Cabot Prime Week Ending July 12, 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, Tyler Laundon, Chief Analyst of Cabot Small-Cap Confidential, starts to lay out the case for the declining relevancy of the small cap index. He shows that while there are many examples of small-cap stocks that are doing great, the Russell 2000 Index is dramatically underperforming. He takes viewers through a few of the reasons why, as well as a host of stocks that were just added to the Russell Microcap Index. And Tyler suggests a few better alternatives for investors looking for the right exposure to this exciting, but often misunderstood, asset class.
CABOT EVENTS:
Prime Quarterly Analyst Call
Wednesday, July 17, 2019
SPECIAL FREE WEBINAR OFFER - Hosted by Nancy Zambell
Top Stocks to Make You Money Now, Regardless of Your Investing Style | Tuesday, July 23, 2019
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
Advisory Services
Cabot Growth Investor
Bi-weekly Update July 11: Mike says to remain mostly bullish, but continue to pick your spots. The overall market looks great, and our own 7.5% Rule has flashed, portending higher prices in the months ahead. That said, many stocks are extended and/or have earnings coming up soon, so some near-term hesitation isn’t uncalled for. In the Model Portfolio, most of our stocks act well and Mike is close to putting some more money to work, but he’ll stand pat for the moment, maintaining our 23% cash position.
Bi-weekly Issue July 3: Since the last issue, Mike has sold half of Planet Fitness (PLNT) and all of Five Below (FIVE), but he’s also filled out our position in Coupa (COUP) and, in tonight’s issue, is starting a half position in Snap (SNAP), which looks likes a new leader that could attract many big investors going forward. The cash position will now be near 23%.
Other Stocks of Interest June 20: Follow ups to stocks featured January 17, 2019 (issue 1411) to June 20, 2019 (issue 1422). 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 July 12: It’s been a modestly positive week, with most major indexes and leading stocks posting gains. As Mike writes this Friday morning, the S&P 500 and Nasdaq are up less than a percent on the week, but both have hit new all-time highs this week. His buy ideas this week are: Exact Sciences (EXAS), SolarEdge (SEDG) and Tempur Sealy (TPX). As for outright sells, nothing has tripped its stop, but there are many stocks that are extended—if you want to instead simply trail a stop, that’s fine, but Mike is going to go ahead and book profits in CoStar Group (CSGP)andVeriSign (VRSN), both of which have had good runs.
Weekly Issue July 8: Mike says that you should still be following your loss limits and stops, and on the buy side, picking your stocks (and your spots) carefully, especially if something has earnings coming up in a couple of weeks. But overall, you should remain in a constructive stance. This week’s list has a nice batch of growth-oriented stocks with solid stories. Mike’s Top Pick is Sunrun (RUN), which is a bit thin and wild, but has shown fantastic action lately and has a solid growth story.
Cabot Undervalued Stocks Advisor
Special Bulletin July 11: Delta Air Lines (DAL) reported strong second-quarter (2Q) results this morning, benefiting from higher fares and fuller planes. The stock has traded sideways for 18 months, and finally appears to be breaking past 60 to new all-time highs. This breakout moment is the most bullish time to own a stock. It’s not too late to buy DAL and capitalize on the company’s extreme successes.
Weekly Update July 9: Crista is not concerned with occasional tweaks in the Fed funds rate, except for their effect on one industry: financial companies. When we enter a cycle of falling interest rates, she will be paring back investments in banks and lenders. In addition, she’ll pay close attention if businesses stop borrowing money, or if consumers stop paying their bills on time, each of which could signal an end to this current cycle of economic prosperity. She has one portfolio change today: Axis Capital Holdings (AXS) moves from Strong Buy to Hold.
Monthly Issue July 2: Crista is revisiting the topic of Baby Boomers and real estate. You won’t want to miss the conversation she had with a retired Boomer. Featured stocks in this Issue are: Voya Financial (VOYA), Corteva Inc. (CTVA) and Designer Brands (DBI). Here are today’s portfolio changes: Alexion Pharmaceuticals (ALXN) moves from Buy to Strong Buy, Corteva (CTVA) moves from Hold to Buy, Delta Air Lines (DAL) moves from Strong Buy to Buy, Designer Brands (DBI) moves from Buy to Strong Buy, DuPont de neMours (DD) moves from Hold to Sell, Sanmina (SANM) moves from Hold to Buy and Supernus Pharmaceuticals (SUPN) moves from Hold to Buy.
Cabot Stock of the Week
Weekly Issue July 9: The broad market remains in fine health, with all major indexes trending higher and sentiment measures still telling us this market has not yet reached the stage where amateurs are sucked in to buying at the top. Thus Tim continues to recommend that you be heavily invested in a diversified portfolio of stocks that fit your investment needs. Today’s recommendation, MakeMyTrip Limited (MMYT), is a true diversification play, a small but high-potential Indian company that is destined to benefit from that country’s growth and the growth of tourism in the years ahead. There are two changes in the portfolio this week: Axis Capital Holdings (AXS) moves from Buy to Sell and CIT Group (CIT) moves from Hold to Buy.
Cabot Global Stocks Explorer
Bi-weekly Issue July 11: We are changing the name—but not the mission—of Cabot Emerging Markets Investor to Cabot Global Stocks Explorer. You won’t see any dramatic difference except for more diversification and a more top-down approach before drilling down to specific actionable ideas.
Emerging and global markets had a good week with some standout performers such as NIO (NIO) and Sea Limited (SE). Zero progress on U.S.-China talks was overshadowed by anticipated interest rate cuts. Today Carl recommends a stock from the Watch List, MakeMyTrip Limited (MMYT), to Buy a Half position and upgrades Sea Limited (SE) from Hold a Half to Buy a Half Position.
Bi-weekly Update July 3: Carl writes that the G-20 meetings in Japan yielded only incremental progress. This was grudgingly accepted as a positive by markets with most emerging market stocks getting a boost as we headed into a slow and short week. He also gives you his take on Hong Kong, Alibaba, demographics and debt. There are no portfolio changes this week.
Cabot Dividend Investor
Weekly Update July 10: Tom says that it’s shaping up to be the best possible environment for dividend stocks. Insecurity regarding the state of the economy is propelling investors toward the more defensive companies and falling rates make the dividends even more valuable. At the same time, the economy is still secretly pretty good, so earnings should be solid. There are no changes in the portfolio this week.
Monthly Issue June 26: In this issue, Tom highlights Valero Energy (VLO), a stock that is cheap in an expensive market that has a great chance of moving higher in the quarters ahead. There are two rating changes this week. Pharmaceutical company AbbVie (ABBV) is reduced from a BUY to a HOLD as the market digests its purchase of Allergan (AGN). Also, spice maker McCormick and Company (MKC) is lowered from a HOLD to SELL HALF ahead of tomorrow’s earnings announcement.
Cabot Marijuana Investor
Update July 10: If you’re a new reader or truly underinvested in the sector, Tim says that you can begin easing in now (don’t hurry) in some of the stocks he mentions. For the portfolio, he’s going to buy back into a stock he sold back in March, MedMen (MMNFF). The marijuana sector’s charts have been weak overall since the sector’s March top. And even though the broad market has recovered in recent weeks—many indexes are hitting new highs—the marijuana sector has still been soft. The portfolio is now 33% cash.
Monthly Issue June 27: The cannabis sector is currently 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 fact some of the biggest stocks, those supported best by institutional investors, are already looking stronger, though it will take time to know if they are in real uptrends. In the meantime, Tim continues to build cash, which will come in handy when it’s time to buy again. This week he’s selling portions of two more, HEXO (HEXO) and OrganiGram (OGI), raising the portfolio’s cash level to about 33%.
Wall Street’s Best Investments
Daily Alert July 12: Arlo Technologies, Inc. (ARLO) The Stock Spin-off Investing Newsletter
Daily Alert July 11: Boston Scientific Corporation (BSX) Canaccord Genuity Research
Monthly Issue—Top Picks Mid-Year Update July 10: Our Top Picks mid-year update is here! Nancy writes that it’s been a great year for the markets, with gains of 14.8% on the Dow Jones Industrial Average, 18.9% on the S&P 500 and 22.7% on the NASDAQ. But our contributors beat those numbers by a mile! Nancy gives us a selection of mid-year updates, as well as a collection of new ideas for our review.
Top Pick Update Daily Alert July 10: Sleep Number Corporation (SNBR) Cabot Undervalued Stocks Advisor
Top Pick Update Daily Alert July 9: Ciena Corporation (CIEN) Cabot Top Ten Trader
Top Pick Update Daily Alert July 8: Planet Fitness, Inc. (PLNT) Equity Research & Portfolio Evaluation, Inc.
Wall Streets Best Dividend Stocks
Daily Alert July 12: Archer-Daniels-Midland Company (ADM) from Dividend Advisor
Daily Alert July 11: Federal Agricultural Mortgage Corporation (AGM-PD) from Income Securities Investor
Daily Alert July 10: CVS Health Corporation (CVS) from The Prudent Speculator
Daily Alert July 9: Invesco Dynamic Credit Opportunities Fund (VTA) from Contrarian Outlook
Daily Alert July 8: Apple Hospitality REIT, Inc. (APLE) from Dividend Hunter
Monthly Issue—Top Picks Mid-Year Update July 3: Nancy writes that it was a great month for the markets, with the Dow Jones Industrial Average gaining more than 1,400 points. The economy remains sound; housing prices have mitigated somewhat; unemployment is healthy; and consumers are still confident. This month’s issue is jam-packed with lots of Top Picks updates, as well as several new ideas for you. Nancy begins with Top Picks Growth & Income, where you’ll find updates on an internet company and a utility. Next, Top Picks Value includes updates on a delivery service and a Spanish bank. In Top Picks REITs, she offers updates on a health care and a marijuana REIT.
Ask the Experts
Cabot Top Ten Trader
Question: Just a question regarding the recommendation of ARNC (and some other stocks in past) in Top Ten. The last trade on Monday was $25.82, but the suggested buy range is between $24 and $25, do you expect it to go down to that level from here (because of technical analysis signals, or?) Can you please clarify for me?
Mike: So, yes, the buy ranges are valid for two weeks, so we’ll often recommend a stock that’s a bit short-term extended, thinking there’s a decent chance it pulls in/shakes out within the next week or two. If it doesn’t, we’ll “drop” it on page 12 and take another shot at it at another time. Of course, those are just suggested ranges -- if you really want in, by all means, it’s your decision. But that’s how we structure it.
Cabot Marijuana Investor
Question: I have been a subscriber since the first issue and I have been pleased with the Marijuana Investor’s results overall, although many of our stocks have been languishing for the past few weeks (or is it the past few months?). What is your opinion of Charlotte’s Web (CWBHF) which had been cut in half from about April to June, but has been on a tear recently?
Tim: Yes, the sector is weak, but that won’t last forever. CWBHF’s move has been impressive over the past three weeks, but without the backing of the entire sector, the stock’s rally is at risk. I continue to hold competitor ELLXF, which is less popular and has a slightly better valuation, but if the sector were stronger, I would certainly add CWBHF to the portfolio.
Premium Reports
Cabot’s 10 Best REIT’s to Buy Now
Special ReportMay 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 Prime Quarterly Report
Special ReportApril, 2019: The first quarter of 2019 was as good as the previous one was bad. And that’s not surprising. In fact, in his last quarterly report, Tim concluded by writing, “What the charts are signaling now is quite bullish! So don’t be afraid. Follow your favorite Cabot analyst. Use appropriate risk management tools. And make some money while the market is once again going the right way.”
Cabot’s Ten Best Canadian Small-Cap Stocks
Special ReportUpdated 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 ReportDecember 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.
| Stock | Cabot Global Stocks Explorer | Cabot Growth Investor | Cabot Marijuana Investor | Cabot Stock of the Week | Cabot Undervalued Stocks Advisor | Cabot Dividend Investor |
|---|---|---|---|---|---|---|
| AAPL | Hold | Strong Buy | ||||
| ABBV | Hold | |||||
| ACB | See Advisory | |||||
| ADBE | Buy | |||||
| ALXN | Strong Buy | |||||
| ANF | Buy | |||||
| APHA | See Advisory | |||||
| AXP | Hold 1/2 | |||||
| AXS | Sell | Hold | ||||
| BABA | Buy | |||||
| BHGE | Strong Buy | |||||
| BIP | Buy | Buy | ||||
| BSCJ | Buy 1/2 | |||||
| BSCL | Buy 1/2 | |||||
| BX | Buy | Strong Buy | ||||
| C | Strong Buy | |||||
| CCI | Buy | |||||
| CF | Strong Buy | |||||
| CG | Strong Buy | |||||
| CGC | See Advisory | |||||
| CHCT | Hold | |||||
| CIT | Buy | Strong Buy | ||||
| CMC | Hold | |||||
| CMG | Buy | |||||
| COUP | Buy | |||||
| CRLBF | See Advisory | |||||
| CRON | See Advisory | |||||
| CURLF | See Advisory | |||||
| CVTA | Buy | |||||
| DAL | Buy | Buy | ||||
| DBI | Strong Buy | |||||
| DD | Sold | |||||
| DOW | Strong Buy | |||||
| ED | Hold 2/3 | |||||
| ELLXF | See Advisory | |||||
| EPD | Buy | |||||
| EVBG | Hold | |||||
| EXAS | Hold | |||||
| GES | Hold | |||||
| GTBIF | See Advisory | |||||
| HEXO | See Advisory | |||||
| HTHT | Hold | |||||
| IBN | Buy 1/2 | |||||
| IIPR | See Advisory | |||||
| KSHB | See Advisory | |||||
| LGORF | Buy 1/2 | |||||
| LK | Buy 1/2 | Buy | ||||
| LUV | Buy | |||||
| LX | Buy | |||||
| MKC | Hold 1/2 | |||||
| MMNFF | See Advisory | |||||
| MMYT | Buy 1/2 | Buy | ||||
| MO | Hold | |||||
| MOS | Buy | |||||
| MPC | Buy | |||||
| MTCH | Hold | |||||
| NEE | Hold | Hold | ||||
| NIO | Buy a Small Position | |||||
| OGI | See Advisory | |||||
| OKTA | Buy | |||||
| PGX | Buy 1/2 | |||||
| PLNT | Hold 1/2 | Hold | ||||
| RCL | Hold | |||||
| REMX | Buy 1/2 | |||||
| SANM | Buy | |||||
| SE | Buy 1/2 | |||||
| SLB | Buy | |||||
| SNAP | Buy 1/2 | Buy | ||||
| SSO | Buy | |||||
| STAG | Hold | Hold | ||||
| SUPN | Buy | |||||
| SYF | Strong Buy | |||||
| TCEHY | Buy 1/2 | |||||
| TIVO | Hold | |||||
| TOT | Buy | |||||
| TPB | See Advisory | |||||
| TSLA | Hold | |||||
| TTD | Hold | |||||
| TWLO | Buy | Buy | ||||
| UEIC | Strong Buy | |||||
| VFF | See Advisory | |||||
| VLO | Buy | Buy | ||||
| VOYA | Buy | Strong Buy | ||||
| XEL | Hold 2/3 | |||||
| Z | Buy 1/2 | Buy | ||||
| ZTO | Buy 1/2 |