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Cabot Prime Pro Week Ending August 20, 2021

Cabot Prime Pro Week Ending August 20, 2021

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, Mike Cintolo talks about the pick up in selling seen not just in growth stocks but the broad market this week. Still, while he says the evidence has worsened a bit, when taking things on a stock-by-stock basis, he’s not seeing any major breakdowns, with many growth stocks actually holding support. He’s not opposed to a little nibbling, but he needs to see strong bounces to do any major buying.


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Cabot Growth Investor

Bi-weekly Update August 19: The sellers are gaining some traction here, first with growth stocks (many of which have retreated to key support) and then with the broad market (Cabot Tides back to neutral). Still, with 30% in cash, we have no changes tonight, as most of our stocks are holding well, though we have one problem child (DVN) that’s on a very tight leash.

Bi-weekly Issue August 12: The chop factor remains in force in the market, with yet another round of rotation this week out of growth and into the broad market. Even so, we see more good than bad out there, with an increasing number of growth stocks having popped out of multi-month ranges and recent dips mostly looking manageable. In this issue, we write about one sector that’s showing some signs of perking up, some encouraging sentiment readings and go over all of our stocks and many others we’re keeping a close eye on.

Cabot Top Ten Trader

Movers & Shakers August 20: The selling that began in growth stocks last week broadened out in recent days, with the rest of the market coming under pressure. The major indexes are down 2% to 4% on the week, while growth-y indexes and funds are down even more.

Weekly Issue August 16: Last week was generally one of rotation back out of growth and into the broader market, and today, that trend accelerated, with growth-oriented funds and indexes (like ARKK and IWO) gapping below multi-week support and longer-term moving averages, while many recent leaders tested their 50-day lines. Mike’s Top Pick Paylocity (PCTY), is a leader in what’s looking like a new group upmove for HRM stocks.

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.

Cabot Options Trader Basic & Pro Position Update August 20: Yesterday afternoon we exited half of our Cisco (CSCO) January 55 Calls for a profit of approximately 22%. Making the decision to sell half of this position was NOT easy.

Cabot Options Trader Basic & Pro Trade Alert August 19: Sell Half of Existing Position: Sell Half of your CSCO January 55 Calls for $4.25 or more.

Cabot Options Trader Basic & Pro Earnings Update August 18: As Jacob noted on Monday, yesterday and for the next couple of days he will be attending the Cabot Wealth Summit. However, he is still paying attention to the market and our positions, including Cisco Systems (CSCO) which will report earnings this evening after the close.

Cabot Options Trader Basic & Pro Stocks on Watch August 16: Two weeks ago, I wrote up unusual call buying activity in Pfizer (PFE). Since then, the stock has broken out to new highs. And somewhat similarly, though not with the same buying power, yesterday and today traders have been accumulating calls in two other pharma stocks, looking for those stocks to break out. Here are those trades:

Cabot Options Trader Pro Weekly Review August 16: Long positions: KWEB, CSCO, CGC, BSX, NKE, MS. Bearish Positions: SPY

Cabot Options Trader Basic Weekly Review August 16: The headline numbers remain impressive as the S&P 500 advanced 0.71% last week, while the Dow climbed 0.87% and the Nasdaq declined marginally. That being said, sector rotation continued to be the real story yet again last week as growth weakened, while cyclicals, led by the financials, exploded higher.

Cabot Undervalued Stocks Advisor

Weekly Update August 18: Some time ago, there was a television show with the above title that pulled viewers back into the 1970s. It used that earlier era to create a somewhat unique vibe that inadvertently highlighted how much has changed in our world over the decades. However, if a headline reader from the 1970s time-travelled to today, they would wonder what, if anything, has actually changed.

Monthly Issue August 4: As value investors, we look for companies whose shares are out of favor. Typically, these companies have little revenue or earnings growth – maybe their product or service offerings are in slow-growth industries or maybe aren’t quite as in-sync with customer demand as competitors, or perhaps they are pharmaceutical companies with patent expirations looming in the future. There are other potential overhangs, such as sub-par margins, poor capital allocation, temporary regulatory or legal issues or involvement in a recent spin-off transaction.

Cabot Stock of the Week

Weekly Issue August 16: Tim’s featured stock Spectrum Brands (SPB), is a global branded consumer products and home essentials company. It was formed in 2005 when battery company Rayovac added more brands and changed its name. The company offers popular and well-known brands including George Foreman Grill, Kwikset Lock, Cutter Bug Repellent, Remington and Black & Decker.

Cabot Explorer

Bi-weekly Issue August 19: What has been propelling electric vehicles forward and what will power them into the mainstream across the world? It is a combination of growing political concern over climate change, the need to get air pollution under control in big cities with urban congestion, and breakthroughs in electric vehicle batteries that lower costs and expand range. Carl’s new recommendation ChargePoint Holdings (CHPT), is an indirect but powerful way to play the electric vehicle (EV) revolution is through companies providing battery-charging ports and stations.

Bi-weekly Update August 12: Markets reacted well to yesterday’s inflation data that showed evidence of cooling as the economic recovery continued amid pandemic-related strained supply chains and signs that the recent rise in Covid-19 infections is starting to slow some business activity. This might reverse the recent momentum among industrial and manufacturing stocks that over the last decade or more have been vastly outperformed by tech and financial stocks. The reason is quite simple: The latter have much lower capital requirements plus higher growth rates and profit margins.

Cabot Small-Cap Confidential

Special Bulletin August 17: Porch Group (PRCH) reported yesterday afternoon with results coming in ahead of management guidance and significant contributions from acquired companies. Despite the strong high-level numbers, the stock is selling off today and we’re going to step aside with the modest profit we still have (around 25%). Moving to SELL.

Weekly Update August 12: With economic data pouring in amid a slew of earnings reports there is a lot going on out there. The resulting stock price movements often drive a combination of heartache and exhilaration, and that has certainly been the case for us over the last two weeks.

Monthly Issue August 5: Tyler’s new recommendation JOANN (JOAN) is one of the largest U.S. retail chains in the $40 billion arts and crafts category. It has an omnichannel sales platform, with 855 stores across the U.S., a mobile-first website ( and a popular mobile app that has been downloaded over 12 million times. The company is the market leader (over 30% market share) in fabric and sewing supplies, which account for half of total sales. It is also the craft retailer of choice for people that self-identify as somewhat experienced.

Cabot Dividend Investor

Monthly Issue August 11: Markets have a history of being cranky after Labor Day. Will growth concerns be a problem? Maybe inflation will again haunt the market. Right now, the market is in a tug-o-war between the booming economy and growth concerns, primarily being stoked by the delta variant. Tom’s featured stock is Spectrum Brands Holdings, Inc. (SPB).

Weekly Update August 4: The earnings extravaganza is in full swing. It’s the peak of the season that marks the peak earnings growth of this extraordinary recovery. And the market is sort of yawning it off. Part of the issue is summer malaise. People just tend to focus more on enjoying the waning days of summer than stocks this time of year. But it also may be that this quarter just isn’t as important one might expect.

Cabot Marijuana Investor

Weekly Update August 4: Innovative Industrial Properties (IIP) yesterday announced that it closed on the acquisition of a property in Illinois and entered into a long-term lease with a subsidiary of 4Front Ventures. IIP already owns and leases to subsidiaries of 4Front a cultivation, processing and dispensing facility in Massachusetts and a cultivation and processing facility in Washington, and this brings to 73 the number of properties that IIP owns in the industry nationwide. The stock is up today and still aiming for its February high of 222. And the company is expected to release its second-quarter report after the market close today.

Monthly Issue July 28: Tim remains cautiously optimistic that the sector’s uptrend will resume soon; the stocks have fallen far enough, and the fundamentals of the industry remain terrific. But until we see real strength, there’s no reason to be aggressive. The portfolio is already heavily invested, but not fully, and when we do buy more, it will almost certainly be of the strongest stocks, which today are IIPR, GTBIF and GRWG. For now, the one change he will make today is to sell half our position in TerrAscend (TRSSF) and put it into Innovative Industrial Properties (IIPR).

Cabot Early Opportunities

Monthly Issue August 19: Tyler’s Top Pick Global-E Online (GLBE) is a big idea company that has developed a cross-border e-commerce platform empowering businesses to sell to consumers all over the world. Cross-border commerce represents a meaningful market opportunity worth nearly $800 billion today. That number would be significantly higher if it wasn’t such a pain in the neck!

Special Bulletin August 18: Sell LYFT, ATRC and DRVN. With a new batch of stocks being added to our portfolio tomorrow and a few of our current names looking just OK we’re going to sell three stocks today.

Cabot Profit Booster

Update August 20: August Expiration and Closing Several Trades. Nutanix (NTNX) – Sell NTNX Stock, and Buy to Close the August 40 Call. NTNX was hit on a downgrade yesterday, ahead of earnings on 9/1. While it’s possible the stock will bounce back, the market has been weak enough recently that I don’t want to roll this position, and will move this capital to fresher ideas.

Weekly Issue August 17: The market continued to test new highs last week as the S&P 500 gained 0.71%, the Dow climbed 0.87%, while the Nasdaq broke trend by closing 0.9% lower. That being said, we continue to see thin summer trading led by ongoing sector rotation. Growth waned last week and it was the cyclicals’ time to shine, with the financials leading the way. Jacob’s new stock recommendation is Colfax (CFX).

Cabot Micro-Cap Insider

Weekly Update August 18: The market is pretty close to an all-time high, but many growth and micro-cap names have pulled back substantially. Many value names and cyclical names have pulled back sharply despite strong fundamentals. At the same time, it’s important to stay up to date on current positions in order to monitor their fundamentals. This week, we had good news (BBX Capital) and bad news (Medexus).

Special Bulletin August 13: Last week, we received some news that Medexus (MEDXF) received a complete response letter from the FDA which will delay ultimate approval for Treosulfan. If my concerns are for naught and Medexus crushes it next week, I might even add back to my position as I do believe that over the long term, the stock could be a five or 10 bagger. Rating changed to Sell Half.

Monthly Issue August 11: Rich’s new recommendation Epsilon Energy (EPSN) is a cheap, debt free company, that is generating gobs of cash and buying back stock. Insiders already own 25% of shares outstanding but are buying stock in the open market. The company has downside protection with a net cash balance sheet and a valuable midstream business. I see significant upside over the next 12 months as the company benefits from high natural gas prices.

Cabot Income Advisor

Weekly Update August 18: Things are still good in the market. The S&P 500 closed at yet another record high on Monday. That index is now up 19.27% so far in 2021 after managing to return 15.76% in pandemic-stricken 2020. The market is rising despite growing concerns about the new virus strain and the possible negative effect on growth. There’s also the slowdown in China and the negative impact that will have on the global economy. But the magnificent earnings quarter is overriding these worries, at least for now.

Monthly Issue July 28: It’s been a sideways summer market for a while. Sure, the indexes have been making a series of new highs. But the S&P 500 is just 1.2% higher than it was in early May. This week inflation is the worry. Last week growth was the problem. The market can’t seem to make up its mind and nothing seems to get any real traction. Any move higher gets tempered by a pullback. Any significant selloff is followed by a quick recovery. But earnings could change things.

Cabot Turnaround Letter

Weekly Update August 20: Today’s note includes earnings updates on Macy’s (M) and the podcast. There were no ratings changes this past week. Also, a few scheduling changes as the CTL is on vacation next week

Special Bulletin August 11: This afternoon we are moving Albertsons (ACI) from BUY to SELL. Albertsons’ shares continue to surge well past our 23 price target. Recent catalysts include more encouraging news that removes much of the pension overhang, strong earnings that point to more build-up of excess cash, and continued concerns over Covid that will help drive consumers back to grocery stores.

Monthly Issue July 28: It’s been a remarkably strong market, not just since the bottom of the pandemic-driven sell-off a little more than a year ago, but over the past decade. The 10-year annualized total return of the S&P 500 was 14.8% at the end of June, one of the strongest decades in history. Shorter-term gains have been even sharper: the 17.7% annualized return over the past five years, which bridges the pandemic sell-off, is simply stunning. Bruce’s has one buy recommendation: Walgreens Boots Alliance (WBA).

Ask the Experts

Cabot Top Ten Trader

Question: Is the recent strength in Healthcare stocks a warning sign for the market?

Mike: Thanks for writing. So, yes and no -- I have noticed that funds like XLV, along with XLP and XLU, all defensive sectors, have been running higher of late even as most stocks do the opposite. That is a bit of a yellow flag. However some of that strength is coming from biotechs, which I actually consider to be early stage and I’m seeing some decent setups there. All in all, it’s something I am watching but not freaking out about, at least not yet.

Quarterly Cabot Analyst Meeting

The recording of the Cabot Prime Members Meeting with the Analysts from July 14, 2021 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 Pro member benefits.

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.

StockCabot Small-Cap ConfidentialCabot ExplorerCabot Growth InvestorCabot Marijuana InvestorCabot Stock of the WeekCabot Undervalued Stocks AdvisorCabot Dividend Investor
AGCBuy 1/2
ASANBuy 1/2
CCHWFSee Advisory
CGCSee Advisory
CRLBFSee Advisory
CURLFSee Advisory
FSRBuy 1/2
GRWGSee Advisory
GTBIFSee Advisory
IIPRSee Advisory
IBMBuy 1/2
JUSHFSee Advisory
MRVLBuy 1/2Buy
NETHold 1/2Buy 1/2
PLTRBuy 1/2
POAHYBuy 1/2
PSHZFBuy 1/2
SEBuy 1/2Buy
SPCEHold 1/2
TCNNFSee AdvisoryHold
TPBSee Advisory
TRSSFSee Advisory
TSMBuy 1/2