Cabot Prime Week Ending March 20, 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, Tyler Laundon attempts to lay out a rough sketch of what could happen over the coming two to three weeks in terms of government and the public’s fight against the coronavirus. He also looks at 15 technology stocks that should have done well without this pandemic, and discusses why a number of them could enjoy sustainable market share gains as a result.
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Advisory Services
Cabot Growth Investor
Bi-weekly Update March 19: Remain defensive. There are certainly indications that a countertrend rally could start at any time, so Mike’s not anxious to raise more cash, but he’s sticking with the trend, which remains down. In the Model Portfolio, he has no changes tonight—he’s holding four resilient stocks and a cash position of 71%.
Special Bulletin March 18: Remain defensive. The market took another leg lower today, though our four remaining stocks in the Model Portfolio hung in there. Mike continues to hold a big cash position (near 71%) and is aiming to preserve capital until the crash ends.He has no changes tonight.
Special Bulletin March 16: The market continued its crash today, with the major indexes losing a bunch more ground on virus-related economic fears. He came into today with two-thirds of the Model Portfolio in cash, and tonight Mike is going to sell his remaining small position in ProShares Ultra S&P Fund (SSO), giving him a bit more than 70% on the sideline.
Bi-weekly Issue March 12: Respecting the crash and remaining defensive is the right thing to do. In the Model Portfolio, Mike sold Dynatrace (DT), one-third of Dexcom (DXCM) and 20% of our remaining position in Teladoc (TDOC) earlier this week, and tonight we’re forced to sell half of our remaining position in ProShares Ultra S&P Fund (SSO). That will leave us with a cash position of around 67%.
Other Stocks of Interest February 28: Follow ups to stocks featured October 10, 2019 (issue 1430) to February 27, 2020 (issue 1440). 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 March 20: Mike remains very defensive, but is always keeping tabs on which stocks/sectors are resisting the decline to some extent (he’s seeing more do this), which could provide some short- and longer-term opportunities down the road. He’s not going to advise specific buys, but there are 11 that have caught his eye due to some relative strength and/or resilient patterns. There are two suggested sells: iRhythm Tech (IRTC) and Momenta Pharm (MNTA).
Weekly Issue March 16: Mike’s advice really hasn’t changed despite the once-in-a-lifetime action of the past couple of weeks: You should remain cautious, holding plenty of cash and keeping any new buying on the small side. Eventually, there will be huge opportunities, but we need to see the market and potential leading stocks find support before thinking a workable low could be in. In the meantime, Mike is mostly focused on eying stocks that are showing some resilience—if something can hold up in this disaster, it’s definitely worth at least keeping a close eye on. His Top Pick is Masimo (MASI), which could be a port in the virus storm.
Cabot Undervalued Stocks Advisor
Special Bulletin March 19: Today’s news: Guess?, Inc. (GES) reports fourth-quarter results. Crista’s sense is that the worst is over for the share price. However, she feels obligated to officially leave my recommendation as a Hold until the stock shows a bottoming pattern on the price chart.
Weekly Update March 18: Crista writes that if you are fearful, that’s okay. It’s to be expected. You can wait to buy low when the market is far more stable, and you’ll still be able to buy some excellent bargains. So if you want to ignore your investment portfolio for a while, just do it. Here are today’s portfolio changes: Adobe Systems (ADBE) moves from Buy to Strong Buy, Equitable Holdings (EQH) moves from Buy to Hold and MKS Instruments (MKSI) moves from Strong Buy to Hold.
Monthly Issue March 4: Crista will continue to write Bulletins more often, so that investors can navigate through this stock market correction and take advantage of trading opportunities. She might frequently mention stocks that don’t appear in these portfolios. There are lots of excellent growth stocks to choose from, and she can’t write about all of them, each week, but she can present them to you for your consideration. In that light, she mentioned NVIDIA (NVDA) a few days ago, and today the stock joins the Special Situation and Movie Star Portfolio.
Cabot Stock of the Week
Weekly Issue March 16: Just when you start to think this coronavirus crash will never end—it will. And Tim’s goal is to have a portfolio of healthy stocks when that day arrives. In the meantime, his selling has increased our cash position significantly. As for new buying—there aren’t a lot of healthy stocks to choose from, regardless of whether you’re looking for low-risk or high-risk, but one that stands out is today’s recommendation, Zoom Video (ZM), which benefits from the booming growth in working-from-home (WFH). Here are Tim’s portfolio changes today: Alexandria Real Estate Equities (ARE) and Seattle Genetics (SGEN) move to SELL and Virgin Galactic (SPCE) moves to HOLD.
Special Bulletin March 12: In this rare, mid-week update Tim will try to be brief, because he knows you have a lot to read, including numerous notices of cancellations and closings. So, today he is recommending that you sell: Axonics Modulation Technologies (AXNX), Trulieve Cannabis (TCNNF) and Verizon Communications (VZ).
Cabot Global Stocks Explorer
Bi-weekly Issue March 19: Today, Carl writes that the market over the last few weeks has been unsettling at the very least. Just when you think markets have found a bottom and maybe begun an uptrend, they go the other way. Nobody knows where the bottom is but we all know there is a bottom and the market will recover, giving us all an opportunity to recoup losses. Our goal should be to get ready for it when it comes and to invest cautiously in the meantime. In general, you should try to sell into strength. Here are Carl’s portfolio changes today: Sell Stoneco (STNE), increase Direxion S&P 500 Bear (SPDN) to 15% and Add JP Morgan (JPM) to Watch List.
Bi-weekly Update March 12: Going forward, Carl writes that will be need to be opportunistic expecting continued volatility and some sort of trading range developing over time. Our full position in the S&P 500 Inverse ETF (SPDN) moved up from 25 to 28 this week. It helps a bit in a down market as sort of a stock absorber. He knows everyone is used to a new recommendation every other week but we will need to be more flexible going forward. Our Cabot Global Stocks Explorer portfolio is now 55% invested in stocks, 35% in cash with 10% in our S&P 500 inverse ETF. Today he updates us on his new recommendation from March 9, British Petroleum (BP). It’s rated Buy a Half.
Cabot Dividend Investor
Weekly Update March 18: Today is just a nasty snapshot of very dark days for the market. Days like this are part of investing. It is the price for higher returns over time. Nothing is free. Take heart, the market never stays broken. Here are Tom’s rating changes today: Enterprise Product Partners (EPD), Verizon Communications (VZ) and AbbVie (ABBV) all move from Buy to Hold and SFL Corporation (SFL) moves from Hold to Sell.
Monthly Issue March 11: In this issue, Tom discusses the ramifications and measures to protect your investments. As well, he identifies rare securities that are timely opportunities while the market is down. These stocks have limited downside if the market continues to fall and huge upside leverage when it recovers. He has three portfolio changes today. Innovative Industrial Properties (IIPR), Qualcomm (QCOM) and Valero Energy (VLO) all move from BUY to HOLD.
Special Bulletin - Audio March 9: Tom posted an audio special bulletin today, giving you his take on today’s market volatility.
Cabot Marijuana Investor
Update March 19: Looking ahead, there’s no question that this bear market will bottom someday and Tim has little doubt that there will be some big up days, as good news sparks buying by opportunistic bargain hunters. But, today he is going to get even more heavily into cash by selling two more stocks, Akerna (KERN) and Planet 13 (PLNHF), and selling half of Curaleaf Holdings (CURLF). After these moves, the portfolio will be roughly 65% in cash.
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)
Cabot Early Opportunities
Monthly Issue March 19: These are harrowing times to be an investor but we’re always on the hunt for emerging opportunities, regardless of market conditions. As always Tyler is spreading things around this month, with the focus on two defensive names (including one larger company), two beaten and battered names that seem mis-priced (depends on what happens) and one stock that seems to be in high demand, despite the market conditions. Suffice to say, there’s little incentive to place big bets right now. But we’d be remiss not so send some ideas your way. These new names will come with a short leash! His Top Pick is BlackLine (BL), which was featured in one of his Special Reports last September. It is a Software-as-a-Service (SaaS) business with products for finance and accounting departments.
Monthly Issue March 18: Tyler writes that we will get through this and there will be plenty of opportunities. His overarching message right now is to get (and stay) in a safe financial (and physical) position to be able to take advantage of them when they do. In terms of stocks to buy today, he is not recommending anything. He’ll be following up tomorrow with ideas of what’s looking enticing right now, including some names both in our portfolio and beyond.
Special Bulletin March 17: Tyler is taking another incremental step to focus our portfolio today by selling Wingstop (WING). While the stock’s selloff makes it seem like a bargain in the quick serve restaurant market, the trends suggest many fewer people eating out for a lot longer than I think the market is factoring in.
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March Expiration March 20: Today Jacob wants to address the two positions which have March options expiring today. He is going to adjust one position, and will wait to adjust another till next week.
Weekly Issue March 17: Apple (AAPL) - There’s obviously a lot of uncertainty when it comes to all earnings forecasts for 2020, and it’s pretty much a given that Apple itself will miss initial forecasts in Q1. But the company looks poised to be one of the blue-chips best positioned to rebound whenever the virus storm passes.The Covered Call Trade — Buy Apple (AAPL) Stock at 242, Sell to Open April 245 Calls (exp. 4/17/2020) for $20, or a Net Price of 222 or less.
Exit Position March 16: Exit Existing Position – Survey Monkey (SVMK). The rolling market crash of the past three weeks is continuing today. This has unfortunately caused many overnight gap downs that have hurt our positions before Jacob could act.
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Daily Alert March 20: AbbVie Inc. (ABBV) The Lancz Letter
Monthly Issue March 19: Nancy’s Spotlight Stock, DuPont de Nemours, Inc. (DD), is a very old company, founded in 1802. It’s pretty much seen it all—recessions, depressions, booms and busts. And while it’s gone through a number of transformations (including one currently), it’s a steady name and being the largest chemical company in the United States gives it a good base of customers and products. Her Feature article adds a bit more information about the company, the industry, and why investors should keep it in mind.
Daily Alert March 19: 3M Company (MMM) The Prudent Speculator
Daily Alert March 18: Alcon, Inc. (ALC) Power Growth Investor
Daily Alert March 17: Netflix, Inc. (NFLX) Cabot Undervalued Stocks Advisor
Daily Alert March 16: Oneok, Inc. (OKE) The National Investor
Ask the Experts
Cabot Dividend Investor
Question: I reviewed this weeks report. You have all but two of your portfolio stocks on hold. Although you have the stocks on hold you appear to be very positive about these stocks long term and believe that with market recovery they will do very well. So, my question is: since you are holding on to these stocks and they are showing losses why would you not be taking a portion of your cash and using the funds to average down on some of these stocks (ABBV, QCOM, IIPR, VZ)? It seems that in this market if the portfolio is holding on to quality stocks with good upside potential in a recovery, it might make some sense to invest some cash reserves into them to average down cost. What is your opinion on averaging down on one or more of these stocks?
Tom: It makes sense for the long term. And I believe in those stocks. But the market is in free fall with this crazy coronavirus stuff. Until it can at least stabilize somewhat, I prefer to hold off for now. At least for the week or when the panic wanes. I don’t think this crisis will be resolved tomorrow. There will be plenty of opportunity to buy these stocks cheap in the weeks and months ahead. For now, there is too high a risk that the market goes lower. Hope this helps.
Cabot Growth Investor
Question: Mike, Just wanted to thank you and your team for always being a light in the dark. Thanks to the tides and the technical analysis tools we use because of you (and Wonda), we have saved our clients money and headaches during this craziness. The tides had us moving to cash in mid February. In the meantime we are fully in cash and just watching for the bottoming process with you. [We see] a lot of stubbornness to accept what is happening and just letting their positions erode double digits. Hope you are well and staying safe my friend.
Mike: Hey that’s great – I wish we were in all cash! But at least we avoided much of it – glad you’ve able to take our stuff and improve on it. Stay safe!
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.
| Stock | Cabot Global Stocks Explorer | Cabot Growth Investor | Cabot Marijuana Investor | Cabot Stock of the Week | Cabot Undervalued Stock Advisor | Cabot Dividend Investor |
|---|---|---|---|---|---|---|
| AAPL | Strong Buy | |||||
| ABBV | Hold | |||||
| ADBE | Strong Buy | |||||
| ALXN | Hold | |||||
| AMZN | Strong Buy | |||||
| ANF | Hold | |||||
| ARE | Sell | Hold | ||||
| AVGO | Buy | |||||
| AXNX | Sold | |||||
| BABA | Buy | |||||
| BIP | Hold | Hold 2/3 | ||||
| BKR | Hold | |||||
| BP | Buy 1/2 | |||||
| BSCL | Buy 1/2 | |||||
| CCI | Hold | |||||
| CGC | See Advisory | |||||
| CHCT | Hold 1/3 | |||||
| CRAK | Hold | |||||
| CRON | See Advisory | |||||
| CURLF | Sell 1/2 | |||||
| CZZ | Sold | |||||
| DAVA | Sold | |||||
| DBI | Buy | |||||
| DOCU | Buy | |||||
| DOW | Buy | |||||
| DT | Sold | |||||
| DXCM | Hold 2/3 | |||||
| EPD | Hold | |||||
| EQH | Hold | |||||
| GES | Hold | |||||
| GM | Hold | |||||
| GRWG | See Advisory | |||||
| GS | Hold | |||||
| HTHT | Hold | |||||
| IIPR | See Advisory | Hold | ||||
| KERN | Sell | |||||
| LGIH | Hold | |||||
| LK | Buy 1/2 | Hold | ||||
| LX | Buy 1/2 | |||||
| MCY | Hold | |||||
| MKSI | Hold | |||||
| MO | Hold | |||||
| MPC | Buy | |||||
| NEE | Hold | Hold 1/2 | ||||
| NFLX | Strong Buy | |||||
| NVCR | Buy 1/2 | |||||
| NVDA | Buy | Strong Buy | ||||
| PGX | Buy 1/2 | |||||
| PLNHF | Sell | |||||
| PNGAY | Buy | |||||
| PWR | Hold | |||||
| QCOM | Hold | |||||
| RIO | Sold | |||||
| RNG | Hold | |||||
| SE | Buy 1/2 | Hold | ||||
| SFL | Sell | |||||
| SGEN | Sell | |||||
| SPCE | Buy 1/2 | Hold | ||||
| SPDN | Buy | |||||
| SSO | Sell | |||||
| STAG | Hold | |||||
| STNE | Sell | |||||
| TCNNF | See Advisory | Sold | ||||
| TDOC | Hold | |||||
| TOT | Hold | |||||
| TPB | See Advisory | |||||
| TSLA | Hold | |||||
| TSN | Hold | |||||
| UEIC | Hold | |||||
| VLO | Hold | |||||
| VOYA | Hold | |||||
| VRTX | Hold 2/3 | Hold | ||||
| VZ | Sold | Hold | ||||
| XEL | Hold 2/3 | |||||
| ZM | Buy |