Cabot Prime Week Ending November 30, 2018
Cabot Weekly Review (Video)
In this week’s stock market video, Mike Cintolo has some good news—his intermediate-term indicator has flashed a green light! That’s not a reason to go hog wild on the buy side, but Mike’s putting some money to work in potential leaders and will be watching the next few trading days carefully; the more stocks that can join the party, the greater the chance this rally will get legs.
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Cabot Growth Investor
Special Bulletin November 29: Tonight, Mike is going to add two stocks to the Model Portfolio. The first is Twilio (TWLO), whose communications platform is very pervasive and is leading to accelerating revenue growth and surging earnings. The stock has been very strong recently and looks like a leading glamor name. The second addition is Exact Sciences (EXAS), maker of the potentially revolutionary Cologuard test for colorectal cancer. The stock has some resistance to chew through, but the relative performance line has hit a new peak and we think the next big move is up.
Bi-weekly Update November 28: Remain defensive, but stay tuned as Mike says we could get a Cabot Tides buy signal as early as tomorrow if the market cooperates. The action of the past month has actually been decent, with most indexes successfully retesting their October lows, some positive secondary measures flashing and a very encouraging rally in recent days.
Bi-weekly Issue November 20: Remain defensive. Yesterday’s growth stock massacre knocked us out of Okta and Teladoc, leaving us with just one stock (FIVE) in the Model Portfolio and a cash position above 90%. Mike could put some of that back to work if the market finds its footing, but tonight, he’ll stand pat.
Other Stocks of Interest November 9: Follow ups to stocks featured June 6, 2018 (issue 1395) to November 7, 2018 (issue 1406). 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 November 30: After a terrible couple of months, we finally got some legitimate good news this week—our intermediate-term trend model (which we call the Cabot Tides), which turned negative on October 10, flashed a green light on Thursday, telling us the intermediate-term trend for the major indexes is turning up. What does the signal mean? Simply put, it means the evidence has improved, and since we always adjust our posture to match the market’s evidence, you should be putting some of your sidelined cash to work.
That said, we wouldn’t jump back in with both feet. Our longer-term trend model (called Cabot Trend Lines) are still negative, as most major indexes are still living below longer-term moving averages. And it’s important to realize that, when these nascent rallies fail, they usually do so in short order (big investors take advantage of the strength to get out). Buy ideas this week: BioTelemetry (BEAT 72), Etsy (ETSY 54), Glaukos (GKOS 65), Mosaic (MOS 36), Omnicell (OMCL 77).
Update November 26: As Mike mentioned a week ago, there’s no Top Ten issue this week, which is well enough since the decline of the past couple of weeks has left fewer and fewer stocks in good shape. Even so, he wanted to write up a quick (mostly market-based) review for you, with a regular (and more full-featured) update on Friday. In terms of the overall picture, nothing has changed. Despite the shortened holiday week (which is usually bullish), the sellers did damage, with the S&P off 3.8% and the Nasdaq down a steeper 4.3% last week. Thus, the major trends of the market are still pointing down, and most stocks are a mess, so you should remain in a defensive stance.
Weekly Issue November 19: This week’s list has another batch of resilient stocks, which are providing a ray of light. Mike’s Top Pick is Canada Goose (GOOS), which he thinks can be an institutional favorite once this market downturn ends. Due to the Thanksgiving holiday, there will be no Movers & Shakers update this Friday nor any issue next Monday (one of our two weeks off all year). Mike is, however, planning on sending a brief update a week from today (November 26) to keep in touch.
Cabot Undervalued Stocks Advisor
Special Bulletin November 30: Crista discusses recent earnings reports from Guess? (GES) (which is rated as strong buy) and GameStop (GME) (which is rated as hold) and reiterates Strong Buys on Delta Air Lines (DAL), Southwest Airlines (LUV) and WestRock (WRK).
Weekly Update November 27: Crista continues to anticipate a significant January rebound as selling pressure subsides. If you’re bargain-hunting, please focus on quality companies. There’s no reason to buy shares of companies that lack earnings growth—e.g. General Electric (GE) and Facebook (FB) – when so many excellent stocks offer strong earnings growth in tandem with low prices. Today, there are two portfolio changes: CIT Group (CIT) moves from Hold to Buy and Southwest Airlines (LUV) moves from Hold to Strong Buy.
Monthly Issue November 6: Crista continues to expect many stocks to remain low through year end, possibly followed by quite a bull run in January. Today’s featured stocks include Martin Marietta Materials (MLM) and Synchrony Financial (SYF) and a new addition to the Buy Low Opportunities Portfolio, Apple Inc. (AAPL). Today’s portfolio changes are: BB&T (BBT) and WestRock (WRK) both move from Hold to Buy.
Cabot Stock of the Week
Weekly Issue November 27: Today’s recommendation, Canada Goose (GOOS) is a company that has been around since 1957, known for super high-quality (and super high-priced) winter jackets (often $1,000 or more) that are stylish but also extremely functional. It was recently recommended by Mike Cintolo, in Cabot Growth Investor. Here are Tim’s Portfolio changes: Altair Engineering (ALTR) moves from Buy to Sell, Centennial Resource Development (CDEV) from Hold to Sell, General Motors (GM) from Hold to Buy, MedMen (MMNFF) from Buy to Hold and WNS Holdings (WNS) from Buy to Hold.
Cabot Emerging Markets Investor
Bi-weekly Issue November 29: Our Emerging Markets Timer has flashed a new buy signal, a sign that, for the first time in months, the intermediate-term trend is turning up. Paul’s recommendation today is NIO Corp. (NIO), a brand new issue, with only scant sponsorship by the investment giants who may take a little more time and research before getting comfortable buying in size. The potential market for the company’s cars is enormous and their one product is attractive. It’s rated WATCH. Here are tonight’s portfolio changes: Alibaba (BABA) moves from Hold a Half to Buy a Half, Bilibili (BILI) from Watch to Buy, Tencent Holding (TCEHY) from Watch to Buy a Half and Vale (VALE) from Buy to Hold.
Bi-weekly Update November 21: Emerging market stocks, as tracked by the MSCI Emerging Market ETF (EEM) aren’t making much progress. But, and this is important, they aren’t losing much ground either, even as U.S. growth stocks are taking it on the chin. The only change in the portfolio today is that Paul is moving the half position in Petrobras (PBR) to a Hold rating.
Cabot Dividend Investor
Monthly Issue November 28: Today Chloe is adding one more utility to the Safe Income tier, NextEra Energy (NEE). The market has stabilized a bit, and Chloe is moving the rest of the Safe Income holdings back to Buy: Ecolab (ECL) and UnitedHealth (UNH). Riskier investments are still in limbo though, and in the high yield tier she is selling another third of our ONEOK (OKE) shares, due to the stock’s continued decline.
Weekly Update November 21: The stock market slump that started last week has intensified in recent days, bringing the major indexes back to their October lows. But growth stocks have been the worst hit, and many conservative investments—like those in our Safe Income Tier—are actually holding up well. Chloe has one rating change today, she is selling another third of Broadridge Financial (BR), our lone tech stock, as it continues to slide along with the market.
Cabot Marijuana Investor
Monthly Issue November 29: In today’s issue, Tim has no new buy and sell recommendations, but you’ll find updates on all the stocks. And as we head toward the last of 2018, he’s very optimistic that the sector will have another great run in 2019—just when most investors least expect it!
Update November 16: Tim is in Las Vegas at MJBiz.com, the biggest gathering of cannabis industry professionals. But he’s got so much on his mind—partly from what he’s learned in the past two days at the conference and partly from what our stocks have been doing. So here he is, with an update on the industry, and a reminder of some of the best practices of investing in these exciting stocks, as well as a quick look at the charts.
Wall Street’s Best Investments
Daily Alert November 30: FedEx Corporation (FDX) from Dow Theory Forecasts
Daily Alert November 29: MiX Telematics Limited (MIXT) from Cabot Emerging Markets Investor
Daily Alert November 28: SAP SE (SAP) from Argus Weekly Staff Report
Daily Alert November 27: KVH Industries, Inc. (KVHI) from Technology & Opportunity
Daily Alert November 26: Third Avenue Small Cap Value Investor Fund (TVSVX) from Sound Advice
Monthly Issue November 14: Nancy’s Spotlight Stock Comcast Corporation (CMCSA), is pushing growth via mergers and acquisitions, including its recent $40 billion acquisition of the 39% percent of the company owned by Twenty-First Century Fox. In her Feature article, Nancy says that Comcast looks undervalued at a P/E of just 7.47. Yet, the company is forecast to grow its earnings some 23% this year and another 10.3% in 2019. Add in the dividend yield, and the future looks bright for Comcast investors.
Wall Streets Best Dividend Stocks
Daily Alert November 30: Magellan Midstream Partners, L.P. (MMP) from Positive Patterns
Daily Alert November 29: Resolute Forest Products Inc. (RFP) from Dividend Confidential
Daily Alert November 29: Sell: Ecopetrol S.A. (EC) from Cabot Emerging Markets Investor
Daily Alert November 28: Waste Management, Inc. (WM) from The Personal Capitalist
Daily Alert November 27: AGL Energy Limited (AGLXY) from Conrad’s Utility Investor
Daily Alert November 26: Procter & Gamble Co. (PG) from Dividend Advisor
Monthly Issue November 7: This month’s Spotlight Stock, Brookfield Property Partners (BPY-UN.TO, BPY), is a diversified global real estate company. It owns, operates, and develops a large portfolio of office, retail, multifamily, industrial, hospitality, triple net lease, self-storage, student housing, and manufactured housing assets. In her Feature article, Nancy writes that it’s not only residential real estate that has seen phenomenal growth since the recession. Commercial real estate (CRE) is also booming, and is expected to grow 5% annually and reach revenue of $4 trillion over the next four years.
Ask the Experts
Cabot Emerging Markets Investor
Question: Hope you had a great holiday. I’ve been very interested in your universe of stocks and mainly in China because you have had some fantastic winners. Anyway I am currently in baba, tcehy and bili. I’ve also been watching PGJ and wanted to know your thoughts on same. It seems to have a bunch of the stocks you’ve been interested in without the exposure to an earnings blow up of one. Also they have NTES listed as the largest position. TCEHY looks like it’s trying to head north again !!!!!!!!!!!!!!!!!!
Paul: Thanksgiving was excellent, thanks. I hope yours was similarly fine. I’m about 68.3% optimistic (give or take) about Chinese stocks right now. There’s not exactly a flood tide of movement, but it looks like the base is in and PGJ is certainly outperforming the S&P and the Nasdaq. There’s still plenty of opportunities for EM stocks to retest their lows, but I can’t deny that the momentum is up. If EEM can maintain its slight bullishness, we could get a new buy signal by Thursday. Chinese stocks (PGJ) aren’t quite as strong, but the leadership group looks solid. I think your BABA, TCEHY and BILI is a pretty good tripwire portfolio, by which I mean that if that group does well, it should set the tone for the larger group. Good luck!
Question: I’ve been a subscriber for a while and look forward to your report each Thursday but I’m at a loss on how to get started. I know you said to divide the investment amount in equal dollars among the recommended buys, but there don’t seem to be enough of them. If I wanted to start this week, there’s only one Buy (VALE) and one Buy a Half (MIXT). What is the best way to get started?
Paul: Thanks for your question. I suspect that there are plenty of people out there sharing your consternation. The short answer, right now, is that I don’t have a lot of buys right now. The momentum of emerging market stocks in general (and Chinese stocks in particular) has been down, and I’ve pared the portfolio’s holdings way back. When markets are bearish, the safest thing for growth investors is to hold as much cash as possible. That preserves capital and lets us sleep at night. If you’re holding a lot of cash and can’t find much to buy, you’re perfectly positioned. It looks like Chinese stocks have put in a tentative bottom, which, if it proves durable, should give us some interesting buying opportunities as the rally continues. All you have to do is follow the advisory’s recommendations as we slowly increase the amount of our money at work in the market. Even if we get a new buy signal, we will take it slow, letting the market pull us back in rather than jumping back in with both feet.
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Cabot’s 10 Best Canadian Small-Cap Stocks
Special ReportAugust 31: 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 there are market-beating returns available to investors willing to step abroad too. And one of the easiest places to find them is just over the border with our neighbor to the north, Canada.
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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.
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