio changes today: Apple (AAPL) moves from Hold to Retired, Bank of America (BAC) moves from Hold to Retired, KLX Inc. (KLXI) moves from Hold to Sell, KLX Energy Services Holdings (KLXE) is spun off from KLX Inc. (KLXI) and is now rated Hold and Royal Caribbean Cruises (RCL) moves from Buy to Retired.

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 18: Tim remains generally bullish, but it’s vital to pick your stocks and buy points carefully, looking for early-stage opportunities with great potential that aren’t obvious to the crowd (and thus, are more apt to suffer profit taking). This week’s stock fills the bill, Ulta Beauty (ULTA), with a year-long correction and consolidation ending with a powerful earnings move three weeks ago. Tonight, Carvana (CVNA) moves from Buy to Hold.

Cabot Emerging Markets Investor

Bi-weekly Issue September 20: Paul says that while it’s always nice to find a brand-new stock that’s climbing the charts, sometimes the best choice is a familiar name that’s been in the doghouse for a while. And that description fits today’s recommendation, Baidu (BIDU) to a T. It’s rated Watch. There is one change in the Model Portfolio, Ecopetrol (EC) moves from Watch to Buy a Half.

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.

Cabot Small-Cap Confidential

Weekly Update September 21: Tyler writes that the three themes that jumped out this week were software was weak (other than Bottomline Technologies (EPAY), all our software stocks were down), consumers were strong (Chefs’ Warehouse (CHEF) was up 8%) and health care and biotech were both much improved over last week (IntriCon (IIN) rebounded 8%, Arena (ARNA) was up 6% and AxoGen (AXGN) was flat). Chefs’ Warehouse (CHEF) moves from Buy to Hold today.

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 19: Calm has been restored to Wall Street since Chloe’s last update. The Nasdaq is virtually unchanged in the last week, though leading growth stocks remain a bit choppy and wobbly. There are no rating changes today.

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 20: Tim is writing today to give you a few more pointers on how to handle these volatile stocks so that you can first, avoid major losses, and second, become a long-term winner. As always, he starts with a look at the environment. The Marijuana Index is trending upwards, as it has been since mid-August, but is still short of exceeding its January high, and thus the advance is likely to continue.

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 21: Integer Holdings Corporation (ITGR) from Argus Weekly Staff Report
Daily Alert September 20: Party City Holdco Inc. (PRTY) from AlphaProfit Sector Investors’ Newsletter

Monthly Issue September 19: Nancy’s Spotlight Stock is AK Steel (AKS), a leading producer of flat-rolled carbon, stainless and electrical steel products, primarily for the automotive, infrastructure and manufacturing, including electrical power, and distributors and converters markets. In her Feature article, she further discusses the health of the industry, as well as Wall Street’s view of the recommended stock.

Daily Alert September 19: Church & Dwight Co., Inc. (CHD) from Sure Dividend
Daily Alert September 18: Ulta Beauty (ULTA) from Hendershot Investments
Daily Alert September 17: Supernus Pharmaceuticals, Inc. (SUPN) from Cabot Undervalued Stocks Advisor

Wall Streets Best Dividend Stocks

Daily Alert September 21: Sell: First Business Financial Services, Inc. (FBIZ) from 2 for 1 Stock Split Newsletter
Daily Alert September 21: First Defiance Financial (FDEF) from 2 for 1 Stock Split Newsletter
Daily Alert September 20: Novartis AG (NVS) from Internet Wealth Builder
Daily Alert September 19: Genuine Parts Co. (GPC) from Dividend Advisor
Daily Alert September 18: Eaton Corp. (ETN) from Contrarian Outlook
Daily Alert September 17: Clearway Energy, Inc (NYLD) from Conrad’s Utility Investor

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 Report

August 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 Report

August 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 Report

July 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 Report

Updated 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 Report

Updated 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 Growth Investor

Question: With the 200 day moving averages still some ways off for many of our stocks, the question arises- do I sell as the shorter term averages are violated or hang tough for the larger move down to 200-day lines?

Mike: Yeah, this is really where the rubber meets the road for a lot of people -- what to do with stocks that (a) you have a profit in, (b) have had a good run, but (c) are starting to show weakness. My preferred method is partial profits—sell a third of this or that, preferably near some highs, and then give the rest a chance to keep going. Past two years, that’s been a great move. Prior to that, not as much. But at least ringing the cash register on the way up gives you some decent profit even if the situation falls apart. That said, there’s nothing “wrong” with using a shorter-term moving average, too, it’s just a different style. There’s good and bad to everything, and no method is perfect, it’s really about making a decision and living with it. I lean toward the longer-term hold, but that can lead to sharper drawdowns and, if the market keels over, can lead to much lower sell prices. But it can also lead to bigger profits if things continue—just two different ways of doing it.

Cabot Options Trader

Question: I still have those two short puts in my account that expire tomorrow - WPX & FCAU. Both are trading between a dollar and a dollar and a half above the strike price. I’m showing the market value about $-2.50 for each. I know I could buy to close, but I’m going to spend more in commission than I’m going to get. Assuming the market doesn’t do anything crazy today, is it best to just leave them and let them expire worthless? If they were to get assigned, when would that happen? At market close tonight, market open tomorrow? I’m not clear on how that part works.

Jacob: If you were to get assigned, which is unlikely as of right now, it would be based on the closing price Friday. And if that were the case, you would be long those stocks Monday morning. However, unless the stocks fall below the strikes, you are all good, and won’t get assigned. Nice trades!

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