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Cabot Prime Week Ending April 9, 2021

Cabot Prime Week Ending April 9, 2021

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 talks about the market’s second straight constructive week, with a little character change out there — more stocks are popping higher and avoiding sellers while volatility has calmed down, both of which are encouraging. He doesn’t see the correction as definitive over, but he’s dipping his toes in the water and has a growing watch list. Stocks mentioned include NARI, FIVE, OKTA, PTON, SQ, MU, SITE, LEN, GH, HZNP, W, and AMAT.


Cabot Prime Members Meeting with the Analysts: 2nd Quarter 2021

FREE WEBINAR FOR PRIME MEMBERS ONLY: April 21, 2021 Sign up now.

3 Micro-Cap Stocks that Could Triple in the Next Year

FREE WEBINAR FOR PRIME MEMBERS ONLY: April 22, 2021 Sign up now.

Advisory Services

Cabot Growth Investor

Bi-weekly Issue April 8: During the past week or two, there’s no question the evidence has improved—our Cabot Tides have remained positive throughout the correction thanks to the broad market’s strength, and now the Nasdaq has rejoined the party as many growth stocks have improved their positioning as well. So how do you slice and dice this environment? The lack of selling pressures and improving action of many growth names has us doing some buying tonight … but given the lack of power, we suggest going slow and looking to pile in only if things start really popping on the upside. In the Model Portfolio, we’re adding half-sized positions in Floor & Décor (FND) and SelectQuote (SLQT) tonight, while placing Pinterest (PINS) back on Buy. Our cash position will be a still-hefty 45%.

Bi-weekly Update April 1: The market and growth stocks have found support of late, and we’re also seeing more names building legitimate launching pads, both of which are good to see. We’re open to anything and have our eyes peeled for a change in character, but the market and growth stocks still have work to do to show that the sellers have left the building. Tonight, we’re standing pat with our 55%-ish cash position.

Cabot Top Ten Trader

Movers & Shakers April 9: The market is putting together its second straight constructive week in our book—nothing amazing, but the Nasdaq’s surge back toward its highs has held firm, while more stocks are rounding out launching pads. Meanwhile, the broad market is mostly just sitting around, though that’s acceptable given the recent runs in most indexes. Mike has two buy recommendations: Cheesecake Factory (CAKE) and Diamondback Energy (FANG).

Weekly Issue April 5: For the first time in a few weeks, we’re seeing some signs of spring when it comes to the Nasdaq and growth stocks, as many found support near or above their early-March lows and have begun to perk up, including some that have rallied back above their 50-day lines. Mike’s Top Pick is Amkor Technology (AMKR), which might need a little more seasoning but has held up great during the correction and is now pushing ahead.

Cabot Undervalued Stocks Advisor

Monthly Issue April 7: As one might expect in a value-oriented investment advisory, we focus a lot on a company’s valuation. We want to understand what the company is worth, both today and in the foreseeable future, and then buy its shares at some discount to that value. Determining a company’s underlying value is difficult, and more of an art than a science. There are many valuation approaches, including using a price/earnings multiple, discounted cash flow, EV/EBITDA multiple and net asset value. Bruce has one portfolio change: Tyson (TSN) is moving from Buy to Hold.

Weekly Update March 31: We recently received a question from a subscriber about using stop-losses. It is a common question, so let’s delve into it briefly here. Stop-losses, or more fully, stop-loss orders, are trading orders that are placed to execute a sale automatically if a stock falls below a specified trigger price. The idea is that these orders can prevent a small loss from becoming a large loss. It can also be used to lock in profits. These orders are often placed at 10% below the current price, providing some leeway for regular market fluctuations but also “tight” enough to prevent a large loss. There is no precise rule for where to place the order. Bruce has no portfolio changes.

Cabot Stock of the Week

Weekly Issue April 5: The Dow and the S&P 500 are hitting record highs—but the Nasdaq and the small-stock indexes aren’t. Growth stocks are demonstrating newfound strength—but volume is lighter than a month ago, and falling especially among the retail traders (using Robinhood, for example) who drove the market to its February peak. Bottom line: The bull market is still intact, but the signs of fraying that often emerge during long topping actions continue. Tim’s featured stock SelectQuote (SLQT), operates the largest marketplace for people to connect with insurers in a variety of fields, giving its 50-plus insurance carrier partners a ton of qualified leads, while offering consumers great, relatively easy options. Tim has one portfolio change: DraftKings (DKNG) to Hold.

Cabot Global Stocks Explorer

Bi-weekly Update April 8: With the exception of the surge by Sea (SE), Explorer positions were relatively quiet this week. Nearly 95% of companies in the S&P 500 are now trading above their 200-day moving average, according to Dow Jones Market Data, the highest percentage since May 2013. As if we didn’t have enough to worry about, as of late February, investors had borrowed a record $814 billion against their portfolios. That was up 49% from one year earlier, the fastest annual increase since 2007, during the frothy period before the 2008 financial crisis. Carl has one portfolio change: Atlas Corp. (ATCO) Moves from a Buy to a Hold.

Bi-weekly Issue April 1: Semiconductor producers stand to benefit from Biden’s $1.9 trillion infrastructure package that goes beyond fixing roads and bridges to expanding broadband Internet access and boosting funding for research and development. Taiwan Semiconductor Manufacturing (TSM) highlighted this week just how capital intensive this game is as it announced plans to spend $100 billion over the next three years to expand its chip fabrication capacity. Carl’s new recommendation Marvell Technology Group (MRVL), designs, develops and sells a wide variety of semiconductor products that are at the core of 5G-capable networks, processors and devices as they partner with and transition from 4G to 5G. The company’s embedded processors and products are cutting-edge and already generate $3 billion in annual sales.

Cabot Dividend Investor

Weekly Update April 7: How about this market? Even with the technology sector still in a funk and the huge energy sector rally abating, the S&P 500 just made a new all-time high anyway. The studs are out of the game, but no problem. The rest of the team is getting the job done. The cyclical rally is still proceeding even though energy stocks are consolidating. Sectors like finance, materials, consumer discretionary and industrials didn’t get as overextended as energy and are still on the vaccine bender. Tom has one portfolio change: Altria (MO) moves from Hold to Sell Half.

Monthly Issue March 10: This is a wild market. Yesterday’s perennial losers are today’s big winners. At the same time, long dominant technology stocks are taking a beating. Cyclical or open-up stocks are on fire, and for good reason. The U.S. economy has far exceeded expectations at every phase of the recovery so far. The vaccines promise to end the remaining lockdowns and restrictions, or significantly curtail them. With the shackles removed, the economy will kick into high gear. Even several normally dour economists are predicting the highest GDP growth in decades this year. Tom’s featured stock KKR & Co. (KKR), is a leading global alternative asset manager. The firm manages multiple alternative asset classes including private equity, energy, infrastructure, real estate, credit, as well as hedge funds through strategic partners. It generates revenues from management fees, performance income and investment income with a global reach on five continents.

Cabot Marijuana Investor

Weekly Update April 7: A quick look through the major marijuana stocks leads to an unsurprising conclusion: the sector remains in a correction. On Monday, Jushi (JUSHF) announced the completed acquisition of Franklin Bioscience (FBS), which currently operates cultivation, production and distribution facilities in North Las Vegas. Also on Monday, Trulieve (TCNNF) announced an agreement to acquire three fully operational dispensaries in the Philadelphia area operating under the name Keystone Shops. Tim has no portfolio changes.

Monthly Issue March 31: Fourth quarter results are in for all but one of our companies (Jushi) and they were terrific, showing average revenue growth from the year before of 167%—a number that would be even higher without the presence of Turning Point and Village Farms, two stocks that have brought the portfolio lower-risk diversification. And prospects for growth in the sector remain high, as New Jersey and now New York are working on the details of creating legalized markets—though just as with Covid vaccine rollouts, every state’s got to do it their own way, which takes time. Tim is making one change today, selling our final piece of Village Farms (VFF) and holding the cash.

Cabot Early Opportunities

Special Bulletin March 29: Sell DDOG, FROG and CERT. Trading action continues to be sloppy as we move toward the end of the first quarter (ends Wednesday) and toward April. News of the Archegos Capital collapse (a hedge fund) has cast a bit of a shadow over parts of the market as well (financials, some China stocks) as forced liquidations drove huge volatility in stocks (DISCA, TME, SHOP, FTCH and more) late last week. These are the types of events that happen during corrections and can sometimes help explain why stocks are moving irrationally.

Monthly Issue March 17: One year and one day ago, on March 16, 2020 the S&P 500 had one of the worst days in history, falling nearly 12%. Of course, that was just one in a horrible stretch of trading days that slashed the index by 35% over the course of six weeks. This advisory service was relatively new at the time and we were just starting to get into a groove when things went crazy. Tyler’s Top Pick is Eargo (EAR), produces high-quality, small, well-fitting and easy-to-use hearing aids, at a reasonable cost. Eargo’s solution ticks all the boxes. It is nearly invisible (fitting completely in the ear canal) and has a lot of technology (including 16 hours per charge) packed into a small form factor.

Cabot Profit Booster

Weekly Issue April 6: While the headlines read “S&P 500 at All-Time Highs,” it’s not all smooth sailing in the market as countless stocks are still suffering from the Nasdaq rout that started a month ago. That being said, the Profit Booster portfolio remains in great shape as Jacob continues to keep the portfolio in the strongest stocks from a variety of sectors. With that strategy in mind, this week’s idea is an emerging leader in the materials sector. Jacob’s new stock recommendation is Cleveland-Cliffs (CLF).

Cabot Income Advisor

Weekly Update April 7: The portfolio is currently in an unusual position of having no outstanding covered calls. Energy positions with covered calls in Valero Energy (VLO) and Chevron (CVX) had a huge move and were called away when the options expired. While those positions and calls delivered smashing total returns and income in a short time, they’re gone, with nothing left but stocks that haven’t had a big move yet. We could write profitable calls on several positions right now. But Tom believes it will pay to be patient and let those stocks run higher before writing calls.

Monthly Issue March 24: Cyclical stocks are hot and technology stocks are not. Wait a minute. Cyclical stocks are moving lower and technology is roaring back. That’s been the story over the past month. Of course, energy stocks are due for a pullback or consolidation after such a huge move higher. It’s normal. And the prognosis for the sector is still good for the rest of the year. It also isn’t clear if technology stocks are finished correcting or not. While those sectors are having all the fun, most S&P 500 sectors haven’t been doing much. Tom’s first featured stock U.S. Bancorp (USB), is the fifth largest bank in the United States and the country’s largest regional bank with over 3,000 bank branches in 25 states in the western and northern U.S. Tom’s second featured stock KKR & Co. (KKR), Formerly Kohlberg Kravis Roberts Co., is a leading global alternative asset manager.

Cabot Turnaround Letter

Weekly Update April 9: Lamb Weston (LW) reported earnings this past week. Next week, Wells Fargo (WFC) reports on Wednesday, and the following week has Baker Hughes (BKR), Credit Suisse (CS), Mattel (MAT) and Biogen (BIIB) reporting earnings. There were no ratings or price target changes this past week. Click here to listen to the podcast.

Monthly Issue March 31: In the excitement to capture the momentum in post-Covid economic re-opening stocks, investors seem to be leaving aside the defense contractors. These companies produce large-scale weapons and related equipment for the United States and allied governments. Several factors may be behind this neglect, including uncertainty regarding the Biden Administration’s priorities, possible spending limits imposed by the surging federal budget deficit and avoidance by investors who emphasize favorable environmental, social and governance (ESG) traits. Also, the defense industry is generally slow-growth, sending investors elsewhere to look for faster growth. Bruce’s has one buy recommendation: Elanco Animal Health (ELAN) and two sell recommendations: Valero Energy (VLO) and Volkswagen AG (VWAGY).

Ask the Experts

Cabot Growth Investor

Question: I saw the percent of S&P 500 stocks above their 50-day lines is back above 90%. Is that a new blastoff signal of sorts?

Mike: By the metrics I look at, the NYSE 50-day % is more like 72 here. Second, even if it hit 90%, it’s really only valid one time in a bull move – and that was last year. If we had another 15% to 25% decline or something that lasted 5-6 months, and then had a 90% reading, maybe that would be valid, but these follow-on signals (if they occur) aren’t usually overly fruitful. With all of that said – the fact that 90% of SPX stocks are above their 50-day line is probably good overall, but again, it’s not an “original” signal, and I put more weight on the NYSE 50-day percentage.

Quarterly Cabot Analyst Meeting

The recording of the Cabot Prime Members Meeting with the Analysts from January 20, 2021 is now available for you to listen to at your convenience—click here for access. This private call with our analysts is one of your exclusive Cabot Prime member benefits.

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.

StockCabot Global Stocks ExplorerCabot Growth InvestorCabot Marijuana InvestorCabot Stock of the WeekCabot Undervalued Stock AdvisorCabot Dividend Investor
ABBVHold 2/3
BFTBuy 1/2
BIPBuyBuy 2/3
BMYStrong Buy
CGCSee Advisory
CRLBFSee Advisory
CURLFSee Advisory
DKNGBuy 1/2Hold
FNDBuy a Half
GRWGSee Advisory
GTBIFSee Advisory
IIPRSee Advisory
JUSHFSee AdvisoryHold 2/3
LLYHold 2/3
MOSell Half
NETHold 1/2
PGX Hold 1/2
QCOMHold 2/3
SEBuy 1/2Buy
SLQTBuy a HalfBuy
SPCEHold A HalfTake Partial Profits
TCNNFSee AdvisoryHold
TPBSee Advisory
TRSSFSee Advisory
TSMBuy 1/2
TWLOHold 3/4
XELBuy 2/3