Weekly Summary October 25, 2019

Cabot Prime Week Ending October 25, 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.

Cabot Weekly Review (Video)

In this week’s stock market video, Mike Cintolo discusses the topsy-turvy market environment. While he’s currently cautious, Mike still sees many setups out there for the major indexes and many stocks and sectors—earnings season will be key, and if all goes well, some upside breakouts could emerge.

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Cabot Growth Investor

Bi-weekly Issue October 24: As Mike has been writing for weeks, the onus remains on the buyers to take control. Until then, less remains more—since the last issue, he’s sold Snap (SNAP), Coupa (COUP) and RingCentral (RNG) and is content to hold plenty of cash until the buyers create some decisive upside breakouts in the market and potential leading stocks. His special feature is: When is it Good to Buy a Stock Back?

Special Bulletin October 23: The weakness in growth stocks in general, and cloud-related stocks in particular, continued today, which caused RingCentral (RNG) to trip our loss limit. Thus, Mike is selling the half position here; our cash position will now be around 66%.

Bi-weekly Update October 17: While Mike is growing more optimistic that the next big move will be up, he continues to advise a cautious stance as the market’s numerous crosscurrents continue—the indexes are still range bound, there’s rotation under the surface and relatively few stocks are hitting new highs. There are no new changes tonight.

Other Stocks of Interest October 2: Follow ups to stocks featured May 9, 2019 (issue 1419) to September 26, 2019 (issue 1429). 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 October 25: It’s been mostly more of the same this week, with solid action among the major indexes (S&P 500 and Nasdaq are up a bit less than 1% as we write this), while the broad market has done OK (the number of new highs has picked up some) but growth stocks have generally languished. Mike’s buy ideas are: SolarEdge (SEDG), Pinduoduo (PDD) and Visteon (VC). There are three sells this week: Medpace (MEDP), Proofpoint (PFPT) and RingCentral (RNG).

Weekly Issue October 21: With few stocks in sustained uptrends and the major indexes effectively trending sideways, Mike continues to advise a mostly cautious stance, with small new positions and plenty of cash on the sideline. That said, you shouldn’t stick your head in the sand, either—he continues to see a good number of setups out there, and he believes a lot will come down to earnings season. A spate of breakouts would be encouraging, but as usual, he has to see it first. This week’s list is mostly full of the steady growers and special situations that the market is favoring these days. Mike’s Top Pick is Temper Sealy (TPX), which looks like a solid turnaround situation, with surprisingly big growth numbers to boot.

Cabot Undervalued Stocks Advisor

Special Bulletin October 24: Adobe Systems (ADBE) moves from Buy to Hold, Carlyle Group (CG) moves from Hold to Retired, Dow Inc. (DOW) reports earnings beat and Southwest Airlines (LUV) reports earnings beat and moves from Buy to Strong Buy.

Special Bulletin October 23: Alexion Pharmaceuticals (ALXN) delivered a strong earnings beat and Crista’s recommendation is raised to Strong Buy, Blackstone Group (BX) delivered a strong earnings beat and it’s recommendation is also raised to Strong Buy and Commercial Metals (CMC) delivered a strong earnings beat.

Special Bulletin October 22: Bristol-Myers (BMY) is up on news of a successful drug trial and CIT Group (CIT) reported a strong earnings beat.

Weekly Update October 22: Crista explains Growth Stocks vs. Value Stocks and updates us on Boeing. There are four portfolio changes today are: Alaska Air Group (ALK) moves from Strong Buy to Hold, Baker Hughes Company (BKR) moves from Strong Buy to Buy, Carlyle Group (CG) moves from Buy to Hold and Citigroup (C) moves from Strong Buy to Hold.

Monthly Issue October 1: October is a significant time for Crista, because that’s when she begins embracing companies that didn’t previously have strong enough numbers to join these portfolios, but now have excellent prognoses for the coming year. Featured stocks this month are: Marathon Petroleum (MPC), Dow Inc. (DOW) and Mercury General Group (MCY). Here are today’s portfolio changes: Abercrombie & Fitch (ANF) moves from Hold to Buy, Apple (AAPL) moves from Strong Buy to Hold, CIT Group (CIT) moves from Hold to Buy, Corteva (CTVA) moves from Strong Buy to Hold, Dow Inc. (DOW) moves from Buy to a Strong Buy and Mercury General Group (MCY) joins the Buy Low Opportunities Portfolio as a Strong Buy.

Cabot Stock of the Week

Weekly Issue October 22: The indexes look good, and high-yielding low-risk stocks look good, but there are a lot of potholes. Happily, Tim says that we’ve not fallen in any big ones for a long time and for that he credits the talented Cabot analysts, who originally selected the stocks that he highlights in this portfolio. Today’s recommendation, RingCentral (RNG), is at what looks like an attractive entry point. It was first recommended by Mike Cintolo in Cabot Growth Investor. Tim has three changes today: Alaska Air (ALK) moves from Buy to Hold, Citigroup (C) moves from Buy to Hold and Coupa Software (COUP) moves from Hold to Sell.

Cabot Global Stocks Explorer

Bi-weekly Update October 24: Carl gives us his take on strategic takeaways from the latest global news. He has one portfolio change today: ZTO Express (ZTO) moves from Hold to Sell.

Bi-weekly Issue October 17: Last week’s U.S.-China trade truce fell flat but the tone of emerging market and international stocks remains positive. The EEM began 2019 at 40 and moved nicely to 44 in late spring before coming back to 39 in late summer. Since then, EEM has been in a choppy uptrend to reach 42. Today Carl moves south of the border for a new recommendation, Grupo Televisa (TV), a stock that is in a strong uptrend and way off its high. There is one portfolio change today: Yandex (YNDX) moves from Buy a Half to Hold.

Cabot Dividend Investor

Weekly Update October 23: Tom says that the Cabot Dividend Investor portfolio is very well positioned right now. There are several positions in REITs, Utilities and other defensive plays that continue to have strong momentum that are complemented by value plays that appear on the cusp of making up for lost time. There are no portfolio changes today.

Monthly Issue September 25: This month’s featured buy, Cheniere Energy Partners (CQP), operates the first and largest U.S. LNG terminal, while LNG is the fastest growing commodity in the world. The stock has blown away the returns of the S&P 500 at a time when stocks in the energy sector were the worst performing on the market. Yet the stock is still reasonably valued and pays monstrous and growing 5.15% yield.

Cabot Marijuana Investor

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).

Monthly Issue September 26: The cannabis sector remains in a correction, weighed down in part by fears of vaping illness, but many stocks are doing considerably better than the sector and Tim’s challenge is to own the right ones—so that we can succeed both short-term and long-term. Today that means selling one of our positions, MedMen (MMNFF), and returning to a stock we sold in July, Green Thumb Industries (GTBIF). Both are multi-state operators (MSOs) in the U.S., but MedMen is losing ground, while Green Thumb is gaining—and its stock pattern is attractive.

Cabot Early Opportunities

Special Bulletin October 17: Tyler has received questions about the stocks in the Special Reports that you have access to as subscribers to Cabot Early Opportunities. Since these stocks are not officially part of any Issue, they’re not included in the Previously Recommended Stocks section on page eight. He won’t be able to cover these stocks indefinitely as his focus will need to be centered on all the stocks featured in Issues. But, for now, he doesn’t want to leave you hanging with stocks that he covered so recently.

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 Now

Bonus Report:

3 Canadian Small-Cap Stocks to Buy Now

Bonus Report: Secrets To Early-Stage Stock Profits

Bonus Report:

The 240% Early-Stage Growth Stock

Wall Street’s Best Investments

Daily Alert October 25: Middlefield Banc Corp. (MBCN) 2 for 1 Stock Split Newsletter
Daily Alert October 24: Piedmont Lithium Limited (PLL) The National Investor
Daily Alert October 23: The RealReal, Inc. (REAL) Ian Wyatt’s Million Dollar Portfolio
Daily Alert October 22: Constellation Brands, Inc. (STZ) Argus Weekly Staff Report
Daily Alert October 21: Discover Financial Services (DFS) AlphaProfit Sector Investors’ Newsletter

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 Dividend Investor

Question: I read your report today ---Excellent as usual! I have question about ABBV. I would like to buy more shares but am not sure whether to do it now or after earnings next week. What are your thoughts? Thank you

Tom: Earnings are always tricky. You never know. There is always a risk of bad news. But AbbVie isn’t really an earnings driven story right now. Much depends on the merger with Allergan and the future success of the pipeline, neither of which will be determined in the earnings report. The stock is very cheap here with the stock price factoring a negative scenario on almost all fronts. As well, if you buy the stock here you will hold it right through several more earnings reports in the future, right? As long as you have a relatively long term perspective, like year or more, I wouldn’t be afraid to buy it now.

Question: Thanks for the review. I didn’t even think of the recession testing. This is why I pay Cabot. I do plan on a tighter stop because it would be without any oversite in a Cabot Advisory. I may try a small position and average up overtime if things go well.

Tom: KBWD looks good to me. It has come as advertised, delivering a high income and less volatility than the overall market. That said, incepted in 2010 after the last recession, it has never been really stress tested. It’s done well during a bull market. Of course you realize that a 9% yield comes with more risk than PGX. This ETF will likely have some ugly downside in the next recession and bear market. It’s OK for now but you might want to lighten up when the storm clouds gather. Be aware of your risk parameters. I hope this helps.

Premium Reports

Cabot’s 10 Best REIT’s to Buy Now

Special Report

May 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 Report

Updated 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					Hold
ALK				Hold	Hold
ALXN					Strong Buy
ANF					Buy
APHA			See Advisory
APPS				Buy
ARE				Buy		Buy
BABA	Buy
BAND				Hold
BIP				Hold		Buy
BKR					Buy
BMY					Buy
BSCJ						Buy 1/2
BSCL						Buy 1/2
BX					Strong Buy
C				Hold	Hold
CCI						Buy
CF					Strong Buy
CG					Retired
CGC			See Advisory
CHCT						Hold 2/3
CIT					Buy
CMC					Buy
CMG		Hold
COUP		Sold		Sell
CQP						Buy
CRAK					Strong Buy
CRLBF			See Advisory
CRON			See Advisory
CTVA					Hold
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	Hold 1/2
IIPR			See Advisory
IPHI		Hold
LK	Hold 1/2			Hold
LQSIF			See Advisory
LUV					Strong Buy
MCY					Strong Buy
MO						Hold
MOS					Buy
MPC					Strong Buy
MRVL	Buy 1/2
NEE				Hold		Hold 1/2
OGI			See Advisory
OKTA		Hold
PDD				Buy
PGX						Buy 1/2
RCL					Buy
RKUNY	Buy 1/2
RNG		Sell		Buy
SE	Hold 1/2
SLB					Buy
SNAP		Sold		Hold
SSO		Buy
STAG						Hold
SYF					Buy
TCNNF			See Advisory
TOT					Buy
TPB			See Advisory
TSLA				Hold
TV	Buy 1/2
UEIC					Buy
VLO						Buy
VOYA					Buy
XEL						Hold 2/3
YNDX	Hold 1/2
ZTO	Sell