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Weekly Summary September 7, 2018

Cabot Prime Week Ending September 7, 2018

Cabot Weekly Review (Video)

In this week’s stock market video, Mike Cintolo talks about what was an interesting week, with some sharp selling in leading stocks for part of it before a nice rally on Friday. Overall, this pullback and consolidation could go on for a bit, but the majority of evidence is bullish and most leading stocks are simply pulling back after big runs. Thus, Mike’s still optimistic, then, and he dives into a handful of leaders that are at or close to tempting entry points.

Advisory Services

Cabot Growth Investor

Bi-weekly Update September 5: Remain mostly bullish. Today was a bad day for growth stocks, but after such a big run during the past three weeks, some hiccups are to be expected. Our trend-following indicators are still positive and most leading stocks are in solid uptrends. Mike has no changes in the Model Portfolio.

Bi-weekly Issue August 29: The market overall and growth stocks in particular have shown great improvement during the past two to three weeks. Mike is continuing to add new positions given the bullish activity we’re seeing and it’s time to put even more money to work. He’s adding AutoDesk (ADSK) tonight, leaving the portfolio with 17% in cash.

Other Stocks of Interest August 31: Follow ups to stocks featured March 28, 2018 (issue 1390) to August 29, 2018 (issue 1401). 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 September 7: Mike says the evidence remains bullish—the intermediate-term trends are pointed up, with even the Nasdaq (which is the weakest major index in the short term) still north of its 50-day line (currently around 7,820). And, when looking at a ton of leading, Top Ten-type stocks, the vast majority haven’t shown any abnormal action; in most cases, he sees big moves up during the past four to five weeks, followed by a sharp three-day decline.Here are this week’s Buys: CarGurus (CARG), (MTCH) and Michael Kors (KORS). There are three sells this week: DocuSign (DOCU), Spotify (SPOT) and USANA Health (USNA).

Weekly Issue September 4: This week’s list has a wide mix of stocks and sectors, reflecting the broadening of the market’s advance. Mike’s Top Pick is Semtec (SMTC), a smaller chip maker with a pretty chart and excellent growth.The Market Monitor moves to a level 8 (out of 10).

Cabot Undervalued Stocks Advisor

Monthly Issue September 4: Crista writes that there are a handful of times each year when Wall Street analysts revamp research, earnings estimates and stock recommendations for a majority of the stocks within their purviews. Certainly they do so after companies report quarterly financial results. But there’s a similar surge in updated research reports after summer vacation season ends, and in early January. In that light, she anticipates reporting on many such changes within the next two weekly updates of Cabot Undervalued Stocks Advisor. Today, Synchrony Financial (SYF) joins the Buy Low Opportunities Portfolio, Marathon Petroleum (MPC) joins the Growth Portfolio and Total S.A. (TOT) joins the Growth & Income Portfolio.

Weekly Update August 28: With a goal of bringing more clarity to her stock recommendations, Crista is adding a new designation: “Retired”. A Retired stock will be a stock in a healthy company that’s removed from the portfolio either because it reached her investment objective, or because its numbers began to fall short of her investment criteria – yet the company continues to be a healthy, market-leading company. Always be aware that if she believes the stock continues to offer attractive near-term capital gain potential, she certainly would not be removing it from the portfolio. The Sell designation will be reserved for stocks that she believes all investors should sell, due to deteriorating fundamentals and other problems that diminish the stock’s potential to deliver capital gains. There are no rating changes today.

Cabot Stock of the Week

Weekly Issue September 4: In selecting today’s stock, Instructure (INST), Tim went looking for a good but underappreciated growth stock whose chart provided a low-risk entry point and he found it in Cabot Small Cap Confidential. There is one portfolio change today: Stitch Fix (SFIX) moves from Buy to Hold.

Cabot Emerging Markets Investor

Bi-weekly Issue September 6: Emerging markets are mired in a selloff that’s been going on since January. That’s not unreasonable after an advance that ran for two full years, but it’s still trying. Today’s featured stock is Colombia-based Ecopetrol (EC), a fairly conventional integrated oil & gas explorer, producer, refiner and transporter with global reach. Paul has it rated Watch. There are no changes in the Model Portfolio.

Bi-weekly Update August 30: We are continuing to fly a caution flag from the Cabot Emerging Markets Timer. We remain in a defensive stance as we wait for some good news to turn investors’ sentiment around. In today’s update, Paul is moving our half position in Beigene (BGNE) back to a Buy rating and selling the half position in (JD).

Cabot Dividend Investor

Weekly Update September 5: Chloe says that after a strong late-summer advance, the stock market has started September with a small pullback. The big picture is still bullish though, with more stocks hitting new highs than new lows. Today she is moving one stock back on Buy: Ecolab (ECL).

Monthly Issue August 29: This month’s featured buy, to be added to the Dividend Growth tier is CSX Corp. (CSX), the third-largest U.S. railroad. The company recently underwent a major transformation that boosted margins, cash flow and profits. Now, the stock is riding a strong uptrend in the transport sector, and earnings are surging. Today Chloe is selling 1/3 of ONEOK (OKE),

Cabot’s 10 Best Marijuana Stocks

Update September 5: Today, Tim is investing in CV Sciences (CVSI), the biggest vendor of CBD oil in the U.S., noting that the stock bounced off its 50-day moving average last week, and is in a relatively calm spot compared to other stocks in the industry. He’ll invest a third of the portfolio’s cash, and as usual, our transaction will be recorded at the average price of tomorrow’s trading range.

Fall Issue August 30: Tim reminds us that marijuana remains a young and unpredictable industry, with frequent developments on both the legal side and the corporate side, as the players angle for advantage in what is the fastest-growing industry in America (27% per year). What is certain is that the legal market for adult-use marijuana in Canada opens October 17—and all the big players are ready. How big demand will be, both on the first day and in the weeks and months thereafter, we will see. Also to be seen is how marijuana prices change as production of what is essentially a commodity adjusts to meet market demand. Tim has updates on the 10 stocks currently in the portfolio, and gives you three new names to consider.

Wall Street’s Best Investments

Daily Alert September 7: Fidelity Small Cap Index Investor (FSSPX) from Fidelity Monitor & Insight
Daily Alert September 6: Sell: Adecoagro S.A. (AGRO) from The National Investor
Daily Alert September 6: Emerald Health Therapeutics, Inc. (EMHTF) from The National Investor
Daily Alert September 5: Kansas City Southern (KSU) from Positive Patterns
Daily Alert September 4: Colfax Corporation (CFX) from Argus Weekly Staff Report

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 September 7: Sell 1/3: ONEOK, Inc. (OKE) from Cabot Dividend Investor
Daily Alert September 7: Xcel Energy Inc. (XEL) from Cabot Dividend Investor
Daily Alert September 6: V.F. Corporation (VFC) from Canaccord Genuity Research
Daily Alert September 5: Och-Ziff Capital Management Group (OZM) from The Buyback Letter
Daily Alert September 4: Cohen & Steers REIT & Preferred Income Fund (RNP) from Contrarian Outlook

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

Cabot’s 10 Best Canadian Small-Cap Stocks

Special Report

August 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.

10 Monthly Dividend Stocks to Buy for Year-Round Income

Special Report

August 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 Report

July 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 Report

Updated 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 Report

Updated 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 Growth Investor

Question: You’ve mentioned recently that money flows into stock funds and ETFs have been tame (a good thing) but then you just wrote that put-call ratios are indicating enthusiasm. How do you balance those two?

Mike: Well, that’s the problem with sentiment measures -- they’re inexact and often conflicting. Plus, some adhere to different time frames; a poll of individual investors might move up or down a lot based on a week or two of action, while money flows might not. All told, I think the lack of fund inflows (so far) is an intermediate-term positive, but there’s no question that growth stocks have had good runs and investors were a bit giddy/complacent near-term. Hence my thinking that further weakness in growth stock is possible, though we’re not seeing any major signs of exuberance.

Cabot Dividend Investor

Question: I recently joined your subscription. I have a quick question regarding CHCT on your high yield tier. I already had it prior to acquiring your subscription. That’s good. But I also have HTA and DOC. All 3 Reits in the same sector. What do you recommend? Keep all 3 or just stick with CHCT? I bought shares in all 3 to dilute my risk!!

Chloe: I think as long as you don’t have too big a chunk of your portfolio overall in health care REITs, your decision to diversify is a good one. DOC is one of my other favorite health care REITs; I’m not as familiar with HTA but a quick look suggests it’s another good choice.

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.