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Cabot Prime Week Ending January 12, 2018

Cabot Prime Week Ending January 12, 2018

Cabot Weekly Review

In this week’s stock market video, Mike Cintolo talks about the market’s great start to 2018 and how he’s keeping his bullish hat on. That said, Mike is being a bit choosy on the buy side for now, given that the major indexes and most leading stocks are extended to the upside, and he’s keeping an eye on some of last year’s big winning growth stocks, which have shown signs of life but aren’t quite free and clear on the upside. Still, Mike isn’t having trouble finding good ideas and goes through a handful of names that are on his watch list.

Cabot Investors Summit Registration

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Cabot’s 10 Best Marijuana Stocks

Special Update January 8: (emailed to Prime Pro members) It’s been only eleven days since Tim’s last update, but circumstances compel him to write another.

Cabot’s 10 Best Stocks to Buy and Hold for 2018

Annual Issue January 4: Crista Huff, Chief Analyst of Cabot Undervalued Stocks Advisor, selects 10 stocks to buy in January and hold all year. You received your copy via email on January 4, 2018.



Cabot Growth Investor

Bi-Weekly Update January 10: The market has had a good run but the normal January crosscurrents are pushing around some of last year’s winners. In the Model Portfolio, Mike is putting Grubhub (GRUB) on Hold and Facebook (FB) back on Buy. The portfolio now has 10 stocks and a cash position near 16%.

Special Bulletin January 8: Exact Sciences (EXAS) and Five Below (FIVE) took big hits after delivering solid pre-announcements of fourth quarter sales. For Exact Sciences, growth remains rapid, but after a nice pop to start the year, the stock collapsed today on its largest volume in months, finishing the day below support. We sold half our shares about a month ago and advise selling the rest here. Five Below said that sales would be near the top of its prior guidance, which wasn’t enough for some big investors. Even so, the stock remains above support, and we’re watching things closely. We’re going to stay on Buy for now and see how shares react in the days ahead.

Other Stocks of Interest January 5: Follow ups to stocks featured August 2, 2018 (issue 1373) to January 3, 2018 (issue 1384). 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.

Bi-weekly Issue January 3: Mike remains bullish. The Model Portfolio is more than 90% invested and off to a good start this year. Mike write about our newest addition, Diamondback Energy (FANG) and the excellent relative strength it’s shown in recent months; he thinks it’s a liquid leader of the new energy rally. He also writes about some recent IPOs, other stocks we’re watching and, of course, all our recommended names.

Cabot Top Ten Trader

Movers & Shakers Weekly Update January 12: We remain bullish and heavily invested, though we’re being selective with new purchases and waiting to see how the market and leading stocks react to earnings in the weeks ahead. Buy Ideas: Insulet (PODD), (MTCH), Peabody Energy (BTU) and Winnebago Industries (WGO).

Weekly Issue January 8: This week’s Top Ten is about evenly split between growth-oriented stocks and industrial and commodity stocks, which shows you how broad the advance has become. Our Top Pick is a little-known steel-related firm that just exploded out of a big launching pad on earnings.This week’s Top Ten is about evenly split between growth-oriented stocks and industrial and commodity stocks, which shows you how broad the advance has become. Our Top Pick is Commercial Metals (CMC), a little-known steel-related firm that just exploded out of a big launching pad on earnings.

Cabot Undervalued Stocks Advisor

Special Bulletin January 11: Baker Hughes, a GE Co. (BHGE) moves from Strong Buy to Buy, Blackstone Group LP (BX) moves from Strong Buy to Hold, and GameStop (GME) moves from Buy to Hold.

Weekly Update January 9: This past week, analysts’ consensus estimates surged more than Crista has ever seen, involving a majority of our portfolio stocks, and involving much more than the typical one- or two-penny per share increases.

Monthly Issue
January 2: Today’s portfolio changes: ConocoPhillips (COP) and Knight-Swift Transportation (KNX) join the Growth Portfolio, BB&T Corp. (BBT) joins the Growth & Income Portfolio and Supernus Pharmaceuticals (SUPN) joins the Buy Low Opportunities Portfolio. New sells: Boise Cascade (BCC), Johnson Controls (JCI), Legg Mason (LM), Total SA (TOT), Vertex Pharmaceuticals (VRTX), Vulcan Materials (VMC) and Weyerhaeuser (WY).

Cabot Stock of the Week

Weekly Issue January 9: Today’s recommendation is Discovery Communications (DISCA), whose creations are enjoyed by millions of Americans and a major new acquisition will only increase the company’s reach. One rating change: Exact Sciences (EXAS) has stumbled in recent weeks and Tim now recommends selling.

Cabot Emerging Markets Investor

Bi-weekly Issue January 11: Paul has some thoughts about the state of the market and a few questions you need to be asking yourself as we set sail into a New Year. And he’s welcoming a rebounding Old Friend back into the portfolio, Autohome (ATHM). ZTO Express (ZTO) moves to Sell and Baidu (BIDU) moves to Sell Half.

Cabot Benjamin Graham Value Investor

Monthly Issue January 11: Azmath reviews his recommendations and market performance in the past year, introduces new Buy Target (TGT), and moves Discovery Communications (DISCA) to Hold and FedEx (FDX) to Sell.

Cabot Dividend Investor

Weekly Update January 10: Chloe puts two stocks back on Buy: Dividend Growth Tier holding Cummins (CMI) and Safe Income Tier holding Ecolab (ECL). Both have started trending up again. She also result puts the PowerShares Preferred Portfolio (PGX) on Hold.

Monthly Issue December 20: Chloe adds American Express (AXP) to the Dividend Growth Tier. She also reviews the buys and sells of 2017, and provides updates on all our holdings.

Wall Street’s Best Investments

Top Picks Daily Alert January 12: LightPath Technologies (LPTH) from The Inger Letter
Top Picks Daily Alert
January 11: CIT Group (CIT) from Cabot Undervalued Stocks Advisor
Top Picks Daily Alert
January 10: BOK Financial (BOKF) from Positive Patterns
Top Picks Daily Alert
January 9:
Global Blood Therapeutics (GBT) from Cotton’s Technically Correct
Top Picks Daily Alert January 9: SELL YY Inc. (YY) from Cotton’s Technically Speaking
Top Picks Daily Alert January 8: Anavex Life Sciences (AVXL) from The National Investor

Monthly Issue December 20: Bullish sentiment remains high, both for investors and advisors. This month’s Spotlight Stock, Texas Pacific Land Trust (TPL), is a two-pronged recommendation, as the company is benefiting from owning and selling off its land holdings, which also happen to be in one of the most profitable oil regions in the country. As Nancy explains in her Feature article, this oil basin is nowhere near depletion, so the profits should continue to roll in for many years.

Wall Streets Best Dividend Stocks

Daily Alert January 12: Plymouth Industrial REIT (PLYM-PA) from Forbes/Lehmann Income Securities Investor
Daily Alert
January 11: Target (TGT) from The Prudent Speculator
Top Picks Daily Alert
January 10:
Compass Minerals International (CMP) from Forbes Dividend Investor
Top Picks
Daily Alert
January 9: Optex Systems (OPXS, OPXXW) from S.A. Advisory
Top Picks Daily Alert January 8: General Mills (GIS) from Equity Research & Portfolio Evaluation

Annual Top Picks Issue January 10: Our first place 2017 Top Pick, Lam Research (LCRX) gained a very healthy 71.39% for the year, second-place pick Caterpillar (CAT) delivered a return of 71.23%, and capturing third place was AbbVie (ABBV) for a 54.92% gain. This Top Picks 2018 issue is packed full of exciting opportunities among very diversified sectors and investing styles.

This Week’s Q&As

Cabot Options Trader and Cabot Options Trader Pro

Question: What is your thought process when you decide to sell out of the money vs at the money calls?

Jacob: It’s a question of risk and potential upside. If I’m worried about the stock or the market, I sell in-the-money calls, as it gives me more room (because the price of the call is more expensive). If I like the market and stock, I sell out-of-the-money calls, as that gives me more potential yield.

Cabot Emerging Markets Investor

Question: In Cabot Emerging Markets Investor, you recommended to buy Tencent (TCEHY) or GDS Holdings (GDS). Can you please advise which of these stocks you like the best. I bought Sina and WB and did not have much luck.

Paul: First, I’ll just point out that both SINA and WB have bounced nicely and may be starting new rallies. (As you know we were shaken out of SINA, but have held onto our WB, which is now a profitable position.)
I wouldn’t really like to pick between TCEHY and GDS. Both charts look good, but picking a single stock, no matter how good the chart or the story is, is just too risky.
Cabot Emerging Markets Investor has a theoretical maximum of ten positions, which is a pretty concentrated portfolio. But the 10 positions (plus the remainder in cash) is diversified enough that your results won’t get whacked too badly if one stock heads south.
If forced, I’d say that I like TCEHY for its story and GDS for its chart, but I’m reluctant to say which of my children I like best.

Question: I wonder if you saw this article entitled “The Pitfalls of Offshore Shells” in today’s Barron’s. Here’s the link:
I would appreciate your feedback on this article and the VIE financial structure in the Cayman Islands, where the company has no hard assets or earnings.
I pretty much missed the Alibaba run. I guess in a momentum situation It may not matter, but I just couldn’t pull the trigger. Alibaba’s extremely complicated and opaque financial structure with all the interlocking companies simply smells fishy. Their 15 to 1 Sales to Cap ratio is so high, etc etc. The Chinese government intervention possibilities are a reality.
What do you think?

Paul: I take a fairly simple-minded approach to corporate structures, whether offshore or not. I have seen Chinese stocks with offshore headquarters go bad, but not at a rate in excess of U.S.-domiciled companies. I think the analysts at Barron’s are a little too obsessive about risk reduction to be messing around with aggressive growth stocks of any sort. If you want clean, transparent corporate structures, you should probably stick with stocks in the Dow or the S&P 500. Even the Nasdaq can get a little dicey if the company is a multinational.
Emerging market stocks like Alibaba trade at a premium because investors are willing to tolerate the things you mentioned, like government interference and opaque corporate structure. I know Alibaba only came public in the U.S. after the Hong Kong stock exchange turned down its application for a dual stock structure that would eliminate voting privileges for the second class stock. And I think it’s ironic that U.S. exchanges are now allowing just that kind of dual class regime for companies like Google, whose founders are petrified of being ousted by corporate raiders or activist investors.
In general, I’d say that I’m willing to accept the assurance that a listing on a major exchange offers. The vetting of new stocks (like BABA on the NYSE) is thorough enough to let me buy and recommend Chinese stocks regardless of their domiciles.

Question: Vipshop Holdings (VIPS): any chance of recommending to back one of our old favorite stock back anytime soon? I see a huge gap up on 12/18/17.

Paul: I like the gap up, of course. And I understand that the company has received a sizable equity investment from, as it works to get traction against the Alibaba juggernaut. I think the stock’s long, long history of declines may work against it, so I would like to see it get back on top of resistance at 15 before I consider adding it to the portfolio.

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