Please ensure Javascript is enabled for purposes of website accessibility
Cabot Prime Plus Logo
Cabot Prime Plus

Weekly Summary August 17, 2018

Cabot Prime Week Ending August 17, 2018

Cabot Weekly Review (Video)

In this week’s stock market video, Mike Cintolo and Paul Goodwin report from the 6th annual Cabot Wealth Summit. Mike tells us his observations on the market and names two fast-growing stocks he’s watching closely right now, one of which is the most recent IPO in a new industry. Paul mentions how emerging markets did this week and adds two of the emerging markets stocks he’s watching right now.

Advisory Services

Cabot Growth Investor

Bi-weekly Issue August 15: Last week, Mike added one new stock and averaged up in another, and in today’s issue, he’s adding, DexCom (DXCM), bringing the cash position to around 27%. From here, he’ll be picking his spots carefully and looking for signs the buying pressures are broadening out. He also writes about an intriguing sentiment indicator that’s saying investors are hesitant (probably a good sign) and then spends some time discussing the ins and outs of when it’s appropriate to buy back a stock you recently sold.

Bi-weekly Update August 8: The market (at least for growth stocks) remains tricky and relatively narrow, which is a good reason to go slow, pick your spots and, of course, limit losses if you own a stock that gets nailed. Tonight, Mike is adding Neurocrine Biosciences (NBIX) and buying a bit more of Grubhub (GRUB), leaving us with around 38% cash.

Other Stocks of Interest August 3: Follow ups to stocks featured February 28, 2018 (issue 1388) to August 1, 2018 (issue 1399). Since they’re not in the Model Portfolio, you don’t see them followed on a regular basis. However, we are monitoring these stocks, and this listing gives their current momentum status.

Cabot Top Ten Trader

Movers & Shakers Weekly Update August 17: Mike is knee deep in our annual Cabot Wealth Summit. So today’s Movers & Shakers will be an overview of the market, with updated stops and sells. There are four sells this week: Canada Goose (GOOS), Energen (EGN) – bought out by Diamondback Energy (FANG) this week, Macy’s (M) and Zogenix (ZGNX).

Weekly Issue August 13: For the second week in a row, we have a growth-oriented list, a positive sign after the late-July selloff. Mike’s Top Pick is Roku (ROKU), a very volatile name with a very big story. Keep it small, try to buy on dips and expect plenty of wiggles.

Cabot Undervalued Stocks Advisor

Weekly Update August 14: Crista gives us her insight regarding stock market volatility. She has one portfolio change today: PulteGroup (PHM) moves from Strong Buy to Sell.

Monthly Issue August 7: Crista writes that if you’re not in the habit of listening to quarterly earnings conference calls, she suggests that you pick one of your stocks, and visit the company’s investor relations page. You’ll likely find their earnings press release, a webcast of the management conference call (complete with a Q&A between analysts and management), and sometimes there’s also a graphic presentation of interesting data. These conference calls are highly informative, especially when you own small-cap stocks that don’t have very much news or research coverage. Today, Royal Caribbean Cruises (RCL) joins the Buy Low Opportunities Portfolio.

Cabot Stock of the Week

Weekly Issue August 14: Today’s recommendation is General Motors (GM), a very well known company whose stock yields 4.2%. The stock was originally recommended by Chloe Lutts Jensen three years ago for Cabot Dividend Investor, and her readers are now looking at a total return (capital appreciation plus dividends) of 22%. Tim has five rating changes today: Axon Enterprise (AAXN) moves from Buy to Hold, iQIYI (IQ) from Hold to Sell, McGrath RentCorp (MGRC) from Hold to Sell, PulteGroup (PHM) from Hold to Sell and Supernus (SUPN) from Buy to Sell.

Cabot Emerging Markets Investor

Bi-weekly Update August 15: Our Buy signal from the Cabot Emerging Markets Timer has turned decidedly negative and most of our stocks are under selling pressure. Paul has four moves in the portfolio this week, as the negative implications of the trade war continue to vex investors. Today he is selling Autohome (ATHM) and the half position in ZTO Express (ZTO) and putting the half positions in iQIYI (IQ) and JD.com (JD) on Hold.

Bi-weekly Issue August 9: Our Emerging Markets Timer is technically still on the Buy signal from two weeks ago, though the next few trading days will be crucial. Paul says to take things on a stock-by-stock basis, dumping names that crack but keep your eyes open for indications of new leadership should the EM Timer push higher from here. This issue’s featured stock is Huya Inc. (HUYA), a Chinese esports company, and the top live streaming platform for esports in China, with the largest number of monthly average users (86.7 million), the most time spent on its mobile app per user and the most active broadcasters. Paul doesn’t advise taking a position in HUYA two days before earnings. The pressure on Chinese issues is just too strong right now. But this is an ideal candidate for our watch list, one with a strong position in a large, growing industry with enormous potential.

Cabot Benjamin Graham Value Investor

Final Update August 9: In recent months, Crista has helped investors unwind some of their Benjamin Graham Value stocks, while keeping those with sound fundamentals and good earnings growth prospects. She’s talked about how to assess stocks based on earnings growth, value (as represented by price/earnings ratio and debt), and price chart activity. Today she’s wrapping up this stock coverage with some basic guidelines for how to handle the remaining portfolio stocks.

Cabot Dividend Investor

Weekly Update August 15: Chloe says she continues to see an unusual amount of rotation in the market, with crosscurrents sending sectors up one day and down the next. However, our portfolio looks healthy. The rotation in consumer staples continues, and recent addition McCormick & Co. (MKC) hit a new all-time high this week, as did UnitedHealth Group (UNH). Today she is moving ACME Group (CME) back to Buy and moving Occidental Petroleum (OXY) to Hold.

Monthly Issue July 25: This month’s featured buy, McCormick & Company (MKC) was founded in 1889 and has grown to become one of the largest spice and flavoring companies in the world. In addition to their eponymous line of spices, McCormick makes condiments, stocks, oils, recipe mixes, salad dressings, baking ingredients and more. Consumer products make up about 62% of sales. Chloe is adding MKC to the Safe Income tier. Also, she is selling half of BB&T (BBT) today, due to poor technical performance and a lack of support. There are no other changes, but Chloe includes details on plenty of earnings reports.

Cabot’s 10 Best Marijuana Stocks

Update August 13: This is an unscheduled interim update to let you know that the next full issue of Cabot’s 10 Best Marijuana Stocks will be published Thursday, August 30. Tim gives you brief updates on some of the stocks in the portfolio and highlights CV Sciences (CVSI), formerly known as CannaVest. The company is the #1 supplier of CBD in the U.S. and the stock has been hitting new highs all month. Last but not least, it gives Tim great pleasure to inform you that henceforth, Cabot’s 10 Best Marijuana Stocks will be published monthly.

Summer Issue May 24: With this issue, Tim is replacing two of the portfolio stocks—Emerald Health (EMHTF) and CannaRoyalty (CNNRF)—with new recommendations—Hydropothecary (HYYDF) and iAnthus Capital (ITHUF).

Wall Street’s Best Investments

Daily Alert August 17: The Progressive Corporation (PGR) from Dow Theory Forecasts
Daily Alert August 16: Consumer Discret Sel Sect SPDR ETF (XLY) from The Chartist Mutual Fund/ETF Letter
Daily Alert August 15: Fidelity International Small Cap (FISMX) from Moneyletter
Daily Alert August 15: Fidelity Worldwide (FWWFX) from Moneyletter

Monthly Issue August 14: Nancy’s Spotlight Stock is Carvana (CVNA), a company that is taking the market of used cars to places that no one expected. The growth of the company is tremendous! In her Feature article, she report on the company’s stunning second quarter, as well as the catalysts keeping this market growing at significant rates.
Daily Alert August 14: TriNet Group Inc (TNET) from Validea Hot List Newsletter
Daily Alert August 13: W&T Offshore, Inc. (WTI) from Schaeffer’s Investment Research

Wall Streets Best Dividend Stocks

Daily Alert August 17: Ingles Markets, Incorporated (IMKTA) from The National Investor
Daily Alert August 16: Fidelity Floating Rate High Income (FFRHX) from Fidelity Monitor & Insight
Daily Alert August 15: Cohen & Steers REIT & Preferred Income (RNP) from Bob Carlson’s Retirement Watch
Daily Alert August 14: NorthWestern Corporation (NWE) from 2 for 1 Stock Split Newsletter
Daily Alert August 13: Synchrony Financial (SYF) from The Prudent Speculator

Monthly Issue August 8: This month’s Spotlight Stock is Sanofi (SNY), a global pharmaceutical leader that is in turnaround mode. Nancy delves more into the drug sector in her Feature article, which focuses on the tremendous growth in the industry, particularly in emerging markets.

Premium Reports

10 Monthly Dividend Stocks to Buy for Year-Round Income

Special Report

August 9: Dividend-paying stocks are favorites of retirees and other investors who live off income from their investing portfolios. Like bonds, dividend-paying stocks provide a steady income stream that you can spend without eroding your principal. Unlike bonds, many stocks increase their dividends over time, so your income stream can actually rise each year. This report includes profiles of Chloe’s 10 favorite monthly dividend payers, each of which offers a unique mix of yield, capital appreciation and safety. If you’re looking for monthly income, you’re sure to find at least one that’s right for you.

Cabot’s 10 Best REITs to Buy Now

Special Report

July 18: Nancy has always loved real estate; in fact, she owns a small real estate franchise. But she loves the idea of a diversified real estate portfolio and REITs fit the bill. They have been excellent investments for her subscribers over the years as they offer the perfect opportunity to buy real estate with very little capital. And she believes the boom cycle in real estate is far from over. With that in mind, she set out to find the 10 Best REITs for today’s economy and market. She looked at growth, valuation, dividend yield, and fundamental and technical strength.

Cabot’s 10 Best Buy and Hold Stocks for 2018

Update July 13, 2018: Today, Crista updates investors on portfolio news and performance of the stocks in Cabot’s 10 Best Buy and Hold Stocks for 2018. In terms of individual stock performance, Supernus Pharmaceuticals (SUPN) is up 34.6% YTD through July 12, while Universal Electronics (UEIC) is down 28.0% YTD. The performance of the remaining stocks ranges between +19.5% and -18.2%.

Update June 12, 2018: On June 11, 2018, USG Corporation (USG) announced that its Board of Directors agreed for the company to be acquired by Gebr. Knauf KG for $44 per share in cash. Crista suggestion is that investors sell USG now, rather than wait for the remaining $0.96 per share to accrue from the special dividend and the remaining potential capital appreciation.

Cabot’s 10 Best Takeover Stocks

Special Report

Updated August 10: There are a variety of reasons that a corporation might want to purchase another company. They might want to acquire a company’s patents or products to enhance their product lines; access the company’s distribution network and sales relationships; or simply aim to increase their earnings growth rate by purchasing a very profitable company within a related industry. After all, stronger earnings growth leads to better share price appreciation—a topic that boards of directors care very much about. Crista’s investment strategy, which combines both growth and value criteria, inadvertently identifies potential takeover targets. That’s because big companies and she often seek the same thing: stock investments in undervalued, financially thriving companies that can deliver profits to investors. The ten companies are all undervalued growth stocks. What’s more, they’re small enough that big competitors and peers within their sectors could easily finance their acquisitions, often through current cash flow.

Cabot’s 10 Best Covered Calls on Dividend Stocks

Special Report April 12: With interest rates just coming off of historically low levels, income investors have been desperately searching for alternative sources of yield. Dividend stocks are the obvious answer. But there’s an even better way to create yield: by executing a covered call strategy on stocks that pay dividends.

Cabot’s 10 Best Small-Cap Cloud Computing Stocks to Buy Now

Special Report

Updated August 10: If you’re a growth investor, you need to own cloud software stocks. It’s just that simple. Cloud computing is changing the world. It’s powering massive growth in companies across sectors, empowering digital transformations, enabling new generations of connected technologies and changing how people live their lives. Tyler Laundon lays out the landscape and names his 10 best small-cap cloud computing stocks.

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.

Ask the Experts

Cabot Dividend Investor

Question: Do you have a target price for GM to reach for it to become a buy?

Chloe: Your timing is interesting. Tim just selected GM for Stock of the Week yesterday based on valuation, so I was taking a closer look at it today and considering putting it back on Buy. I haven’t yet but if support at 35 holds and it bounces a little next week, I might do it in the next update. Valuation isn’t one of my primary tools, but as you’ve probably noticed, GM is close to the bottom of its trading range and just above a strong support level (around 35). The stock could stay in its trading range for a while, but if you like its long-term prospects, this looks like a decent buy point.

Cabot’s 10 Best Marijuana Stocks

Question: In your marijuana update, you refer to the ongoing consolidation in the sector. According to my dictionary, to Consolidate is: " to make solid or firm; solidify; strengthen”
Since July 13, (roughly the past 30 days) ACBFF has dropped 38%, APHQF lost 25%, KSHB lost 22%, CRON lost 20% and CGC lost 15%. And the volume today for instance was 2 times daily average and each of the big 3 were down over 8%. Sure does not seem like a “consolidation”, but more like an unloading, decline, or definite weakening as the “bottoming” continues. If this sector has real long term potential why such volume in selling? The closer we get to October 17 the more the selling seems to be increasing. What do these sellers know that we don’t? I am diversified in the sector, also holding TPB, OGRMF, ITHUF and IIPR ; they seem to be holding up better than the big growers, but they are also weak lately and wonder if they will catch this bottoming fever.

Tim: Thanks for writing. Perhaps I need a better word; I’m open to suggestions. In any case, here’s the long-term pattern of the index I watch, as of yesterday’s close. The early April base is holding, but just barely, which I see as a solidifying of the “preserved” gain of the previous advance. But as you noted, the popular growers have been hardest hit—though this morning’s news about Constellation Brand’s (STZ) increased investment in Canopy (CGC) this morning improves the situation substantially. Maybe yesterday’s washout was the bottom.

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.