Cabot Prime Week Ending June 12, 2020
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, In this week’s video, Mike Cintolo discusses the late-week market selling—he has his eyes open, and short-term, such sharp drops usually lead to some reverberations. But at this point, most of the evidence is bullish, and many growth stocks are in reasonable, good-looking three- to five-week consolidations.
The American Income Crisis + 2 High-Yield Stocks to Buy
WEBINAR: Tuesday, June 16, By Tom Hutchinson, Chief Analyst of Cabot Dividend Investor
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Cabot Retirement Club
WEBINAR FOR PRIME MEMBERS ONLY: Thursday, June 25, By Tom Hutchinson, Chief Analyst of Cabot Income Advisor
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Cabot Growth Investor
Bi-weekly Update June 11: Remain bullish, but pick your spots. Today was a very brutal day, but it hasn’t changed the evidence, at least not yet—our trend-following measures are still bullish and, along with the recent blastoff indicators, tell us the odds still favor higher prices ahead (though further short-term weakness wouldn’t shock us at all). Growth stocks have been trickier, but breakdowns have been few and far between. All in all, Mike remains optimistic, though he’s holding onto our 18% cash tonight. The only change is the switch of Vertex (VRTX) to Hold.
Bi-weekly Issue June 4: Remain bullish. In the Model Portfolio, the buy signal from the 90% Blastoff Indicator last week prompted Mike to buy a stake in the ProShares Ultra S&P 500 Fund (SSO), giving us direct exposure to the overall market. And in tonight’s issue, he’ll fill out our position in Cloudflare (NET), adding another half-sized position, which will leave us with around 18% in cash.
Other Stocks of Interest June 8: Follow ups to stocks featured January 30, 2020 (issue 1438) to June 4, 2020 (issue 1447). Since many of the stocks written about in Other Stocks of Interest don’t make their way into the Model Portfolio, you won’t see them followed on a regular basis in the issues. However, we are monitoring these stocks, and this listing gives you a quick view of our latest thoughts.
Cabot Top Ten Trader
Movers & Shakers June 12: All in all, Mike remains bullish—but as always, he’s keeping his eyes open. If he sees a bunch of breakdowns and further abnormal market selling (another couple of giant losses), he’ll likely pare back. But at this point, he’d remain heavily invested. Given the hiccup, Mike will likely to knock our Market Monitor down a notch come Monday, but he’ll have to see.Today’s sell recommendations are: Guardant Health (GH), LiveRamp (RAMP) and MyoKardia (MYOK).
Weekly Issue June 8: As Mike has written lately, the good news is that breakdowns have been few and far between; the pullbacks have been normal thus far, but the next few days should be telling to see if growth names are in for a deeper retreat or whether everything can get in gear with the broad market on the upside. As you’d expect, this week’s list is heavier in names that have more recently come to life, including a few cyclical-related names. Mike’s Top Pick is Autodesk (ADSK), a growth-y name that should also get a boost from the economic recovery, and the stock has leapt nicely to new highs.
Cabot Undervalued Stocks Advisor
Weekly Update June 10: From an investor’s point of view, Crista will be cautious about owning P&C insurance stocks. We won’t know the cost of all the damage until second and third quarter earnings reports, but you can be sure that profits will suffer. Stocks will react by falling. And she doesn’t mean to alarm anybody, but we’re just weeks away from hurricane season, and 2020 has already been sort of a bad luck year. Here are today’s portfolio changes: General Motors (GM) moves from Strong Buy to Hold, Mercury General Group (MCY) moves from Buy to Sell and Tyson Foods (TSN) moves from Strong Buy to Buy.
Special Bulletin June 8: Today’s news: Broadcom (AVGO) reported second quarter results and moves from Buy to Hold. Crista writes about Rising oil prices and Marathon Petroleum (MPC) moves from Strong Buy to Buy, Total SA (TOT) moves from Strong Buy to Hold and VanEck Vectors Oil Refiners ETF (CRAK) moves from Strong Buy to Buy. And, here are other portfolio stock changes: Dow Inc. (DOW) moves from Strong Buy to Buy, MKS Instruments (MKSI) moves from Strong Buy to Hold, NV5 Global (NVEE) moves from Strong Buy to Hold, Quanta Services (PWR) moves from Buy to Hold and Voya Financial (VOYA) moves from Strong Buy to Buy.
Monthly Issue June 3: Three of today’s featured companies seem most obviously ready to begin or continue run-ups in the coming days: Equitable Holdings (EQH), Mercury General Group (MCY) and Tyson Foods (TSN). The fourth featured company, Bristol-Myers Squibb (BMY), is sitting at the bottom of a steady trading range, offering attractive opportunities for growth investors, dividend investors and traders. Here are Crista’s portfolio changes: Dow Inc. (DOW) moves from Buy to Strong Buy and Quanta Services (PWR) moves from Hold to Buy.
Cabot Stock of the Week
Weekly Issue June 8: With the economic news improving, we now know why the market has been so strong recently. Admittedly, the big-picture fundamentals appear quite challenging—but technically, the picture remains very bright. And among individual stocks, there are plenty of great growth stories that appear bound to succeed regardless of what the economy does. Today’s recommendation is one of them. The stock, Beyond Meat, (BYND), was originally recommended by Mike Cintolo in Cabot Growth Investor. Tim has four rating changes today: Barrick Gold (GOLD) and Marathon Petroleum (MPC) both move from Buy to Sell and Tyson Foods (TSN) and Vertex Pharmaceuticals (VRTX) move from Buy to Hold.
Cabot Global Stocks Explorer
Bi-weekly Issue June 11: At the beginning of 2020, Carl was anticipating a resurgence in emerging markets, but the upheaval over the past few months has thrown all predictions to the wind. Emerging markets, which lagged big tech and big data in coming off March lows, have snapped back recently and our emerging markets timer (EEM) is now decisively positive. That said, emerging markets are a bit like biotech stocks – either hot or cold. Carl’s recommendation today is VanEck Vectors Rare Earth/Strategic Metals (REMX), an exchange-traded fund (ETF) launched in 2010. It is fairly concentrated with 21 holdings; the top 10 holdings represent 61% of assets and more than half of the holdings are Chinese companies. There are no portfolio changes today.
Bi-weekly Update June 4: Today Carl writes about why he believes that Southeast Asia deserves more attention from both a strategic and investment point of view. Our Explorer portfolio has two direct Southeast Asia plays, DBS Bank (DBSDY) and Sea Limited (SE), which was founded by Singapore-based ethnic-Chinese entrepreneurs and backed by Tencent. In this age of U.S.-China rivalry, Southeast Asia will be a key part of the chessboard. Carl has one portfolio change today: Virgin Galactic (SPCE) moves from Buy a Half to Buy a Full Position.
Cabot Dividend Investor
Monthly Issue June 10: There are bargains and high yields out there. But you have to be careful to find those with a safe dividend. Stocks still selling at bargain prices that pay high yields that are safe represent the best buying opportunities in the market right now. In this issue, Tom highlights one of the few diamonds in the rough. He has seven portfolio changes today, Community Healthcare Trust (CHCT) moves from HOLD to SELL, STAG Industrial (STAG) from HOLD to SELL 1/2, Altria (MO) from HOLD to BUY, Crown Castle International (CCI) from HOLD to SELL 1/2, Innovative Industrial Properties (IIPR) form BUY to SELL 1/3, Qualcomm Inc. (QCOM) from HOLD to SELL 1/3 and Valero Energy Corp. (VLO) from HOLD to SELL 1/2.
Weekly Update June 3: Consider that if the market trends higher from here and does not move down significantly, we are in a new bull market. Bull markets typically last for many years and, historically, the first few months only represent about 10% of the move higher in bull market. And that just speaks for the overall market. There are still many stocks that are still wallowing in bear market territory, down 20% or 30% or more. For now, enjoy the rally. And Tom will keep you posted. There are no rating changes today.
Cabot Marijuana Investor
Update June 10: The marijuana sector looks increasingly healthy, as the leading companies continue to post triple-digit growth rates and the leading stocks continue to climb higher. One exception, however, is Canopy Growth, which two weeks ago released a disappointing quarterly report that saw its stock drop sharply in response. The stock has recovered a bit since then, and Tim is going to take this opportunity to sell half our position. He’s also going to sell half of our position in Innovative Industrial Properties (IIPR), mainly because he thinks the growth potential is better elsewhere. The funds from both will be redeployed equally among current holdings Cresco Labs (CRTLBF) and Green Thumb Industries (GTBIF) and new addition Akerna (KERN)—which overall will shift the portfolio weighting slightly more from Canada to the U.S.
Monthly Issue May 27: Own the leaders. Sell the losers. And remember that someday, when marijuana is declared legal across the U.S., the institutions will come running. You who are here now, are early. The portfolio averaged up in four of our stocks two weeks ago and is now down to 13% in cash, and that’s where Tim will keep it, waiting for a fresh buying opportunity.
Special Report: April 29, 2020U.S. Vertically Integrated Multistate Operators (MSOs)
Cabot Early Opportunities
Special Bulletin June 5: Tyler updates six stocks today: Smartsheet (SMAR), Viela Bio (VIE), Virgin Galactic (SPCE), DraftKings (DKNG), Kroger (KR) and Enphase (ENPH) and makes several rating changes.
Monthly Issue May 20: In this month’s Issue of Cabot Early Opportunities, Tyler sifts through all his ideas to feature a compelling mix of five stocks that still look to have significant upside potential over the coming months. Several of these names should represent new ways for investors to participate in long-term growth trends. The month’s Top Pick, Formula One Group (FWONK). If you want to invest 100% in Formula 1 (along with a smattering of other minority interests, including the Braves MLB team, Drone Racing League and Tastemade), now you can.
Cabot Profit Booster
Weekly Issue June 9: The Stock – Marvell Technology Group (MRVL) Marvell Technology is a chip stock that’s been around for a while, which in recent years has transformed itself into a data infrastructure outfit, with chips that play into a variety of major growth trends like advanced automotive products, data center solutions, enterprise networking, wireless connectivity (including 5G) as well as various storage networking offerings. The Covered Call Trade Buy Marvell (MRVL) Stock at 34.75, Sell to Open July 35 Strike Calls (exp. 7/17) for $1.50, or a Net Price of $33.25 or less.
Cabot Income Advisor
Weekly Update June 10: While the overall market may have gotten frothy, there are still pockets of great opportunity. Certain companies are facing little or no business disruption as a result of the lockdowns. In fact, some companies are thriving while the stock prices are still well below the pre-virus highs. Tom identified three such stocks in the inaugural issue last week. These are companies with growing businesses that aren’t being disrupted in the recession, sell at discounted prices and have high yields that are safe. So far, they’re doing great.
Special Bulletin June 3: Covered Call: Sell IIPR July 17 $95 call at $3 or higher - Expiration date: July 17 - Strike price: $95 - Call price: $3 or higher
Monthly Issue May 25: Welcome to the very first issue of Cabot Income Advisor. The purpose of this newsletter is to provide you with investment ideas that generate a very high level of current income. The goal is to provide you with a double digit annual income with a reasonable level of risk, whereby you can maintain and grow your nest egg over time. Chief Analyst, Tom Hutchinson has found three strong investments that he is recommending as a BUY in this inaugural issue. I foresee this portfolio eventually having 10 to 15 different investments. Whatever you may want to allocate to this newsletter portfolio should be spread over 10 or more stocks. We will start with three. You don’t have to invest all at one time.
Special Report:Off the Radar Cash Generators
Special Report:The Covered Call Income Machine
Wall Street’s Best Investments
Daily Alert June 12: PJT Partners Inc. (PJT) Validea Hot List Newsletter
Daily Alert June 11: Morgan Stanley (MS-PL) Income Securities Investor
Daily Alert June 10: Sell: Atkore International Group Inc. (ATKR) Upside
Daily Alert June 10: First Trust Dow Jones Select MicroCap Index Fund (FDM) Upside
Daily Alert June 9: Cohu, Inc. (COHU) The Prudent Speculator
Daily Alert June 8: Sell: LGI Homes, Inc. (LGIH) Cabot Undervalued Stocks Advisor
Daily Alert June 8: MKS Instruments, Inc. (MKSI) Cabot Undervalued Stocks Advisor
Monthly Issue May 21: Nancy’s Spotlight Stock this month, Curaleaf Holdings, Inc. (CURLF), is also one of the few marijuana stocks that sports a strong balance sheet. It has roughly $42 million worth of cash on its balance sheet and nearly $150 million when you count current assets and cash equivalents. It has the financial heft to survive this crisis. And her Feature article delves further into the pot industry.
Ask the Experts
Cabot Stock of the Week
Question: I subscribe to 4 of your letters but am sometimes interested to hear an opinion which may not yet be listed in any of them. For example what do you think about Musk’s SPCE ? Thanks much as ever.
Tim: Thanks for asking. Actually, SPCE is the symbol for Virgin Galactic, one of Sir Richard Branson’s numerous companies. The stock was originally recommended by Carl Delfeld of Cabot Global Stock Explorer, and his readers took out big profits when the stock has hot, but now that it’s cooled off and building a low-risk base, he’s rated it buy again. SPCE is also rated buy in my Cabot Stock of the Month. As for Elon Musk’s company, SpaceX is not public, so you can’t invest in it, but it has been in the news, successfully delivering two astronauts to the International Space Station—a job the U.S. has been paying Russia to do for the past nine years.
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts from April 15, 2020 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.
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 Global Stocks Explorer||Cabot Growth Investor||Cabot Marijuana Investor||Cabot Stock of the Week||Cabot Undervalued Stock Advisor||Cabot Dividend Investor|
|IIPR||See Advisory||Sell 1/3|