Cabot Prime Week Ending March 22, 2019
Cabot Weekly Review (Video)
In this week’s stock market video, Mike Cintolo remains bullish on the bigger picture, but shorter-term he talks about a handful of yellow flags he’s seeing—no reason to panic, but a reminder to have stops in place, to take some partial profits on the way up and to follow your plan. The good news is that, should the market pull in from here, he’s seeing a bunch of potential buys on weakness, and he shares some of his favorite targets.
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Cabot Growth Investor
Bi-weekly Update March 21: Remain bullish. The market continues to act well, and while the broad market has been futzing around for nearly a month, our market timing indicators are positive and most leading stocks are in good shape. Mike could put the rest of our cash to work in the days ahead, preferably on a pullback, but tonight, his only change is restoring the Buy rating on Workday (WDAY). Our cash position remains around 9%.
Bi-weekly Issue March 14: Stay bullish, but be sure to look for solid entry points on the buy side and keep mental stops in place on anything that’s lagging. In the Model Portfolio, Mike has no changes tonight—he’s holding onto nine stocks with a cash position of around 10%. In tonight’s issue, Mike writes about a couple of simple tips for handling some off-the-bottom names in last year’s high-fliers, as well as reviewing our nine stocks and a couple others that look tempting.
Other Stocks of Interest March 6: Follow ups to stocks featured September 26, 2018 (issue 1403) to February 28, 2019 (issue 1414). 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 March 22: Mike remains bullish when looking down the road because most of the big-picture evidence is pointed up, including the longer-term trend, the blastoff indicators from earlier this year and the action of leading stocks, which, despite today’s wobbles, are almost all still in intermediate-term uptrends. His buy ideas this week are: Acacia Comm. (ACIA), Match.com (MTCH), MercadoLibre (MELI) and Veeva Systems (VEEV). There is one sell today, LPL Financial (LPLA).
Weekly Issue March 18: At this point, that action is more descriptive than predictive; it does raise the odds that the market could throw us another curveball over the next week or two, but it’s not something we’d necessarily trade off of. Big picture, we remain mostly bullish, though for new buying, we still favor entering on weakness. This week’s list is just about all tech, med tech and biotech, and Mike is happy to see some improved setups after the past two to three weeks of action. His Top Pick is Zendesk (ZEN), which looks like it wants to continue its breakout from a few weeks back.
Cabot Undervalued Stocks Advisor
Special Bulletin March 22: Commercial Metals (CMC) reported second-quarter results and remains a Strong Buy. Designer Brands Inc. (DSW) held an Investor Day and Guess? (GES) reported fourth-quarter results.
Special Bulletin March 19: DSW (DSW) joins the Buy Low Opportunities Portfolio. DSW Inc. is a footwear, accessories and apparel retailer that joins the Buy Low Opportunities Portfolio today. DSW has been a favorite apparel retailer of Crista’s due to its excellent growth and value fundamentals. The stock is also featured in my Top Ten Stocks to Buy & Hold for 2019 portfolio, which is up 11.65% year-to-date, excluding dividends.
Weekly Update March 19: U.S. stocks markets are now continuing their rebound from the horrendous fourth-quarter 2018 market action. The S&P 500 and NASDAQ indexes look quite bullish, while the Dow Jones Industrial Average (DJIA) lags a bit. And that makes sense because Boeing (BA)—the highest-priced stock in the DJIA—has been falling in conjunction with bad news about recent crashes of its 737 Max jet. Crista is making these portfolio changes today: Blackstone Group LP (BX) moves from Strong Buy to Buy, Comerica (CMA) from Hold to Buy, KLX Energy Services (KLXE) from Hold to Sell and Quanta Services (PWR) from Strong Buy to Hold.
Monthly Issue March 5: Crista is adding three stocks to the portfolios today – The Mosaic Company (MOS) joins the Buy Low Opportunities Portfolio as a Strong Buy, Royal Caribbean Cruises (RCL) joins the Growth & Income Portfolio as a Strong Buy and Sanmina Corp. (SANM) joins the Growth Portfolio as a Strong Buy. She is selling Delek U.S. Holdings (DK) and Blackstone Group LP (BX) moves from Buy to Strong Buy.
Cabot Stock of the Week
Weekly Issue March 19: The bull market of 2019 continues, though most major indexes have yet to break out to new highs. Thus, the risk remains that the correction that tried to get going two weeks ago will return for another try. But that’s a risk we can bear, as we focus on cultivating a portfolio of the leading growth stocks—those hitting new highs—as well as selecting undervalued and high-quality dividend-paying stocks. So far, it’s been a great year, and this week Tim adds another strong growth stock to the portfolio. The stock, Rapid7 (RPD), was originally recommended by Mike Cintolo in Cabot Top Ten Trader. Tim has two portfolio changes today: Everbridge (EVBG) and Van Eck Rare Earths/Strategic Metals (REMX) both move from Buy to Hold.
Cabot Emerging Markets Investor
Bi-weekly Issue March 21: Institutional investors are underweighting Europe so in today’s Issue Carl goes against the grain for his new recommendation. Daimler AG (DDAIF), is a great brand that offers a nice combination of high quality, value price of entry, strong growth in emerging markets and a 7.8% dividend yield. It’s rated Buy a Half. Carl has one change for you today, he is moving Nio, Inc. (NIO) from Hold a Half to Buy a Half.
Bi-weekly Update March 14: Carl writes that week to week, it’s important to keep in mind why we as investors are interested in global emerging markets. In short, it’s growth. Economies with high growth rates fueling companies that are growing revenue and profits at a brisk pace. And when we can get growth at a value price—so much the better. There are two portfolio changes today: AngloGold Ashanti (AU) moves from Hold a Half to Sell and Van Eck Rare Earths/Strategic Metals (REMX) from Buy a Half to Hold a Half.
Cabot Dividend Investor
Weekly Update March 20: Tom says that we have the ideal environment for the relative performance of dividend stocks. This late-stage economic cycle is where dividend-paying stocks typically thrive. As well, they generally hold up much better if there is a bear market. In today’s update Tom is moving Hormel Foods (HRL) from Sell Half to Hold.
Monthly Issue February 27: Tom writes that in just a few years this country has gone from a state of hopeless dependency on foreign energy to the world’s largest producer of both oil and natural gas. It is a global economic phenomenon of staggering proportions that will materially affect the economic well-being of the country for many decades to come. Who knew? As an investor, you need to know this story. His featured stock this month is, Enterprise Product Partners (EPD), one of the largest midstream energy companies in the country, with a vast portfolio of service assets connected to the heart of American energy production. There are no rating changes since last week’s update.
Cabot Marijuana Investor
Update March 20: This update which does include some updates on our portfolio stocks farther down, is mainly a reminder to you to exercise some caution. While the long-term prospects for this industry remain very bright, and Tim is thrilled to be your guide to these opportunities, the short-term risks are now high. Which means that someday, there will be a correction, and some investors, particularly those who bought at the top, will lose a lot of money. And he doesn’t want you to be one of them. So, if you’re a newcomer to the sector, take your time. Don’t do all your buying in one day. Buy one or two stocks, then wait. When you have some profits, do some more buying. In the portfolio Tim will now average up in Elixinol (ELLXF), the smallest position, doubling the size of the position.
Monthly Issue February 28: While the S&P 500 is up 11.1%, year-to-date, the Marijuana Index is up 40.0%, and our own Marijuana Portfolio is up 44.4%. Times are good. Demand for marijuana stocks continues to exceed supply, as new investors are drawn to the sector by a combination of a desire to buy the hottest stocks and a growing acceptance of this increasingly legal American industry. Today Tim is selling all of CV Sciences (CVSI), MedMen (MMNFF) and Tilray (TLRY) and a third of Cresco Labs (CRLBF) and Innovative Industrial Properties (IIPR). After the sales, the portfolio will be about 30% in cash, which he hopes to reinvest soon—and at more advantageous buy points.
Wall Street’s Best Investments
Daily Alert March 22: Sell: CME Group Inc. (CME) from Cabot Dividend Investor
Daily Alert March 22: Generac Holdings Inc. (GNRC) from Dow Theory Forecasts
Daily Alert March 21: salesforce.com (CRM) from Canaccord Genuity Research
Daily Alert March 20: ZTO Express (Cayman) Inc. (ZTO) from Cabot Emerging Markets Investor
Daily Alert March 19: SPDR S&P MidCap 400 ETF (MDY) from The Chartist Mutual Fund/ETF Letter
Daily Alert March 18: Telefonaktiebolaget LM Ericsson (ERIC) from Internet Wealth Builder
Monthly Issue March 13: This month, Nancy’s Spotlight Stock, ShotSpotter, Inc. (SSTI), focuses on an unhappy subject—mass shootings. And while the company she is recommending isn’t pioneering a solution to that tragedy, it is finding a niche in mitigating the losses that come with it. In her Feature article, she further explores the technology behind its products.
Wall Streets Best Dividend Stocks
Daily Alert March 22: Sell: CME Group Inc. (CME) from Cabot Dividend Investor
Daily Alert March 22: Invesco BulletShares 2019 Corp Bd ETF (BSCJ) and Invesco BulletShares 2021 Corp Bd ETF (BSCL) from Cabot Dividend Investor
Daily Alert March 21: WEC Energy Group, Inc. (WEC) from Argus Weekly Staff Report
Daily Alert March 20: Life Storage, Inc. (LSI) from Contrarian Outlook
Daily Alert March 19: Allegiant Travel Company (ALGT) from AlphaProfit Sector Investors’ Newsletter
Daily Alert March 18: U.S. Bancorp PERP PFD SER A (USB-PA) from Jack Adamo’s Insiders Plus
Monthly Issue March 6: In this issue Nancy welcomes Douglas Gerlach, who is a new regular contributor to our newsletters. Doug is with Investor Advisory Service and is the editor of the SmallCap Informer newsletter. Doug contributed our Spotlight Stock this month, Silicon Motion Technology (SIMO), a powerhouse in the data storage industry. In her Feature article, Nancy delves further into the sector, noting its expansion as well as future potential.
Ask the Experts
Cabot Marijuana Investor
Question: Hi Tim, We’re readers of your Stock of the Month and Marijuana Investor letters. Appreciate all your efforts and your counsel. Re the marijuana industry, your thoughts re Village Farms (VFF)?
Tim: VFF is on my watch list, and I expect to write about it in next week’s issue of Cabot Marijuana Investor, along with a few other smaller companies/younger stocks. The weeklong trading halt a few weeks ago was a little worrisome, but in retrospect it was mainly a sign of the company’s lack of expertise in the U.S. capital markets, and the action of the stock since then has been great. Fundamentally, I see some comparisons to Turning Point Brands (TPB), in that an established old-industry company is shifting gears to participate in the new fast-growth cannabis industry.
Premium Reports
The Five Best Canadian Stocks to Buy Now
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.