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Cabot Weekly Review (Video)
In this week’s stock market video, Paul Goodwin sees a basically healthy market, with all of the major indexes above their 25- and 50-day moving averages and those averages turning up. So there’s no doubt that the developed markets are in an intermediate-term uptrend. Emerging markets aren’t quite so healthy, but Chinese stocks are powering ahead strongly. It’s a little concerning that the VIX is so low, indicating that investors aren’t very fearful at all, but Paul still trusts the main timing signal from the market. After a lengthy plug for the Cabot Wealth Summit, Paul runs down a short list of stocks that have been in really strong uptrends, including a few that are probably too extended to put a ton of money into right now. He also gives a few examples of stocks that are better set-ups for buying now.
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Cabot Growth Investor
Bi-weekly Update June 12: Mike is putting PayPal (PYPL) and Five Below (FIVE) back on Buy tonight. Our cash position remains at 20%, though we could do new buying if we see a proper setup.
Other Stocks of Interest June 8: Follow ups to stocks featured January 3, 2018 (issue 1384) to June 6, 2018 (issue 1395). 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 June 6: Mike says to do a little buying. In the Model Portfolio, he’s buying Alibaba (BABA), which has just broken out. That will leave us with 20% in cash, some of which we’re aiming to put to work in the days ahead.
Cabot Top Ten Trader
Movers & Shakers Weekly Update June 15: Mike says, long story short, he’s definitely bullish, and he’s not saying to start ditching all your best stocks. But with profits having come quickly, it’s good to remember (a) to take a few partial profits if you’ve been handed a great gain in just a couple of weeks, and (b) to look for solid entry points on the buy side (as opposed to just chasing something up the chart). Today’s Buy Ideas: Foundation Medicine (FMI), Grubhub (GRUB), Ligand Pharmaceuticals (LGND), Macy’s (M), and Nutanix (NTNX). Mike has five sells: BeiGene (BGNE), Continental Resources (CLR), Kirby (KEX), Penn National Gaming (PENN) and Transocean (RIG).
Weekly Issue June 11: Mike says the trends of the market and most stocks are up, so he advises sticking with a bullish stance. As for this week’s list, it’s interesting in that we see a handful of turnaround-type plays that were left for dead until a few weeks ago. A good example is Mike’s Top Pick this week: Twitter (TWTR), which just emerged from its first proper launching pad since coming public.
Cabot Undervalued Stocks Advisor
Weekly Update June 12: In today’s update Crista writes about what’s next for the U.S. stock market. And she’s moving Baker Hughes, a GE Co. (BHGE ) from Buy to Strong Buy and PulteGroup (PHM) from Strong Buy to Hold.
Monthly Issue June 5: Crista, with her expertise on trade issues, discusses international trade negotiations and NAFTA. Today, DowDuPont (DWDP) joins the Growth & Income Portfolio as a Strong Buy. Martin Marietta Materials (MLM) moves from Buy to Hold, Schlumberger (SLB) moves from Buy to Strong Buy and Supernus Pharmaceuticals (SUPN) moves from Buy to Strong Buy.
Cabot Stock of the Week
Weekly Issue June 12: Tim’s recommendation this week is a stock that will hopefully be a takeover target soon. The stock, TiVo Corporation (TIVO), was originally recommended by Crista Huff of Cabot Undervalued Stocks Advisor. There are five rating changes today: AllianceBernstein (AB) to Hold, Alphabet (GOOGL) to Sell, Axon Enterprise (AAXN) to Hold, PagSeguro (PAGS) to Hold and PayPal (PYPL) to Buy.
Cabot Emerging Markets Investor
Bi-weekly Issue June 14: This issue’s featured stock is Momo Inc. (MOMO), a stock Paul recommended twice before, once in September 2016 and again in March 2017, each time recommending buying a half position. Tonight, Paul is moving BeiGene (BGNE) and TAL Education (TAL) from Buy a Half to Hold a Half.
Special Bulletin June 13: This morning, TAL Education (TAL), our longest and most-profitable holding, came under attack by Muddy Waters, a firm that specializes in publishing negative research on a company and selling its stock short. Paul will move TAL to a Hold rating as a precaution, but will keep monitoring the stock’s movement very closely.
Bi-weekly Update June 7: Emerging market stocks have had a volatile week, with the iShares EM Fund (EEM) popping above its 25- and 50-day moving averages on Wednesday, but slipping back to the 50-day today. Paul has one move in the portfolio today: he’s selling PagSeguro (PAGS), which is being dragged down by weakness in Brazilian stocks.
Cabot Benjamin Graham Value Investor
Weekly Update June 14: Crista has one rating change today: Walt Disney Co. (DIS) moves from Hold to Sell at 111.5.
Cabot Dividend Investor
Weekly Update June 13: Chloe writes that markets remain volatile, and some stock indexes started to diverge toward the end of last week. She is putting UnitedHealth Corp (UNH) back on Buy today in recognition of the stock’s strength.
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.
Cabot’s 10 Best Marijuana Stocks
Update June 14: Tim recently attended the Cannabis World Conference and Business Expo in New York City. His main takeaway from that conference was that the trend continues to gain strength, at a faster rate than expected. He also updates the 10 stocks in the portfolio.
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 15: Nanometrics (NANO) from Upside
Daily Alert June 14: Shake Shack (SHAK) from Cabot Growth Investor
Daily Alert June 13: Kinetics Paradigm (WWNPX) from Moneyletter
Daily Alert June 12: Technology Select Sector SPDR ETF (XLK) from Momentum Strategies Report
Daily Alert June 11: Tractor Supply (TSCO) from Hendershot Investments
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 15: AvalonBay Communities (AVB) from Contrarian Outlook
Daily Alert June 14: Royce Micro-Cap Trust (RMT) from Forbes/Lehmann Income Securities Investor
Monthly Issue June 13: The Spotlight Stock is Community Healthcare Trust (CHCT), a real estate investment trust (REIT) paying a high yield, that operates in non-urban locales—a pretty rare find, indeed—as most REITs concentrate their holdings in large cities. Nancy’s Featured article is Equity REITs aren’t Afraid of Rising Rates
Daily Alert June 13: Fidelity Short Duration High Income (FSAHX) from The No-Load Fund Investor
Daily Alert June 12: AbbVie (ABBV) from High Yield Wealth
Daily Alert June 11: Vermilion Energy (VET.TO) from The Income Investor
Premium Reports
Cabot’s 10 Best Buy and Hold Stocks for 2018
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 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.
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: Any thoughts on JD here. I own baba, gds,i q, athm
Paul: It’s nice that JD made a run to new highs in late 2017 and early 2018. But the stock wiped all that out with a dip back to the middle 30s and is now at the same price it was trading in May 2017. It’s also still sitting under its 200-day moving average. So what I see in the stock is just huge volatility. The June 1 to June 6 rally and the possible push to a new rally high today is tempting, but there’s a ton of overhead to fight through. In technical terms, there’s a sand bar of support/resistance between 42 and 43, so a break above 43 would improve the picture a bit. I guess my bottom line is that there are more attractive candidates right now. So I’d leave JD on the watch list until it shows it’s ready to take a leadership role.
Question: Do you know what happened with BGNE and how serious it is? Would you suggest to take profit (serious!)?
Paul: As long as BGNE doesn’t trip your loss limit, I think you should just hold on. The stock’s dip was a one-day event (in its size, anyway) and there hasn’t been any follow-through to the downside. I haven’t found any news that would explain the pullback, so it’s likely just a sell-off by a big investor. The stock is also still above its 25- and 50-day moving averages, so there’s nothing abnormal about its recent action.
Question: I’m up 110% on IQ w/ 1500 shares. Got I on your “watch.” When should I consider selling some? My time horizon is 1-2 years. Do you ever use stop orders?
Paul: I’m usually reluctant to reduce exposure to a stock in a strong uptrend. But since you’re up 110%, it does make sense to book a portion of it. Consider selling a third of your position, which will give you a nice win and let you sleep at night. There’s got to be a pullback at some point; I just hope I catch the turn when it happens.
Guide to Cabot Prime
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