Cabot Prime Week Ending March 27, 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 discusses the market’s recent bounce and his optimism that stocks may have hit a workable low due to a couple of technical factors. That’s a good first step (and if you’re holding lots of cash, a nibble or two is possible), though Mike is still advising a defensive posture until the market builds a bottom and the trends turn up. The good news is that the bounce has allowed some of the most vibrant growth stocks to pop, and he reviews a bunch of them here.
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My Favorite Growth Stocks for the Coming Coronavirus Recovery
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2020 Cabot Wealth Summit - August 19-21, 2020
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Advisory Services
Cabot Growth Investor
Bi-weekly Issue March 26: Mike recommends that you should wait to buy until the trends turn up and (most importantly) fresh leaders begin their advances. He could put a little cash to work if this bounce gains steam, but right now he’s remaining patient. In the Model Portfolio, his only change of late was a small trimming of our Teladoc (TDOC) position yesterday, leaving us with around 72% in cash.
Special Bulletin March 25: The market has bounced decently during the past couple of days, and Mike is cautiously optimistic that a workable low is in. That said, the action of individual stocks remains hectic, with many resilient names sliding as those near new lows bounce. Teladoc (TDOC) is an example, as after a massive run it’s come back to Earth over the past couple of days. While Mike has already taken partial profits twice, he’s going to sell 25% (one quarter) of his remaining shares and hold the rest.
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%.
Other Stocks of Interest March 26: Follow ups to stocks featured November 7, 2019 (issue 1432) to March 26, 2020 (issue 1442). 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 27: All in all, the evidence has improved somewhat over the past week, based on the positive new-low divergence, the continued pessimism and the initial breadth of the rally. Consider it a good first step. But it’s still best to be positioned defensively given that the trends are down and most stocks are rallying into overhead resistance. As Mike has been writing, if you want to roll the dice on a name or two, there’s nothing wrong with that assuming you’re holding a ton of cash; he still thinks this near-term rally could go on for a bit. But you should mostly remain patient as we wait for a sustained uptrend to get underway—something that’s likely to take time to set up. Once again, Mike is not going to advise specific buys, but there are 13 that have caught his eye due to some relative strength and/or resilient patterns. There are two suggested sells: ServiceNow (NOW) and FTI Consulting (FCN).
Weekly Issue March 23: Mike is always on the lookout for rays of light, and he is seeing one from the broad market, as fewer stocks are participating on the downside during the last week. That’s a plus, though we need to see it backed up by real buying and a break of at least some shorter-term moving averages (10-day, etc.) to think a workable low could be in. Right here, he remains cautious. Encouragingly, though, this week’s list is fairly heavy on the growth side of the equation, including many stocks that found big-volume support on earnings last week. Mike’s Top Pick is Chewy (CHWY), a defensive growth stock that’s executing well and has seen some major accumulation.
Cabot Undervalued Stocks Advisor
Weekly Update March 25: Today, Crista advises us on how to manage stock opportunities during a market correction and recession. She has four portfolio changes: Alexion Pharmaceuticals (ALXN) moves from Hold to Buy, Guess? Inc. (GES) moves from Hold to Buy, Mercury General (MCY) moves from Hold to Strong Buy and Tyson Foods (TSN) moves from Hold to Strong Buy.
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 23: As the market works to find a bottom, with the S&P 500 some 33% off its high of just five weeks ago, there’s no question that there are bargains out there. The question is, how do you determine which stocks will head up after the selling pressures abate and which will just wallow in the mud? One promising indication is if a stock has already bounced off its low, as buyers have already begun to retake control. That’s the attraction of today’s stock, BlackLine (BL), along with a solid growth story. The stock was originally recommended in Cabot Early Opportunities by Tyler Laundon. Tim has one portfolio change today: Brookfield Infrastructure Partners (BIP) moves to Sell.
Cabot Global Stocks Explorer
Bi-weekly Update March 26: In such an environment it’s easy to assume the worst and miss the flipside of the equation – great companies trading at prices that just a month ago we would have considered incredible. Market volatility and uncertainty are creating great opportunities. Carl has one portfolio change today, NovoCure (NVCR) moves to Sell.
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.
Cabot Dividend Investor
Weekly Update March 25: An end to this economic shutdown is the light at the end of the tunnel that the market is looking for. This past week, the odds of just a short term shutdown increased exponentially. That’s the very best news the market can hear. And it reacted. It is still an open question how all of this will unfold. But there is now some reason for optimism about the market. The news this week is much better than it was last week. Here are Tom’s rating changes today: Crown Castle International (CCI) and AbbVie (ABBV) both move from Hold to Buy.
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
Monthly Issue March 25: Coming into this week, the portfolio was more than 60% in cash, though that’s been reduced as the stocks have bounced. And today Tim is going to take the cash level down to 50% by averaging up (using equal amounts) in both Canopy Growth (CGC) and Innovative Industrial Properties (IIPR). Note, he’s like to buy more of CURLF and GRWG, but he learned long ago that averaging down is a bad idea, so he’s just wait until our position is profitable in them. Canopy Growth (CGC), GrowGeneration (GRWG) and Innovative Industrial Properties (IIPR) all move to BUY.
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.
Cabot Early Opportunities
Special Bulletin March 27: Kornit Digital (KRNT) has just pulled Q1 2020 guidance, saying revenue will be roughly 35% to 45% below the low end of its prior revenue guidance ($47 million) due to global disruptions from COVID-19. Management cited several customers postponing orders or ceasing operating entirely for now. Tyler is dropping Kornit to focus on titles that have a better chance of performing well in the near-term. It will go back on my watch list for potential inclusion in the future. SELL.
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.
Bonus Report:
3 Cloud Software Stocks to Buy NowUpdated - 1/27/20 - Bonus Report: 3 Canadian Small-Cap Stocks to Buy Now
Bonus Report: Secrets To Early-Stage Stock Profits
Bonus Report:
Cabot Profit Booster
Weekly Issue March 24: JD.com (JD) - There will obviously be some uncertainty going forward, but if anything, JD could benefit from the lingering virus threat in China—the stocks’ resilience certainly points that way.The Covered Call Trade — Buy JD.com (JD) Stock at 40.75, Sell to Open May 41 Calls (exp. 5/15/2020) for $2.75, or a Net Price of 38 or less.
Frequently Asked Questions Report:
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Best-Kept Hedge Fund Secrets to Explode Your WealthBonus Report:
5 Easy Stock-Picking Secrets That Make it Ridiculously Easy to Profit.Bonus Report:
The Simple Technique that Brings in 5%-15% Each Month.Wall Street’s Best Investments
Daily Alert March 27: CarMax, Inc. (KMX) Investor Advisory Service
Daily Alert March 26: Regeneron Pharmaceuticals, Inc. (REGN) Argus Weekly Staff Report
Daily Alert March 25: Boyd Gaming Corporation (BYD) Upside
Daily Alert March 24: Sell: New Mountain Finance Corporation (NMFC) Forbes Dividend Investor
Daily Alert March 24: Daktronics, Inc. (DAKT) Forbes Dividend Investor
Daily Alert March 23: Quanterix Corporation (QTRX) Canaccord Genuity Research
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.
Ask the Experts
Cabot Undervalued Stocks Advisor
Question: Of the ten Buy and Hold stocks that you published in January, are there any that should be sold?
Crista: The earnings outlook has changed for Royal Dutch Shell (RDS/A), due to the dramatic drop in oil prices. In addition, they’ve suspended their share repurchase plan. None of this is a disaster -- they’re still very profitable. The stock has shot upward in recent days.If I owned RDS/A today, I’d watch for the stock to rise to the 36-42 area. At that time, if oil prices have not shown any improvement, I would trade out of RDS/A into a stock that has not been so hammered by this virus-compromised economy or oil prices.
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 | Buy | |||||
| ADBE | Strong Buy | |||||
| ALXN | Buy | |||||
| AMZN | Strong Buy | |||||
| ANF | Hold | |||||
| ARE | Sold | Hold | ||||
| AVGO | Buy | |||||
| BABA | Buy | |||||
| BIP | Sell | Hold 2/3 | ||||
| BKR | Hold | |||||
| BL | Buy | |||||
| BP | Buy 1/2 | |||||
| BSCL | Buy 1/2 | |||||
| CCI | Buy | |||||
| CGC | See Advisory | |||||
| CHCT | Hold 1/3 | |||||
| CRAK | Hold | |||||
| CRON | See Advisory | |||||
| CURLF | See Advisory | |||||
| DBI | Buy | |||||
| DOCU | Hold | |||||
| DOW | Buy | |||||
| DXCM | Hold | |||||
| EPD | Hold | |||||
| EQH | Hold | |||||
| GES | Buy | |||||
| GM | Hold | |||||
| GRWG | See Advisory | |||||
| GS | Hold | |||||
| HTHT | Hold | |||||
| IIPR | See Advisory | Hold | ||||
| LGIH | Hold | |||||
| LK | Buy 1/2 | Hold | ||||
| LX | Buy 1/2 | |||||
| MCY | Strong Buy | |||||
| MKSI | Hold | |||||
| MO | Hold | |||||
| MPC | Buy | |||||
| NEE | Hold | Hold 1/2 | ||||
| NFLX | Strong Buy | |||||
| NVCR | Sell | |||||
| NVDA | Buy | Strong Buy | ||||
| PGX | Buy 1/2 | |||||
| PNGAY | Buy | |||||
| PWR | Hold | |||||
| QCOM | Hold | |||||
| RNG | Hold | |||||
| SE | Buy 1/2 | Hold | ||||
| SFL | Sold | |||||
| SGEN | Sold | |||||
| SPCE | Buy 1/2 | Hold | ||||
| SPDN | Buy | |||||
| SSO | Sold | |||||
| STAG | Hold | |||||
| STNE | Sold | |||||
| TCNNF | See Advisory | |||||
| TDOC | Sell 1/4 | |||||
| TOT | Hold | |||||
| TPB | See Advisory | |||||
| TSLA | Hold | |||||
| TSN | Strong Buy | |||||
| UEIC | Hold | |||||
| VLO | Hold | |||||
| VOYA | Hold | |||||
| VRTX | Hold | Hold | ||||
| VZ | Hold | |||||
| XEL | Hold 2/3 | |||||
| ZM | Buy |