Cabot Prime Pro Week Ending September 27, 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 shows you exactly what’s going on under the surface of the market in terms of sector rotation. He then breaks down a few of the sectors that growth investors are most interested in and shows you how to pull out names that might fit your investing style. Tyler wraps up the video with a quick analysis of an unusual group of stocks that are hitting 52-week highs.
CABOT EVENTS:
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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.
Advisory Services
Cabot Growth Investor
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%.
Special Bulletin September 24: Continue to step lightly. The overall market is still positive, but it’s clear that the buyers aren’t in firm control—the environment is news driven and rotational, with few stocks hitting new highs. Moreover, today saw another round of heavy growth stock selling. Mike has no new buys or sells tonight, but is moving Carvana (CVNA) to Hold and keeping it on a very tight leash.
Bi-weekly Update September 19: The environment remains mixed, with the market looking fine but growth stocks a bit sluggish. Thus, Mike prefers to play things a bit cautiously here, but with a substantial amount of cash on the sideline, tonight he’s going to add another half position in a potential leader—Teladoc (TDOC)—which will leave us with around 34% on the sideline.
Other Stocks of Interest September 13: Follow ups to stocks featured April 25, 2019 (issue 1418) to September 12, 2019 (issue 1428). 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 September 26: Mike continues to give our strong and resilient stocks a chance to wiggle around and is OK doing some buying here and there. But new positions should probably be kept on the small side, and getting solid entry points (on pullbacks or tightness) and holding some cash on the sideline is advised. Our Market Monitor is likely to stay on level 6 in Monday’s issue. Today’s buy ideas are: Floor & Décor (FND),Insulet (PODD) and Sanderson Farms (SAFM). JD.com (JD) is our lone sell this week, as it tripped our stop and will be listed as a sell.
Weekly Issue September 23: Overall, the evidence tells us this is still a bull market, which isn’t to be forgotten—you should be keeping your optimist’s hat on. But with individual stocks still a bit topsy-turvy, you should pick your spots (and stocks) carefully. Mike will leave our Market Monitor at a level 6, though a bit more positive action could push that up. This week’s list includes many fresher names that money is now flowing into. Mike’s Top Pick is Pinduoduo (PDD), which, after a big earnings-induced breakout and run higher, has pulled back in an orderly fashion.
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 September 27: Buy the salesforce.com (CRM) February 155 Calls (exp. 2/21/2020) for $8.80 or less.
Cabot Options Trader Alert September 25: Sell HALF of Existing Position: Sell Half your S&P 500 ETF (SPY) March 298 Puts for $14.10 or more.
Cabot Options Trader Stocks on Watch September 24: As Jacob noted in his Stocks on Watch section of his Monday morning Weekly Update, Salesforce.com (CRM) is on the top of his watch list as traders (last week, and again yesterday) have been aggressively buying calls.
Cabot Options Trader Position Update September 24: While the indexes, and most stocks in general, have been chopping around aimlessly for weeks/months, Medtronic (MDT) has steadily advanced to a new high today at 112. This has pushed our November 100 calls that we originally purchased for $3.48, to a current value of $12.20, or a potential profit of 250%. Jacob is going to continue to hold his position, but if you would prefer to reduce your risk, taking partial or full profits is a fine choice as well.
Cabot Options Trader Alert September 23: Exit Existing Position: Sell your Disney (DIS) October 140 Call for $0.50 or more.
Cabot Options Trader Pro Alert September 23: Exit Existing Position: Sell your Disney (DIS) October 140/160 Bull Call Spreads for $0.50 or more.
Cabot Options Trader Pro Alert September 23: Close Existing Position: Buy back the salesforce.com (CRM) October Iron Condor for $0.37 or less.
Cabot Options Trader Pro Weekly Update September 23: Jacob has 9 Long positions: DIS, KO JD, LSCC, MDT, RF, SNAP, TGT and XME and one position not making an impact on his decision making, CRM and one short position, SPY.
Cabot Options Trader Weekly Update September 23: Three stocks on the top of Jacob’s watch list for a new position are three earnings season winners that have continued to trade well no matter the market conditions. Here are those stocks: salesforce.com (CRM), Teradyne (TER) and Trex (TREX).
Cabot Undervalued Stocks Advisor
Special Bulletin September 26: Marathon Petroleum (MPC) will consider a corporate breakup; MPC raised from Buy to 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.
Monthly Issue September 3: Wall Street is back to work this week. You’ll notice that management at many of your portfolio companies are giving presentations at analyst meetings this week. Crista encourages you to visit their websites in the coming days and listen to the webcasts of the meetings. You’ll gain lots of specific and sometimes interesting knowledge on business trends, tariffs, plans for their use of excess cash, etc. Featured stocks this month are: DaVita Inc. (DVA), which joins the Growth Portfolio, Commercial Metals Company (CMC) and Designer Brands Inc. (DBI). There are three portfolio changes today: Abercrombie & Fitch (ANF) moves from Buy to Hold, DaVita Inc. (DVA) joins the Growth Portfolio as a Strong Buy and Marathon Petroleum (MPC) moves from Hold to Buy.
Cabot Stock of the Week
Weekly Issue September 24: The market remains healthy, with all major indexes in uptrends and no major signs of divergence, and thus Tim continues to recommend heavy investment in stocks that meet your portfolio’s goals. This week’s recommendation, Designer Brands (DBI), is an American apparel company whose stock is cheap and thus has great capital gains potential. Plus it pays a 5.8% dividend! Tim has no portfolio changes today.
Cabot Global Stocks Explorer
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.
Bi-weekly Issue September 19: The Emerging Market Signal is now clearly positive, as the strength in the broad market since late August has turned the intermediate-term trend back up. Today, Carl’s new recommendation, Marvell Technology Group (MRVL), is at the heart of “The Internet of Things.” It’s rated Buy a Half. There are two portfolio changes today: ICICI Bank (IBN) moves from Buy a Half to Hold a Half and MakeMyTrip (MMYT) moves from Buy a Half to Hold a Half.
Cabot Small-Cap Confidential
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.
Monthly Issue September 6: Today’s recommendation, Cardlytics (CDLX),is an $810 million market cap company that has developed a purchase intelligence platform that is in the early innings of being adopted by major financial institutions (FIs) in North America (88% of revenue) and the U.K. (12% of revenue). There are no portfolio changes today, but Tyler is watching Domo Inc (DOMO) closely.
Cabot Dividend Investor
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.
Weekly Update September 18: Tom writes that the rate cut is already baked into stock prices.At the same time, an actual rate cut will do little to rally stocks and speculation will immediately focus on the next possible rate cut. Right now, that is expected in December. There are no portfolio changes today.
Cabot Marijuana Investor
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.
Update September 19: In the broad market, all is well, as all trend-following indicators are positive, and the number of stocks hitting new lows has been minuscule in recent days. In the cannabis sector, however, stocks remain weak, in part because of the scary headlines about vaping and in part because the cooling-off process from the big March high continues. Of course, fundamental growth continues, too, so eventually the sector as a whole will resume its uptrend. Until then, Tim is still calling this a buying opportunity, but you’ve got to be selective.
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 September 27: Elanco Animal Health Incorporated (ELAN) Argus Weekly Staff Report
Daily Alert September 26: Regions Financial Corporation (RF-PC) Income Securities Investor
Daily Alert September 25: Sell: SS&C Technologies Holdings, Inc. (SSNC) Dow Theory Forecasts
Daily Alert September 25: LPL Financial Holdings Inc. (LPLA) Dow Theory Forecasts
Daily Alert September 24: Amyris, Inc. (AMRS) Ian Wyatt’s Million Dollar Portfolio
Daily Alert September 23: Yandex N.V. (YNDX) Cabot Global Stocks Explorer
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 Top Ten Trader
Question: What’s going on with ROKU?
Mike: Thanks for writing. Looks mostly to me like follow-on growth stock selling from a week ago, but there’s also news that Comcast is planning to offer free streaming boxes or some such thing, which is viewed as competition for Roku. Either way, it’s a high-flying stock that’s coming back down to earth. We’d be careful if you own it, not that it’s going to fall 50% but my guess is most of the leaders of this year are cooked for a while.
Cabot Options Trader
Question: Is it more typical for people making that large of an options trade to plan to hold for the duration rather than playing it for a short term profit? Wouldn’t it also be likely that they would be trading for a shorter term gain, but giving themselves more time in case things go sideways?
Jacob: I would say in general, but certainly not all the time, these large options buyers hold the positions for quite some time (often till expiration), and are not looking to scalp one or two dollars here or there. They are going for home runs.
Cabot Small-Cap Confidential
Question: Hi Tyler, Noticing that your Stock of the Week issue has $BAND as a hold. But last Friday’s Small Cap lists it as a Buy. Which is it? Or is the next Small Cap going to change it to Hold. BAND is down today. Morgan Stanley says sell and buy $TWLO. Thanks!
Tyler: This is one of those cases where different analyst have different views! Tim is in charge of Stock of The Week, so he makes the call in that service, whereas I make the call in Small Cap Confidential. We don’t always move in lockstep (as is the case now), in part because I do one stock a month and he does one a week. Also just different portfolio management strategies. Hopefully that explains that a little. Re MS, I saw that too. So, I would say investors could own both and spread our their exposure to the CPaaS space. BAND and TWLO go at the market in really different ways and I think there is space for multiple winners.
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 | Buy | Strong Buy | |||||
| ABBV | Buy | ||||||
| ACB | See Advisory | ||||||
| ADBE | Buy | ||||||
| ALK | Buy | Strong Buy | |||||
| ALXN | Hold | ||||||
| ANF | Hold | ||||||
| APHA | See Advisory | ||||||
| APPF | Hold 3/4 | ||||||
| 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 | Buy | Hold | |||||
| C | Buy | Strong Buy | |||||
| CCI | Buy | ||||||
| CDLX | Buy | ||||||
| CF | Strong Buy | ||||||
| CG | Hold | ||||||
| CGC | See Advisory | ||||||
| CHCT | Hold 2/3 | ||||||
| CIT | Hold | ||||||
| CMC | Buy | ||||||
| CMG | Hold | ||||||
| COUP | Hold | Hold | |||||
| CQP | Buy | ||||||
| CRLBF | See Advisory | ||||||
| CRON | See Advisory | ||||||
| CTVA | Strong Buy | ||||||
| CURLF | See Advisory | ||||||
| CVNA | Sell | Buy | |||||
| CWBHF | See Advisory | ||||||
| DBI | Buy | Strong Buy | |||||
| DBSDY | Buy 1/2 | ||||||
| DOCU | Buy 1/2 | ||||||
| DOMO | Hold | ||||||
| DOW | Buy | ||||||
| DVA | Strong Buy | ||||||
| EPD | Buy | Buy | |||||
| EVBG | Hold | ||||||
| EVER | Hold 3/4 | ||||||
| GES | Strong Buy | ||||||
| GO | Buy | ||||||
| GSHD | Buy | ||||||
| GTBIF | See Advisory | ||||||
| HTHT | Hold | ||||||
| IBN | Hold 1/2 | ||||||
| IFNNY | Sell | ||||||
| IIPR | See Advisory | ||||||
| IPHI | Hold | ||||||
| LK | Buy 1/2 | Buy | |||||
| LQSIF | See Advisory | ||||||
| LUV | Buy | ||||||
| LX | Buy | ||||||
| MKC | Hold 1/2 | ||||||
| MMNFF | Sell | ||||||
| MMYT | Hold 1/2 | Hold | |||||
| MO | Hold | ||||||
| MOS | Hold | ||||||
| MPC | Strong Buy | ||||||
| MRVL | Buy 1/2 | ||||||
| NEE | Hold | Hold | |||||
| 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 | Buy 1/2 | ||||||
| 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 |