Cabot Prime Week Ending February 28, 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 goes in depth of what to do, what he’s looking at, some scenarios going forward and, most important, reviews a bunch of growth names that are showing great resilience in the market—the longer they hold up, the better the chance they will see more upside when the market finds its footing.
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Cabot Growth Investor
Special Bulletin February 28: With the market’s decline only intensifying today, more stocks are beginning to crack. Today Mike has two moves—he’s going to take partial profits in Teladoc (TDOC), selling one-third of our shares, while holding on tightly to the rest. He’s also going to sell Redfin (RDFN), where he has a growing loss. Those moves will give us 44% in cash.
Bi-weekly Issue February 27: Raise some cash and cut back on new buying. Mike came into this week with 17% cash in the Model Portfolio, and since then he’s quickly pared back, selling all of Inphi (IPHI) and portions of both Sea (SE) and Vertex (VRTX). That’s boosted his cash total to around 36%, while he has tight leashes on a couple other positions.
Special Bulletin February 25: In the Model Portfolio, Mike came into today (after yesterday’s selling) with the portfolio 24% in cash, and now he’s going to raise more cash by selling the remainder of Inphi (IPHI), which continued lower today, and also selling 1/3 of his position in Vertex Pharmaceuticals (VRTX).
Special Bulletin February 24: Today’s market meltdown is turning our Cabot Tides negative, which, following the many yellow flags in recent weeks, has Mike paring back some. Coming into today, the Model Portfolio was holding 17% cash, and today, he’s boosting that a bit by selling one-third of both Inphi (IPHI) and Sea Ltd (SE), giving us around 24% in cash. He’s also placing some stocks on Hold given the environment.
Bi-weekly Update February 20: Mike remains mostly bullish, but is keeping it small on the buy side in stocks we feel could be early-ish in their overall moves and have shown great power in recent weeks. So far this week, he’s sold Qorvo (QRVO), bought a half position in Dynatrace (DT), and tonight, he’s going to start a half position in Redfin (RDFN), which will leave us with around 18% in cash.
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 28: Mike writes that this week has been a punch to the gut, but this too shall pass, and while the correction will probably take some time to play out, when it ends there will be some great opportunities given that we still see a bunch of earlier-stage stocks with great growth prospects. Today, though, it’s best to play defense. Mike’s isn’t giving any specific buy ideas today but does have a list of stocks that are showing relative strength. He has 25 sells today.
Weekly Issue February 24: Coronavirus fears re-emerged in a big way over the weekend, causing today’s across-the-board selloff. As Mike looks at the evidence, here’s what he sees: The intermediate-term uptrend has been cracked, especially when you look at the broader major indexes, and given that this selling comes after a big run and more than a few yellow flags during the past month, it’s likely we’re in a correction that will take some time to play out. That said, it’s also very unlikely that this is the end of the overall bull market, as the longer-term trends and stance of the indexes and most leading stocks are positive. Mike’s Top Pick is Zoom Video Communications (ZM), which has not only a very strong chart but also a growth story that appears to benefit from the spread of the coronavirus.
Cabot Undervalued Stocks Advisor
Special Bulletin February 28: Now that the market has fallen substantially, Crista thinks we’ve reaped the bulk of the potential profits on our recent purchase of Direxion Daily S&P 500® Bear 3X Shares (SPXS) and Direxion Daily Semiconductor Bear 3X Shares (SOXS). Her recommendation is that investors sell these two inverse market ETFs. Sell.
Special Bulletin February 28: Today’s news: Crista writes about another media-created panic, the most attractive industry with M&A prospects in 2020 and has a special note to Financial Advisors.
Special Bulletin February 27: Today’s news: Equitable Holdings (EQH) reports a fourth-quarter earnings beat; increases the dividend, Netflix (NFLX) moves from Buy to Strong Buy and Quanta Services (PWR) reports a fourth-quarter earnings beat and moves from Hold to Buy.
Weekly Update February 26: The COVID-19 problem, as it pertains to the U.S. stock markets, is compounded by the fact that the S&P 500 index had risen about 12% since October. That’s a very big move for a market index in a short period of time, and as such, the market was overdue for a price correction, regardless of the existence of COVID-19. The price correction has arrived. Typically, there will be days, early on during a price correction, in which the market rises and investors are enthused. Those days are then followed by more bearish days. The downturn might only last for a few weeks, followed by a period of sideways trading as the market gets its bearings. Please be assured that Crista will offer you attractive growth stocks and dividend stocks, as soon as the market calms down. Here are today’s portfolio changes: Abercrombie & Fitch (ANF) moves from Strong Buy to Hold, Baker Hughes (BKR) moves from Buy to Hold, Broadcom (AVGO) moves from Strong Buy to Hold, General Motors (GM) moves from Strong Buy to Hold, Guess?, Inc. (GES) moves from Strong Buy to Hold, Total SA (TOT) moves from Strong Buy to Hold, Tyson Foods (TSN) moves from Strong Buy to Hold, VanEck Vectors Oil Refiners ETF (CRAK) moves from Strong Buy to Hold and Voya Financial (VOYA) moves from Buy to Hold.
Special Bulletin February 24: Direxion Daily S&P 500® Bear 3X Shares (SPXS) and Direxion Daily Semiconductor Bear 3X Shares (SOXS) join the Special Situation & Movie Star Portfolio as Strong Buys, Blackstone Group Inc. (BX) moves from Hold to Retired and LGI Homes (LGIH) moves from Buy to Hold.
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 24: The market needed a correction and now we have one, or at least the start of one. And the kickoff has been powerful enough to turn our short-term timing indicator negative, which means it’s time to turn a bit defensive, raising cash and leaning toward lower-risk investments. Today’s recommendation is Verizon (VZ), a slow and steady telecom company that not only pays a good dividend but also is poised to benefit from the rollout of 5G technology. Tim has four portfolio changes today: Inphi (IPHI) and Sea, Ltd. (SE) move from Buy to Hold and Broadcom (AVGO) and Designer Brands Inc. (DBI) move to Sell.
Cabot Global Stocks Explorer
Bi-weekly Update February 27: Carl writes that this week highlights that we all need to have a plan to manage risk and build diversified portfolios with quality ideas that produce consistent returns. This allows us to keep calm moving forward while the financial media panics. Last week, he recommended selling around one-third of our stake in Virgin Galactic (SPCE) to lock in some profits—today he gives us additional updates on the company. There is one portfolio change today: Marvell Technology Group (MRVL) moves from Buy to Sell.
Special Bulletin February 25: Given that it has fallen through our 20% trailing stop loss, Carl is recommending that we sell our position in the Direxion Mexico 3X Bull ETF (MEXX).
Bi-weekly Issue February 20: Carl writes that the Cabot Global Stocks Explorer portfolio is led by our rocketing Virgin Galactic (SPCE), which has zoomed from 11 to 37 in a wink of the eye. Meanwhile, Sea Limited (SE) and Luckin Coffee (LK) were both up 10% this past week even as our emerging markets timer (EEM) moved to neutral. Concerns over the impact of coronavirus are deepening as Apple announced revenue will be below expectations. In this issue, Carl will address these concerns, as well as why and how to hedge them. His featured stock is, ProShares Short FTSE China 50 (YXI) and it’s rated Buy. He has one change today: Rakuten (RKUNY), moves from Hold a Half to Sell.
Cabot Dividend Investor
Weekly Update February 26: Stock prices were not accounting for the impact to economic growth. But now the market is making up for lost time. The market had been underreacting to the impact for so long that it is likely overreacting this week. After a 7.5% fall in just four trading days, there is a better-than-even chance that the market gains some of that back over the next week. At this point, Tom is still not selling the most vulnerable stocks in the portfolio. Those are the stocks with the most international exposure, namely SFL, VLO and QCOM. He has one change today: SFL Corporation (SFL) moves from Hold to Sell Half.
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.
Cabot Marijuana Investor
Monthly Issue February 26: Tim writes that you should focus on the leading companies and strongest stocks, which you’ll find in the portfolio. Avoid stocks trading under a dollar (that’s the majority) and stocks hitting new lows. Cut losses short (always a good strategy for growth-oriented investors). And avoid preconceived notions. Anything is possible going forward, but by watching the action of the individual stocks, you’ll be sure to own the leaders when the sector’s uptrend resumes. Tim is recommending these adjustments today: Aphria (APHA) to Hold (Sell a Third), Cresco Labs (CRLBF) to Hold, Cronos Group (CRON) to Hold, Curaleaf (CURLF) to Hold, Green Thumb Industries (GTBIF) to Hold, Organigram (OGI) to Buy and Trulieve (TCNNF) to Hold. (Sell a Third)
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.
Cabot Early Opportunities
Special Bulletin February 28: The market has been tripped up by what seems to be an overreaction to the potential economic disruption of the coronavirus, but which is more likely the result of a trifecta of potential issues including coronavirus, a previously elevated market trading at high multiples, and uncertainties related to this year’s Presidential election. Tyler calculated the average return of current BUY and HOLD rated stocks since we started Cabot Early Opportunities through yesterday’s close. On average, our stocks are up 5% (many are still up double digits). He gives updates on all stocks.
Monthly Issue February 19: In this month’s Issue of Cabot Early Opportunities Tyler discusses one simple way to measure how much a given stock will move relative to the market. He also features five stocks, from quite small to larger than we normally go. All have something different going for them. He is tilted toward software names this month, though he rounds things out with another solar name and an emerging biotech opportunity. This month’s Top Pick, Varonis (VRNS), is on the backside of a transition to the SaaS business model.
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Update February 25: Our Morgan Stanley (MS) covered call has seen extreme volatility the past several days as the stock fell from 56 to 53.5 on news last week that the company would buy Etrade (ETFC), and then has got caught up in the market sell-off this week. For now Jacob is going to hold his position and will look for a way to adjust our call position to create even more yield and lower our cost basis.
Weekly Issue February 25: Floor & Decor (FND) - Real estate stocks are on fire right now, thanks largely to plunging mortgage rates and record lows in housing inventories for sale. With building permits at a 13-year high, and builder sentiment near a 20-year high, companies that specialize in home construction and improvement have been among this year’s big winners on Wall Street. Floor & Décor is one such winner; it’s a home construction-related retail operation specializing in hard flooring (wood, tile, stone, etc.). The Covered Call Trade — Buy Floor & Decor (FND) Stock at 57.25, Sell to Open July 57.5 Calls (exp. 7/17/2020) for $5.50, or a Net Price of 51.75 or less.
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Daily Alert February 28: KVH Industries, Inc. (KVHI) Technology & Opportunity
Daily Alert February 27: BioXcel Therapeutics, Inc. (BTAI) Canaccord Genuity Research
Daily Alert February 26: Equitable Holdings, Inc. (EQH) Cabot Stock of the Week
Daily Alert February 25: ASGN Incorporated (ASGN) Upside
Daily Alert February 24: RLJ Lodging Trust (RLJ-PA) Sound Advice
Monthly Issue February 20: Nancy’s Spotlight Stock, Tyson Foods (TSN), is a major protein producer that is benefiting from restructuring, rising meat demand, and the African swine flu that has devastated the Asian pork markets. Her Feature article further explores the company’s markets and acquisitions.
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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 | Buy | |||||
| ACB | See Advisory | |||||
| ADBE | Hold | |||||
| ALXN | Strong Buy | |||||
| AMZN | Hold | |||||
| ANF | Hold | |||||
| APHA | See Advisory | |||||
| ARE | Hold | Hold | ||||
| AVGO | Sell | Hold | ||||
| AXNX | Hold | |||||
| BABA | Buy | |||||
| BIP | Hold | Hold 2/3 | ||||
| BKR | Hold | |||||
| BSCL | Buy 1/2 | |||||
| BX | Retired | |||||
| CCI | Hold | |||||
| CGC | See Advisory | |||||
| CHCT | Hold 1/3 | |||||
| CRAK | Hold | |||||
| CRLBF | See Advisory | |||||
| CRON | See Advisory | |||||
| CURLF | See Advisory | |||||
| CZZ | Buy 1/2 | |||||
| DAVA | Hold | |||||
| DBI | Sell | Strong Buy | ||||
| DIS | Sold | |||||
| DOCU | Buy | |||||
| DOW | Buy | |||||
| DT | Buy 1/2 | |||||
| DXCM | Buy | |||||
| EPD | Buy | |||||
| EQH | Buy | Strong Buy | ||||
| GES | Hold | |||||
| GM | Hold | |||||
| GRWG | See Advisory | |||||
| GS | Hold | |||||
| GTBIF | See Advisory | |||||
| HTHT | Hold | |||||
| IIPR | See Advisory | Buy | ||||
| IPHI | Sell | Hold | ||||
| KERN | See Advisory | |||||
| LGIH | Hold | |||||
| LK | Buy 1/2 | Hold | ||||
| LX | Buy 1/2 | |||||
| MCY | Buy | |||||
| MEXX | Sell | |||||
| MKSI | Strong Buy | |||||
| MO | Hold | |||||
| MOS | Hold | |||||
| MPC | Strong Buy | |||||
| MRVL | Sell | |||||
| NEE | Hold | Hold 1/2 | ||||
| NFLX | Strong Buy | |||||
| NVCR | Buy 1/2 | |||||
| OGI | See Advisory | |||||
| PGX | Buy 1/2 | |||||
| PLNHF | See Advisory | |||||
| PNGAY | Buy | |||||
| PWR | Buy | |||||
| QCOM | Buy | |||||
| QRVO | Sold | Sold | ||||
| RDFN | Sell | |||||
| RIO | Buy | |||||
| RKUNY | Sold | |||||
| RNG | Hold | |||||
| SE | Buy 1/2 | Sell 1/3 | Hold | |||
| SFL | Sell 1/2 | |||||
| SOXS | Sell | |||||
| SPCE | Buy a Half | Buy | ||||
| SPXS | Sell | |||||
| SSO | Buy | |||||
| STAG | Hold | |||||
| TCNNF | See Advisory | Buy | ||||
| TDOC | Sell 1/3 | |||||
| TOT | Hold | |||||
| TPB | See Advisory | |||||
| TSLA | Hold | |||||
| TSN | Hold | |||||
| UEIC | Buy | |||||
| VLO | Buy | |||||
| VOYA | Hold | |||||
| VRTX | Sell 1/3 | Buy | ||||
| VZ | Buy | Buy | ||||
| YETI | Sold | |||||
| YXI | Buy | |||||
| XEL | Hold 2/3 |