Please ensure Javascript is enabled for purposes of website accessibility
Cabot Prime Pro Logo
Cabot Prime Pro

Cabot Prime Pro Week Ending February 5, 2021

Cabot Prime Pro Week Ending February 5, 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 super-strong snapback by the market — while the action doesn’t completely erase last week’s yellow flags, it’s certainly encouraging, and the growing number of positive earnings gaps bodes well. Stocks mentioned include BILL, CRWD, ZS, ALGN, PYPL, ATVI, AVLR, PLAN, and UBER.


Cabot Micro-Cap Insider Member Call – February 2021

FREE WEBINAR FOR PRIME MEMBERS ONLY: February 11, 2021 Sign up now.

Investing in Marijuana Stocks

FREE WEBINAR FOR PRIME MEMBERS ONLY: February 18, 2021 Sign up now.

Advisory Services

Cabot Growth Investor

Bi-weekly Update February 4: The quick rebound in the major indexes and many growth stocks this week has been very encouraging—it doesn’t completely clear the air from some of the abnormal action last week, but it’s definitely a plus. We remain mostly bullish, though we continue to pick entries carefully, especially with so many stocks reporting earnings in the next couple of weeks. Mike is adding another half-sized position in CrowdStrike (CRWD) and restoring our Buy rating on Uber (UBER). Our cash position will now be around 21%.

Bi-weekly Issue January 28: One of the unique things about the market (and a big reason so many investors have trouble) is that it doesn’t follow the usual “bell curve” of probabilities that dominates the real world. For instance, given that the market’s average return is 8% to 10% annually, you’d think that most years would finish somewhere in that range, give or take a few percent. But it turns out two-thirds of all market years deliver either a loss or a gain of more than 20%. We have a couple of thoughts, the first of which is: Don’t be like those hedge funds that refused to hedge (ironic, right?) or cut losses, allowing one or two big, bad trades to ruin their year (or their business). You want to do the opposite—always cut losses short so that one or two big winners can really power your portfolio ahead. Mike has one portfolio change: Twilio (TWLO) to Hold.

Cabot Top Ten Trader

Movers & Shakers February 5: The big news of the week involved the wild, hectic action in many highly shorted stocks, which served to crush some hedge funds, which in turn likely caused some forced selling of their liquid winners—damaging many leading stocks. Interestingly, from a major index point of view, the week looks normal, with 1.5% to 2.5%-type losses as of this morning. Mike has four Buy recommendations: Farfetch (FTCH), TG Therapeutics (TGTX), CrowdStrike (CRWD) and Zscaler (ZS).

Weekly Issue February 1: After one of the wildest weeks in months, you’ve probably seen countless articles talking about the action and the reasons for it. To us, though, it’s what happens during the next few trading sessions that will count most—right now, the intermediate-term trend of the major indexes is up, though it’s more of a mixed bag for leading stocks (both growth and cyclical). In our view, there’s been enough iffy action to warrant some action; we’re moving our Market Monitor down to a level 6 in today’s issue and have a fair number of sells. Mike’s Top Pick is PagerDuty (PD), which helps enterprises monitor their online assets in order to spot problems and fix them before they impact their customers.

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 Pro Trade Alert February 5: Adjust Existing Position: Against our Sonos (SONO) June 22.50 Call, Sell the June 40 Call (exp. 6/18/2021)

Cabot Options Trader Basic & Pro Earnings Update February 4: This afternoon after the close Snap (SNAP) will report earnings. Both Cabot Options Trader’s and Cabot Options Trader Pro’s positions are in outstanding shape headed into the event. Cabot Options Trader April 40 Calls originally purchased for $5.28 are worth $20, or a potential profit of 280%. Cabot Options Trader Pro Bull Call Spread is at a potential profit of 180%, though that number will explode higher should SNAP close at 55 or above on April expiration. In addition, this spread will offset any stock weakness should SNAP fall on earnings.

Cabot Options Trader Basic & Pro Position Update February 3: There is good news out today that’s giving two of our positions an upside push. Sonos (SONO) June 22.50 Calls – SONO shares are trading higher by 6% after Morgan Stanley analysts raised their price target to $35, up from $30, while maintaining an overweight rating on the stock. ETFMG Alternative Harvest ETF (MJ) February 18 Covered Call – Shares of MJ are likewise up sharply today, after news this morning that GW Pharmaceuticals (GWPH), which markets plant-derived cannabinoid epilepsy drug Epiodiolex, announced it’s agreed to be bought by Jazz Pharmaceuticals (JAZZ) for $7.2 billion in cash and stock.

Cabot Options Trader Basic & Pro Trade Alert February 1: Buy the Taiwan Semiconductor (TSM) July 130 Calls (exp. 7/16) for $14 or less.

Cabot Options Trader Basic Weekly Update February 1: After declining back to the low 20s just two weeks ago the Chicago Board of Options Exchange Volatility Index (VIX) spiked sharply higher as stocks declined last week, jumping 51% over the full five trading sessions, to end the week at 33.09. This is yet another yellow caution flag for stocks that bears watching.

Cabot Options Trader Pro Weekly Update February 1: Long positions: FCX, GM, MSFT, SNAP, SONO, XLF, MJ

Cabot Undervalued Stocks Advisor

Monthly Issue February 3: Investors and commentators seemed a bit troubled by the emerging power of the Reddit crowd, the trade-at-home “renegades” who drive highly-shorted stocks like GameStop (GME), AMC Entertainment (AMC), Koss Corporation (KOSS) and others to prices well beyond the orbit of their troubled underlying fundamentals. Yet, other than a few bruised hedge fund manager egos (and balance sheets), the effect on the broader stock market appears to be fleeting. Even last week’s slippage in the S&P 500 could easily be attributed to temporary and technical knock-on effects. Historically, bubbles don’t pop early. They gradually inflate for years, then tend to go parabolic, prior to bursting. Our current bubble could easily continue for many more years. Investors sense that the easy money will continue to flow, earnings will remain robust and few impediments will crop up. Bruce has no portfolio changes today.

Weekly Update January 27: For the semiconductor (“microchip,” or simply “chip”) industry, the story was supposed to be a straightforward one: expansive growth as the world becomes digitized. Chip companies were supposed to evolve to become high-margin chip designers, leaving the capital-intensive and extremely complicated manufacturing to specialists like Taiwan Semiconductor. The vast majority of chip companies have followed this script and don’t produce their own chips. Bruce is raising Viacom (VIAC) price target from 48 to 54.

Cabot Stock of the Week

Weekly Issue February 1: The market’s main trend remains up, and thus Tim continues to recommend that you be heavily invested. However, because the “froth” that he mentioned a week ago grew to extreme proportions in the GameStop affair, and there is now an even greater chance that the market as a whole and growth stocks in particular will embark on a major correction. Tim’s featured stock Arcosa (ACA), provides infrastructure-related products and solutions to the construction, energy and transportation markets in North America. Growth should be strong in the years ahead as the U.S. seeks to replace and improve its aging transportation and energy infrastructure, while growing the mix of clean and renewable power generation. Tim has three portfolio changes: Pinterest (PINS) to Hold, SABESP (SBS) to Sell and Uber (UBER) to Hold.

Special Bulletin January 27: In recent days, several stocks recommended by Cabot analysts have rocketed to new highs, propelled by the twin forces of social media and short-covering, and our Virgin Galactic (SPCE) is one of them. But short term, the stock seems crazy-high to me and I think the odds are very good that a substantial downturn is imminent. Thus Tim recommends some partial profit-taking here for most readers.

Cabot Global Stocks Explorer

Bi-weekly Issue February 4: In 2020, There are four powerful trends in the market that the Explorer is trying to tap into these days. The first trend is clean energy and clean tech, which has received a boost from the new administration, concerns over climate change, as well as aggressive emission standards in Asia and Europe. The second trend, which has been accelerated by the pandemic, is financial technology, better known as fintech. The third trend is the continued growth of advanced medicine and medical devices, which is driven both by scientific advances and the growth of the global middle class. The last trend is infrastructure, which is clearly on the rise both in America and around the world. Carl’s new recommendation Fisker (FSR), is an electric vehicle maker. Carl has one portfolio change: NeoGenomics (NEO) Moves from Buy to Hold

Bi-weekly Update January 28: This week a number of Explorer stock retraced last week’s gains, with a major exception being the explosive 45% surge in Virgin Galactic (SPCE) on top of its previous week’s 25% surge. It appears that key test flights are forthcoming as well as more space mania and space ETFs. Also, please note that we sold MP Materials (MP) for a 150% gain last Friday. Carl has multiple portfolio changes: Afterpay (APT.AX) moves from Buy to Hold, Virgin Galactic (SPCE) to Sell A Half, Hold A Half and Companhia de Saneamento Basico do Estado de Sao Paulo: SABESP (SBS) moves from Buy to Sell.

Cabot Small-Cap Confidential

Monthly Issue February 4: Tyler’s new recommendation, Profound Medical (PROF) is an Ontario, Canada-based company that has developed a platform of customizable, incision-free therapeutic systems for the ablation of diseased tissue. The company has a market cap of roughly $500 million. Management believes it is the only company offering therapies of its kind, which merge three powerful technologies: real-time Magnetic Resonance Imaging (MRI), thermal ultrasound and closed-loop temperature feedback control. The company began generating revenue in 2017. In 2019 sales rose by 112% to $4.2 million. Through the first three quarters of 2020 revenue is up 115% to $4.3 million. In Q3 2020 revenue was up 338% to $2.2 million. That follows Q2 revenue growth of 100% (to $1 million) and Q1 revenue growth of 5% (to $1.1 million).

Weekly Update January 28: This week has been a challenging one during which to stay focused because of all the intraday moves and market inefficiencies brought on by the short-selling/short-squeeze battles. Our stocks have been largely unaffected (none have gone up 100%, or crashed) though most have moved down some. Today (Thursday) it appears that corrective steps are being pursued to try to limit systematic risk. Tyler thinks that’s a good thing, though there is certainly an outstanding debate to be had about what the rules should be surrounding individual investors banding together to “take on” hedge funds. That’s a conversation for a different day. Tyler has one portfolio change: Avalara (AVLR) moves to BUY.

Cabot Dividend Investor

Weekly Update February 3: It’s earnings season.The fourth quarter earnings season is well under way and the results have been somewhat spectacular so far, and much better than expected. Tom is not surprised. The economy has exceeded expectations in every phase of the recovery so far.Wall Street types and media people tend to have a negative bias when it comes to the economy. But the market gets it. Better than expected results and an optimistic market provide confidence for a robust and full recovery later this year. The market rally on the expectation of a full recovery with loads of stimulus and low interest rates is likely correct. Click here to listen to the podcast. Tom has no portfolio changes.

Monthly Issue January 13: It’s hard to look beyond the current headlines. But, in the grand scheme of things, it’s mostly just short term surface noise. Meanwhile, massive longer-term changes are occurring below our feet. Below all this noise, tectonic plates are shifting and changing the world forever. The market is high. All three indexes have made new all-time highs recently. It’s not the best time to be too aggressive. Yet, the prognosis for 2021 is positive. In this issue, Tom highlights Broadcom Inc. (AVGO), a technology industry Goliath with $24 billion in annual net revenues. It’s an icon of the technology revolution with roots that trace back over 50 years to the old AT&T/Bell Labs. The company has many category-leading products in crucial areas of semiconductors and infrastructure software solutions.

Cabot Marijuana Investor

Weekly Update February 3: The big news in the industry today is that Jazz Pharmaceuticals (JAZZ), a traditional drug company based in Dublin, is buying GW Pharmaceuticals (GWPH), which has an FDA-approved cannabis treatment for seizures in young children, for $7.2 billion, a roughly 50% premium over yesterday’s closing price. This doesn’t affect any of our recommended companies directly, but it is one more step toward removing the stigma of cannabis in the medical world and I have no doubt that further medical uses for cannabis derivatives will be found. Tim has no portfolio changes this week.

Monthly Issue January 27: The long-term strategy is to develop core holdings of the companies that will lead this fast-growing industry five and 10 years from now—but as I explained in a recent update, there’s no certainty who those leaders will be. Thus, our short-term strategy is to listen to the stocks, owning those with the strongest charts and the best fundamentals, and then switching incrementally to stocks that grow stronger or to cash as various stocks roll over and underperform. Tim recommends staying heavily invested but keeping an eye on the exit. It’s tempting to look at this morning’s selloff and declare that the uptrend is over and it’s time to sell—but just as one swallow doesn’t make a summer, one down day doesn’t make a bear market. Read the issue for updates on each position. Tim has one portfolio change: Village Farms (VFF) to Buy.

Cabot Early Opportunities

Special Bulletin February 5: As earnings season gets into gear we have a few updates on positions that have reported this week. Stepping back and looking holistically at our portfolio, which currently has 34 positions, we’re going to view earnings season as an opportunity to prune our portfolio a little. Essentially, we want to use the current market’s strength to our advantage to lock in some profits, exit stories that aren’t super-inspiring at the moment, and focus on the highest potential names. Tyler has multiple portfolio changes.

Monthly Issue January 21: Overall, Tyler recommends staying invested but proceeding cautiously with respect to new buying. A pullback or deeper correction could be right around the corner, or months away. To balance out the risks be sure to average into new positions and accumulate a full position over time. Today’s Top Pick is Castle Biosciences (CSTL), develops diagnostic and prognostic tests for skin cancers that inform personalized treatment plans based on tumor-specific genomic information. While the company has a market cap of less than $2 billion, it has come a long way since it was formed in 2008. Progress has accelerated over the last year too. Entering 2020 Castle had an addressable market in the U.S. of $540 million. With two new tests launched over the last twelve months (DecisionDx-SCC and DecisionDx DiffDx-Melanoma), Castle’s addressable market has grown to over $2 billion.

Cabot Profit Booster

Weekly Issue February 2: The stock market was under a bit more selling pressure last week as investors seem to be acting negative, even in response to positive earnings results. Unfortunately, the volatility shook us out of our Coeur Mining (CDE) covered call position. We won’t get every trade right, but that highlights the importance of risk management, especially in turbulent markets. Jacob’s new stock recommendation is Aphria Inc. (APHA).

Cabot Micro-Cap Insider

Weekly Update February 3: Our performance in aggregate remains strong. In total, our open recommendations are up 66% on average. But our stocks did pull back a little this week. However, it’s nothing to worry about. In fact, typically the S&P 500 performs poorly in February and March when there is a new party in the White House. This week, there was not much news on our recommendations. Rich is increasing the buy limit for FlexShopper (FPAY) to Buy under 3.00 given strong performance yet a reasonable valuation.

Monthly Issue January 13: Today, Rich explains his process for picking micro-cap stocks. It can be extremely profitable to invest in growth companies, as any Tesla or Amazon shareholder will tell you. But it is also easy to get burned when growth slows, especially if the stock is trading at a nosebleed valuation. In the micro-cap world, you can invest in growth companies at value prices. And the data suggests that it can be very profitable. Rich’s new recommendation Zedge (ZDGE), is a leading app developer focusing on the mobile phone personalization and entertainment verticals. Specifically, the app allows users to customize their phones’ wallpaper and ringtones. Please read the issue for more recommendation updates.

Cabot Income Advisor

Weekly Update February 2: Today is a big up day in the market after the worst week since October. The torrid bull run had been overdue for a selloff. Tom is not sure the 2.5% market selloff last week got the job done. But it’s off to the races again today. The rally is fueled by optimism about U.S. stimulus and a full recovery later this year as the vaccines get distributed. The main event is the anticipation of a booming economy ahead. But all the news media can talk about is the “short squeeze” internet trading phenomenon that drove several stocks, most notably video game retailer GameStop (GME), into the stratosphere last week.

Monthly Issue January 27: The S&P 500 is making yet another new all-time high. The index has risen 72% since last March and over 17% just since the beginning of October. That’s amazing performance in a short amount of time. While Tom is positive on the market for the rest of this year, he is increasingly cautious in the near term. The income strategy has been keeping us honest in an expensive market. Several portfolio positions have been called away in recent weeks as the market values have exceeded the strike prices at expiration. Recently called stocks include AbbVie (ABBV), Altria (MO), Enterprise Product Partners (EPD), and U.S. Bancorp (USB). Tom has one new featured stock Digital Realty Trust (DLR) and multiple portfolio changes.

Cabot Turnaround Letter

Weekly Update February 5: Next week, Mattel (MAT), General Motors (GM), Kraft Heinz (KHC), BorgWarner (BWA), Molson Coors (TAP), Newell Brands (NWL), Mohawk Industries (MHK) and Toshiba (TOSYY) report earnings. All ratings and price targets remain unchanged for these companies, although we are raising Mosaic (MOS) to 35 from 27. Signet Jewelers (SIG) and Western Digital (WDC) have pushed above our price targets and we are reviewing these. Click here to listen to the podcast.

Monthly Issue January 27: While momentum-driven concept stocks make the headlines, stocks of companies that are firmly grounded in cash flows and tangible assets, like energy pipelines, remain out of favor. There may be an opportunity emerging in this group from their contrarian status and a favorable secular change. Bruce’s has one buy recommendation: Viatris, Inc. (VTRS) and one sell recommendation: DuPont (DD).

Ask the Experts

Cabot Profit Booster

Question: Hi, I am thinking about leap with F. Any thoughts?

Jacob: Absolutely no issue with buying F LEAPS, especially since F options are very inexpensive ... though this is tied to the fact that F is not a highflyer. Of note, if I were buying F options, I would target the 12 strike, as those options will move faster than further out-of-the-money calls.

Cabot Options Trader

Question: Just noticed that the price quoted on SONO on the list below is $27.50. However the original email that was sent had the bought price at $28. Is there a typo somewhere? Please kindly review and clarify.

Jacob:There are three items in regard to price. First, when I make a recommendation, I always give a price that will be easily achievable throughout the day. So, if stock XYZ is trading at 10, I will say pay 10.50. That gives you time to get into the trade.Second, once the alert is sent, I wait one hour after, and then I grab the price of the stock and option, and that is the price we use going forward. So, in the case of SONO, one hour after the alert was sent, the stock was trading at 27.5. And lastly, it doesn’t really matter what price I pay for the stock, or the option. The most important component is the Net, which is the stock price paid, minus the option price sold.

Quarterly Cabot Analyst Meeting

The recording of the Cabot Prime Members Meeting with the Analysts from January 20, 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 Global Stocks ExplorerCabot Growth InvestorCabot Marijuana InvestorCabot Stock of the WeekCabot Undervalued Stocks AdvisorCabot Dividend Investor
ABBVSold 1/3
APT.AXHold 1/2
BFTBuy 1/2
BIPBuyBuy 2/3
BMYStrong Buy
BSCLBuy 1/2
CGCSee Advisory
CRLBFSee Advisory
CRWDBuy Another HalfBuy
CURLFSee Advisory
FIVESold 1/3
FVRRHold 3/4
GRWGSee Advisory
GSHDHold 3/4
GTBIFSee Advisory
HALOBuy Another 1/2
IIPRSee AdvisoryHold 2/3
INSPHold 3/4
JUSHFSee AdvisoryHold 2/3
LGIQBuy 1/2
LLYHold 2/3
NEEHoldHold 1/2
NETHold 1/2
NVCRBuyBuy Another 1/2Buy
PGXHold 1/2
PINSSold 1/4Hold
QCOMHoldHold 2/3
ROKUSold 1/4
SEHold 1/2Hold
SOLOBuy 1/2
SPCEHold A HalfTake Partial Profits
STAGHold 1/2
TCNNFSee AdvisoryHold
TPBSee Advisory
TRSSFSee Advisory
TSMBuy 1/2
XELBuyBuy 2/3