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Weekly Summary August 9, 2019

Cabot Prime Week Ending August 9, 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, dives into the market’s crazy action and lets you know just what he’s keying on. The good news is that he’s seeing a ton of resilient names, including a bunch of recent earnings winners, and he gives you his thoughts on these names that want to go higher whenever the bulls retake control.

CABOT EVENTS:

Cabot Wealth Summit 2019

7th Annual Conference | Wed-Fri, Aug 14-16 | Salem, Mass.

We’ve added a beginning investors workshop to help you understand the terminology and concepts of investing so you will be better prepared to make more money.The cost of the workshop is $197 but as a Cabot Prime member, once you register for the summit, you can attend the additional workshop for FREE.

Learn More and Reserve Your Place

FREE WEBINAR: Thursday, September 12.

High-Yield Dividend Stocks to Boost Your Income Now

By Tom Hutchinson, Chief Analyst of Cabot Dividend Investor | Space is limited so sign up now for FREE.

Advisory Services

Cabot Growth Investor

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%.

Special Bulletin August 8: This message concerns our half position in Zillow (Z), which was acting fairly well until earnings last night. While the numbers were solid, management’s commentary after hours was not, and Z is plunging this morning below support. Mike advises cutting the loss in Zillow (Z) today and holding the cash.

Special Bulletin August 5: Today, the Dow imploded 767 points while the Nasdaq plunged 278 points. In the Model Portfolio, Mike has a few changes tonight. First, he’s going to sell our remaining shares of Twilio (TWLO), which has completely broken down. Second, he’s going to sell our half position in Elastic (ESTC), whose breakout has failed and is now showing us a loss. And third, he’s going to sell the add-on position we recently bought in ProShares S&P 500 Fund (SSO).

Bi-weekly Issue August 1: Remain bullish, but keep your antennae up. In the Model Portfolio, Mike averaged up in Snap (SNAP) and bought a half-sized position in Elastic (ESTC) last week, though earlier this week, he booked partial profits in Okta (OKTA). All combined, those moves leave us stakes in 10 stocks and a cash position of 12%. There are no portfolio changes tonight.

Other Stocks of Interest July 24: Follow ups to stocks featured February 28, 2019 (issue 1414) to July 18, 2019 (issue 1424). 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 9: Mike says the key is to stay flexible. If the trend turns up, he’ll certainly turn more constructive, but he needs to see it happen before changing our stance. His buy ideas this week are: Carvana (CVNA) and Meritage Homes (MTH). Mike has six sell ideas this week.

Weekly Issue August 5: Mike says at this point, your focus should be more on preserving capital (honoring stops, holding cash, cutting back on new buying) and waiting for bottoms to be formed. Our Market Monitor is back down to a level 4. His Top Pick is Inphi (IPHI), a high-potential stock that’s holding up well after earnings.

Cabot Undervalued Stocks Advisor

Special Bulletin August 9: Crista updates us with earnings reports from The Mosaic Company (MOS), Supernus Pharmaceuticals (SUPN), Universal Electronics (UEIC) and Voya Financial (VOYA). And Supernus Pharmaceuticals 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.

Weekly Update July 30: Crista continues to believe that strength in the economy should prohibit the Fed from lowering the fed funds rate. She also gives her take on CEO of L Brands (LB), Leslie Wexner and his long-term ties to the recently-arrested Jeffrey Epstein. There are two portfolio changes today: Carlyle Group (CG) moves from Strong Buy to Hold and Synchrony Financial (SYF) moves from Strong Buy to Hold.

Cabot Stock of the Week

Weekly Issue August 6: The broad market has now begun a well-needed correction, which is likely to go on at least a little longer, and our job is to adjust our portfolio, on a continuing basis, so that we are always invested in a diversified portfolio of stocks that fit your investment needs. As for the new recommendation, Tim is leaning conservative once again, Enterprise Product Partners (EPD), a low-risk petroleum infrastructure stock that has great recurring business and is decently valued as well. This week he’s selling three stocks: STAG Industrial (STAG) moves from Hold to Sell, Twilio (TWLO) from Hold to Sell and Valero (VLO) from Buy to Sell. And, MakeMyTrip (MMYT) moves from Buy to Hold.

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.

Special Bulletin August 5: Our emerging markets signal turned negative as EEM lost 3.67% today. China has responded to the Trump Administration’s latest announcement of plans to soon impose 10% tariffs on a wider list of Chinese exports by allowing its currency to fall through a key psychological barrier. While our portfolio is already in a defensive posture with a 50% cash position, Carl thinks it is prudent to take the following changes to the portfolio: Add a 10% position in EUM which moves opposite the MSCI Emerging Market index (EEM), Sell positions in NIO (NIO) and Van Eck Rare Earths/Strategic Metals (REMX) and move ZTO Express (ZTO), LexinFintech (LX) and Largo Resources (LGORF) from Buy a Half to Hold 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 7: Tom says that the selloff has not gotten to unhealthy levels, so far. After being up 20% for the year, a market pullback can be healthy. It’s also true that even after digesting the distasteful trade escalation, investors will realize that money still has no place else to go but stocks to earn a decent return, especially with interest rates falling. He’s not hitting the panic button, yet. But it is certainly a situation he will closely monitor. And he will most certainly be in touch if market forces change my opinion. 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 5: The broad market is selling off, partially because of fundamental reasons like tariffs, but also because after rising 20% in seven months, it’s normal to have a correction. How long it will last and how far it will go, Tim doesn’t know. But his game plan remains unchanged, and he thinks that generally we are well positioned today, with the portfolio 31% in cash. He updates two stocks: Aphria (APHA), which reported earnings last week, and Charlotte’s Web (CWBHF), which has been unusually strong—and in which he will now take some quick profits.

Update August 1: Tim’s long-term strategy remains the same; to become owners of the companies that will lead this industry five and 10 years down the road. But to do that, you’ve got to survive the short-term, and sometimes that means biting the bullet and selling—so that you can come back and fight another day when market conditions are more supportive. In his portfolio today, that means selling Elixinol (ELLXF), where both the fundamentals and the chart have worsened. That will take our cash position to roughly 32%.

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 9: Fidelity Growth Strategies Fund (FDEGX) Fidelity Monitor & Insight
Daily Alert August 8: Zendesk, Inc. (ZEN) Canaccord Genuity Research

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.

Daily Alert August 7: AAR Corp. (AIR) Upside
Daily Alert August 7: Sell: Comfort Systems USA, Inc. (FIX) Upside
Daily Alert August 7: Sell: Harsco Corporation (HSC) Upside
Daily Alert August 6: Akamai Technologies, Inc. (AKAM) The Buyback Letter
Daily Alert August 5: Baron Growth Fund Retail Shares (BGRFX) Forecasts & Strategies

Wall Streets Best Dividend Stocks

Daily Alert August 9: EnLink Midstream, LLC (ENLC) The Dividend Hunter
Daily Alert August 8: Norfolk Southern Corporation (NSC) Directinvesting.com
Daily Alert August 7: Gannett Co. Inc., (GCI) Dividend Advisor
Daily Alert August 6: Sell: The Timken Company (TKR) Upside
Daily Alert August 6: Sell 1/3: Community Health Trust Incorporated (CHCT) Cabot Dividend Investor
Daily Alert August 6: Nokia Corporation (NOK) The Lancz Letter
Daily Alert August 5: Molson Coors Brewing Company (TAP) The Turnaround Letter

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 Dividend Investor

Question: In January you mentioned Cheniere Energy Partners (CQP) in passing in one of your broadcast general emails. I investigated and ended up buying it, largely for the yield, but also for capital appreciation. I know it isn’t in your portfolio. I still hold the stock and have no plan to sell, but I was wondering what your thoughts are on the stock now. Thanks.

Tom: I love it. I would have it in the portfolio but I’m waiting for a better entry point. NGL exports are growing like crazy and CQP was the first to the party. It still has more facilities coming on line and as long as revenues keep growing the stock should be a winner.

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
ABBVHold
ACBSee Advisory
ADBEBuy
ALKBuyStrong Buy
ALXN Hold
ANFBuy
APHASee Advisory
AXPHold 1/2
BABABuy
BHGEStrong Buy
BIP BuyBuy
BSCJ Buy 1/2
BSCL Buy 1/2
BXBuyBuy
CStrong Buy
CCIBuy
CFHold
CGStrong Buy
CGCSee Advisory
CHCTHold 2/3
CITSoldHold
CMCBuy
CMGBuy
COUPBuyBuy
CRLBFSee Advisory
CRONSee Advisory
CURLFSee Advisory
CVTAHold
CWBHFSee Advisory
DBIHold
DOWHold
EPDBuyBuy
ESTCSell
EVBGHold
EXASHold
GESStrong Buy
HTHTHold
IBNBuy 1/2
IFNNYBuy 1/2
IIPRSee Advisory
KSHBSee Advisory
LGORFHold 1/2
LKBuy 1/2Buy
LQSIFSee Advisory
LUVBuy
LXHold 1/2
MKC Hold 1/2
MMNFFSee Advisory
MMYTBuy 1/2Hold
MOHold
MOSBuy
MPCBuy
MTCHHold
NEEHoldHold
NIOSell
OGISee Advisory
OKTAHold
PGX Buy 1/2
PLNTHold 1/2Hold
RCLHold
REMXSell
RKUNYBuy 1/2
RUNHold
SANMBuy
SEBuy 1/2
SLBBuy
SNAPBuyBuy
SSOSell 1/3
STAGSellHold
SUPNHold
SYFBuy
TCEHYBuy 1/2
TOTHold
TPBSee Advisory
TSLAHold
TWLOSellSell
UEICStrong Buy
VFFSee Advisory
VLOSellBuy
VOYABuyStrong Buy
XEL Hold 2/3
ZSellBuy
ZTOHold 1/2