Cabot Prime Pro Week Ending September 6, 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 moves quickly through the broad market’s resiliency to get into five small-cap names that should pique investor interest. Tyler takes you through both the charts and the high-level fundamentals, and gives his input on why the names are worth checking out.
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Advisory Services
Cabot Growth Investor
Bi-weekly Update September 5: Remain cautious, but stay open minded. Mike is encouraged by the recent action from the market, including some of the power and breadth of the rally. However, our Cabot Tides are not yet positive and growth stocks have been hit or miss, with investors rotating into beaten-down areas. He’s optimistic, but still advises being choosy until he sees more positive evidence. Tonight, though, he’s doing a little buying—he’ll add a half position in Inphi (IPHI), which will leave us with around 31% in cash.
Bi-weekly Issue August 29: For now, Mike thinks we’re in a proper stance, holding some cash and being choosy on the buy side. Since the last issue, he sold the rest of his shares in Planet Fitness, and last week, he added a half position in Carvana (CVNA). Tonight, he’s going to trim one-third of our remaining Okta (OKTA) position, bringing the cash position to around 36%.
Other Stocks of Interest August 30: Follow ups to stocks featured April 11, 2019 (issue 1417) to August 29, 2019 (issue 1427). 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 6: Mike is becoming incrementally more constructive on the market, and should the intermediate-term trend turn up, he’ll put some more money to work. He does think the odds are growing that the next major move for this bull market is up, and should the buyers continue to flex their muscle, there should be plenty of opportunities out there. Today’s buy ideas are: Five9 (FIVN), Twitter (TWTR) and Universal Display (OLED). There are four outright sells today: CrowdStrike (CRWD), Enphase Energy (ENPH), Iqvia Holdings (IQV) and Smartsheet (SMAR).
Weekly Issue September 3: The market is showing us a lot of movement, but little net progress—and thus, Mike’s overall advice hasn’t changed. He’s keeping our Market Monitor at a level 5, meaning you should be choosy and keep things small on the buy side, while holding some cash and honoring stops and loss limits with your weaker performers. The good news, as it has been all year, is that there remain many stocks that look ready to enjoy meaningful upmoves if the market can get its act together. Mike’s Top Pick is New Oriental Education (EDU), a rare China-related stock that’s making new highs on good volume.
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 6: Sell Half of Existing Position: Sell half your Target (TGT) January 110 Calls for $7.60 or more.
Cabot Options Trader Market Update September 5: Following reports that the U.S. and China will meet in Washington, D.C. next month to discuss trade the S&P 500 is higher by 1.3% today. Encouragingly for the bulls, yesterday options activity was very bullish as Jacob’s Options Barometer came in at a 7 out of 10, and halfway through the day today he would again put the Barometer at a 7.
Cabot Options Trader Alert September 5: Adjust Existing Position: Against your Regions Financial (RF) Stock, Sell the October 16 Calls (exp. 10/18/2019) for $0.16 or more.
Cabot Options Trader Alert September 4: Buy the Target (TGT) January 110 Calls (exp. 1/17/2020) for $6.60 or less.
Cabot Options Trader Pro Weekly Update September 3: Jacob has 9 Long positions: DIS, KO JD, LSCC, MDT, MSFT, RF, SNAP and XME and two positions not making an impact on his decision making: LVS and CRM.
Cabot Options Trader Weekly Update September 3: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week virtually unchanged at 19. I am a bit surprised that the VIX closed just below 20 ahead of the long holiday weekend, and following a week in which the S&P 500 rose 2.67%. My interpretation of this is that traders were not necessarily believers in last week’s rally.
Cabot Undervalued Stocks Advisor
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.
Weekly Update August 27: This week’s update of Cabot Undervalued Stocks Advisor is focused on portfolio stocks that are being affected by recent news or upcoming earnings reports. There is one portfolio change: Supernus Pharmaceuticals (SUPN) moves from Hold to Sell.
Cabot Stock of the Week
Weekly Issue September 3: The broad market remains under pressure, at least in the short-term, so some degree is caution is still prudent. For this portfolio, that means we come into this week holding 16 stocks rather than 20. But the market’s long-term trend remains up, and Tim expects the market to be higher months from now, so he remains very focused on maintaining a portfolio with great appreciation potential. This week’s recommendation, Alexandria Real Estate Equities (ARE), is a conservative, dividend-paying real estate investment company. The stock was recently recommended by Tom Hutchinson in Cabot Dividend Investor. There are no portfolio changes today.
Cabot Global Stocks Explorer
Bi-weekly Issue September 5: Our Emerging Markets Timer has raced higher in recent days, putting it within striking distance of a new buy signal. Carl’s recommendation today is Yandex (YNDX), is overlooked by even sophisticated investors and even then, is primarily viewed as only a search engine play that has cornered 57% of the Russian market. It’s rated Buy a Half. There is one portfolio change today: LexinFintech (LX) Moves from Hold to Buy.
Bi-weekly Update August 29: After a sharp pullback last Friday, emerging and international markets have clawed back some gains this week with some stocks doing quite well. Carl is selling our 10% position in (EUM) which moves opposite (EEM). He’s also moving our speculative recommendation Largo (LGORF) to a sell after the company decided not to renew its offtake agreement with Glencore and Sea Limited (SE) moves from Buy a Half to Hold a Half.
Cabot Small-Cap Confidential
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.
Special Bulletin September 3: Today, Tyler recommends that you sell the remaining three-quarter Position in CareDx (CDNA) and full position in Upland Software (UPLD).
Weekly Update August 30: In our portfolio Tyler has felt some softening in certain positions, while others have been rock solid. That’s normal. He updates all stocks in the portfolio and has no rating changes today.
Cabot Dividend Investor
Weekly Update September 4: Tom says that dividends are king in the current environment. Investors realize that there probably isn’t another 50% or 100% spike left in this aging bull market. And dividends are likely to be a big part of returns going forward. If you own a stock that pays a 6% yield, over the past 20 months you got over 9% in dividends alone while the market only moved 2% higher.Investors continue to flock into safe, dividend-paying REITs and utilities. Several portfolio positions in those sectors are making new all-time highs while the overall market fumbles around.There are no portfolio changes today.
Monthly Issue August 28: Tom says this is one of those times in the market where investors are fearful instead of greedy. It is a market where safe stocks shine. The market has fallen every week for four straight weeks and is down 5% over the past month. And, right now, there doesn’t appear to be a catalyst out of the current woes, unless there is a trade deal. In this issue Tom highlights Alexandria Real Estate Equities (ARE), one of the very best defensive dividend stocks on the market. It has rock solid earnings in any environment and the stock should perform well in just about any market.
Cabot Marijuana Investor
Update September 5: Last week’s issue of Cabot Marijuana Investor was titled “Buying Opportunity,” and that still seems accurate today. In fact, as summer morphs into fall and Wall Street returns to full operation, Tim is seeing some welcome signs of buying in the cannabis sector. So today he’ll join them, by averaging up in two of our holdings, Charlotte’s Web (CWBHF) and OrganiGram (OGI); he’ll double the position size in both.
Monthly Issue August 29: Going into today, the portfolio is 20% in cash, 80% invested, and most heavily invested in Aphria (APHA) and Curaleaf (CURLF), the current largest revenue producers in Canada and the U.S. Tim hopes to use our cash to do some new buying soon, both in current holdings and new additions, but he needs to see a little more sector strength first. In the meantime, he’s paring back more on some of our weakest stocks, selling half of Aurora (ACB), half of Innovative Industrial Properties (IIPR), all of KushCo (KSHB) and taking our position in Canopy Growth (CGC) down to 1%. After these actions, the portfolio will be about 31% in cash.
Wall Street’s Best Investments
Daily Alert September 6: Danaher Corporation (DHR) Shortex Market Letter
Daily Alert September 5: Sell: Symantec Corporation (SYMC) Sound Advice
Daily Alert September 5: The TJX Companies, Inc. (TJX) Hendershot Investments
Daily Alert September 4: Medpace Holdings, Inc. (MEDP) Validea Hot List Newsletter
Daily Alert September 3: Ingles Markets Incorporated (IMKTA) The National Investor
Monthly Issue August 7: Tech stocks have had a big year so far in 2019, and technology continues to rapidly evolve, making companies more efficient and providing cost savings along the way. And that is exactly what our Spotlight Stock, Asure Software, Inc. (ASUR), does. This cutting-edge tech company is making big waves in the human resource and workspace arenas, offering products that serve the changing demographic landscape. Nancy’s feature article delves a bit deeper into the company’s strategy and market potential.
Wall Streets Best Dividend Stocks
Daily Alert September 6: Omega Healthcare Investors, Inc. (OHI) The Wealth Advisory
Daily Alert September 5: Sell: AbbVie Inc. (ABBV) Hendershot Investments
Daily Alert September 5: JPMorgan Chase & Co. (JPM) Sound Advice
Daily Alert September 4: Pope Resources, A Delaware Limited Partnership (POPE) Positive Patterns
Daily Alert September 3: Intact Financial Corporation (IFC.TO, IFCZF) Internet Wealth Builder
Monthly Issue July 31: Our contributors continue to be bullish. After a fantastic showing for our 2019 Top Picks last month, our contributors are continuing to find some great stocks with big potential for you. Our Spotlight Stock this month, Compass Diversified Holdings (CODI), is a private-equity fund that gives you the opportunity to invest like the deep-pocket investors—buying shares in a business that owns privately-held companies. In her Feature article, Nancy explores this investment niche a bit more and sheds some light on the investing strategy of our Spotlight pick.
Ask the Experts
Cabot Growth Investor
Question: You’ve written and tweeted some recently about the rotation going on, out of some growth stocks and into the beaten-down areas (transports, financials, industrials, energy). Given those areas have been hit hard, should we be doing some buying there?
Mike: Well, I don’t want to say no, as I think there are some opportunities out there; Blackstone (BX) is still pushed and pulled by the financial sector, for instance, and continues to trade well. But more generally, I’d be careful of ditching your rules/tools just because some areas have had a few good days — as we’ve seen repeatedly in recent weeks, the market can shift gears in a hurry, so you want to make sure whatever stocks you’re buying have all the factors in place for a sustained move. In other words, if you see a stock in a beaten-down group with a good story and numbers and a (relatively) resilient stock, by all means take a swing at it. But don’t just buy some industrial stocks, for instance, because they’ve had a few good days.
Cabot Options Trader
Question: Hi Jacob - ever since the Summit, I have been meaning to drop you a quick note to say how nice it was to meet you. Sorry this is so belated! In any case, what are your thoughts on profit taking on the KO long calls? I bought the Feb 21 monthly 55 calls for $1.60 each, and am currently sitting on a 82.5% return. KO has gone ballistic the last few days, and is at an all time high, so hard to judge how far this might run up before a retrace. I am inclined to same a few contracts off here, and let the rest go. What are your thoughts?
Jacob: It was a pleasure meeting you as well. As for KO, as the old trading saying goes “you can never go broke taking profits”. So I see no reason to not sell a couple of your calls, lock in your profit, and then hold on to the rest looking for more upside.
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 | ||||||
| ARE | Buy | Buy | |||||
| ARNA | Buy | ||||||
| AVLR | Buy | ||||||
| AXP | Hold 1/2 | ||||||
| BABA | Buy | ||||||
| BAND | Buy | Buy | |||||
| BHGE | Strong Buy | ||||||
| BIP | Buy | Buy | |||||
| BSCJ | Buy 1/2 | ||||||
| BSCL | Buy 1/2 | ||||||
| BX | Buy | Buy | |||||
| C | Buy | Strong Buy | |||||
| CCI | Buy | ||||||
| CDLX | Buy | ||||||
| CDNA | Sell | ||||||
| CF | Strong Buy | ||||||
| CG | Strong Buy | ||||||
| CGC | See Advisory | ||||||
| CHCT | Hold 2/3 | ||||||
| CIT | Hold | ||||||
| CMC | Buy | ||||||
| CMG | Buy | ||||||
| COUP | Hold | Buy | |||||
| CRLBF | See Advisory | ||||||
| CRON | See Advisory | ||||||
| CTVA | Strong Buy | ||||||
| CURLF | See Advisory | ||||||
| CVNA | Buy 1/2 | Buy | |||||
| CWBHF | See Advisory | ||||||
| DBI | Strong Buy | ||||||
| DBSDY | Buy 1/2 | ||||||
| DOMO | Hold | ||||||
| DOW | Hold | ||||||
| DVA | Strong Buy | ||||||
| EPD | Buy | Buy | |||||
| EUM | Sold | ||||||
| EVBG | Buy | ||||||
| EVER | Hold | ||||||
| EXAS | Buy | ||||||
| GES | Buy | ||||||
| GSHD | Buy | ||||||
| HTHT | Hold | ||||||
| IBN | Buy 1/2 | ||||||
| IFNNY | Buy 1/2 | ||||||
| IIPR | See Advisory | ||||||
| IPHI | Buy 1/2 | ||||||
| LGORF | Sold | ||||||
| LK | Buy 1/2 | Hold | |||||
| LQSIF | See Advisory | ||||||
| LUV | Buy | ||||||
| LX | Buy | ||||||
| MKC | Hold 1/2 | ||||||
| MMNFF | See Advisory | ||||||
| MMYT | Buy 1/2 | Hold | |||||
| MO | Hold | ||||||
| MOS | Hold | ||||||
| MPC | Buy | ||||||
| MTCH | Hold | ||||||
| NEE | Hold | Hold | |||||
| OGI | See Advisory | ||||||
| OKTA | Hold | ||||||
| PGX | Buy 1/2 | ||||||
| QTRX | Hold | ||||||
| QTWO | Buy | ||||||
| RCL | Hold | ||||||
| RGEN | Buy | ||||||
| RKUNY | Buy 1/2 | ||||||
| RPD | Buy | ||||||
| SANM | Buy | ||||||
| SE | Hold 1/2 | ||||||
| SLB | Buy | ||||||
| SNAP | Buy | Hold | |||||
| SSO | Hold | ||||||
| STAG | Hold | ||||||
| SUPN | Sold | ||||||
| SYF | Buy | ||||||
| TCEHY | Buy 1/2 | ||||||
| TOT | Hold | ||||||
| TPB | See Advisory | ||||||
| TSLA | Hold | ||||||
| UEIC | Strong Buy | ||||||
| UPLD | Sell | ||||||
| VCYT | Buy | ||||||
| VFF | See Advisory | ||||||
| VLO | Buy | ||||||
| VOYA | Strong Buy | ||||||
| XEL | Hold 2/3 | ||||||
| YNDX | Buy 1/2 | ||||||
| ZTO | Hold 1/2 |