Cabot Prime Week Ending August 14, 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 discusses the follow-on selling in the leaders this week that included a batch of abnormal action. Because of that, Mike’s pared back in Cabot Growth Investor, though he’s not getting overly cautious--most of the market’s evidence is still bullish, and most likely this is a well-deserved rest/correction in stocks that have had big moves. As usual, Mike relays a bunch of points and talks about some new leaders that continue to act well despite the crosscurrrents.
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Advisory Services
Cabot Growth Investor
Bi-weekly Issue August 13: The market remains in good shape, but growth stocks have come under pressure—for the first time in months, we’re seeing a good amount of abnormal action. Longer-term, we’re still quite bullish, both on the market and on leading stocks, but given the action (and our solid gains this year), we’ve been paring back, with numerous partial profits and one outright sale, which has us holding a 37% cash position. In tonight’s issue we write about all our latest thoughts on the market, and how to handle big winners that begin to act iffy. We also write up a handful of names we’re watching should growth stocks stabilize. Mike has no additional changes to the portfolio tonight.
Special Bulletin August 12: The market’s overall evidence still looks OK, and even among growth stocks, some look decent, but we continue to pare back, mostly by taking partial profits in our names. Today, it’s Chegg’s (CHGG) turn, as we’ll sell one-third of our shares and hold the rest. Our cash position will now be around 36%.
Special Bulletin August 10: Growth stocks continue to look iffy, with selling pressure becoming more persistent while money flows into other areas. Of course, the rest of the market is looking OK (including some fresher leaders that are hanging in there), but we continue to trim our sails given what’s going on. Today, Mike is selling one-third of our position in Cloudflare (NET), which has taken on water after earnings. Our cash position will now be around 32%.
Bi-weekly Update August 5: Remain bullish, but continue to keep your antennae up. The Nasdaq has pushed to new highs, our trend-following indicators are positive and most leading stocks remain in uptrends, so we’re still in a bullish frame of mind. But things are becoming more challenging with repeated bouts of rotation and some earnings hiccups, too. We’re not opposed to doing a little buying as we’re seeing some decent setups, but tonight, we’ll hold off. Mike’s only change is he’s placing Teladoc (TDOC) on Hold and throwing up a mental stop after today’s sharp acquisition-induced decline. Our cash position remains around 19%.
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 August 14: Overall, we’re not dramatically changing our stance—our Market Monitor will likely remain at a 6—but if you own some ragged names, it’s best to take some action, be it via sales, partial profits or simply tightening stops. Mike’s suggested buys today are: Bandwidth (BAND), Pan American Silver (PAAS), Peloton (PTON) and Penn National Gaming (PENN). There are five sells today: ANGI Homeservices (ANGI), GDS Holdings (GDS)—just kissed our stop before a modest bounce. Can use a stop near 77 if you still own some, Splunk (SPLK), XP Inc. (XP) and Zoom Video (ZM)—nicked our stop to the penny! If you still own some, can use a stop just under 230.
Weekly Issue August 10: Mike writes that, all in all, the majority of the evidence is bullish, so we are as well, but it’s a stock-by-stock environment—many names look fine and are even buyable (preferably on weakness), but if you do have some extended stocks that are wobbling, have a plan in place (tightening stops, partial profits, etc.) in case the sellers gain strength. This week’s list contains many of those fresher leaders mentioned above, including a few that have taken off on earnings. His Top Pick is Zillow (Z), which should be a great bet to benefit from the new housing boom.
Cabot Undervalued Stocks Advisor
Weekly Update August 12: We are mostly through the bulk of earnings season and it has been enlightening, particularly as we learn about the pandemic’s effects on profits. Earnings season should be a period when company results can be clearly measured, especially since we are dealing with numbers. This clarity, however, is often not forthcoming, sometimes to a ridiculous degree. Bruce has two portfolio changes today: Amazon (AMZN) moves from Hold to Retired and Universal Electronic (UEIC) moves from Strong Buy to Buy.
Monthly Issue August 5: The Cabot Undervalued Stocks Advisor is gradually trimming out of its successful but highly valued tech stocks, while adding newer names with clear undervaluation supported by solid fundamentals. While these may not provide the immediate rewards that Amazon or others provide, they can provide defensive traits as well as strong upside potential, particularly if the “digital economy” stocks suffer the same fate that the dot-com stocks did two decades ago. Bruce has two portfolio changes today: Molson Coors Beverage Company (TAP) joins the Buy Low Opportunities Portfolio as a new Buy and Nvidia (NVDA) moves from Buy to Hold.
Cabot Stock of the Week
Weekly Issue August 10: Despite a few cracks in growth stocks in the last couple trading days, the overall stock market continues to hum along, with the S&P 500 a mere 1% below all-time highs as of this writing. Thus, there’s no reason to sell any of our stocks – all our charts look pretty good! But our portfolio is full, at its 20-stock capacity, so something has to go to make room for our newest recommendation. The unfortunate casualty is AbbVie (ABBV), which has weakened a bit since its quarterly earnings report, so we’ll go ahead and book our solid profit. Tim has one other change today: Big Lots (BIG) moves from Hold to Buy. Tim’s new recommendation is a familiar name, but one that’s showing more strength than it has in years after striking a major deal: Qualcomm (QCOM). The stock was originally recommended by Mike Cintolo in Cabot Growth Investor.
Cabot Global Stocks Explorer
Bi-weekly Update August 13: Markets are showing great resiliency as the S&P 500 nears a record and stocks have risen all but one day in August. Optimism about an eventual stimulus bill and the prospect of declining Covid-19 cases and a vaccine are still supporting the economy and markets. However, deteriorating relations between the U.S. and China are raising investor concerns as President Trump signed an executive order banning American companies from working with both TikTok (the popular social-media site owned by Byte Dance) and the WeChat app, with 1.2 billion users owned by China’s Tencent (TCEHY). Carl has no portfolio changes today.
Bi-weekly Issue August 6: This week’s issue begins with an overview of the emerging high-tech rivalry between America and China, and highlights a new recommendation, Taiwan Semiconductor (TSM), a dominant company at the heart of that rivalry. Carl has one change today: DBS (DBSDY) moves from Buy a Half to Hold a Half.
Cabot Dividend Investor
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.
Weekly Update August 5: There is still lots of risk out there. Tom doesn’t know what will happen with the course of the virus or a vaccine. It is very possible that events will not unfold as pleasantly as the market expects. There’s also the election. It’s about to get in our faces. There’s the uncertainty about who will win along with the probability of a very ugly situation if the results are close. But it’s the dog days of summer. Investors will increasingly be in slacker mode in the weeks ahead. We’ll see where all this goes when the rubber hits the road after Labor Day. But the market looks good for now. The majority of the positions in the portfolio should thrive as the economy recovers but also have resilient business models that will support the stocks if things get ugly again in the fall. Tom has no rating changes today.
Cabot Marijuana Investor
Update August 12: Tim is going to sell our two weakest stocks, GW Pharmaceuticals (GWPH) and Tilray (TLRY), because they’ve both broken down in the wake of last week’s second-quarter earnings reports. Additionally, he is going to sell a fourth (25%) of our holdings in each of the four strong U.S. producers: Cresco Labs (CRLBF), Curaleaf (CURLF), Green Thumb Industries (GTBIF) and Trulieve (TCNNF). We are overweighted in all four of these stocks and have substantial profits. After these sales, the portfolio will be roughly 20% in cash.
Monthly Issue July 29: The 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. Short-term, Tim has a few pointers on playing hot stocks in hot times like the present. If you’re an aggressive investor keeping a close eye on your stocks, feel free to load up on the strongest ones and ride them as long as they go up—while cutting losses short. A concentrated portfolio in the hottest stocks can make big money fast (but sometimes lose it fast, too). If you’re less aggressive, however, and don’t like the risk, take your time. Wait for lower-risk entry points. Wade in slowly. The game is still in its early innings. Our portfolio became fully invested last week and remains so today, in the black for the year while the index is still in the red.
Special Report: April 29, 2020
U.S. Vertically Integrated Multistate Operators (MSOs)Cabot Early Opportunities
Special Bulletin August 13: We’ve held on to Viela Bio (VIE) despite lackluster performance, in part because the broader trend in biotech stocks has been down since July 20. But with the company just having reported and no real change in the near-term story, the stock being our weakest performer, and with fresh opportunities coming up in the next issue, Tyler is going to let it go today. Sell.
Monthly Issue July 15: This month’s Issue of Cabot Early Opportunities features a fresh group of stocks that offer varying risk profiles and exposure to rapid-growth markets. Tyler has a company with a disruptive security platform that acts as a guardian of the internet, a MedTech innovator, Schrodinger (SDGR), (his top pick) with two exciting growth businesses, a clean-energy stock looking to put a troubled past behind it, a little-known gaming company and another software player that’s offering crucial communication services during the pandemic.
Cabot Profit Booster
Weekly Issue August 11: The Stock –Digital Turbine (APPS) It took a while for the bull market in APPS to gain traction after the March panic, as investors were unsure of the advertising climate as everything locked down. But all of that changed when shares broke out on June 3 on extremely high volume. Shares advanced nicely for a while after that, and the four-week rest under 14 gave way to a massive, earnings-induced gap up last week. Stop — 17.5. The Covered Call Trade: Buy Digital Turbine (APPS) Stock at 22, Sell to Open September 22.5 Strike Calls (exp. 9/18) for $1.65, or a Net Price of 20.35 or less.
Update July 17: It was another fantastic month for the Cabot Profit Booster portfolio, and with today being the expiration of July options we are likely going to close seven positions for full profits ranging from 5.4% to 12.3%. Jacob updates us with the details and instructions.
Cabot Income Advisor
Weekly Update August 12: Tom says, for now, don’t fight the tape. Enjoy the bounty. But don’t get carried away in the euphoria either. While there is a good chance of a selloff not too far down the road, it will likely be short lived. He’s somewhat cautious at this point. But he expects fantastic opportunities for income in the near future.
Monthly Issue July 22: Although the prices of all the portfolio positions are higher than when originally purchased, they all still represent good value at current prices and are BUY rated. The market is still trending higher and has shown strong resilience in the face of bad virus news. The trend is good but things can change. Tom’s featured stock today is: U.S. Bancorp (USB), the fifth largest bank in the United States and the country’s largest regional bank with over 3000 bank branches in 25 states in the Western and Northern U.S.
Special Report:
Off the Radar Cash GeneratorsSpecial Report:
The Covered Call Income MachineWall Street’s Best Investments
Daily Alert August 14: Zynex, Inc. (ZYXI) Weiss Ultimate Portfolio
Daily Alert August 13: ServiceNow, Inc. (NOW) The Chartist
Daily Alert August 12: Acuity Brands, Inc. (AYI) The Prudent Speculator
Daily Alert August 11: Sprott Inc. (SII) Ian Wyatt’s Million Dollar Portfolio
Daily Alert August 10: Central Garden & Pet Company (CENT) Upside
Monthly Issue July 16: Nancy writes that the markets are certainly keeping us on our toes! She really didn’t know what to expect when she began calculating the returns for this Mid-Year Top Picks issue. We’ve had so much volatility; a big disruption in March, as coronavirus took hold; and many sectors that just haven’t bounced back. Despite the ongoing devastation of COVID-19, our contributors have broken all of our records, averaging a gain of 16.41%, while the Dow fell 8.6%, the S&P 500 is down 1.2% and only the Nasdaq is in positive territory, with gains of 18.3%. Even better, our Top 5 picks averaged 221.48%! In this month’s issue, she brings you an update on many of our 2020 Top Picks, along with several new non-Top Picks ideas.
Ask the Experts
Cabot Growth Investor
Question: Hi Mike, Hope you & your family are all doing well ! A few weeks ago Tyler wrote a piece about how Secondary Offering of stock is normally a good thing for growth companies and gave several examples. Certainly TWLO had stellar results and certainly understand some profit taking but from your perspective, the action related to the charts, does this still appear POSITIVE? Thanks as always for your support
Mike: Thanks for writing – just back from traveling so sorry for the late response. Well, I think Tyler said that if a stock reacts positively to a secondary it’s positive (I think). TWLO has had a huge run, and like many growth stocks, is now getting hit. I wouldn’t say it’s a positive, no – not saying the run is over, but certainly seems like earnings/offering is having people cash in a few chips. We could do the same but aren’t going there yet.
Question: If I have $300k portfolio, let’s say you say buy FB at half position, does it mean buy FB up to $15k worth of stock?
Mike: So, that’s how we run our ship, yes – 10% is a “regular” or “full” position at least when we start out. It’s up to exactly how to run your own ship (our portfolio can be quite volatile), but to answer your question – yes.
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 member benefits.
Guide to Cabot Prime
This Guide to Cabot Prime 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 Global Stocks Explorer | Cabot Growth Investor | Cabot Marijuana Investor | Cabot Stock of the Week | Cabot Undervalued Stock Advisor | Cabot Dividend Investor |
|---|---|---|---|---|---|---|
| ABBV | Sell | Buy | ||||
| AMZN | Retired | |||||
| APHA | See Advisory | |||||
| ARE | Hold | |||||
| AVGO | Hold | |||||
| BABA | Hold | |||||
| BE | Buy | |||||
| BGS | Buy | Buy | ||||
| BIG | Buy | |||||
| BIP | Buy | Buy 2/3 | ||||
| BMY | Strong Buy | |||||
| BSCL | Buy 1/2 | |||||
| BUG | Hold 1/2 | Buy | ||||
| CCI | Hold 1/2 | |||||
| CGC | See Advisory | |||||
| CHGG | Sell 1/3 | Buy | ||||
| COLM | Hold | Buy | ||||
| CRLBF | See Advisory | |||||
| CRON | See Advisory | |||||
| CURLF | See Advisory | |||||
| DBSDY | Hold 1/2 | |||||
| DOCU | Hold | |||||
| DOW | Hold | |||||
| DXCM | Hold | |||||
| EPD | Hold | |||||
| EQH | Strong Buy | |||||
| GFL | Buy | |||||
| GILD | Buy 1/2 | |||||
| GM | Strong Buy | |||||
| GRWG | See Advisory | |||||
| GTBIF | See Advisory | |||||
| GTLS | Buy | |||||
| GWPH | Sell | |||||
| HTHT | Hold | |||||
| IIPR | See Advisory | Hold 2/3 | ||||
| KL | Buy 1/2 | |||||
| LGIH | Buy | |||||
| LLY | Buy | |||||
| MKSI | Hold | |||||
| MO | Buy | |||||
| MPC | Hold | |||||
| NEE | Hold | Hold 1/2 | ||||
| NET | Buy | Sell 1/3 | ||||
| NVCR | Buy | |||||
| NVDA | Hold | Hold | ||||
| OKTA | Hold | |||||
| PGX | Hold 1/2 | |||||
| PWR | Buy | |||||
| QCOM | Buy | Hold 2/3 | ||||
| REMX | Buy 1/2 | |||||
| RNG | Hold | |||||
| SE | Hold 1/2 | Hold | ||||
| SPCE | Buy | Buy | ||||
| SSO | Buy | |||||
| STAG | Hold 1/2 | |||||
| SWRAY | Buy | |||||
| TAP | Buy | |||||
| TCNNF | See Advisory | Buy | ||||
| TDOC | Sold | |||||
| TLRY | Sell | |||||
| TOT | Hold | |||||
| TPB | See Advisory | |||||
| TSLA | Hold | |||||
| TSM | Buy 1/2 | |||||
| TSN | Buy | |||||
| TWLO | Hold | |||||
| UEIC | Buy | |||||
| VLO | Hold 1/2 | |||||
| VOYA | Strong Buy | |||||
| VZ | Buy | |||||
| WING | Buy | |||||
| XEL | Hold 2/3 | |||||
| ZM | Buy | |||||
| ZS | Hold |