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Weekly Summary February 22, 2019

Cabot Prime Week Ending February 22, 2019

Cabot Weekly Review (Video)

In this week’s stock market video, Mike Cintolo discusses a bit of rotation he’s seeing out there—over time, it’s a good thing, though near-term he’s starting to see some leaders (not all) take a rest. Still, the good news is that two more rare “blastoff” signals flashed this week, and there’s no shortage of good-looking stocks out there as the buyers remain active.

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Cabot Growth Investor

Bi-weekly Update February 21: Remain optimistic. The market remains in good shape, though near-term, pullbacks and potholes are possible given the big run and the fact that we’re finally seeing a few leaders hit resistance. But the intermediate-term trend is up, the longer-term trend is on the verge of turning positive and more blastoff-type signals are being flashed. Long story short, Mike thinks the market will go higher over time, though we’re wading through a bunch of earnings reports on our stocks in the next couple of weeks. He’ll stand pat tonight with a cash position of 24%.

Bi-weekly Issue February 14: The market remains in good shape, generally shrugging off a stream of bad news by marching higher. Mike writes about a couple of additional positive longer-term signs for the market (one based on money flows, one based on the market itself), looks at some new ideas and reviews all of our Model Portfolio holdings. In tonight’s issue, he’s putting more money to work by adding two half-sized positions (one in a stock we already own), Okta (OKTA) Buy a Half and Workday (WDAY) Buy another Half. That will leave us with 25% in cash.

Other Stocks of Interest February 1: Follow ups to stocks featured August 29, 2018 (issue 1401) to January 131 2019 (issue 1412). 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 February 22: Mike remains bullish and will likely leave our Market Monitor at a level 8 next week. In the near-term, be sure to take things on a stock-by-stock basis and look for reasonable pullbacks in leaders to take new positions. His buy ideas this week are: Alarm.com (ALRM), Alteryx (AYX), Coupa Software (COUP), and Entegris (ENTG). There are two sells today, Azul (AZUL) and Spirit Airlines (SAVE).

Weekly Issue February 19: The overall action from the major indexes and leading stocks remains about as good as you could hope for considering we’re two months off a major bottom—we’re nudging up our Market Monitor another notch (to 8) in this issue to respect the continued improvement in the overall evidence. This week’s list is still heavy on growth, though with a couple of new areas popping up, too. Mike’s Top Pick is Chart Industries (GTLS), a little-known name that looks like a great way to play the booming LNG infrastructure area.

Cabot Undervalued Stocks Advisor

Special Bulletin February 22: Apollo Global Management, LLC (APO) moves from Hold to Buy; Quanta Services (PWR) reports great fourth quarter; moves from Buy to Strong Buy. Universal Electronics (UEIC) reports fourth quarter earnings miss and greatly increases first quarter guidance. And Crista has additional price action on portfolio stocks and a brief comment on Kraft-Heinz (KHC).

Special Bulletin February 21: Delek U.S. Holdings (DK) reports strong fourth quarter and moves from Strong Buy to Hold and Southwest Airlines (LUV) falls on temporary problems.

Weekly Update February 19: Crista writes that U.S. stocks continue to defy gravity, with their audacious 2019 year-to-date gains mirroring their equally extreme fourth quarter 2018 descent. Experienced investors know that this is one for the record books. The problem is that newer investors could easily be fooled into thinking (a) that these types of extreme run-ups are normal and (b) that pullbacks won’t happen because “it’s different this time.” There are three portfolio changes today: Comerica (CMA) moves from Buy to Hold, Martin Marietta Materials (MLM) moves from Hold to Buy and Synchrony Financial (SYF) moves from Strong Buy to Hold.

Monthly Issue February 5: Crista is not putting any new money to work as she is getting prepared to buy on pullbacks. Here are today’s portfolio changes: Apple (AAPL) moves from Buy to Hold, Apollo Global Management (APO) moves from Buy to Hold, Blackstone Group LP (BX) moves from Strong Buy to Buy, Comerica (CMA) moves from Hold to Buy, Commercial Metals (CMC) moves from Buy to Strong Buy, Delta Air Lines (DAL) moves from Buy to Strong Buy, D.R. Horton (DHI)0 moves from Buy to Hold, Knight-Swift Transportation (KNX) moves from Buy to Hold, Marathon Petroleum (MPC) moves from Buy to Strong Buy and Supernus Pharmaceuticals (SUPN) moves from Buy to Strong Buy.

Cabot Stock of the Week

Weekly Issue February 19: The market remains in a strong uptrend, driven by the gradual return of investors who sold out in December and are now being drawn back in by the market’s inexorable ascent. And the strength is not limited to the U.S.; Cabot’s Emerging Markets Timer has also flashed a buy signal, and once again one of the strongest markets is China. Today’s recommendation, Nio Inc. (NIO), is a stock was recently recommended by Carl Delfeld in Cabot Emerging Markets Investor. Tim recommends that you start small. There are two portfolio changes today, Huazhu Group Limited (HTHT) moves from Buy to Hold and Canada Goose (GOOS) from Hold to Sell.

Cabot Emerging Markets Investor

Bi-weekly Issue February 21: Despite today’s weak performance, emerging markets (EEM) gained a point during the week despite the ongoing uncertainty surrounding the U.S.-China trade talks. Carl’s new recommendation today is, Baozun, Inc. (BZUN) which offers end-to-end e-commerce solutions, including IT infrastructure setup and integration, online store design and setup, store operations, visual merchandizing and marketing campaigns, customer services, warehousing and order fulfillment. He has one change today, Brasil Foods (BRFS) moves from Buy a Half to Hold a Half.

Bi-weekly Update February 14: Our Emerging Markets Timer is still positive and constructive, though the EEM was essentially flat during the last week. Carl will keep moving forward while still playing some defense and mindful of the inevitable twists and turns as headline risks about China remain the key issue. There are no portfolio changes this week.

Cabot Dividend Investor

Weekly Update February 20: Tom reminds us to not forget about the dividends. Investor attitudes about the market change with the wind. A couple months ago we were spiraling into a recession and bear market. Now, things look good. But the truth is that no one really knows if we are in a raging bull market poised for an epic 2019 or we are still in a bear market that began last September. But he does know one thing. Dividends will continue to ring the register no matter what. There is one rating change today: STAG Industrial (STAG) moves from Buy to Hold.

Monthly Issue January 30: Right now Tom is favoring the more recession-resistant, safe stocks. His featured stock this month is, AbbVie Inc. (ABBV), a Chicago-based biopharmaceutical company formed in 2013 when it was spun off from Abbott Laboratories (ABT). The spinoff has already eclipsed its old parent in size and is now the eighth-largest pharmaceutical company in the world. There has been one rating change since last week’s update: STAG Industrial (STAG) was upgraded from a HOLD to a BUY. The reason for the change is momentum and performance. The stock is consistently outperforming the market on both the upside and the downside.

Cabot Marijuana Investor

Update February 21: Trends remain good for investors in the marijuana industry. Revenues are rising rapidly at producers in both the U.S. and Canada. The supply shortages that characterized the opening of legal marijuana commerce in Canada are being resolved. Development of delivery systems, from vaping to tinctures to edibles to drinks, continues. Also, the Cabot Marijuana Investor portfolio is up 39.6%, and still 15% in cash, looking for a buying opportunity. Today Tim updates all the stocks in the portfolio.

Monthly Issue January 31: The portfolio’s cash level is in the high teens, and Tim would like to reduce that, ideally on a substantial correction by the sector. For now, that cash will sit. What he will do is sell a third of Canopy Growth (CGC) and Cronos (CRON) tomorrow, using the average price of the day, and reinvest the proceeds equally in Cresco Labs (CRLBF) and KushCo (KSHB) and new addition Elixinol (ELLXF).

Wall Street’s Best Investments

Daily Alert February 22: American Express Company (AXP) from Internet Wealth Builder
Daily Alert February 21: Sea Limited (SE) from Cabot Emerging Markets Investor
Daily Alert February 20: Mastercard Incorporated (MA) from Argus Weekly Staff Report
Daily Alert February 19: Hill-Rom Holdings, Inc. (HRC) from Dow Theory Forecasts

Monthly Issue February 13: Nancy just returned from the Orlando Money Show, where she had an opportunity to interview several of our contributors and also signed up a couple of new ones! As soon as the videos of her interviews become available, she’ll post them on our website. This issue’s Spotlight Stock, Cigna Corporation (CI), is a mega-insurance company that—despite all of the turmoil in the healthcare markets of the last few years—has latched on to a very profitable niche. Nancy explores the industry and the company a bit more in her Feature article.

Wall Streets Best Dividend Stocks

Daily Alert February 22: iShares US Preferred Stock ETF (PFF) from Jack Adamo’s Insiders Plus
Daily Alert February 21: Dine Brands Global, Inc. (DIN) from Schaeffer’s Investment Research
Daily Alert February 20: Franklin Resources, Inc. (BEN) from The Turnaround Letter
Daily Alert February 19: Federal Realty Investment Trust (FRT) from Forbes Real Estate Investor

Monthly Issue February 6: In this issue, Nancy is a bit more optimistic as she feels investors are remaining bullish. Her Spotlight Stock is Janus Henderson Group plc (JHG) which is an independent asset manager, specializing in active investments. They have double-digit growth in an expanding industry, a healthy stock repurchase program, and the shares look very attractively valued.

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