Cabot Prime Week Ending August 16, 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, Mike Cintolo, (from the Cabot Wealth Summit!) gives you his quick and dirty take on the overall market and many stocks that look like they want to head higher—if the indexes can kick into gear. It’s still a bull market, but Mike’s advising patience and playing some defense until the bulls retake control.
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Cabot Growth Investor
Special Bulletin August 14: Mike is selling the rest of his shares in Planet Fitness (PLNT), raising the cash position to around 38%. He has no other changes tonight, but as always, he’s keeping his eyes open and will have further changes if need be.
Bi-weekly Issue August 13: Be cautious. During the past couple of weeks, Mike has taken the rest of our profit in Twilio (TWLO) and sold our half positions in Elastic (ESTC) and Zillow (Z), as well as a piece of ProShares Ultra S&P 500 Fund (SSO), leaving us with 33% in cash. But he’s still holding many strong names and has a burgeoning watch list for the next advance.
Bi-weekly Update August 8: Mike says to remain cautious, but stay flexible. Our Cabot Tides are effectively back on the fence as the upmove of the past few days has been encouraging—a bit more strength could restore the Tides green light. In the meantime, he continues to take things on a stock-by-stock basis. In the Model Portfolio there are no changes tonight. Our cash position will now be around 35%.
Other Stocks of Interest August 14: Follow ups to stocks featured March 28, 2019 (issue 1416) to August 13, 2019 (issue 1426). 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 August 16: Despite the wild action and dramatic headlines, Mike’s viewpoint hasn’t really changed. The market had a couple of rallies over the past week and a half, but neither was able to push the major indexes back above their 50-day lines, and now most are testing their correction lows. Thus, the intermediate-term trend remains down, and there are plenty of stocks and sectors in the same boat. There are three stocks that tripped their stops and are now sells: Ally Financial (ALLY), ASML Inc. (ASML) and Planet Fitness (PLNT).
Weekly Issue August 12: Mike isn’t advising you to hole up in your bunker, but the onus is on the bulls to prove that the tariff-induced decline was a shakeout; until then, it’s best to remain cautious by holding some cash, keeping new buys small and making sure your losers and laggards don’t slip much further. Going along with the action in growth stocks, this week’s list is chock-full of recent earnings winners. Mike’s Top Pick is TransDigm (TDG), a solid 20%-ish grower in the aerospace field that gapped on earnings and is set to pay a huge one-time dividend.
Cabot Undervalued Stocks Advisor
Weekly Update August 13: Crista writes that U.S. stock markets have exhibited a high degree of volatility in recent weeks. There are lots of factors contributing to the turmoil, which will ebb and flow, probably for the rest of our lives. So she circles back to why we’re here: We’re here to invest in stocks because over the long term, stocks outperform fixed income investments. There are five portfolio changes today: Axis Capital Holdings Ltd. (AXS) moves from Hold to Retired, Corteva (CTVA) moves from Hold to Strong Buy, Guess? (GES) moves from Strong Buy to Buy, Marathon Petroleum (MPC) moves from Buy to Hold and The Mosaic Company (MOS) moves from Buy to Hold.
Monthly Issue August 6: Since we’re in the midst of a sudden stock market correction, Crista decided to feature three stocks today that seem to offer the best opportunities while their prices are temporarily low: Adobe Systems (ADBE), Apple (AAPL) and Citigroup (C). Here are today’s portfolio changes: Alexion Pharmaceuticals (ALXN) moves from Strong Buy to Hold, Carlyle Group (CG) moves from Hold to Strong Buy, CIT Group (CIT) moves from Strong Buy to Hold, Designer Brands (DBI) moves from Strong Buy to Hold, Dow Inc. (DOW) moves from Strong Buy to Hold, Royal Caribbean Cruises (RCL) moves from Strong Buy to Hold, Synchrony Financial (SYF) moves from Hold to Buy and Total S.A. (TOT) moves from Strong Buy to Hold.
Cabot Stock of the Week
Weekly Issue August 12: The market remains under pressure, with our intermediate-term market timing now negative. Thus Tim is continuing to raise cash, by selling our worst performers, and you should too, so you’ll have ammunition to use on the new leaders when the market turns up again. This week that means selling four stocks. Everbridge (EVBG), Sunrun (RUN), Voya Financial (VOYA) and Zillow (Z). As for the new recommendation, Bandwidth (BAND), it’s a small-cap stock in the communications software industry that you probably haven’t heard of, but it’s shrugged off the market volatility lately, trending slowly higher, and its long-term prospects are great. Also, Exact Sciences (EXAS) moves from Hold to Buy.
Cabot Global Stocks Explorer
Bi-weekly Issue August 8: The sharp losses on Monday decisively sent our emerging markets signal (EEM) into a negative position. But the flip side of this is that some high-quality names are in bargain territory. The portfolio is in a defensive posture and Carl has highlighted some changes outlined in an alert sent to members after the close on Monday. Since coming on board early this year, Carl has emphasized that the increase in tensions between America and China should not be seen as a “trade war” that can be ended with a “trade deal.” Today’s recommendation is Rakuten (RKUNY), a well-diversified conglomerate with tentacles throughout Japan that has plenty of running room for international expansion. It’s rated Buy a Half.
Bi-weekly Update August 1: Carl writes that emerging and international markets are holding their own as U.S. markets hit new highs in the wake of modest interest rate cuts by the Fed. The emerging market index (EEM), a basket of 800 stocks, is trading at just 12 times forward earnings. The key to unlocking this value in a big way is probably a weaker U.S. dollar. Carl has no portfolio changes this week.
Cabot Dividend Investor
Weekly Update August 13: Tom doesn’t believe the current rough patch will last. It could get worse before it gets better but it looks, at this point, as if stocks will resume an upward bias through the remainder of the year. The situation creates an opportunity to buy cyclical stocks, as well as stocks more severely punished by the recent pullback, on the dip. It also reinforces why defensive stocks have been so strong. There is one portfolio change AbbVie (ABBV) moves from hold to buy today.
Monthly Issue July 31: Tom hasn’t found a stock that fits the bill this month. Instead he has highlighted an existing portfolio position as this month’s “target buy.” He believes Brookfield Infrastructure Partners (BIP) is a better investment right now than any possible new additions to the portfolio. It’s still a great buy. There is one change today: He’s selling 1/3 of Community Health Trust (CHCT) ahead of earnings next Tuesday.
Cabot Marijuana Investor
Update August 14: The cannabis sector has led the way down, some of our stocks have attracted buyers in recent weeks and our portfolio is currently 36% in cash. Put it all together and Tim thinks it’s time to begin buying again. (And today’s selloff might get us some nice prices!) In the portfolio, he will now reinvest half our cash—taking our cash level down to 18%. And he will spread that cash equally among five of our current holdings, Alcanna (LQSIF), Aphria (APHA), Aurora (ACB), Cresco Labs (CRLBF) and Curaleaf (CURLF).
Update August 12: Short-term, it’s still time for caution, which means keeping new commitments small, selling (at least partially) stocks that are going the wrong way, and holding some cash, so you’ll have buying power when the trend turns up again. Following last week’s partial profit-taking in Charlotte’s Web, the portfolio is 35% in cash, and now Tim will sell half our position in Cronos Group (CRON), taking a profit, to take the cash level to 37%.
Monthly Issue July 25: The cannabis sector remains in a correction, with both marijuana and CBD stocks trending lower, giving up some of their early-year gains—and perhaps building a bottom here. In the meantime, more and more peripheral companies are getting in on the action, and Tim has been increasing our exposure to these in recent weeks while still holding substantial cash. This week he’s selling one more of the pure-play marijuana companies, HEXO (HEXO) raising the portfolio’s cash level to about 27%.
Wall Street’s Best Investments
Daily Alert August 16: Dollar General Corporation (DG) Schaeffer’s Investment Research
Daily Alert August 15: Linamar Corporation (LNR.TO) Internet Wealth Builder
Daily Alert August 14: The Madison Square Garden Company (MSG) The Stock Spin-off Investing Newsletter
Daily Alert August 13: Inseego Corp. (INSG) Ian Wyatt’s Million Dollar Portfolio
Daily Alert August 12: Zebra Technologies Corporation (ZBRA) Dow Theory Forecasts
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 August 16: Darden Restaurants, Inc. (DRI) Safe Money Report
Daily Alert August 15: Pentair plc (PNR) Sure Dividend Newsletter
Daily Alert August 14: ENGIE SA (ENGIY) Conrad’s Utility Investor
Daily Alert August 13: NiSource Inc. (NI) Argus Weekly Staff Report
Daily Alert August 12: American International Group, Inc. (AIG-PA) Income Securities Investor
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 Undervalued Stocks Advisor
Question: What are the prospects for a turnaround in Marathon Petroleum (MPC) stock?
Crista: As it turns out, I’m gave a presentation on oil refining stocks on August 15 at the annual Cabot Wealth Summit. The oil refining industry has suffered in 2019 due to lower oil prices, which in turn cause lower profit margins for refiners; and also due to constraints on the availability of low-cost crude oil, due to sanctions on Iran and Venezuela, and production limits at OPEC.The catalyst for the turnaround is expected to be IMO 2020 -- new requirements for low-sulphur fuels for the 38,000 tankers and ships that sail the world’s oceans. All of that fuel will be purchased from oil refiners, and the fuel is expected to cost more than current higher-sulphur fuels. Higher fuel prices allow for higher profit margins. At this point in time, the six major U.S. refiners that I study are expected to achieve 2020 profit growth of over 80% each, on average. You can bet that will get the attention of institutional investors.
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
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 Stocks Advisor | Cabot Dividend Investor |
|---|---|---|---|---|---|---|
| AAPL | Hold | Strong Buy | ||||
| ABBV | Buy | |||||
| ACB | See Advisory | |||||
| ADBE | Buy | |||||
| ALK | Buy | Strong Buy | ||||
| ALXN | Hold | |||||
| ANF | Buy | |||||
| APHA | See Advisory | |||||
| AXP | Hold 1/2 | |||||
| BABA | Buy | |||||
| BAND | Buy | |||||
| BHGE | Strong Buy | |||||
| BIP | Buy | Buy | ||||
| BSCJ | Buy 1/2 | |||||
| BSCL | Buy 1/2 | |||||
| BX | Buy | Buy | ||||
| C | Strong Buy | |||||
| CCI | Buy | |||||
| CF | Hold | |||||
| CG | Strong Buy | |||||
| CGC | See Advisory | |||||
| CHCT | Hold 2/3 | |||||
| CIT | Hold | |||||
| CMC | Buy | |||||
| CMG | Buy | |||||
| COUP | Buy | Buy | ||||
| CRLBF | See Advisory | |||||
| CRON | See Advisory | |||||
| CTVA | Strong Buy | |||||
| CURLF | See Advisory | |||||
| CWBHF | See Advisory | |||||
| DBI | Hold | |||||
| DOW | Hold | |||||
| EPD | Buy | Buy | ||||
| ESTC | Sold | |||||
| EVBG | Sell | |||||
| EXAS | Buy | |||||
| GES | Buy | |||||
| HTHT | Hold | |||||
| IBN | Buy 1/2 | |||||
| IFNNY | Buy 1/2 | |||||
| IIPR | See Advisory | |||||
| KSHB | See Advisory | |||||
| LGORF | Hold 1/2 | |||||
| LK | Buy 1/2 | Buy | ||||
| LQSIF | See Advisory | |||||
| LUV | Buy | |||||
| LX | Hold 1/2 | |||||
| MKC | Hold 1/2 | |||||
| MMNFF | See Advisory | |||||
| MMYT | Buy 1/2 | Hold | ||||
| MO | Hold | |||||
| MOS | Hold | |||||
| MPC | Hold | |||||
| MTCH | Hold | |||||
| NEE | Hold | Hold | ||||
| NIO | Sold | |||||
| OGI | See Advisory | |||||
| OKTA | Hold | |||||
| PGX | Buy 1/2 | |||||
| PLNT | Sell | Hold | ||||
| RCL | Hold | |||||
| REMX | Sold | |||||
| RKUNY | Buy 1/2 | |||||
| RUN | Sell | |||||
| SANM | Buy | |||||
| SE | Buy 1/2 | |||||
| SLB | Buy | |||||
| SNAP | Buy | Buy | ||||
| SSO | Hold | |||||
| STAG | Sold | Hold | ||||
| SUPN | Hold | |||||
| SYF | Buy | |||||
| TCEHY | Buy 1/2 | |||||
| TOT | Hold | |||||
| TPB | See Advisory | |||||
| TSLA | Hold | |||||
| TWLO | Sold | Sold | ||||
| UEIC | Strong Buy | |||||
| VFF | See Advisory | |||||
| VLO | Sold | Buy | ||||
| VOYA | Sell | Strong Buy | ||||
| XEL | Hold 2/3 | |||||
| Z | Sold | Sell | ||||
| ZTO | Hold 1/2 |