Cabot Prime Week Ending November 8, 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.
Quarterly Cabot Analyst Meeting
The recording of the quarterly Cabot Analyst Meeting from October 23, 2019 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.
Cabot Weekly Review (Video)
In this week’s stock market video, Tyler Laundon takes you through 15 small- and mid-cap stocks that have reported earnings. He pulls out names that he likes moving forward and tells you what to avoid.
CABOT EVENTS:
FREE WEBINAR: Thursday, November 14
Finding Early-Stage Growth Stocks Before the Crowd + Two Early-Stage Stocks to Buy Now
By Tyler Laundon, Chief Analyst of Cabot Early Opportunities and Cabot Small-Cap Confidential | Space is limited so sign up now for FREE.
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2020 Cabot Wealth Summit - August 19-21, 2020
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Advisory Services
Cabot Growth Investor
Bi-weekly Issue November 7: Selectively put some money to work while weeding out weak performers. Mike did some buying last week (filled out IPHI, started TDOC), and tonight he has a few moves: He’s adding a full-sized position in Vertex Pharmaceuticals (VRTX), a half-sized position in Qorvo (QRVO) and another 3% to our SSO position. On the sell side, though, he’s dumping Chipotle (CMG), which can’t get out of its own way. All told, these moves will leave us with around 44% in cash.
Bi-weekly Update October 31: Put a little money to work. There are still issues with many growth stocks and plenty of crosscurrents, but the overall market is looking good and Mike has seen some earnings-induced breakouts. He’ll start slow tonight, filling out the position in Inphi (IPHI) and starting a half-sized position in Teladoc (TDOC). Our cash position will still be a large 56%.
Other Stocks of Interest October 29: Follow ups to stocks featured June 6, 2019 (issue 1421) to October 24, 2019 (issue 1431). 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. Feel free to email me directly (mike@cabotwealth.com) with any questions/comments you have.
Cabot Top Ten Trader
Movers & Shakers November 8: Right now, while it’s not a raging bull market, the trends are up and the market’s leadership ranks are expanding. So Mike continues to lean bullish, looking for opportunities to put money to work. He’ll likely leave our Market Monitor at a level 7, though he could nudge it up another notch if the action continues to be bullish.His buy ideas today are: Acadia Pharmaceuticals (ACAD), Quanta Services (PWR) and Taiwan Semi (TSM). There are five sells this week.
Weekly Issue November 4: With more stocks acting well and with the trends of the major indexes pointed up, Mike thinks extending your line makes sense. Mike is nudging the Market Monitor up to a level 7 on tonight’s issue. This week’s list is chock-full of recent earnings winners, including many that appear to be early in new uptrends. Mike’s Top Pick is Qorvo (QRVO), a well-traded chip maker that’s just staged a wild earnings gap. Start small and preferably on weakness.
Cabot Undervalued Stocks Advisor
Special Bulletin November 8: Universal Electronics (UEIC) reported good third quarter results and Crista gives us some stock market commentary.
Special Bulletin November 6: DaVita (DVA), Mosaic (MOS) and DaVita (DVA) report third-quarter results. There are no rating changes.
Monthly Issue November 5: Crista is giving you FIVE NEW STOCK IDEAS today. One of them will officially join the Special Situation Portfolio, and that stock is Amazon.com (AMZN). And there is a bonus section with four extra investment ideas. She won’t be permanently adding the bonus stocks to the Cabot Undervalued Stocks Advisor portfolios, but feel free to enlist their assistance in your pursuit of capital gains and dividends. Here are today’s portfolio changes: Alaska Air Group (ALK) moves from Hold to Retired, Amazon (AMZN) joins the Special Situation Portfolio as a Strong Buy, CIT Group (CIT) moves from Buy to Hold, Southwest Airlines (LUV) moves from Strong Buy to Buy and Synchrony Financial (SYF) moves from Hold to Retired.
Special Bulletin November 4: Adobe Systems (ADBE) is a software company that’s changing the world through digital experiences. Today at Adobe MAX, the world’s largest creativity conference, Adobe announced the next generation of Creative Cloud—a release of faster and more powerful products spanning multiple surfaces. ADBE moves from Hold to Buy.
Weekly Update October 29: Crista writes that we’ve been fairly lucky this earnings season in that every single one of our portfolio companies that reported earnings managed to meet or beat the market’s expectations. Of course, that doesn’t mean share prices will rise. Short-term movements in stock prices can easily resemble a roulette game. Nevertheless, she buys high quality companies and she gives the stocks a chance to enhance our net worth. There are four portfolio changes today are: Commercial Metals (CMC) moves from Buy to Hold, Corteva (CTVA) moves from Hold to Buy, Synchrony Financial (SYF) moves from Buy to Hold and Voya Financial (VOYA) moves from Buy to Hold.
Cabot Stock of the Week
Weekly Issue November 5: The major indexes are hitting new highs, as the U.S. economy proves to be the strongest in the world. All Cabot’s market timing indicators are positive, telling us the odds are good that the market will be higher in the months ahead. Thus, it seems only right that this week’s stock, Inphi (IPHI), is one of Mike’s recent buys in Cabot Growth Investor. Tim has three changes today: Alaska Air (ALK) moves from Hold to Sell, Enterprise Products Partners (EPD) from Hold to Buy and Meritage Homes (MTH) from Buy to Hold.
Cabot Global Stocks Explorer
Bi-weekly Update November 7: Our emerging markets timer strengthened this week as the EEM climbed over 44 today, just short of its high for the year. The catalyst? Carl says that it’s that China’s Ministry of Commerce said the world’s two largest economies had agreed to remove duties on each other’s goods in phases. There are two portfolio changes today: ICICI BANK (IBN) moves from Hold a Half to Buy a Half and
YANDEX (YNDX) from Hold a Half to Sell.
Bi-weekly Issue October 31: Carl writes that the chatter concerning the U.S.-China trade deal has gone down considerably and probably reflects a good reset of expectations.
Our emerging markets timer is positive so it pays to be optimistic and keep investing in outstanding companies with strong fundamentals. Today’s new recommendation, NovoCure (NVCR), has steadily rising net revenues, strong market position, robust pipeline of products, extensive family of patents as well as a strong cash flow and balance sheet. There is one portfolio change today: Sea Limited (SE) moves from Hold a Half to Buy a Half.
Cabot Dividend Investor
Weekly Update November 6: The market is at new all-time highs. Recession talk has subsided. And investors are bullish again. The new optimism is taking a toll on some of the safe market sectors, namely REITs and Utilities. These sectors have been among the best performers on the market over the past couple of years, but they’ve been the worst performers over the past month and week. Several stocks in the Cabot Dividend Investor portfolio have been affected. Tom has one portfolio change today: Altria (MO) moves from Hold to Buy.
Monthly Issue October 30: In this issue Tom highlights AbbVie Inc. (ABBV), a stock that is one of the best healthcare companies in the world that is perfectly positioned ahead of the world’s most pronounced megatrend. It also offers great value in an expensive market and has recently found upward momentum. The stock is already a “BUY” rated portfolio position. But, under the current circumstances, it still offers a better opportunity than anything else he has found in the market. He has two portfolio changes today: Brookfield Infrastructure Partners (BIP) moves from Buy to Hold and Community Health Trust (CHCT) moves from Hold to Sell 1/3.
Cabot Marijuana Investor
Monthly Issue October 31: The cannabis sector remains in a correction, weighed down particularly by the old crowd favorites that are still being disposed of as we approach the end of the year. But the fundamentals of the industry are better than ever, as increasing numbers of companies turn profitable and as legalization spreads in both Canada and the U.S. Today, Tim will sell one stock, Alcanna (LQSIF), sell half its positions in two others, Aurora (ACB) and Curaleaf (CURLF), and initiate new positions in two new stocks, MariMed (MRMD) and MediPharm Labs (MEDIF).
Update October 16: Coming into today, the portfolio is about one-third in cash, and Tim will use some of that by committing 5% of the portfolio to Trulieve (TCNNF).
Cabot Early Opportunities
Special Bulletin November 7: Tyler writes that there’s been a lot going on lately as earnings season has heated up. With many of the stocks covered in the September and October Issues of Cabot Early Opportunities he has a few updates to get into.
Monthly Issue October 16: Tyler says to keep averaging into attractive opportunities, but don’t overdo it. The market is moving sideways, and in the absence of a clear trend there’s no reason to make outsized bets. Do some buying here and there, cut losers short, and keep plenty of money in cash so you have the flexibility and clarity of mind to take more decisive action when it’s time. This month’s Top Pick is,The RealReal (REAL), a recent IPO, and a small cap stock that lacks a clear trend, but which represents a business that’s fresh and different and has huge potential.
Bonus Report:
3 Cloud Software Stocks to Buy NowBonus Report:
3 Canadian Small-Cap Stocks to Buy NowBonus Report: Secrets To Early-Stage Stock Profits
Bonus Report:
The 240% Early-Stage Growth StockWall Street’s Best Investments
Daily Alert November 8: iShares MSCI EAFE ETF (EFA) Successful Investing
Daily Alert November 7: iShares Edge MSCI USA Value Factor ETF (VLUE) Pivotal Point
Daily Alert November 6: Alphabet Inc. (GOOGL) DRIP Investor
Daily Alert November 5: Vanguard Extended Duration Treasury Index Fund ETF Shares (EDV) Safe Money Report
Daily Alert November 4: TechTarget, Inc. (TTGT) Upside
Monthly Issue October 16: Nancy’s contributors have a wide array of ideas for you this month, starting with the Spotlight Stock, Palo Alto Networks (PANW), a cybersecurity company that is posting double-digit growth by staying on top of the current—and future—security needs of a world that is fast becoming extremely connected. Her Feature article looks at an overview of the industry, including its biggest threats.
Ask the Experts
Cabot Undervalued Stocks Advisor
Question: My Heico (HEI) stock was doing so well, and now it’s not. What happened?
Crista: Heico (HEI) shares rose tremendously because it was a “go-go growth stock” riding the wave of a broader market uptrend in which growth stocks were popular. U.S. stock markets rose tremendously from early 2016 through late September 2018, then had a huge market correction in the fourth quarter of 2018, bringing HEI down as well. But the stock was still popular among growth investors, so when the market began recovering in early 2019, HEI once again led the pack of growth stocks. More recently HEI peaked in August 2019 and began to fall in September 2019. The trigger was the third quarter earnings report, within which it was revealed that profit growth is expected to slow from 23% in 2019 to 11% in 2020. Eleven percent is not a “growth stock” number. The second problem was that the stock had a tremendously high price/earnings ratio (P/E) at about 75. Very generally speaking, if the P/E is higher than the earnings growth rate, then the stock is overvalued. HEI had an earnings growth rate of 23% vs. a 75 P/E, so that was a precarious situation. Sometimes an investment morphs into a gamble due to overvaluation, and that’s what happened with HEI. Then when it became clear that the earnings growth rate would be falling to about 11%, all bets were off, and HEI fell out of favor. A major investment firm told their clients to sell due to overvaluation -- and that was the correct call. Basically, the amount of share price growth that HEI experienced in recent years has been outrageous, and eventually, that party had to end. (You will rarely own a stock that rises this rapidly. You were fortunate!!)
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’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.
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 |
|---|---|---|---|---|---|---|
| ABBV | Buy | |||||
| ACB | See Advisory | |||||
| ADBE | Buy | |||||
| ALK | Sell | Retired | ||||
| ALXN | Strong Buy | |||||
| AMZN | Strong Buy | |||||
| ANF | Buy | |||||
| APHA | See Advisory | |||||
| APPS | Buy | |||||
| ARE | Buy | Buy | ||||
| BABA | Buy | |||||
| BAND | Hold | |||||
| BIP | Hold | Hold | ||||
| BKR | Buy | |||||
| BMY | Buy | |||||
| BSCJ | Buy 1/2 | |||||
| BSCL | Buy 1/2 | |||||
| BX | Strong Buy | |||||
| C | Hold | Hold | ||||
| CCI | Buy | |||||
| CF | Strong Buy | |||||
| CGC | See Advisory | |||||
| CHCT | Hold 1/3 | |||||
| CIT | Hold | |||||
| CMC | Hold | |||||
| CMG | Sell | |||||
| CQP | Buy | |||||
| CRAK | Strong Buy | |||||
| CRLBF | See Advisory | |||||
| CRON | See Advisory | |||||
| CTVA | Buy | |||||
| CURLF | See Advisory | |||||
| CWBHF | See Advisory | |||||
| DBI | Buy | Strong Buy | ||||
| DBSDY | Buy 1/2 | |||||
| DOCU | Buy | |||||
| DOW | Strong Buy | |||||
| DVA | Strong Buy | |||||
| EPD | Buy | Buy | ||||
| GES | Strong Buy | |||||
| GTBIF | See Advisory | |||||
| HTHT | Hold | |||||
| HUYA | Buy 1/2 | |||||
| IBN | Buy 1/2 | |||||
| IIPR | See Advisory | |||||
| IPHI | Buy | Buy | ||||
| LK | Hold 1/2 | Hold | ||||
| LUV | Buy | |||||
| MCY | Buy | |||||
| MEDIF | See Advisory | |||||
| MO | Buy | |||||
| MOS | Buy | |||||
| MPC | Strong Buy | |||||
| MRMD | See Advisory | |||||
| MRVL | Buy 1/2 | |||||
| MTH | Hold | |||||
| NEE | Hold | Hold 1/2 | ||||
| NVCR | Buy 1/2 | |||||
| OGI | See Advisory | |||||
| OKTA | Hold | |||||
| PDD | Buy | |||||
| PGX | Buy 1/2 | |||||
| QRVO | Buy 1/2 | |||||
| RCL | Buy | |||||
| RKUNY | Buy 1/2 | |||||
| RNG | Hold | |||||
| SE | Buy 1/2 | |||||
| SLB | Buy | |||||
| SNAP | Hold | |||||
| SSO | Buy 3% more | |||||
| STAG | Hold | |||||
| SYF | Retired | |||||
| TCNNF | See Advisory | Buy | ||||
| TDOC | Buy 1/2 | |||||
| TOT | Buy | |||||
| TPB | See Advisory | |||||
| TSLA | Hold | |||||
| TV | Buy 1/2 | |||||
| UEIC | Hold | |||||
| VLO | Buy | |||||
| VOYA | Hold | |||||
| VRTX | Buy | |||||
| XEL | Hold 2/3 | |||||
| YNDX | Sell |