Cabot Prime Week Ending August 24, 2018
Cabot Weekly Review (Video)
In this week’s stock market video, Mike Cintolo discusses the market’s improving evidence during the past two weeks, with the major indexes poking to new highs and, more important, the encouraging action among many leading stocks. It’s not a wild bull market, and Mike is still OK holding some cash, but he lays out his reasons for optimism and a bunch of stocks that have just gotten going after rests.
Advisory Services
Cabot Growth Investor
Bi-weekly Update August 22: Continue to lean bullish. Mike has seen an improvement in the evidence during the past week, with growth stocks acting well and more names hitting new highs. Tonight, he is putting Five Below (FIVE) back on buy. The cash position is near 27%.
Bi-weekly Issue August 15: Last week, Mike added one new stock and averaged up in another, and in today’s issue, he’s adding, DexCom (DXCM), bringing the cash position to around 27%. From here, he’ll be picking his spots carefully and looking for signs the buying pressures are broadening out. He also writes about an intriguing sentiment indicator that’s saying investors are hesitant (probably a good sign) and then spends some time discussing the ins and outs of when it’s appropriate to buy back a stock you recently sold.
Other Stocks of Interest August 23: Follow ups to stocks featured March 14, 2018 (issue 1389) to August 15, 2018 (issue 1400). 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 Weekly Update August 24: Despite the relatively small net movements, Mike is encouraged by what he’s seen during the past two weeks—many indexes have at least nosed into new high ground, including the small- and mid-cap indexes that had basically been range bound since mid June. Here are this week’s Buys: BJ’s Wholesale (BJ), Vertex Pharmaceuticals (VRTX), Workday (WDAY) and Zendesk (ZEN). There is one sell this week: Madison Square Garden (MSG).
Weekly Issue August 20: This week’s list has a nice mix of solid stories from a few different industries. Mike’s Top Pick is a stock that’s been a leader all year—Coupa Software (COUP), which has tightened up after a couple of months of consolidation. Start small and see what comes on earnings early next month. The Market Monitor remains at a level 7.
Cabot Undervalued Stocks Advisor
Weekly Update August 21: Crista advice today is to stick with your investment plan. If you’re having trouble sleeping due to investment stress, then either sell the stock that’s got you unsettled, or raise cash until you’re sleeping again. Barring unexpected, very bad news, she thinks the next few months will deliver a bit of prosperity. She has four portfolio changes today: Apple (AAPL) moves from Strong Buy to Buy, BB&T (BBT) moves from Strong Buy to Hold, Blackstone Group (BX) moves from Buy to Hold and Comerica (CMA) moves from Strong Buy to Buy.
Monthly Issue August 7: Crista writes that if you’re not in the habit of listening to quarterly earnings conference calls, she suggests that you pick one of your stocks, and visit the company’s investor relations page. You’ll likely find their earnings press release, a webcast of the management conference call (complete with a Q&A between analysts and management), and sometimes there’s also a graphic presentation of interesting data. These conference calls are highly informative, especially when you own small-cap stocks that don’t have very much news or research coverage. Today, Royal Caribbean Cruises (RCL) joins the Buy Low Opportunities Portfolio.
Cabot Stock of the Week
Weekly Issue August 21: Tim is taking the slightly unusual step of targeting a top Chinese stock after what he thinks was likely the bottom for Chinese stocks. The stock, Alibaba Group (BABA), was originally recommended by Paul Goodwin of Cabot Emerging Markets Investor. There are two portfolio changes today: Green Dot (GDOT) moves from Buy to Hold and Autohome (ATHM) from Hold to Sell.
Cabot Emerging Markets Investor
Bi-weekly Issue August 23: Even thought the EEM is up around 5% from its August 15 lows and PGJ is up closer to 8%—we don’t have a Buy signal. And it’s important to keep that in mind, no matter how tempting it is to say that the bottom is in on the correction in emerging market stocks. In today’s issue, Paul has some thoughts about whether or not this is a bottom in emerging markets, and how we will know one when it appears. Today’s featured stock is, Bilibili (BILI), an intriguing new IPO for you to consider.
Bi-weekly Update August 15: Our Buy signal from the Cabot Emerging Markets Timer has turned decidedly negative and most of our stocks are under selling pressure. Paul has four moves in the portfolio this week, as the negative implications of the trade war continue to vex investors. Today he is selling Autohome (ATHM) and the half position in ZTO Express (ZTO) and putting the half positions in iQIYI (IQ) and JD.com (JD) on Hold.
Cabot Dividend Investor
Weekly Update August 22: Chloe says the broad market looks healthy. The S&P 500 is close to breaking out to new highs, and the Dow is at its highest level since February, propelled by strong performances from industrial and consumer staples stocks. Today she is moving four stocks back on Buy: General Motors (GM), BB&T Corp. (BBT), Broadridge Financial (BR) and Xcel Energy (XEL).
Monthly Issue July 25: This month’s featured buy, McCormick & Company (MKC) was founded in 1889 and has grown to become one of the largest spice and flavoring companies in the world. In addition to their eponymous line of spices, McCormick makes condiments, stocks, oils, recipe mixes, salad dressings, baking ingredients and more. Consumer products make up about 62% of sales. Chloe is adding MKC to the Safe Income tier. Also, she is selling half of BB&T (BBT) today, due to poor technical performance and a lack of support. There are no other changes, but Chloe includes details on plenty of earnings reports.
Cabot’s 10 Best Marijuana Stocks
Update August 13: This is an unscheduled interim update to let you know that the next full issue of Cabot’s 10 Best Marijuana Stocks will be published Thursday, August 30. Tim gives you brief updates on some of the stocks in the portfolio and highlights CV Sciences (CVSI), formerly known as CannaVest. The company is the #1 supplier of CBD in the U.S. and the stock has been hitting new highs all month. Last but not least, it gives Tim great pleasure to inform you that henceforth, Cabot’s 10 Best Marijuana Stocks will be published monthly.
Summer Issue May 24: With this issue, Tim is replacing two of the portfolio stocks—Emerald Health (EMHTF) and CannaRoyalty (CNNRF)—with new recommendations—Hydropothecary (HYYDF) and iAnthus Capital (ITHUF).
Wall Street’s Best Investments
Daily Alert August 24: Oaktree Specialty Lending Corporation (OCSL) from The Turnaround Letter
Daily Alert August 24: Sell: FTI Consulting’s (FCN) from The Turnaround Letter
Daily Alert August 23: Agnico Eagle Mines Limited (AEM) from Internet Wealth Builder
Daily Alert August 22: DexCom (DXCM) from Cabot Growth Investor
Daily Alert August 21: Five9, Inc. (FIVN) from Canaccord Genuity Research
Daily Alert August 20: Tech Data Corporation (TECD) from AlphaProfit Sector Investors’ Newsletter
Monthly Issue August 14: Nancy’s Spotlight Stock is Carvana (CVNA), a company that is taking the market of used cars to places that no one expected. The growth of the company is tremendous! In her Feature article, she report on the company’s stunning second quarter, as well as the catalysts keeping this market growing at significant rates.
Wall Streets Best Dividend Stocks
Daily Alert August 24: Comerica Incorporated (CMA) from Cabot Undervalued Stocks Advisor
Daily Alert August 23: Essex Property Trust, Inc. (ESS) from Barclays Capital Equity Research
Daily Alert August 22: Marathon Petroleum’s (MPC) from Dow Theory Forecasts
Daily Alert August 21: Sell: Newell Brands (NWL) from Forbes Dividend Investor
Daily Alert August 21: Molson Coors Brewing (TAP) from Forbes Dividend Investor
Daily Alert August 20: Sell 1/3: Oppenheimer Holdings Inc. (OPY) from Hughes Investment Management
Daily Alert August 20: Oritani Financial Corp. (ORIT) from Hughes Investment Management
Monthly Issue August 8: This month’s Spotlight Stock is Sanofi (SNY), a global pharmaceutical leader that is in turnaround mode. Nancy delves more into the drug sector in her Feature article, which focuses on the tremendous growth in the industry, particularly in emerging markets.
Premium Reports
10 Monthly Dividend Stocks to Buy for Year-Round Income
Special ReportAugust 9: Dividend-paying stocks are favorites of retirees and other investors who live off income from their investing portfolios. Like bonds, dividend-paying stocks provide a steady income stream that you can spend without eroding your principal. Unlike bonds, many stocks increase their dividends over time, so your income stream can actually rise each year. This report includes profiles of Chloe’s 10 favorite monthly dividend payers, each of which offers a unique mix of yield, capital appreciation and safety. If you’re looking for monthly income, you’re sure to find at least one that’s right for you.
Cabot’s 10 Best REITs to Buy Now
Special ReportJuly 18: Nancy has always loved real estate; in fact, she owns a small real estate franchise. But she loves the idea of a diversified real estate portfolio and REITs fit the bill. They have been excellent investments for her subscribers over the years as they offer the perfect opportunity to buy real estate with very little capital. And she believes the boom cycle in real estate is far from over. With that in mind, she set out to find the 10 Best REITs for today’s economy and market. She looked at growth, valuation, dividend yield, and fundamental and technical strength.
Cabot’s 10 Best Buy and Hold Stocks for 2018
Update July 13, 2018: Today, Crista updates investors on portfolio news and performance of the stocks in Cabot’s 10 Best Buy and Hold Stocks for 2018. In terms of individual stock performance, Supernus Pharmaceuticals (SUPN) is up 34.6% YTD through July 12, while Universal Electronics (UEIC) is down 28.0% YTD. The performance of the remaining stocks ranges between +19.5% and -18.2%.
Update June 12, 2018: On June 11, 2018, USG Corporation (USG) announced that its Board of Directors agreed for the company to be acquired by Gebr. Knauf KG for $44 per share in cash. Crista suggestion is that investors sell USG now, rather than wait for the remaining $0.96 per share to accrue from the special dividend and the remaining potential capital appreciation.
Cabot’s 10 Best Takeover Stocks
Special ReportUpdated August 10: There are a variety of reasons that a corporation might want to purchase another company. They might want to acquire a company’s patents or products to enhance their product lines; access the company’s distribution network and sales relationships; or simply aim to increase their earnings growth rate by purchasing a very profitable company within a related industry. After all, stronger earnings growth leads to better share price appreciation—a topic that boards of directors care very much about. Crista’s investment strategy, which combines both growth and value criteria, inadvertently identifies potential takeover targets. That’s because big companies and she often seek the same thing: stock investments in undervalued, financially thriving companies that can deliver profits to investors. The ten companies are all undervalued growth stocks. What’s more, they’re small enough that big competitors and peers within their sectors could easily finance their acquisitions, often through current cash flow.
Cabot’s 10 Best Covered Calls on Dividend Stocks
Special Report April 12: With interest rates just coming off of historically low levels, income investors have been desperately searching for alternative sources of yield. Dividend stocks are the obvious answer. But there’s an even better way to create yield: by executing a covered call strategy on stocks that pay dividends.
Cabot’s 10 Best Small-Cap Cloud Computing Stocks to Buy Now
Special ReportUpdated August 10: If you’re a growth investor, you need to own cloud software stocks. It’s just that simple. Cloud computing is changing the world. It’s powering massive growth in companies across sectors, empowering digital transformations, enabling new generations of connected technologies and changing how people live their lives. Tyler Laundon lays out the landscape and names his 10 best small-cap cloud computing stocks.
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.
Ask the Experts
Cabot Emerging Markets Investor
Question: Do you think that it’s time to begin nibbling on TCEHY??
Paul: I think we may be getting close to a turnaround in the market that will bring lots of opportunities, including nibbling on TCEHY. But I think it’s still too risky to anticipate a full recovery. If there’s more bad news, we could see another down leg. The bottom line is that there’s no certainty. Period. The applicable market proverb is “If you think it’s a bottom, you’re too early. If you know it’s a bottom, you’re too late.” I guess I’d rather be too late. But you can certainly buy a little without my permission! That’s the kind of risk-taking that produces real results (one way or the other).
Cabot Undervalued Stocks Advisor
Question: I own American Express (AXP). Is it a Hold?
Crista: The stock appears to be fairly valued, while the price chart is bullish. If I owned AXP, I’d use a stop-loss order right below 101, with the expectation that the strong price chart could keeping pushing AXP higher.
Cabot Growth Investor
Question: Your recommendations have been doing well, but I notice that some of them (like DexCom (DXCM), which you recently added) are quite extended when you enter, which makes me nervous. If I haven’t bought yet, can I still get in? Should I buy a full position? Wait for dips? Thanks for your help.
Mike: Yeah, it’s always tough to buy an extended stock, especially in a choppy, news-driven environment. But DXCM’s earnings gap and tightness after convinced us to take the plunge. From here, my general advice is to start small if you’re hesitant--maybe buy half your shares here, and if it goes up, great. If not, you can try to piece you way into the name. That adds complexity which, usually, isn’t ideal, but I would’t just avoid buying a leader simply because it’s off to a good start -- oftentimes those are the names that end up doing very well.
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.