Cabot Prime Week Ending August 21, 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, Tyler Laundon discusses the speed of the market’s record-setting recovery and poses the question—will market recoveries happen more quickly in the future? He highlights technology as one of the reasons for the quick rebound and discusses six software stocks that could be of interest to growth-oriented investors.
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Advisory Services
Cabot Growth Investor
Bi-weekly Update August 18: Remain a bit cautious. The overall market looks fine, and this week, we’re happy to see some growth stocks find their footing. But overall, our opinion hasn’t changed much from last week’s issue—many growth stocks still look tired after big runs, and while we wouldn’t mind putting a little of our 36% cash position back to work, we’ll stay patient and look for more strength to develop. Mike has no changes tonight.
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.
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 21: When examining the current situation, it’s not awful, but we continue to see rougher, choppier sledding for most names and relatively few stocks letting loose on the upside. That doesn’t mean you should be in your bunker, but picking your buy points carefully, possibly starting with smaller positions, while honoring stops (not too tight!) on winners. We’ll likely leave our Market Monitor at a level 6 in next week’s issue. Mike’s suggested buys today are: Alibaba (BABA), Trade Desk (TTD), Qorvo (QRVO) and Qualcomm (QCOM). There are four sells today: Crispr Therapeutics (CRSP), DR Horton (DHI), Lululemon (LULU) and Pinduoduo (PDD).
Weekly Issue August 17: The market continues to look fine, with both primary (trend) and secondary (new lows, etc.) evidence boding well—not to mention many of the longer-term signposts like blastoff indicators telling us this is a bull market. But for leading growth stocks, it’s tricky out there; while there haven’t been a rash of breakdowns, there’s plenty of iffy action, with low volume rallies, selling on strength and relatively few stocks hitting new highs. We certainly don’t think you should be holed up in your bunker, and we’re staying flexible, but given the prolonged run and the recent sloppiness, we think moving closer to shore makes sense, especially if you own some sluggish performers. Interestingly, while the leaders of the April-July move rest, we’re seeing other names perk up. This week’s list has plenty of both, and Mike’s Top Pick is Quanta Services (PWR), which has decisively broken out on the upside.
Cabot Undervalued Stocks Advisor
Weekly Update August 19: Second quarter earnings season is winding down. It was quite a quarter! We’re impressed that so many companies have aggressively reduced their operating costs in the recently completed quarter. How can these companies (with GM being a great example) operate at breakeven profitability when their sales are down 40% or more? Couldn’t they have slashed these costs in normal times? Bruce has one portfolio change today: NVIDIA (NVDA) – moves from Hold to Retired.
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 17: The market remains in good health and trending higher, though there is some rotation going on from growth stocks to cyclicals—not unusual for this stage of a bull market.This week’s recommendation, Taiwan Semiconductor (TSM), is a big cap global technology stock benefitting from both the spread of communications technology and the company’s dominant position in the global supply chain. Tim has three portfolio changes today: Brookfield Infrastructure Partners (BIP) moves to Sell and Chegg (CHGG) and Trulieve (TCNNF) both move from Buy to Hold.
Cabot Global Stocks Explorer
Bi-weekly Update August 20: Carl’s presentation at the Cabot Wealth Summit yesterday was focused on the financial technology (fintech) sector and stocks with Singapore-based Sea Limited (SE) leading this group.Sea Limited, the best performing large cap stock in the world over the past 18 months, reported $1.29 billion in revenue during the second quarter, up 93.4% year-on-year versus $665.4 in the same quarter last year. This stock is firing on all cylinders. Carl has two portfolio changes today: DBS Bank (DBSDY) moves from Hold a Half to Sell and Gilead Sciences (GILD) moves from Buy a Half to Hold a Half.
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
Weekly Update August 19: The market may have gotten ahead of itself. And there are still risks out there. There could be a second wave of the virus. As well, there is uncertainty regarding the election and the possibility of a disputed outcome. But the market seems confident that a vaccine is on the way. In the absence of a major disruption, the market appears unlikely to experience a meaningful decline. The news is good. Enjoy it. 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 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 21: Today we’re letting go of SciPlay (SCPL). There’s nothing wrong with the company or the story. But there’s nothing particularly exciting about it right now either. Tyler will keep SciPlay on his watch list and he’ll come back to it if and when it looks more compelling. For now, it’s moved to sell. 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
August 2020 Expiration August 20: The spectacular results from the Cabot Profit Booster portfolio continued in August as we will likely close four positions tomorrow for yields as high as 17%. As Jacob has said in the past, at some point we will take a loss again (he promises), but until then we will keep racking up the profits. He gives his breakdown on the four positions expiring tomorrow.
Weekly Issue August 18: The Stock – Builders FirstSource (BLDR) BDLR was in a great-looking uptrend for basically all of last year and early this year before the crash wiped away those gains. Like many cyclical names, shares quickly popped back, but after reaching nearly 25 in early June, the stock took a breather for a bit (seven weeks), found support near its 50-day line and has come to life of late, powering to new highs. Stop – 24.5. The Covered Call Trade: Buy Builders FirstSource (BLDR) Stock at 30, Sell to Open September 30 Strike Calls (exp.9/18) for $1.50, or a Net Price of 28.5 or less.
Cabot Income Advisor
Weekly Update August 19: It has been an amazing market. The S&P 500 just made a new all time high. It has rallied a staggering 55% since the lows in less than five months. The market is forward looking and anticipates a rapidly growing economy, a friendly Fed and record low interest rates and a vaccine in the months ahead. Tom has two portfolio changes today: Innovative Industrial Properties (IIPR) and Qualcomm inc. (QCOM) both move from Buy to Hold.
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 21: MetLife, Inc. (MET-PF) Income Securities Investor
Daily Alert August 20: Sell: Cigna Corporation (CI) Positive Patterns
Daily Alert August 20: Erie Indemnity Company (ERIE) Positive Patterns
Daily Alert August 19: Celldex Therapeutics, Inc. (CLDX) The Medical Technology Stock Letter
Daily Alert August 18: Baron Partners Fund Retail Shares (BPTRX) Forecasts & Strategies
Daily Alert August 17: Qualcomm Incorporated (QCOM) Cabot Stock of the Week
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: On a high level, what are your criteria for selecting the weekly Top Ten picks?
Mike: I’d just say we screen for a mix of short-term and long-term relative performance then go thru 80-120 charts and look for either fresh breakouts, or early-stage pullbacks in most cases, or situations where a couple of down days would represent a decent entry type of thing. I also scan the numbers and earnings estimates to see what’s what, while taking a look at the sector in the context of what’s working and what’s not etc.
Question: Re: GRWG Hi Mike. Your thoughts on this monster pulling back anytime soon. Know it’s not in top ten but believe Tim has it in marijuana letter. In at 8 and out at 21 today so I did pretty good but wasn’t sure it can keep running. Looking to get in again on pullback. Thanks V. P. S. Are you a Tampa buccaneer fan yet? Haha.
Mike: Well, first – nice profit. I like the chart but am not close to the story. To me, though, I would guess the first pullback of a few days would be a nice early-stage pullback entry. Whether that happens or not is anyone’s guess, but that’s what I’d be looking for. Maybe 2-3 points but also time (can it tighten up a bit for a few days, etc.). I will always love Brady … and the Pats.
Cabot Marijuana Investor
Question: I’m currently a customer of Cabot. I came across this stock - GRWG. I wanted to understand how good is this stock and get your thoughts on it. I initially contacted Tyler Laundon, he advised me to check with you as this is a growth stock.
Tim: Thanks for asking. GRWG is one of the stocks in Cabot Marijuana Investor. With national leadership in the business of suppling organic and hydroponic growing tools to commercial growers of marijuana (and more), it has great growth story. I’ve owned it since last December. Bought at. 4.33. so have a very nice profit now. I did talk at length about this stock just yesterday at the (virtual) Cabot Investing Summit. It’s been extremely strong over the past week because of a super Q2 report that was boosted by increased store traffic thanks to COVID, and the realization by investors that this stock has great long-term prospects. If you buy now, you need to use firm loss controls; the stock has the potential for a significant pullback (though the volume on this advance has been very impressive). Long-term prospects are very bright, so I recommend that you look for a decent entry point.
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 | Sold | Buy | ||||
| APHA | See Advisory | |||||
| ARE | Hold | |||||
| AVGO | Hold | |||||
| BABA | Hold | |||||
| BE | Buy | |||||
| BGS | Buy | Buy | ||||
| BIG | Buy | |||||
| BIP | Sell | Buy 2/3 | ||||
| BMY | Strong Buy | |||||
| BSCL | Buy 1/2 | |||||
| BUG | Hold 1/2 | Buy | ||||
| CCI | Hold 1/2 | |||||
| CGC | See Advisory | |||||
| CHGG | Hold | Hold | ||||
| COLM | Hold | Buy | ||||
| CRLBF | See Advisory | |||||
| CRON | See Advisory | |||||
| CURLF | See Advisory | |||||
| DBSDY | Sell | |||||
| DOCU | Hold | |||||
| DOW | Hold | |||||
| DXCM | Hold | |||||
| EPD | Hold | |||||
| EQH | Strong Buy | |||||
| GFL | Buy | |||||
| GILD | Hold 1/2 | |||||
| GM | Strong Buy | |||||
| GRWG | See Advisory | |||||
| GTBIF | See Advisory | |||||
| GTLS | Buy | |||||
| 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 | Hold | ||||
| NVCR | Buy | |||||
| NVDA | Hold | Retired | ||||
| 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 | Hold | ||||
| TOT | Hold | |||||
| TPB | See Advisory | |||||
| TSLA | Hold | |||||
| TSM | Buy 1/2 | Buy | ||||
| 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 |