Cabot Prime Week Ending June 1, 2018
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Cabot Weekly Review (Video)
In this week’s stock market video, Mike Cintolo discusses the market’s very encouraging week—it shook off a bushel of bad news ranging from Italian and Spanish political uncertainty to the breakdown of trade negotiations (leading to a bunch of tariff announcements) and actually showed some upside follow-through that Mike’s been looking for. Mike goes over everything he’s seeing, and present a bunch of stocks that have set up in great multi-month consolidations that look ready to get going.
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Advisory Services
Cabot Growth Investor
Bi-weekly Update May 30: Mike says to continue to lean bullish. The market’s rebound today after yesterday’s Italy-induced selloff was very encouraging, and both of our trend-following indicators remain bullish.Tonight, he’s moving Grubhub (GRUB) back to Buy. The cash position is still 30%.
Bi-weekly Issue May 23: Continue to lean bullish. Mike hasn’t made any new buys or sells in the Model Portfolio since the last issue; he’s still holding 30% in cash. He is, however, switching Five Below (FIVE) and Proofpoint (PFPT) to Hold ratings based on their recent sluggishness.
Other Stocks of Interest May 25: Follow ups to stocks featured December 20, 2017 (issue 1383) to May 23, 2018 (issue 1394). 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 June 1: Mike says: Simply put, the action of this week has been very encouraging. Stocks have had a lot of bad news thrown at them, from uncertainty with future Italian elections (and the possibility of leaving the euro) to similar worries in Spain (the prime minister just got voted out) to the flare up of trade tensions again yesterday (tariffs and retaliatory tariffs being bandied about). Today’s Buy Ideas: Cheniere Energy (LNG), Chipotle Mexican Grill (CMG), Continental Resources (CLR), Green Dot (GDOT), PayPal (PYPL) and Zendesk (ZEN). Mike has four sells: Abercrombie & Fitch (ANF), First Solar (FSLR), Guess (GES) and Interactive Brokers (IBKR).
Weekly Issue May 29: This week’s list has an array of ideas from various corners of the market. Mike’s Top Pick is Carpenter Technologies (CRS), a specialty metals firm with huge earnings estimates and whose stock is hitting new highs.
Cabot Undervalued Stocks Advisor
Special Bulletin June 1: Crista updates us on the Buy Low Opportunities Portfolio and Guess (GES) joins the Buy Low Opportunities Portfolio as a Strong Buy.
Special Bulletin May 31: Crista is Selling Delek U.S. Holdings (DK) and PBF Energy (PBF) and Voya Financial (VOYA) joins the Growth Portfolio as a Strong Buy.
Weekly Update May 29: Crista give us an interesting online dating story as it relates to the trucking industry. There are no rating changes today.
Monthly Issue May 1: Today, D.R. Horton (DHI) joins the Growth Portfolio as a Strong Buy, and PBF Energy (PBF) moves from the Buy Low Opportunities Portfolio to the Growth & Income Portfolio. Also, Crista discusses stock market trends pertaining to energy stocks, financial stocks and takeover stocks.
Cabot Stock of the Week
Weekly Issue May 29: As the number of stocks in portfolio grows to 21 (one more than allowed), and as the broad market seems to be beginning another leg down, Tim asks what stock (or stocks) he can sell to reduce the risk of losing money. And the answer is two TD Ameritrade (AMTD) and WestRock (WRK). His new recommendation is PagSeguro (PAGS), a Brazilian stock, originally recommended by Paul Goodwin of Cabot Emerging Markets Investor.
Cabot Emerging Markets Investor
Bi-weekly Issue May 31: This issue’s featured stock is ZTO Express (ZTO), a stock Paul recommended early last November and held on until January 12, and then got out of the stock with just a small loss. There are no changes to the portfolio.
Bi-weekly Update May 24: Emerging market stocks have had another soft week, with the iShares EM Fund (EEM) below its 25-, 50- and 200-day moving averages, although Chinese stocks continue to hold steady. Today, Paul sold Petrobras (PBR) in a Special Hotline and tonight he’s moving 58.com (WUBA) to a Hold rating.
Cabot Benjamin Graham Value Investor
Weekly Update May 31: Crista writes that Apple (AAPL) appears capable of beginning a new run-up, LKQ (LKQ) looks like it’s ready to rise immediately from price support and Stifel (SF) is actively rising.
Cabot Dividend Investor
Monthly Issue May 30: This month’s featured buy, Community Healthcare Trust (CHCT) is a real estate investment trust (REIT) that owns healthcare facilities in non-urban areas. It’s being added to the High Yield Tier. Chloe is placing Ecolab (ECL) back on Hold today. In addition, Carnival (CCL) is on the chopping block if it doesn’t shape up soon.
Weekly Update May 23: Chloe says we’re still pretty much in wait-and-see mode, but are cautiously optimistic. Most of our holdings are looking constructive, with AllianceBernstein (AB), American Express (AXP), BB&T Corp. (BBT) and UnitedHealth (UNH) all potentially on the cusp of big breakouts.
Cabot’s 10 Best Marijuana Stocks
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 June 1: Universal Electronics (UEIC) from Cabot Undervalued Stocks Advisor
Daily Alert May 31: Lowe’s Companies Inc. (LOW) from Shortex Market Letter
Daily Alert May 31: AutoZone, Inc. (AZO) from Shortex Market Letter
Daily Alert May 30: Green Dot (GDOT) from Cabot Stock of the Week
Daily Alert May 29: Sleep Number Corporation (SNBR) from The Buyback Letter
Monthly Issue May 16: Our May Spotlight Stock is, Zayo Group Holdings (ZAYO), a cutting-edge technology stock. Nancy’s Feature article its focus on a specific niche within the much-anticipated 5G network arena.
Wall Streets Best Dividend Stocks
Daily Alert June 1: Eversource Energy (ES) from Dow Theory Forecasts
Daily Alert June 1: OGE Energy Corp. (OGE) from Dow Theory Forecasts
Daily Alert May 31: Schnitzer Steel Industries, Inc. (SCHN) from Validea Hot List Newsletter
Daily Alert May 30: Sun Communities, Inc. (SUI) from Pivotal Point Trader
Daily Alert May 29: Tredegar Corporation (TG) from DRIP Investor
Monthly Issue May 9: The Spotlight Stock is Discover Financial Services (DFS). While best known for its credit card business, Discover offers a variety of services, from home-equity and student loans to deposit products. Nancy’s Feature explores its benefits.
Premium Reports
Cabot’s 10 Best Takeover Stocks
Special Report May 3: 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 Report Updated April 15: 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.
Ask the Experts
Cabot Emerging Markets Investor
Question: I am a subscriber to your Emerging Markets newsletter. It really provides great investment information in a clear, concise manner and I look forward to each issue and the updates which I think separates your service from others. I now have a question: what recommendable Chinese stocks do what 1) Zillow ad 2) Grubhub do in the US? Incidentally, your presentations in the Cabot Weekly Review are extremely well done, Keep up the good work.
Paul: Thanks for the kind words. Your instincts must be good, because one of the two Chinese ADRs in the real estate sector just jumped by almost 20% after a good earnings report. The company is Leju Holdings Limited (LEJU), and it operates both online and offline, via its own section on Sina.com and on social media. The company is just pulling out of a terrible 2017, when both revenue and earnings fell and reported Q1 results yesterday and investors liked the numbers. The only real drawback to LEJU is that even with a 20% bump today, the stock is still trading under 1.4, and briefly dipped below 1 on May 1 and 2. If that price had persisted, the stock would have found itself delisted from the NYSE. LEJU bounced in early May, but its rally came after years of declines that pulled the stock down from 19 in August 2014. I’ll keep an eye on the stock, but I generally avoid stocks that are trading much below 10, as institutional investors are usually prevented from investing in stocks below that level. As for your question about the GrubHub of China, I’m not aware of any Chinese company that’s trying to emulate that business model. At least there aren’t any among the stocks that trade on U.S. exchanges. Good luck!
Cabot Stock of the Week
Question: I’m a Cabot Stock of the Week/Growth Investor member. I’m curious to know, even though you just recommended PAGS yesterday, since that time it has dropped as much as 15% from this morning’s low due to earnings (but currently at $32.09). My question is: do you consider this drop a clear buying opportunity or do you feel it’s wise to let the volatility play out for a short while to see what the market still “feels” for PAGS? Also, what was your impression on their earnings report?
Tim: Thanks for writing. I think the earnings report was fine but it’s been overshadowed by the economic troubles in Brazil. The big drop yesterday was BEFORE the report and the stock is up today as I write. Unless something big changes, I intend to reiterate my buy next week. I think this is a great opportunity.
Guide to Cabot Prime
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