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Cabot Prime Pro Week Ending April 27, 2018

Cabot Prime Pro Week Ending April 27, 2018

Cabot Wealth Summit Registration

What do Cabot’s most successful investors have in common? They come to the Cabot Wealth Summit!

If you haven’t yet registered for the Cabot Wealth Summit, now’s the time because the Extra Early Bird rate expires soon! The Summit is a literal breakfast, lunch and dinner with every one of Cabot’s analysts, a rich and intense program of stock picks, market analysis, investing tips and techniques and a chance for face-to-face Q&A with some of the savviest investors around. We will also have great social activities!

Register here for the August 15-17, 2018 Summit at special pricing for Cabot Prime Pro members.

Cabot Quarterly Market Report and Conference

1Q 2018 Report April 18: The story of the first quarter of 2018 revolves around tariffs, and Tim challenges you to find a person who can analyze that situation from a politically unbiased viewpoint. You can listen to the Quarterly Analyst Conference here.

Cabot Weekly Review

In this week’s stock market video, Paul Goodwin looks at the sideways, tightening charts of the major indexes and concludes that it’s still time to keep new buying at a minimum and keep your stocks on short leashes. It’s not really a dire situation, but it’s not the kind of market that will give a broad boost to all stocks. Paul looks at a few IT stocks that are doing very well as well as some stocks from the oil patch that are showing real strength. He also gives a plug to a stock from his home town.

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 Growth Investor

Bi-weekly Issue April 25: Mike says to remain cautious and focus on preserving capital until the next uptrend begins. In tonight’s issue, Mike writes about the bifurcation we’re seeing among obvious, later-stage stocks (like chip stocks) and some of the newer, fresher names—including one recent IPO we’re very high on once the market finds its footing.

Special Bulletin April 24: Tonight Mike is going to raise a little more cash by selling HubSpot (HUBS), which is already back to its correction lows and which is showing a small loss. He’s also going to place Splunk (SPLK) back on Hold, as the stock has turned sloppy with the market. In all, the portfolio now has seven stocks, three of which are rated BUY, but all new positions should be kept small given the market.

Bi-weekly Update April 18: The market’s action during the past week and a half has been encouraging and constructive, first with the successful retest of the market’s lows and positive broad market divergences, and now, with the major indexes popping back above their 50-day lines. That said, we’ve yet to get a green light from our Cabot Tides. Tonight, Mike is putting a little money to work by adding one new stock—Nutanix (NTNX), which has already lifted to new highs—but we’ll still retain about 35% in cash as we await further signs that the correction is over.

Other Stocks of Interest April 27: Follow ups to stocks featured November 22, 2017 (issue 1381) to April 125 2018 (issue 1392). 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 April 27: Mike says, looking ahead, the plan is simple. If the market can rally from here, there’s a decent chance our intermediate-term market timing indicator will flash green within a few days. Buy ideas: Etsy (ETSY), Floor & Décor (FND), HealthEquity (HQY), Okta (OKTA), WPX Energy (WPX) and Michael Kors (KORS). And with the market’s movement and with earnings season, he has a number of sells this week.

Weekly Issue April 23: This week’s list has a wide variety of stocks and sectors, all of which have shown great relative strength. Mike’s Top Pick is Cheniere Energy (LNG), which has a unique story and a stock that’s built a great-looking base. Earnings are out soon, so start small.

Cabot Options Trader and Cabot Options Trader Pro

Note that the current week’s Weekly Update, earnings updates, position updates and stocks on watch are posted on the website in the Market Update section, which is deleted each week.
Market Update April 27: Our MSFT and INTC positions have lost altitude as both stocks are now only up $0.75, after trading higher by more than $3 each earlier this morning. Similarly, AMZN is $45 off its morning highs. When stocks are no longer rewarded for blowout earnings, it is discouraging action for the market.

Earnings Updates April 27: Intel (INTC) and Microsoft (MSFT) reported earnings and revenues last night that easily beat expectations. As is always the case with big winning trades, Jacob is going to let these positions run as far as possible.

Stock on Watch April 26: Option order flow has been mixed to non-existent for the past week. I have zero stocks on my watch list due to unusual option activity, or repetitive and aggressive call buying. One stock that is hitting Jacob’s radar is Facebook (FB), which is trading higher by 9% today following earnings.

Earnings Update April 26: Intel (INTC) and Microsoft (MSFT) will report earnings after the close today. We locked in profits on half of these positions—approximately 40% in INTC and 25% in MSFT, so Jacob is going to take the earnings risk on both because we have profits locked in, and the market is—at least today—responding better to earnings.

Earnings Update April 26: Knight-Swift (KNX) reported earnings last night that beat expectations, but missed on revenue. KNX has not yet traded in the pre-market.

Trade Alert April 25: Sell Half of Existing Position: Sell Half your Knight Swift (KNX) August 50/60 Bull Call Spreads for $0.40 or more.

Trade Alert April 25: Sell Half of Existing Position: Sell Half your Knight Swift (KNX) August 50 Calls for $0.70 or more.

Earnings April 25: Facebook (FB) will report earnings this evening after the closing bell. The stock is trading marginally lower today at 159, as the market is down 1%. For the year, FB is down 9.5%. Jacob is digging a bit deeper into what the options market is “projecting” for the stock.

Market Update April 24: Jacob writes that options action, while not bullish, is not screaming bearish/panic yet. Instead, options trading, much like it has been for the past week, is mostly mixed. However, a bullish trade in Netflix (NFLX) got his attention into today’s market decline.

Earnings Update April 24: Texas Instruments (TXN) report earnings 4/24 after the close and Twitter (TWTR) will report earnings 4/25 before the open.

Trade Alert April 23: Adjust Existing Position: Close Half your S&P 500 ETF (SPY) September 220/215 – 295/300 Iron Condor for $0.63 or less.

Cabot Options Trader Education April 23: Jacob follows-up on a February 6 Iron Condor trade for Cabot Options Trader Pro.

Earnings Update April 23: Caterpillar (CAT) and Coca-Cola (KO) will report earnings 4/24 before the open.

Weekly Market Update April 23: This week will be full of economic data releases and earnings announcements. However, big picture, Jacob anticipates the yield on the 10-year, which is at its highest level in four years, may garner the most attention.

Cabot Undervalued Stocks Advisor

Special Bulletin April 27: CNBC is reporting that Boeing (BA) is close to announcing that KLX Inc. (KLXI) is agreeing to be acquired. Crista says, presuming that a definitive agreement is announced later today or over the weekend, she will report back on Monday with details, and a recommendation on how shareholders should proceed.

Special Bulletin April 27: After Yesterday’s $83 run-up in the share price of Chipotle Mexican Grill (CMG), Crista is recommending that it be Sold.

Special Bulletin April 26: Alexion Pharmaceuticals (ALXN), Chipotle Mexican Grill (CMG), Knight-Swift Transportation (KNX) and Southwest Airlines (LUV) report first quarter results. Crista has two rating changes today: Baker Hughes, a GE co. (BHGE) moves from Strong Buy to Buy and Knight-Swift Transportation (KNX) moves from Hold to Strong Buy.

Weekly Update April 24: Crista gives us her opinion on Efficient Market Theory. There are two rating changes today: Bank of America (BAC) and Delek US Holdings (DK) both move from Strong Buy to Hold.

Monthly Issue April 3: Today, Comerica (CMA) joins the Growth & Income Portfolio as a Buy, Molina Healthcare (MOH) joins the Growth Portfolio as a Strong Buy and Skechers USA (SKX) joins the Buy Low Opportunities Portfolio as a Strong Buy.

Cabot Stock of the Week

Weekly Issue April 24: Today’s recommendation, interestingly, is a stock we did well with last year, nailing down a 31% profit after just three months of holding. And now PulteGroup (PHM) is at a good entry point again! The stock was originally recommended by Crista Huff in Cabot Undervalued Stocks Advisor.

Cabot Emerging Markets Investor

Bi-weekly Update April 26: The iShares EM Fund (EEM) has been through a bad week, pulling it decisively below its 25- and 50-day moving averages. In the portfolio today, Paul is selling Azul (AZUL) and moving the half position in 51 Job (JOBS) to a Hold rating.
Special Bulletin April 24: The iShares MSCI EM ETF (EEM) has been under quite a bit of selling pressure over the past four days, dropping it from a close above its 25-day moving average last Wednesday to within shouting distance of its 200-day moving average today. Today, Paul is selling Vipshop Holdings (VIPS) and moving PagSeguro (PAGS) to a Hold rating. Our half position in Weibo (WB) is on a tight leash.

Bi-weekly Issue April 19: Today, Paul is making two changes to the portfolio: Tencent Holdings (TCEHY) goes from Hold a Half to Sell and Weibo (WB) moves from Hold to Sell a Half. Also, Paul spotlights a recent IPO for your Watch List, iQIYI, Inc. (IQ).

Cabot Benjamin Graham Value Investor

Weekly Update April 26: Crista has no portfolio changes today.

Cabot Small-Cap Confidential

Weekly Update April 27: Tyler has no rating changes today, but because it’s earnings season, he suggests keeping new purchases small, particularly for those stocks that have yet to report. This week, we have earnings from just one company, LogMeIn (LOGM), which reported yesterday.

Monthly Issue April 6: Tyler is adding MiX Telematics (MIXT), a global provider of fleet management, driver safety and vehicle tracking solutions that are accessed via a Software-as-a-Service (SaaS) delivery model to Cabot Small-Cap Confidential. In the portfolio Tyler is moving AxoGen (AXGN), Everbridge (EVBG) and Q2 Holdings (QTWO) from Hold to Buy.

Cabot Dividend Investor

Monthly Issue April 25: Chloe is selling one third of our 3M (MMM) shares. This month’s featured buy is McGrath RentCorp (MGRC), which joins the Safe Income Tier.

Special Bulletin April 24: After a miss on earnings, Chloe is moving 3M (MMM) to hold today.

Weekly Update April 18: Chloe is putting Ecolab (ECL) back on Buy today after an impressive surge from the stock over the past two weeks. And also looking much healthier are Cummins (CMI), 3M (MMM) and UnitedHealth (UNH). In addition, Intel (INTC) and Broadridge (BR) remain exceptionally strong, both hitting new highs this week. And high-yield holdings ONEOK (OKE) and STAG Industrial (STAG) are both seeing renewed strength.

Cabot’s 10 Best Marijuana Stocks

Update April 18: Tim remains long-term bullish on the marijuana sector, aiming to build a diversified portfolio of the best U.S. and Canadian stocks, and he’s looking forward to delivering your next quarterly issue of Cabot’s 10 Best Marijuana Stocks in the middle of May.

Spring Issue February 15: Tim gives updates on the 10 stocks we’ve been following and two new stocks. The market’s recent correction has brought most of them down to what look like good buying areas.

Wall Street’s Best Investments

Daily Alert April 27: Toll Brothers, Inc. (TOL) from Validea Hot List Newsletter
Daily Alert April 26: MCBC Holdings (MCFT) from Upside
Daily Alert April 25: Dropbox, Inc. (DBX) from Canaccord Genuity Research
Daily Alert April 24: Everbridge (EVBG) from Cabot Stock of the Week
Daily Alert April 23: Microsoft Corporation (MSFT) from Internet Wealth Builder

Monthly Issue April 18: Our Spotlight Stock is, Cintas Corporation (CTAS), the leading uniform company in that space, with 25% of the very fragmented market. Nancy’s Feature article discusses her thoughts on this company from a personal perspective, after having visited it several years ago.

Wall Streets Best Dividend Stocks

Daily Alert April 27: Tanger Factory Outlet Centers, Inc. (SKT) from Contrarian Outlook
Daily Alert April 26: (CYOU) from Dividend Confidential
Daily Alert April 25: Vanguard Short-Term Corporate Bond (VCSH) from Dow Theory Forecasts
Daily Alert April 24: Simon Property Group (SPG) from Barclays Capital Equity Research
Daily Alert April 23: Bryn Mawr Bank Corporation (BMTC) from The Personal Capitalist

Monthly Issue April 11: The Spotlight Stock is Southern Company (SO), now the highest-yielding stock in the Dow Jones Utility Average, after dropping 17% from its November 2017 high. Nancy’s Feature explores low beta stocks—companies whose shares are less volatile than the overall market. And this month’s Spotlight Stock, fits that criteria, boasting a beta of 0.3.

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.

This Week’s Q&As

Cabot Emerging Markets Investor

Question: Any thoughts about what is going on with WB. I’m torn as to what to do. Thanks.

Paul: I think what’s happening with WB is just a reflection of what’s happening with the broader emerging markets sector.


You can see that WB’s performance is almost exactly parallel with PGJ’s. The important thing is not to allow the stock to hand you a big loss. If you have a 15% loss, I would advise selling at least half. And if WB closes below about 105, I’ll recommend selling the entire position. Good luck!

Question: I just subscribed to the Emerging Markets newsletter and have read the introduction information. However I have a question about buying. Sometimes the recommendation states “buy a half”. Can you explain what this recommendation means?

Paul: The portfolio of the Emerging Markets Investor is built on the idea of ten positions, each with 10% of the portfolio’s capital. When fully invested, we will have ten equal-dollar positions in total. When we are uncertain about the markets or the prospects of an attractive stock, we will take a half position (5% of the theoretical capital). So if a stock is rated “Buy a Half,” you should invest 5% of your allocation to emerging market stocks. Remember that going to cash is our primary means of risk control when faced with a negative market. So when the portfolio is 40% in cash (as it is now), you should have that much of your emerging markets allocation is cash as well.

Guide to Cabot Prime Pro

This Guide to Cabot Prime Pro will help you make the best use of your Prime membership to create a strong personal portfolio.