Cabot Prime Week Ending July 3, 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, In this week’s video, Mike Cintolo discusses the market’s continued positive stance, which argues for a heavily invested position. However, he also repeats his call to keep your feet on the ground, possibly taking partial profits in stocks that have had huge runs and not chasing speculative names higher. The good news is there are plenty of solid leaders that look good here or on their next pullback.
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Cabot Prime Members Meeting with the Analysts: 3rd Quarter 2020
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Three Stocks for Three “Blue Ocean” Global Trends
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Cabot Retirement Club Member Call - July 2020
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Advisory Services
Cabot Growth Investor
Bi-weekly Issue July 2: Overall, Mike remains flexible and is keeping his eyes open for danger signs, but with the evidence mostly positive, he remains mostly bullish. In tonight’s issue, he writes about one new liquid leader he’d love to own at the right price, along with all the latest thoughts on our stocks and the market. There are no portfolio changes today.
Special Bulletin June 29: Do a little trimming. Most of the evidence remains bullish, so we do, too, but Mike sees potential for near-term potholes, at least among growth stocks. Today, he’s going to sell one-third of the remaining shares of DocuSign (DOCU) and the half position in Chewy (CHWY), which will leave us with around 15% in cash.
Bi-weekly Update June 25: You should remain bullish and flexible. Most of the evidence remains positive, including the trends of the major indexes and action of leading growth stocks. That said, the bifurcated environment is still in effect, and few stocks are at attractive entry points after big runs. As we have been all year, Mike remains open to anything, but tonight he’s standing pat in a heavily invested position (8% cash).
Other Stocks of Interest June 18: Follow ups to stocks featured February 13, 2020 (issue 1439) to June 18, 2020 (issue 1448). 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 2: Overall, we’d say the story remains largely the same—there are some chinks in the armor overall, including some tertiary sentiment stuff and short-term momentum measures. There’s also been a lot more up-down-up-down action that, after a sustained run, usually tells you the bears are starting to put up a fight. After 13-plus weeks up that’s brought some amazing moves in stocks, it’s certainly possible the rally could run out of steam, leading to an outright correction or a longer consolidation. But it’s usually best not to guess at these things—right now, the trends are up for the major indexes and leading stocks, while abnormal selling has been hard to find. We wouldn’t be going nuts on the buy side, especially in names that are extended to the upside, but we continue to think a heavily invested position makes sense until proven otherwise. We’ll likely keep our Market Monitor at a level 7 or so (we could push it back up a notch, too) come Monday.
Weekly Issue June 29: As Mike has been writing for many weeks, most of the primary evidence (trends of the major indexes, action of leading stocks) remains in the plus column, as do some key secondary pieces of evidence (blastoff indicators, number of new lows, etc.), so he’s sticking with a bullish stance. But the near-term should be interesting—the continuing dichotomy in the market means most indexes aren’t far from their 50-day lines, and he’s started to see more up-down-up-down action, which, after a big, prolonged (13-plus weeks) upmove, tells you that the bulls and bears are beginning to fight it out. Mike’s Top Pick is Etsy (ETSY), which has come alive after a year-long rest.
Cabot Undervalued Stocks Advisor
Monthly Issue July 1: As the new Chief Analyst for the Undervalued Stock Advisor, Bruce Kaser, would like to thank you for reading this month’s letter. He knows you have many sources of investment ideas and advice, and he appreciates your interest in our service. Today’s featured companies include an undervalued but high-quality and well-capitalized consumer apparel company, Columbia Sportswear (COLM), as well as Quanta Services (PWR), Dow Inc (DOW) and Equitable Holdings (EQH). Here are today’s portfolio changes: Columbia Sportswear (COLM) is a new Buy, Quanta Services (PWR) moves to Buy from Hold and Marathon Petroleum (MPC) moves to Hold from Buy.
Weekly Update June 24: There have been so many changes in 2020, it pains me to heap another change onto your laps, and yet it is time for me to do so. I’ve implemented the next phase of my longtime career plan by establishing a U.S. equity hedge fund for which I am the portfolio manager. It is now, therefore, time for Crista to leave her analyst position with Cabot Wealth Network and concentrate solely on managing the Fund’s assets. In that light, this is the last week of her five-year tenure with Cabot. At this time, she is handing the reins over to a very experienced analyst, Mr. Bruce Kaser, Managing Director at The Turnaround Letter. Here are today’s portfolio changes: Adobe Systems (ADBE) moves from Buy to Hold, Amazon.com (AMZN) moves from Buy to Hold and Netflix (NFLX) moves from Strong Buy to Hold.
Cabot Stock of the Week
Weekly Issue June 29: The market remains in good health, though there’s been some weakness among growth stocks, but overall Tim thinks this correction provides some decent entry points so he continues to recommend that you be heavily invested in a diversified portfolio of the best stocks—while pruning your portfolio of underperformers. Today our underperformer is Verizon (VZ), which Tim will sell because the stock has weakened further. As for the newest recommendation, Big Lot’s (BIG), it’s unusual in that it’s actually in a sector Tim doesn’t care for, but the confluence of several factors (including COVID-19) means there’s substantial upside potential right now.
Cabot Global Stocks Explorer
Bi-weekly Update July 2: Today Carl writes that as we move into the third quarter, analysts at Goldman Sachs write that their baseline forecast is for the S&P 500 to gain 5% in the second half of the year. In their “vaccine upside” scenario, stocks rise by 14% from here; in the “virus downside” scenario, they drop 30%. This is all speculative, of course. As companies begin releasing second-quarter earnings reports, we will find out just where things stand. According to FactSet, analysts estimate that profits at blue-chip American companies fell 44% in the second quarter. Carl has two portfolio changes today: FANUC (FANUY) Moves from Hold to Sell and TRIP.COM (TCOM) Moves from Buy to Hold a Half.
Bi-weekly Issue June 25: Markets, led by Nasdaq’s leading companies, had an impressive winning streak broken by concerns over an acceleration of coronavirus cases. Our Emerging Markets signal (EEM) stays positive as the virus is being handled well in Asia outside of China but is exploding in Latin America. The Explorer portfolio is well positioned with cash to deploy and stocks holding up well. Today, Carl looks inside the indexes to see what’s working and also explore what more participation by individual investors in 2020 might mean for markets. Then he moves north to Canada for a promising new recommendation, Kirkland Lake Gold (KL), that has all the characteristics of a winning gold stock. Here are today’s portfolio changes: Cloudflare (NET) moves from Buy a Half to Buy a Full Position and Fanuc (FANUY) moves from Buy a Half to Hold a Half.
Cabot Dividend Investor
Weekly Update July 1: Tom likes the prognosis for the market longer term. But it may knock around for a while and be subject to headline risk in the weeks ahead. He doesn’t expect a big selloff. But he sees more downside risk than upside potential in the weeks ahead. For that reason, he is being cautious. Several portfolio positions were partially sold two weeks ago. And he’s still being stingy with the BUY ratings. There are no rating changes today.
Monthly Issue June 10: There are bargains and high yields out there. But you have to be careful to find those with a safe dividend. Stocks still selling at bargain prices that pay high yields that are safe represent the best buying opportunities in the market right now. In this issue, Tom highlights one of the few diamonds in the rough. He has seven portfolio changes today, Community Healthcare Trust (CHCT) moves from HOLD to SELL, STAG Industrial (STAG) from HOLD to SELL 1/2, Altria (MO) from HOLD to BUY, Crown Castle International (CCI) from HOLD to SELL 1/2, Innovative Industrial Properties (IIPR) form BUY to SELL 1/3, Qualcomm Inc. (QCOM) from HOLD to SELL 1/3 and Valero Energy Corp. (VLO) from HOLD to SELL 1/2.
Cabot Marijuana Investor
Update July 1: The stocks in the marijuana sector have pretty much traded in sync with the broad market since the March bottom, climbing strongly to late-May or early-June peaks and consolidating those gains since, with many stocks pulling back to sensible support levels. To simplify matters further, this week Tim has divided these stocks into four categories: Weak, Average, Strong and Strongest. For new buying, he suggests focusing on the Strong and Strongest. And if you own stocks in the other categories, at the moment, he doesn’t see any that deserve to be sold, but he is downgrading three to Hold. Akerna (KERN), Cresco Labs (CRLBF) and Tilray (TLRY) to Hold.
Monthly Issue June 24: Our long-term goal is to own the leading stocks in the marijuana industry, so that five and ten years from now, our profits will be spectacular. The stocks in our portfolio today are absolutely your best bet to achieve that goal. But this is a volatile sector, so buying at the right time is key—and Tim thinks today presents a good buying opportunity, but he might be wrong. Luckily, the solution to that is diversification, not only by geography and company but also by time. So buy some now, but don’t put it all in today. Time is your ally and we are still early in this race. The portfolio holds a cash position of 14% and he’s now going to use one-third of that cash to average up in Aphria (APHA).
Special Report: April 29, 2020
U.S. Vertically Integrated Multistate Operators (MSOs)Cabot Early Opportunities
Special Bulletin June 29: With a portfolio flush with positions and the market having gotten a little choppy lately we’re going to move incrementally more conservative today. Tyler is taking the following actions: Axonics Modulation (AXNX), Sunnova Energy (NOVA) and Tela Bio (TELA) all move to SELL. Solaredge Technologies (SEDG) and Viela Bio (VIE) Move to Hold.
Monthly Issue June 17: This month’s Issue of Cabot Early Opportunities features a fresh group of stocks that all have their own merits, but which have remained reasonably strong through the recent volatility. Tyler has a newly public company selling health insurance directly to consumers, a rapid growth software company enabling automation for small businesses, an emerging MedTech innovator and a company benefitting from surging demand for boats. His top pick is Purple Innovations (PRPL), one of several emerging bed-in-a-box companies.
Cabot Profit Booster
Weekly Issue June 30: The Stock – Invitae (NVTA) NVTA has had some big moves up and down during the past couple of years, but last week may have changed the stock’s character in a big way. The bounce off the March bottom was decent, and the tightness in April, May and early June was also a plus. But the Archer buyout was the key, with the stock exploding higher for two straight days on massive volume and, so far, holding those gains despite some indigestion among growth stocks. Stop – 22.5. The Covered Call Trade Buy Invitae (NVTA) Stock at 28.5, Sell to Open August 30 Strike Calls (exp. 8/21) for $2.25, or a Net Price of 26.25 or less.
Cabot Income Advisor
Weekly Update July 1: Tom remaining cautious with the portfolio positions. The picks so far should offer downside resilience and/or a very quick rebound if the market turns south. The changing direction of the market does reduce the ability to get high call premiums. But we locked in good ones while the getting was good. And the market could still resume its ascent.
Monthly Issue June 24: In this issue, Tom highlights three stocks to buy and at the same time offer covered call ideas on those same stocks. The simultaneous purchase of a stock and the writing of a call is called a buy/write. The current environment is ripe for such a strategy. As usual, he recommends selling a call that represents the position. If you buy 500 shares, write 5 calls. If you have 1,000 shares, write 10 calls.
Special Report:
Off the Radar Cash GeneratorsSpecial Report:
The Covered Call Income MachineWall Street’s Best Investments
Top Pick Update Daily Alert July 2: Tesla, Inc. (TSLA) Shortex Market Letter
Top Pick Update Daily Alert July 1: VanEck Vectors Gold Miners ETF (GDX) The Personal Capitalist
Daily Alert June 30: ServisFirst Bancshares, Inc. (SFBS) DRIP Investor
Daily Alert June 29: Square, Inc. (SQ) FMA Trader Alert
Monthly Issue June 18: Advisors and consumers are back on the bullish track, as you’ll see in our Barometer, as well as Market Views. Despite the market’s rise, there are still plenty of undervalued stocks in the marketplace. And Nancy begins this issue with our Spotlight Stock, Okta, Inc. (OKTA), a technology company that is gaining market share in the highly competitive field of cybersecurity—in this case, specializing in ID authentication for employees and customers. Her feature article explores the industry in more depth, as well as additional reasons for adding the Spotlight Stock to your portfolio.
Ask the Experts
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts from April 15, 2020 is now available for you to listen to at your convenience—click here for access. This private call with our analysts is one of your exclusive Cabot Prime member benefits.
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 Stock Advisor | Cabot Dividend Investor |
|---|---|---|---|---|---|---|
| ABBV | Hold | Buy | ||||
| ADBE | Hold | |||||
| AMZN | Hold | |||||
| APHA | See Advisory | |||||
| ARE | Hold | |||||
| AVGO | Hold | |||||
| BABA | Hold | |||||
| BIG | Buy | |||||
| BIP | Buy | Buy 2/3 | ||||
| BMY | Strong Buy | |||||
| BSCL | Buy 1/2 | |||||
| BUG | Buy 1/2 | Buy | ||||
| BYND | Buy | |||||
| CCI | Hold 1/2 | |||||
| CGC | See Advisory | |||||
| CHGG | Buy 1/2 | Buy | ||||
| CHWY | Sell | |||||
| COLM | Buy | |||||
| CRAK | Buy | |||||
| CRLBF | See Advisory | |||||
| CRON | See Advisory | |||||
| CURLF | See Advisory | |||||
| DBSDY | Buy 1/2 | |||||
| DOCU | Sell 1/3 | |||||
| DOW | Buy | |||||
| DXCM | Hold 3/4 | |||||
| EPD | Hold | |||||
| EQH | Strong Buy | |||||
| FANUY | Sell | |||||
| GFL | Buy | |||||
| GILD | Buy 1/2 | |||||
| GM | Strong Buy | |||||
| GRWG | See Advisory | |||||
| GTBIF | See Advisory | |||||
| HTHT | Hold | |||||
| IIPR | See Advisory | Hold 2/3 | ||||
| KERN | See Advisory | |||||
| KL | Buy 1/2 | |||||
| MKSI | Hold | |||||
| MO | Buy | |||||
| MPC | Hold | |||||
| NEE | Hold | Hold 1/2 | ||||
| NET | Buy | Buy | ||||
| NFLX | Hold | |||||
| NVDA | Hold | |||||
| OKTA | Buy | |||||
| PGX | Hold 1/2 | |||||
| PWR | Buy | |||||
| QCOM | Hold 2/3 | |||||
| REMX | Buy 1/2 | |||||
| RNG | Hold | |||||
| SE | Hold 1/2 | Hold | ||||
| SPCE | Buy | Buy | ||||
| SSO | Buy | |||||
| STAG | Hold 1/2 | |||||
| TCNNF | See Advisory | Buy | ||||
| TCOM | Hold 1/2 | |||||
| TDOC | Buy | |||||
| TLRY | See Advisory | |||||
| TOT | Hold | |||||
| TPB | See Advisory | |||||
| TSLA | Hold | |||||
| TSN | Hold | Buy | ||||
| TWLO | Buy | |||||
| UEIC | Strong Buy | |||||
| VLO | Hold 1/2 | |||||
| VOYA | Strong Buy | |||||
| VRTX | Hold | Buy | ||||
| VZ | Sell | Buy | ||||
| WING | Buy | |||||
| XEL | Hold 2/3 | |||||
| ZM | Hold | |||||
| ZS | Hold |