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Weekly Summary February 14, 2020

Cabot Prime Week Ending February 14, 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, Mike Cintolo looks at the major indexes, answers a couple of common questions he’s getting and, of course, reviews a handful of potential buys, either on dips or on earnings-induced breakouts going forward.

CABOT EVENTS:

The 5 Best Stocks to Buy in March

FREE WEBINAR: Wednesday, February 26

By Mike Cintolo, Chief Analyst of Cabot Growth Investor and Cabot Top Ten Trader | Space is limited so sign up now for FREE.
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2020 Cabot Wealth Summit - August 19-21, 2020

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Advisory Services

Cabot Growth Investor

Bi-weekly Issue February 13: The overall market remains in an uptrend, as do most leading stocks, and that’s why Mike remains mostly bullish. But while he’s positive, he’s not pounding the table, partly because of some secondary measures (most broader indexes haven’t hit new highs in a month) but mostly because individual stocks aren’t offering up many great entry points. Tonight, then, Mike standing pat, happy to ride our winners but monitoring earnings season closely, both for stocks we own and for those we want to buy.

Bi-weekly Update February 6: Remain bullish. The market’s snapback has been impressive, pushing our Cabot Tides back to a green light and pulling most stocks up after short, sharp pullbacks. That said, volatility remains extreme, and there aren’t many good buy points out there, especially among stocks that have already reported results. Thus, Mike will sit tight tonight (around 19% cash in the Model Portfolio), although he will restore Buy ratings on both DocuSign (DOCU) and ProShares S&P 500 Fund (SSO), respecting the impressive rebound in both.

Other Stocks of Interest January 30: Follow ups to stocks featured September 12, 2019 (issue 1428) to January 30, 2020 (issue 1438). 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 February 14: Overall, not much has really changed from a week ago—the vast majority of evidence remains bullish, especially the primary evidence (trends and action of the major indexes and key leading stocks), which tells you what big investors are doing right now. Mike’s buy ideas today are: Datadog (DDOG) and JD.com (JD) and he has just one outright sell today: Yeti’s (YETI).

Weekly Issue February 10: Overall, you should remain bullish, but be a bit discerning on the buy side, looking for names that have shown excellent recent strength and volume. This week’s list has many stocks that meet that criteria, including a few that have popped after earnings. Mike’s Top Pick is Lumentum (LITE), which recently came out of a very long launching pad and, after a four-week rest, has taken off after earnings.

Cabot Undervalued Stocks Advisor

Weekly Update February 12: Crista touches on several topics today: The effects of African Swine Fever (AFS), the effects of the coronavirus, preparing your stock portfolio for buy low opportunities and corporate webcasts. Here are today’s portfolio changes: General Motors (GM) moves from Buy to Strong Buy and VanEck Vectors Oil Refiners ETF (CRAK) moves from Hold to Strong Buy.

Special Bulletin February 11: Today’s news: Amazon.com (AMZN) moves from Buy to Hold after a rapid run-up, Mercury General Group (MCY) reported an earnings and revenue beat; and moves from Strong Buy to Hold after a rapid run-up, Netflix (NFLX) moves from Strong Buy to Hold after a rapid run-up and Voya Financial (VOYA) reported an earnings miss.

Monthly Issue February 5: Today’s featured stocks are General Motors (GM), which reported fourth quarter results this morning; Goldman Sachs Group (GS), a new addition to the Growth & Income Portfolio; Equitable Holdings (EQH), which could deliver quick capital gains when they report earnings; and Universal Electronics (UEIC), which gave an informative presentation at the recent Needham Growth Conference. Crista also discuss the coronavirus, which could easily cause stock market turbulence through April, even if the virus dissipates quickly.

Cabot Stock of the Week

Weekly Issue February 10: The market has snapped back in a surprisingly strong fashion, but breadth has narrowed, so Tim is still suspicious of this rebound. However, there are still plenty of great charts as well as stories to go along with them, and today’s recommendation, Yeti (YETI), is a familiar name to most people, but it’s not a big name to investors yet, and that may change if management continues to pull the right levers. The stock was first recommended by Mike Cintolo in Cabot Growth Investor. Tim has no portfolio changes today.

Cabot Global Stocks Explorer

Bi-weekly Update February 13: Carl’s writes that the markets are demonstrating impressive resiliency in the face of the coronavirus. You can’t fight the market but he remains a bit more guarded since this disruption will have to hit profits down the road for some companies. He has no portfolio changes today.

Bi-weekly Issue February 6: While the coronavirus concerns are still high, stocks have recovered their footing, as China has taken steps to stimulate its economy and markets. The portfolio is holding up well, though Luckin Coffee (LK) sold off hard and then sharply rebounded this week. Our emerging markets timer (EEM) is marginally positive, and in an uptrend in the last month. Carl’s recommendation today LexinFintech (LX), a leader in fintech with a great growth story, strong numbers and an attractive entry point. He has one change today: ProShares Ultra Short China (FXP) moves from Buy to Sell

Cabot Dividend Investor

Monthly Issue February 12: In this issue Tom identifies a company that is defensive and high dividend-paying. But, unlike most stocks in that area, it is still reasonably priced. At the same time, Verizon Communications (VZ) has massive exposure to 5G and a huge catalyst for growth. With this company you can play offense and defense at the same time. He has no portfolio changes today.

Weekly Update February 5: The market looks good right now. The indexes are moving back to all time highs, as are several positions in the portfolio. This kind of situation makes Tom nervous. While he’s generally positive about the market outlook and he certainly doesn’t have a sense of doom, this seems like a prudent time to pull back on the throttle a little bit, so he has several rating changes today. Brookfield Infrastructure Partners (BIP) moves from Hold to Sell 1/3, SFL Corporation (SFL) moves from Buy to Hold, Altria (MO) moves from Buy to Hold and Crown Castle International (CCI) moves from Buy to Hold.

Cabot Marijuana Investor

Update February 14: Marijuana stocks have been building a meaningful bottom since November—and there are good and bad aspects to that. On the good side, it means that you’ve had the opportunity to buy low—so you can sell high later on, or just hold to build long-term profits. On the bad side, it means that until the sector revives, any money invested in the stocks (in general) will not perform as well as money in sectors that are currently strong. Today, Tim has two portfolio changes: Akerna (KERN) and Planet 13 (PLNHF) both move from Buy to Hold.

Monthly Issue January 29: While most growth-oriented Cabot analysts are now advising an increasing dose of caution as the coronavirus correction develops, Tim is actually going to take some more of the cash that he’s had on the sideline, and put it back in the market by averaging up in three of our best stocks. He’ll increase our investment in Canopy Brands (CGC) by 3%, increase our investment in Cronos (CRON) by 3%, and increase our investment in Curaleaf (CURLF) by 2%. This will reduce our cash position to roughly 12%. Also, Turning Point Brands (TPB) is downgraded to Hold.

Cabot Early Opportunities

Special Bulletin February 13: Tyler updates us on these four stocks: Digital Turbine (APPS), Deciphera Pharmaceuticals (DCPH), Endava (DAVA) and Kornit Digital (KRNT). And he reminds us to remain calm in the face of all this noise. Most of the time short-term reactions smooth out within a few days.

Monthly Issue January 15: Today’s issue features five stocks across the market cap spectrum and from a wide variety of industries. Tyler has a young but rather large online retailer that’s crushing it in the pet supplies market, a supplier of industrial supplies that you’ve probably never heard of, a solar stock and an innovative software company that’s growing through viral use of its products. Then there’s this month’s Top Pick, Axonics Modulation (AXNX), a MedTech stock that’s just launched an innovative device that’s grabbing market share from the incumbent.

Bonus Report:

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Updated - 1/27/20 - Bonus Report: 3 Canadian Small-Cap Stocks to Buy Now
Bonus Report: Secrets To Early-Stage Stock Profits
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Cabot Profit Booster

Weekly Issue February 11: Nuance Communications (NUAN): In the field of speech recognition software, Nuance Communications is a pioneer with plenty of room to grow. The company is known for its Dragon Naturally Speaking software package, which makes dictation faster and nearly as accurate as typing. It also allows users to control computer programs and send emails by voice command. The Covered Call Trade—Buy Nuance Communications (NUAN) Stock at 22.75, Sell to Open April 23 Calls (exp. 4/17/2020) for $0.75, or a Net Price of 22 or less

Frequently Asked Questions Report:

Frequently Asked Questions

Bonus Report:

Best-Kept Hedge Fund Secrets to Explode Your Wealth

Bonus Report:

5 Easy Stock-Picking Secrets That Make it Ridiculously Easy to Profit.

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Wall Street’s Best Investments

Daily Alert February 14: Raymond James Financial, Inc. (RJF) Argus Weekly Staff Report
Daily Alert February 13: The Goodyear Tire & Rubber Company (GT) The Prudent Speculator
Daily Alert February 12: WW International, Inc. (WW) Power Growth Investor
Daily Alert February 11: JetBlue Airways Corporation (JBLU) AlphaProfit Sector Investors’ Newsletter
Daily Alert February 10: Cresco Labs Inc. (CRLBF) Ian Wyatt’s Million Dollar Portfolio

Top Picks Issue January 16: It was a great year for the markets with the DJIA gaining 22.3%, the S&P 500 up 28.9% and the Nasdaq rose 35.2%. But it was even a better year for us! Our Top 5 Picks for 2019 averaged returns of 131%! William Velmer of S.A. Advisory was our big winner. His stock idea gained an astonishing 332%! In this year’s Top Picks issue, Nancy’s contributors are primarily focused on growth, technology and healthcare. But, she also offers several other categories for your review.

Ask the Experts

Cabot Profit Booster

Question: My level 1 option has been approved. Since I am an absolute novice, please be patient with my somewhat stupid questions. But I do want to make sure that I can follow your instructions correctly or this option thing is too complicated for me.

1- Do I have to own 100 shares for 1 call? In other words, do I have to buy at least 100 shares?
2- I only buy if the Net Price is 28.35 or less right ?
3- At what point do I sell the call? Before March 20 or on March 20?
4- What happens if the price is over/under $30 on March 20?

Thanks for your answers in advance.
PS: Do you have any video or illustrations to explain your weekly recommendations to newbies like me?

Jacob: Never, and I mean NEVER hesitate to email me your questions. I really enjoy the options education component of my role.
Here are the answers to your questions ...

  1. Yes you need to own 100 shares to sell 1 call. And if you own 200 shares can sell 2 calls, and so on.
  2. You are correct on the net price being Below. That being said if I say 28.35, and you pay 28.40, or 28.45, its not the end of the world. However, when I make a recommendation I give a price that should be easily achiever, and most often times you will get an even better price.
  3. I will give further instructions when it is time to exit the trade. Don’t worry, I will be there with you all the way.
  4. On expiration, if the stock is above 30 we will have made our full profit and will be taken out of our trade. That is a great scenario. If the stock is below 30, then we will either sell a new call to create even more yield, or simply exit the entire position. Either way, I will give full instructions. In terms of video, here is a link that should help.

Premium Reports

Quarterly Cabot Analyst Meeting

The recording of the quarterly Cabot Analyst Meeting from January 15, 2020 is now available for you to listen to at your convenience—click here for access. This quarterly private call with our analysts is one of your exclusive Cabot Prime member benefits.

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
ABBVBuy
ACBSee Advisory
ADBEHold
ALXN Strong Buy
AMZNHold
ANFStrong Buy
APHASee Advisory
AREHoldHold
AVGOBuyStrong Buy
AXNXBuy
BABABuy
BIP HoldHold 2/3
BKRBuy
BSCL Buy 1/2
BXHold
CCIHold
CGCSee Advisory
CHCTHold 1/3
CRAKStrong Buy
CRLBFSee Advisory
CRONSee Advisory
CTVAHold
CURLFSee Advisory
CZZBuy 1/2
DAVAHold
DBIHoldBuy
DISHold
DOCUBuy
DOWBuy
DXCMBuy
EPDBuy
EQHStrong Buy
FXPSold
GESStrong Buy
GMStrong Buy
GRWGSee Advisory
GSBuy
GTBIFSee Advisory
HTHTHold
IIPRSee AdvisoryBuy
IPHIBuyBuy
KERNSee Advisory
LGIHBuy
LKBuy 1/2Hold
LXBuy 1/2
MCYHold
MEXXBuy 1/2
MOHold
MOSHold
MPCBuy
MRVLBuy 1/2
NEEHoldHold 1/2
NFLXHold
NVCRBuy 1/2
OGISee Advisory
PGX Buy 1/2
PLNHFSee Advisory
PNGAYBuy
PWRHold
QCOMBuy
QRVOHoldHold
RIOBuy
RKUNYHold 1/2
RNGHold
SEBuy 1/2BuyBuy
SFLHold
SPCEBuy a HalfBuy
SSOBuy
STAGHold
TCNNFSee AdvisoryBuy
TDOCBuy
TOTStrong Buy
TPBSee Advisory
TSLAHold
TSNStrong Buy
UEICBuy
VLOBuy
VOYABuy
VRTXBuyBuy
VZBuy
YETIBuy
XEL Hold 2/3