Cabot Prime Pro Week Ending September 4, 2020
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 talks about the abnormal action he’s seeing across the growth stock complex and the actions he’s taking in response. Meanwhile, though, he’s keeping his watch list up to date (it’s easiest to spot strength in a weak tape) and is staying flexible — but is preferring to be safe than sorry for the moment.
UPCOMING CABOT EVENTS:
Cabot Micro-Cap Insider Member Call - September 2020
FREE WEBINAR FOR PRIME PRO MEMBERS ONLY: Thursday, September 10 Sign up now.
A Historic Opportunity in Micro-Cap Stocks + 3 Micro-Caps to Buy Now, By Rich Howe, Chief Analyst of Cabot Micro-Cap Insider
FREE WEBINAR: September 17, 2020 Sign up now.
Cabot Retirement Club Member Call - September 2020
FREE WEBINAR FOR PRIME MEMBERS ONLY: September 24, 2020 Sign up now.
Advisory Services
Cabot Growth Investor
Special Bulletin September 4: Growth stocks remain under severe pressure, with more unraveling today. We had 43% in cash coming into today, and this afternoon Mike is going to sell the rest of our DocuSign (DOCU) and our position in Okta (OKTA), which will give us a big 55% cash hoard.
Bi-weekly Update September 3: The overall market remains in an uptrend, but we’re seeing more and more unusual action among individual growth names, and thus are making moves mostly on a stock-by-stock basis. After a little buying last week, we trimmed our position in DocuSign yesterday, and on a special bulletin this morning, we sold all our shares in both Chegg (CHGG) and Cloudflare (NET). That leaves us with around 43% in cash, which is a bit more than we’d prefer, but Mike will hold onto it until he sees signs that buyers are stepping in.
Special Bulletin September 3: Growth stocks are being taken to the woodshed today, and this comes after some climactic upside action in the indexes and key leaders in recent days/weeks. Moreover, we’re starting to see some growth leaders crack support for the first time during this rally. We came into today with 28% in cash, and today Mike is going to sell Chegg (CHGG) and Cloudflare (NET) today, which will give us around 42% in cash.
Special Bulletin September 2: The environment has been crazy, and today is seeing another huge rotation out of extended growth leaders and into the rest of the market. We’re already 25%-ish in cash, so we’re not panicking, but we are going to shave off a few more shares of DocuSign (DOCU) today—we’ll sell one-third of our remaining shares, leaving us with 28% or so in cash.
Bi-weekly Issue August 27: Put a little money back to work. In the Model Portfolio, Mike is going to buy half-sized positions (5% of the account) in both Roku (ROKU) and Spotify (SPOT), which will leave us with 25% on the sideline. Meanwhile, we’re practicing patience with our remaining winners, though a couple names have earnings reports to get through in the next few trading days (Okta is tonight) that could have an impact. He talks about the thinning out of the advance and dives into all our stocks (a couple of which have earnings coming up), as well as talk about our new recommendations and game plan going forward.
Other Stocks of Interest August 13: Follow ups to stocks featured March 26, 2020 (issue 1443) to August 13, 2020 (issue 1452). 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.
Cabot Top Ten Trader
Movers & Shakers September 4: This was already a tricky market to make (and keep) money in, with quick, violent moves up and down and tons of rotation and news-driven action. And this week’s rash of selling damages the picture. The way we’re thinking about it is that the onus is on the bulls to step up and support leading names—if they do, there could be some solid buying opportunities in names that have held up decently of late. But until then we’d rather play things a bit cautiously. Mike’s suggested buys today are: Freshpet (FRPT), Pacira Pharm (PCRX) and Penn National Gaming (PENN). There are 17 suggested sells today.
Weekly Issue August 31: We don’t want to repeat ourselves too much, but the environment has remained mostly the same during the past few weeks. First, overall, this is a bull market that’s likely to carry nicely higher when looking out a few months; there remains plenty of doubt and uncertainty, which is (contrarily) a good thing. Second, though, making money has become trickier—there are far more news-driven moves, buying pressures seem to come and go for many leading stocks (as opposed to the sustained upmoves seen earlier this year) and there’s no question most indexes are extended to the upside. Mike’s Top Pick is Horizon Pharmaceuticals (HZNP), which has huge earnings estimates and a tight chart.
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 Basic and Pro Trade Alert September 4: Sell Existing Position: Sell your Visa (V) December 200 Calls for $15 or more.
Cabot Options Trader New Mental Stops September 3: Jacob is going to set mental stops on some of our positions. While most of our stocks have “only” fallen to levels not seen since Monday, he does need to manage these positions just in case this is the first day of a bigger decline.
Cabot Options Trader Position Update September 2: This is becoming a daily update … Peloton (PTON) is trading higher by another $6.50 today. At these current levels Cabot Options Traders October 45 calls are at a potential profit of 600% (up another 100% since yesterday).
Cabot Options Trader Basic and Pro Trade Alert September 2: Buy General Motors (GM) March 31 Calls (exp. 3/19/2021) for $4.70 or less.
Cabot Options Trader Position Update September 1: Peloton (PTON) is trading higher by another $6.50 today at 83.5. Jacob is going to continue to hold both Basic and Pro positions as he thinks the stock looks fantastic.
Cabot Options Trader Pro Weekly Update August 31: Jacob has 9 long positions: DIS, JD, MSFT, PTON, SNAP, TSM, V, XLF, ZNGA and one short position: QQQ December Puts.
Cabot Options Trader Weekly Update August 31: This week’s watch list is made of a huge bull call spread purchase in Amazon (AMZN), a buyer of calls in a stock recently written up by a fellow Cabot analyst, Roku (ROKU), and bearish activity in a hotel stock, Marriott (MAR).
Cabot Undervalued Stocks Advisor
Monthly Issue September 2: With this issue, Bruce is setting price targets for many of our stocks. In subsequent issues, he will provide targets for the remaining stocks as well as for each newly recommended stock. Price targets help us stay the course when our stocks weaken on noise, and help provide a tangible exit point. The assumptions behind the price targets provide a roadmap to gauge the company’s recovery process. Bruce has two portfolio changes today: Molson Coors Beverage Company (TAP) moves from Buy to Strong Buy and Voya (VOYA) moves from Strong Buy to Buy.
Weekly Update August 26: Bruce writes that starting next Monday, August 31, before the market opens, the Dow Jones Industrial Average will have a new look. Out goes ExxonMobil (XOM), Pfizer (PFE) and Raytheon Technologies (RTX), to be replaced by Salesforce.com (CRM), Honeywell (HON) and Amgen (AMGN). The change was heavily motivated by the 4:1 stock split by Apple (AAPL) which takes effect after the market close this Friday. He has an addition to the portfolio today: ViacomCBS (VIAC) joins the Buy Low Opportunities Portfolio as a new Buy.
Cabot Stock of the Week
Weekly Issue August 31: The bull market remains in full force, even as various signs (sentiment and charts) caution that a correction is increasingly likely. But timing corrections accurately (picking both the top and bottom) is exceedingly difficult, so it’s far more profitable to simply stick with the main trend—which is up. Today we continue our process of broad portfolio diversification with the addition of a well-known pharmaceutical giant, Eli Lilly & Co. (LLY). The stock was originally recommended by Tom Hutchinson in Cabot Dividend Investor. Tim has three portfolio changes today: Big Lots (BIG) and Qualcomm (QCOM) move to to Hold and GFL Environmental (GFL) moves from Hold to Sell.
Cabot Global Stocks Explorer
Bi-weekly Issue September 3: With the exception of another nice gain by NovoCure (NVCR), this was a quiet week for the Cabot Explorer portfolio as the Nasdaq continues its march, up almost 35% so far in 2020. Our Emerging Markets timer (EEM) stays positive as some of these markets bounce back against the backdrop of very weak economies. This issue’s new recommendation, Visa (V), is a high quality stock in a growth sector with a wonderful high margin, low risk business model.Carl has no portfolio changes today.
Bi-weekly Update August 27: Last week at our virtual Cabot Wealth Summit, Carl outlined just why financial technology (fintech) stocks have gained so much momentum this year. This week, quite a bit of media attention is being paid to the upcoming Ant Group IPO on both the Hong Kong and Shanghai exchanges. Here he gives a brief overview of Ant. Carl has one portfolio change today: Gilead Sciences (GILD) moves from Hold a Half to Sell.
Cabot Small-Cap Confidential
Monthly Issue September 3: This month we’re jumping back into the pure-play software space with an up and coming SaaS company that has remained under the radar since going public in December, just a few months before the market tanked. Sprout Social (SPT) specializes in social media management solutions, which are increasingly important as the trend toward digital transformation strategies gets stronger. Organizations increasingly recognize they must market to consumers through social networks. Tyler has it rated Buy.
Weekly Update August 27: As Tyler mentioned last week, he is attempting to take a vacation this week and only intended to report on stocks for which there was meaningful news. Oddly enough, there isn’t any major news for any of our stocks. Accordingly, he is taking full advantage of the rare but welcome break and taking my two boys fishing instead of searching for material to report on! There are no portfolio changes today.
Cabot Dividend Investor
Weekly Update September 2: Labor Day is right around the corner, next Monday. That marks the unofficial end of summer. Labor Day marks the start of a new year of sorts and a rebirth of seriousness in the collective psyche. The other side of Labor Day is a new ballgame, when investors shake off the apathy of summer and refocus with intensity. That’s the landscape. We will see how the refocused investor copes after Labor Day. Tom will surely be in touch. In the meantime, enjoy the positive momentum and the rising portfolio returns. Tom has no rating changes today.
Monthly Issue August 12: In this issue Tom highlights one of the very best health care companies in the world, Eli Lilly and Company (LLY). The stock is defensive and barely budged when the market crashed. Yet there are huge growth opportunities ahead as it sells cutting-edge treatments and drugs for illnesses and diseases to a public that will demand them like never before.He has no other portfolio changes.
Cabot Marijuana Investor
Update September 2: Tim is trying to maximize returns (and minimize losses), and it looks to him as if the marijuana sector needs to go through a deeper cooling-off phase before the long-term uptrend can be resumed. So he thinks it’s time for a little more selling. Ideally, we’ll not only avoid some losses, we’ll be able to buy back in when both stocks and investor sentiment are lower. Thus, he’s now going to sell an additional third of each of these stocks: Cresco Labs (CRLBF), Grow Generation (GRWG) and Trulieve (TCNNF). After these actions, the portfolio will be roughly 32% in cash.
Monthly Issue August 26: Our long-term strategy remains unchanged. Own the leaders. Sell the losers. And remember that someday, when marijuana is declared legal across the U.S., the institutions will come running. Technically, Cabot’s major market-timing indicators remain bullish, so overall, Tim is bullish. But two weeks ago, he sold 25% of each of our U.S. operators because the stocks had grown so overbought over the past few months—and all four of those stocks are lower today. In short, buying power in the sector has dried up in recent weeks, even as investor sentiment has heated up, and that’s a dangerous combination. So short-term, he is turning a little more cautious today, not by selling anything but simply by downgrading more stocks to hold. Ideally, this soft patch will pass and buyers will return, but for now, the tide is going out slowly so be careful where you dive.
Special Report: April 29, 2020
U.S. Vertically Integrated Multistate Operators (MSOs)Cabot Early Opportunities
Special Bulletin September 3: We all know this market has been overdue for a pullback, if not a larger correction, especially for many tech stocks. For some, that process began in early-August, but the persistent performance of many of the mega-cap tech stocks (APPL, AMZN, TSLA, etc.) has since overshadowed the soft performance of lesser-known tech stocks. Tyler will take one incremental action in our portfolio today and that’s to move Adaptive Biotech (ADPT) to hold. If the stock breaks through previous support near 35.8 we will likely take our gain and move on. But for now, ADPT is a hold.
Monthly Issue August 26: Tyler’s advice today is to take it slow and average in to new positions. Growth stocks have experienced a huge rally off the March lows and we’re seeing signs that many may have topped out, at least in the near-term. Software stock valuations are near record highs and there is likely to be a shift in expectations regarding work-from-home plays if and when vaccines start to get approved. And then there’s the upcoming election. Still, he thinks we’re in a bull market and a new economic cycle brought on by the pandemic, and that accommodative fiscal policy and more stimulus will help markets move higher over the coming 12 months. Today’s Top Pick is, AZEK (AZEK), one of the first companies to introduce a premium quality (and premium priced) engineered polymer (plastic) building material that was a viable candidate to replace wooden trim.
Cabot Profit Booster
Weekly Issue September 1: The Stock – Horizon Therapeutics (HZNP) HZNP had been in a slow, steady uptrend for years, though it got dented with everything else in March of this year. But the long-term advance is back on, and in fact, it’s accelerated—shares lifted to new highs in early May (a sign of leadership), glided higher through July and then exploded after it crushed Q2 estimates. The tight, low-volume action since then is encouraging. Stop - 65. The Covered Call Trade: Buy Horizon Therapeutics (HZNP) Stock at 76, Sell to Open October 80 Strike Calls (exp.10/16) for $3, or a Net Price of 73 or less.
Cabot Micro-Cap Insider
Weekly Update September 2: The big news this week is that P10 Holdings (PIOE) announced another major acquisition which significantly increases its earnings power. The stock has rallied sharply, and while it still looks attractive on a long-term basis, it doesn’t look dirt cheap. Therefore, Rich is changing his rating to Hold.
Monthly Issue August 12: While Rich continues to be bullish on the micro caps that we own, he’s a little cautious on the outlook for the market over the next year or so. Valuations are elevated, there are signs of speculative activity by retail investors, and volatility is low. So he thinks now is a good time to add a more defensive name to the micro-cap portfolio. His recommendation today is, MamaMancini’s Holdings (MMMB), a micro-cap consumer staples company. MamaMancini’s makes healthy turkey and beef meatballs (as well as a variety of other products) and has been a beneficiary of the pandemic. Rich has one portfolio change today: Greystone Logistics (GLGI) moves to Hold.
Special Report
A Defensive Healthcare Stock with 100% UpsideSpecial Report
The Best Way to Play the Oil Market DislocationCabot Income Advisor
Weekly Update September 2: The market indexes continue to soar to new all time highs with no signs of stopping, despite the fact that the virus is still hanging around and economy is still beaten up. The market sees a strong recovery ahead, a friendly Fed and a likely vaccine by the end of the year or shortly thereafter. In this update Tom highlights two covered call opportunities on existing portfolio positions Starbucks (SBUX) and Brookfield Infrastructure Partners (BIP).
Monthly Issue August 26: Tom did not suggest calls to write on the two recommendations in this issue. The stock prices moved yesterday and knocked the call premiums out of my targeted range. But he is looking to write calls on these positions very soon. Please be on the lookout for a “special alert” in your email in the next few days, or next week. His featured stocks are: Valero Energy Corp. (VLO) and Starbucks Corp (SBUX)
Special Report:
Off the Radar Cash GeneratorsSpecial Report:
The Covered Call Income MachineWall Street’s Best Investments
Daily Alert September 4: First Horizon National Corporation (FHN) Forbes Dividend Investor
Daily Alert September 3: Essex Property Trust, Inc. (ESS) Investor Advisory Service
Daily Alert September 2: Sell: L3Harris Technologies, Inc. (LHX) Dow Theory Forecasts
Daily Alert September 2: Williams-Sonoma, Inc. (WSM) Dow Theory Forecasts
Daily Alert September 1: XPEL, Inc. (XPEL) Weiss Stock Ratings Heat Maps
Daily Alert August 31: Jamf Holding Corp. (JAMF) Canaccord Genuity Research
Monthly Issue August 27: Nancy begins our issue this month with a deep dive into a banking company that doesn’t look at all like a traditional bank. Green Dot Corporation (GDOT) is all digital, all the time, and is rapidly expanding its product offerings. In her Feature article, she further explores the digital banking world and how it is growing, and not just for the Gen Z population. Also included is a Top Picks Healthcare update that didn’t make its way into last month’s Top Picks issue.
Ask the Experts
Cabot Marijuana Investor
Question: Good Afternoon, Do you have any thoughts about the rumor that Green Thumb (GTBIF) and Trulieve (TCNNF) may merge? Is this something you are keeping an eye on? If so, would you prefer investing in one over the other - rumor is that Green Thumb may purchase Trulieve.
Tim: Thanks for asking. Certainly mergers will happen in this industry but there’s little value in speculating who will buy whom, or what the stocks will do as a result. Instead, the best guide, as always with growth stocks, is the action of the stocks. Today, GTBIF looks a little bit better than TCNNF, which I why I’m lightening up on TCNNF—basically taking it down to an “average” position size.
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts from July 15, 2020 is now available for you to listen to at your convenience—click here for access. This private call with our analysts is one of your exclusive Cabot Prime Pro member benefits.
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 |
|---|---|---|---|---|---|---|---|
| ABBV | Buy | ||||||
| ACCD | Buy 1/2 | ||||||
| APHA | See Advisory | ||||||
| APPF | Hold | ||||||
| ARE | Hold | ||||||
| ARNA | Buy | ||||||
| AVGO | Hold | ||||||
| AVLR | Hold | ||||||
| BABA | Hold | ||||||
| BE | Buy | ||||||
| BGS | Buy | Buy | |||||
| BIG | Hold | ||||||
| BIP | Buy 2/3 | ||||||
| BMY | Strong Buy | ||||||
| BSCL | Buy 1/2 | ||||||
| BUG | Hold 1/2 | Buy | |||||
| CCI | Hold 1/2 | ||||||
| CDLX | Buy | ||||||
| CGC | See Advisory | ||||||
| CHGG | Sell | Hold | |||||
| COLM | Hold | Buy | |||||
| CRLBF | See Advisory | ||||||
| CRON | See Advisory | ||||||
| CURLF | See Advisory | ||||||
| DOCU | Sell | ||||||
| DOW | Hold | ||||||
| DXCM | Hold | ||||||
| EPD | Hold | ||||||
| EQH | Strong Buy | ||||||
| EVBG | Hold | ||||||
| EVER | Buy | ||||||
| FVRR | Hold 3/4 | ||||||
| GFL | Sell | ||||||
| GILD | Sold | ||||||
| GM | Strong Buy | ||||||
| GRWG | See Advisory | ||||||
| GSHD | Hold 3/4 | ||||||
| GTBIF | See Advisory | ||||||
| GTLS | Buy | ||||||
| HTHT | Hold | ||||||
| IIPR | See Advisory | Hold 2/3 | |||||
| INSP | Buy | ||||||
| KL | Buy 1/2 | ||||||
| KPTI | Hold | ||||||
| LGIH | Buy | ||||||
| LLY | Buy | Buy | |||||
| MKSI | Hold | ||||||
| MO | Buy | ||||||
| MPC | Hold | ||||||
| NEE | Hold | Hold 1/2 | |||||
| NET | Buy | Sell | |||||
| NVCR | Buy | ||||||
| OKTA | Sell | ||||||
| PGX | Hold 1/2 | ||||||
| PLMR | Buy | ||||||
| PWR | Buy | ||||||
| QCOM | Hold | Hold 2/3 | |||||
| QTWO | Buy | ||||||
| REMX | Buy 1/2 | ||||||
| RGEN | Buy | ||||||
| RNG | Hold | ||||||
| ROKU | Buy 1/2 | ||||||
| RPAY | Buy | ||||||
| SE | Hold 1/2 | Hold | |||||
| SPCE | Buy | Buy | |||||
| SPOT | Buy 1/2 | ||||||
| SPT | Buy | ||||||
| SSO | Buy | ||||||
| STAG | Hold 1/2 | ||||||
| SWRAY | Buy | ||||||
| TAP | Buy | Strong Buy | |||||
| TCNNF | See Advisory | Hold | |||||
| TOT | Hold | ||||||
| TPB | See Advisory | ||||||
| TSLA | Hold | ||||||
| TSM | Buy 1/2 | Buy | |||||
| TSN | Buy | ||||||
| TWLO | Hold | ||||||
| UEIC | Buy | ||||||
| V | Buy | ||||||
| VIAC | Buy | ||||||
| VLO | Hold 1/2 | ||||||
| VOYA | Buy | ||||||
| VZ | Buy | ||||||
| WING | Buy | ||||||
| XEL | Hold 2/3 | ||||||
| ZM | Buy | ||||||
| ZS | Hold |