Cabot Prime Week Ending April 26, 2019
Stock Recommendation Tracker
By request, we have added a new feature to your Cabot Prime Weekly Summary—the Stock Recommendation Tracker. It 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 to the portfolios or any changes to our recommendations over the previous week. We will 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, Tyler Laundon, chief analyst of Cabot Small Cap Confidential discusses the broad market’s recent new high and GDP growth surprise. He also delves into why small-cap stocks haven’t broken out of their trading range. He sees potential in large-cap technology stocks that have reported and suggests a wait-and-see strategy for some that are set to report soon. Down the market cap curve Tyler introduces you to smaller companies that should be on your watch list before they report earnings in May.
SPECIAL FREE WEBINAR OFFER - Hosted by Jacob Mintz
6 Tips for Making Money Trading Options + 2 Hot Trades Now | Thursday, May 23
Cabot Wealth Summit 2019
7th Annual Conference | Wed-Fri, Aug 14-16 | Salem, Mass.
We’ve added a beginning investors workshop to help you understand the terminology and concepts of investing so you will be better prepared to make more money.The cost of the workshop is $197 but as a Cabot Prime member, once you register for the summit, you can attend the additional workshop for FREE.
Cabot Growth Investor
Bi-weekly Issue April 25: It’s still a bull market, so we remain heavily invested, but Mike’s main focus right now is (as usual) on growth stocks, especially those in the broad technology field—most have suffered three brief selling waves since late March, and the question is whether those waves are the front edge of a larger distribution phase coming up … or whether, given that most leaders have held up during this choppy phase, the selling was set to peter out. Mike is close to putting a chunk of our 17% cash position to work as he’s spying two or three stocks closely for entry points, but tonight, he’ll stand pat—but will let you know in the days ahead if he makes any moves.
Bi-weekly Update April 18: Remain bullish, but keep your antennae up. Technology-related growth stocks have again come under pressure and many are near key intermediate-term inflection points. (Leaders from other groups still generally look fine.) Much more weakness could have Mike paring back a bit, but tonight he has no changes since even the stocks that have been dinged are holding support. Our cash position is 17%.
Other Stocks of Interest April 12: Follow ups to stocks featured November 7, 2018 (issue 1406) to April 11, 2019 (issue 1476). 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.
Cabot Top Ten Trader
Movers & Shakers April 26: It’s been a decent week for the market, with the S&P 500 and Nasdaq each up modestly. But as has been the case in recent weeks, it really depends on where you look—this week was another one of rotation on an almost daily basis. Mike’s buy ideas this week are: Broadcom (AVGO), Huazhu Group (HTHT), Match.com (MTCH) and Sea Ltd. (SE). He has three outright sells this week: iRobot (IRBT), Tencent Music (TME) and Xilinx (XLNX).
Weekly Issue April 22: The market continues to ping pong around, with the major indexes alternating up and down days and, under the surface, rotation whipping names around on a weekly basis. That’s a small reason for concern, and Mike is knocking the Market Monitor back down a notch, but overall he is still bullish—the trends for most indexes and stocks are pointed up. This week’s list has another batch of newer names from a variety of industries, and Mike’s Top Pick is Qualcomm (QCOM), which has shown extreme power after a game-changing deal with Apple last week. We’re OK buying here or (preferably) on dips.
Cabot Undervalued Stocks Advisor
Special Bulletin April 23: Yesterday, Guess?, Inc. (GES) announced that the company will cut its quarterly dividend in half, from $0.225 to $0.1125 per share. The company intends to issue convertible five-year notes, and use the proceeds to repurchase common stock. As soon as the share price stabilizes and begins to turn upward, Crista will move the stock from a Hold to a Buy recommendation. Hold.
Weekly Update April 23: Crista writes about Blackstone Group’s (BX) corporate conversion. And, there are three portfolio changes today: Comerica (CMA) moves from Strong Buy to Hold, Designer Brands (DBI) moves from Strong Buy to Hold and Guess? (GES) moves from Strong Buy to Hold.
Special Bulletin April 22: Apollo Global Management (APO) is rising, CF Industries Holdings (CF) moves from Buy to Strong Buy and Synchrony Financial (SYF) begins a new run-up.
If you missed Crista’s webinar Thursday, April 18, Great Growth & Value Stocks That Are Poised for Immediate Upside, you can click here to listen to it.
Monthly Issue April 2: Crista writes of two unusual changes that are happening within the portfolio stocks today. DSW Inc. (DSW) officially changes its name and stock symbol to Designer Brands (DBI); and Dow Inc. (DOW) begins trading separately from DowDuPont (DWDP). She also has quite a few changes today: Comerica (CMA) moves from Buy to Strong Buy, Dow Inc. (DOW) joins the Growth & Income Portfolio with a Buy recommendation, DowDuPont (DWDP) moves from Strong Buy to Buy, DSW Inc. (DSW) changed their name to Designer Brands (DBI), Schlumberger (SLB) moves from Hold to Buy and Synchrony Financial (SYF) moves from Hold to Strong Buy.
Cabot Stock of the Week
Weekly Issue April 23: The market remains in good health, and all Cabot’s market timing indicators are positive, telling us the odds are that the market will be higher in the months ahead. Today’s recommendation is, Brookfield Infrastructure Partners (BIP) a somewhat unusual investment, a high-yielding limited partnership that may avoid the cycles of a notoriously cyclical sector, while offering substantial upside potential. It was originally recommended by Tom Hutchinson in Cabot Dividend Investor. Tim has one portfolio change tonight, Apollo Global Management (APO) moves from Buy to Sell.
Cabot Emerging Markets Investor
Bi-weekly Update April 25: Our EEM Signal slipped below its 20-day moving average this morning and is right on top of its 50-day average. Carl will remain positive and constructive but lean toward finding some bargains. Most likely, the next two ideas will come from heavyweights India and China. He has one portfolio change today: Van Eck Rare Earths/Strategic Metals (REMX) moves from Hold a Half to Sell.
Bi-weekly Issue April 18: Emerging markets stay strong into the second quarter with China leading the way and calming markets with Beijing delivering a 6% growth number. Carl’s new recommendation is Largo Resources (LGORF), a company that delivers a key ingredient that turns steel into “super steel” as well as playing a key role in electrifying the grid. He has one portfolio change today: TAL Education (TAL) moves from Hold a Half to Sell due to relative underperformance.
Cabot Dividend Investor
Monthly Issue April 24: Tom writes that things are good. The economy appears to be stronger than most expected. The Atlanta Fed is estimating first-quarter GDP growth at 2.8%. That’s a sweet number considering that the first quarter tends to be about 1% slower than the rest of the year. Housing starts and consumer confidence are strong and now it appears that the global economy is also in better shape than previously forecast. His featured stock this month is, Intel Corporation (INTC), the largest computer chip maker in the world. The company has over $70 billion in annual revenues and $264 billion in market capitalization. INTC is being added to the Dividend Growth Tier. Tom has no other portfolio changes today.
Weekly Update April 17: Tom writes that the bull market lives, and probably for a while longer. Those who were preaching gloom and doom last December have been proven wrong and the economy is actually in pretty good shape. Of course, there could be a recession looming two years out. He doesn’t know. But it seems clear that no recession looms on the radar, a year or less from now. There is one portfolio change today: Tom is selling Hormel Foods (HRL) –This is an excellent food company that had a fantastic year last year in a turbulent market, returning over 30%. But the stock has run out of momentum while other defensive stocks have been going strong. Sell.
Cabot Marijuana Investor
Monthly Issue April 25: The main trend remains up, in both the broad market and the cannabis sector in particular. When these uptrends will end, no one knows, but Tim guarantees that they will someday. Long-term, however, he remains very bullish on both the companies and the stocks in the industry and continue to adjust the portfolio’s holdings to optimize growth (with reasonable security.) Today the portfolio is adding a new position in CannTrust (CTST) and averaging up in HEXO (HEXO), taking the portfolio’s cash down to 10% and splitting the proceeds between both stocks.
Update April 18: As of today, the Marijuana Index was up 41.6% year-to-date, while our Marijuana Portfolio was up 50.4%, the difference attributable not so much to stock selection as to stock weighting. Tim is making several adjustments today and is adding two new positions: The portfolio will now sell half of its Aphria (APHA) position, sell half of its Aurora (ACB)position, sell half of its Cronos (CRON) position, and sell half of its Turning Point Brands (TPB) position. This will take the portfolio to about 24% cash. Then Tim will take a fourth of that cash and split it among new positions in Charlotte’s Web Holdings (CWBHF) and Village Farms (VFF).
Wall Street’s Best Investments
Daily Alert April 26: Sarepta Therapeutics, Inc. (SRPT) from Argus Weekly Staff Report
Daily Alert April 25: The Estée Lauder Companies Inc. (EL) from The National Investor
Daily Alert April 24: Yum China Holdings, Inc. (YUMC) from Positive Patterns
Daily Alert April 23: Chipotle Mexican Grill, Inc. (CMG) from Cabot Growth Investor
Daily Alert April 22: AutoZone, Inc. (AZO) from Sure Dividend
Monthly Issue April 10: The retail environment is changing rapidly due to e-commerce, with most brick-and-mortar stores trying to find new strategies to survive Amazon. However, Nancy’s Spotlight Stock this month, Costco Wholesale (COST), is one retailer that is finding success in both channels. In her Feature article, she explains a bit more about the company’s strategy and its biggest advantage—consumer loyalty.
Wall Streets Best Dividend Stocks
Daily Alert April 26: Safehold Inc. (SAFE) from Barclay Capital Equity Research
Daily Alert April 25: Prologis, Inc. (PLD) from The Wealth Advisory
Daily Alert April 24: Sell: WestRock Company (WRK) from Cabot Undervalued Stocks Advisor
Daily Alert April 24: Schlumberger Limited (SLB) from Cabot Undervalued Stocks Advisor
Daily Alert April 23: Xtrackers MSCI Japan Hedged Equity ETF (DBJP) from Jack Adamo’s Insiders Plus
Daily Alert April 22: WhiteHorse Finance, Inc. (WHF) from 2 for 1 Stock Split Newsletter
Monthly Issue April 3: Our issue this month begins with Nancy’s Spotlight Stock, Lexington Realty Trust (LXP), a Real Estate Investment Trust that is in the midst of a transformation and whose shares are trading at bargain levels. In her Feature article, Nancy explores the direction in which the REIT is moving, highlighting the opportunities in that sector.
Ask the Experts
Cabot Marijuana Investor
Question: Do you have any idea what will be the next hot sector after marijuana? (Note: this question was asked during last week’s Prime Quarterly Conference, and I have thought about it more since then.)
Tim: In my original answer, I said that’s it’s hard to predict the future; many predictions are simply wrong, like the expectation that 3D printing would be a great growth industry. The fact is, the reality of the 3D printing industry never met the great expectations of investors who bid those stocks up in 2013. Sure, the winning wheelchair racer of the Boston Marathon wore custom 3D printed gloves, but for most of us, there’s no need.So, after thinking about it for a while, I’ve concluded that the best great investment sectors have several characteristics. One, they serve a mass market. These markets start small but they get very big fast. Think of Amazon, Netflix and Uber. Two, they grow faster than expected, thus causing analysts to increasingly raise their earnings projections, which brings in more institutional money. Three, and most important, when these industries begin, they are NOT respected by the majority of the population, mainly because they are disruptive to the status quo, and many people are afraid or skeptical of them. It was true for marijuana, and still is to some extent. There’s a substantial segment of the population that doesn’t approve of the product. Additionally, because of federal legal restrictions, many institutional investors are still not buying the stocks. It was true of Amazon at the start, when experts were skeptical of Amazon’s ability to compete with the established bricks-and-mortar booksellers. It was true of Netflix, when the company announced its crazy idea to send CDs through the U.S. mail. It was true of radio stocks back in the Roaring Twenties, when broadcast technology changed the world, but people feared the invisible force. And it was true—way back—of the early automobile stocks, when people feared the disruption of the horse-and-buggy industry. So, when looking for the next new hot sector, my suggestion is this. First, look for stocks going up. Second, focus on industries that serve true mass markets. Third and most important, gauge the attitude of investors toward the sector, and lean toward those about which the majority of investors are skeptical.
Cabot Prime Quarterly ReportSpecial Report
April, 2019: The first quarter of 2019 was as good as the previous one was bad. And that’s not surprising. In fact, in his last quarterly report, Tim concluded by writing, “What the charts are signaling now is quite bullish! So don’t be afraid. Follow your favorite Cabot analyst. Use appropriate risk management tools. And make some money while the market is once again going the right way.”
Cabot’s Ten Best Canadian Small-Cap StocksSpecial 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.
Cabot’s Best Safe Investments for Uncertain TimesSpecial Report
December 21: This report gives you some suggestions of the safest, productive places to put your money when the market gets bumpy.
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 Emerging Markets Investor||Cabot Growth Investor||Cabot Marijuana Investor||Cabot Stock of the Week||Cabot Undervalued Stocks Advisor||Cabot Dividend Investor|
|LGORF||Buy a Small Position|
|OKTA||Buy another 1/2|