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Weekly Summary August 23, 2019

Cabot Prime Week Ending August 23, 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, shares his latest thoughts on the state of the market after Friday’s numerous market-moving events. He’s still cautious, holding a good chunk of cash, but is also remaining flexible, as the market has been doing more chopping than trending in recent weeks. The good news is, despite the horrid headlines, there are still many stocks holding up well, so Mike’s continuing to hone his watch list and shares with you some of his top ideas.

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Cabot Growth Investor

Bi-weekly Update August 22: Mike says to remain generally cautious given that our Cabot Tides are still negative, though you shouldn’t be outright defensive given the encouraging action from so many growth stocks. In the Model Portfolio, he’s going to add a half position in Carvana (CVNA) tonight and restore our Buy rating on Blackstone (BX). That will give us a foothold in a potential new leader, but still leave us with around 33% in cash, providing cushion should this correction deepen.

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.

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 23: Mike is sticking with what he’s been writing for the past couple of weeks: Until proven otherwise, the market remains in a correction/consolidation, so he advises a cautious stance, with limited/small new buying and holding some cash, though it’s also best to give your strong, profitable names a chance to continue to hold up. Today’s buy ideas are:PagSeguro (PAGS) and Pinterest (PINS). There are two outright sells today: Sea Ltd. (SE) and Tempur Sealy (TPX)

Weekly Issue August 19: Mike’s overall stance hasn’t changed much—you should remain cautious, limiting new buying and holding some cash, though he’s also fine sticking with your strong, profitable names, giving them a chance to resume their uptrends down the road. The game plan from here is simple: If the market fades again, he’ll remain cautious, but should the recent strength continue, he’ll gradually turn more constructive and put money to work. This week’s list (and the past couple of weeks) are great for getting your ducks in a row should the bulls decisively retake control. Mike’s Top Pick is Appian (APPN), which looks like a new small/mid-cap leader following a massive breakout.

Cabot Undervalued Stocks Advisor

Special Bulletin August 23: A Spanish news outlet, Intereconomia.com, is reporting that biotech company Amgen (AMGN) is in talks to buy Alexion Pharmaceuticals (ALXN) for close to $200 per share. Alexion is featured in Crista’s Buy Low Opportunities Portfolio. It’s possible that ALXN could receive a buyout offer from AMGN in the coming days. If that happens, hold your shares, and Crista will update everybody on how to proceed. (There will be no need to sell quickly.) Strong Buy.

Weekly Update August 20: Today’s and next week’s updates of Cabot Undervalued Stocks Advisor are going to look a bit different. Crista won’t be reviewing all of our portfolio stocks today. Many Wall Street analysts are on vacation, so there will be very little in the way of changes in earnings estimates or new research reports for several weeks. That all changes after Labor Day, when analysts are back to work. They review all the companies within their research coverage, and update earnings estimates and research reports. There are two portfolio changes today: Alexion Pharmaceuticals (ALXN) moves from Hold to Strong Buy and CF Industries (CF) moves from Hold to Strong Buy.

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 20: The market has shown solid support in recent days, which is a good sign buyers are lurking. Many individual stocks are acting resilient, too, which is all to the good. That said, nothing has really changed when looking at big picture—the intermediate-term trend is still not positive, so Tim continues to advise stepping carefully, selling your losers and laggards and looking for undervalued and/or resilient actors that should benefit during the next uptrend. He has two portfolio changes today: Luckin Coffee (LK) moves from Buy to Hold and Planet Fitness (PLNT) from Hold to Sell.

Cabot Global Stocks Explorer

Bi-weekly Issue August 22: Our emerging market timer (EEM) is still negative but looking a bit better, trading just below its 20-day moving average. The earnings numbers coming through from emerging market and international companies are largely positive and contrast sharply with the macro concerns holding back markets. Carl’s recommendation today is DBS Bank (DBSDY), one of the largest banks in Southeast Asia, with a presence in 18 markets. It’s rated Buy a Half. There is one portfolio change today: ProShares Short MSCI Emerging Markets (EUM) Moves from Buy to Hold.

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 21: Tom says the market seems to be rebounding and stabilizing after a tumultuous couple of weeks. The escalation of trade tensions, a sputtering global economy and talk of the next recession spooked investors. But as fear wanes investors realize that money has no place else to go but stocks to earn a decent return and they come back into the market. There are no portfolio changes 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).

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 23: ETFMG Prime Cyber Security ETF (HACK) Positive Patterns
Daily Alert August 22: The Toro Company (TTC) Sure Dividend
Daily Alert August 21: Fair Isaac Corporation (FICO) Pivotal Point
Daily Alert August 20: Biogen Inc. (BIIB) The Turnaround Letter
Daily Alert August 19: Fidelity Balanced Fund (FBALX) Moneyletter

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 23: Fastenal Company (FAST) 2 for 1 Stock Split Newsletter
Daily Alert August 22: Peabody Energy Corporation (BTU) Dividend Confidential
Daily Alert August 21: Siemens Aktiengesellschaft (SIEGY) The Prudent Speculator
Daily Alert August 20: Sell: Axis Capital Holdings Limited (AXS) Cabot Undervalued Stocks Advisor
Daily Alert August 20: Synchrony Financial (SYF) Cabot Undervalued Stocks Advisor
Daily Alert August 19: The Allstate Corporation (ALL) AlphaProfit Sector Investors’ Newsletter

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 Top Ten Trader

Question: I’ve noticed in Top Ten Trader that some stocks that have had big runs, you have looser stops on, despite some recent hiccups--SolarEdge (SEDG) is an example today. Given the CEO news and stock reaction, should it be sold or should the stop be tightened?

Mike: It’s a good question, and it’s all about how you want to play it. I tend to (a) try to take partial profits on the way up, but (b) ride the rest for hopefully a longer-term upmove. Thus, with SEDG, if you haven’t sold any and have a good profit, you could take some off, but otherwise, we’d just give it a chance -- these news events can cause short-term reactions that aren’t fun, but the trends are still clearly up. We have a stop in the low 70s at this point -- maybe we nudge it up a point or two but until the evidence changes we’re still giving SEDG and most other winners some room to breathe.

Premium Reports

Cabot Prime Quarterly Report

Special Report

July, 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 Report

May 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 Report

Updated 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 Report

December 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.

StockCabot Global Stocks ExplorerCabot Growth InvestorCabot Marijuana InvestorCabot Stock of the WeekCabot Undervalued Stocks AdvisorCabot Dividend Investor
AAPLHoldStrong Buy
ABBVBuy
ACBSee Advisory
ADBEBuy
ALKBuyStrong Buy
ALXN Strong Buy
ANFBuy
APHASee Advisory
AXPHold 1/2
BABABuy
BANDBuy
BHGEStrong Buy
BIP BuyBuy
BSCJ Buy 1/2
BSCL Buy 1/2
BXBuyBuy
CBuyStrong Buy
CCIBuy
CFStrong Buy
CGStrong Buy
CGCSee Advisory
CHCTHold 2/3
CITHold
CMCBuy
CMGBuy
COUPHoldBuy
CRLBFSee Advisory
CRONSee Advisory
CTVAStrong Buy
CURLFSee Advisory
CVNABuy 1/2
CWBHFSee Advisory
DBIHold
DBSDYBuy 1/2
DOWHold
EPDBuyBuy
EUMHold
EVBGSold
EXASBuy
GESBuy
HTHTHold
IBNBuy 1/2
IFNNYBuy 1/2
IIPRSee Advisory
KSHBSee Advisory
LGORFHold 1/2
LKBuy 1/2Hold
LQSIFSee Advisory
LUVBuy
LXHold
MKC Hold 1/2
MMNFFSee Advisory
MMYTBuy 1/2Hold
MOHold
MOSHold
MPCHold
MTCHHold
NEEHoldHold
OGISee Advisory
OKTAHold
PGX Buy 1/2
PLNTSoldSell
RCLHold
RKUNYBuy 1/2
RUNSold
SANMBuy
SEBuy 1/2
SLBBuy
SNAPBuyBuy
SSOHold
STAGHold
SUPNHold
SYFBuy
TCEHYBuy 1/2
TOTHold
TPBSee Advisory
TSLAHold
UEICStrong Buy
VFFSee Advisory
VLOBuy
VOYASoldStrong Buy
XEL Hold 2/3
ZSold
ZTOHold 1/2