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Cabot Prime Pro Week Ending January 1, 2021

Cabot Prime Pro Week Ending January 1, 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, Tyler Laundon talks about what he thinks can work well in 2021. He highlights four stocks that represent different ways to play an economic recovery and more diverse performance in the stock market. Happy New Year! Stocks mentioned include: LYFT, UBER, CDLX, V, MA, LAWS, FOUR.


Cabot Micro-Cap Insider Member Call - January 2021

FREE WEBINAR FOR PRIME MEMBERS ONLY: January 14, 2021 Sign up now.

Cabot Prime Members Meeting with the Analysts: 1st Quarter 2021

FREE WEBINAR FOR PRIME MEMBERS ONLY: January 20, 2020 Sign up now.

The Best Stocks to Buy in 2021 - January 2021

FREE WEBINAR FOR PRIME MEMBERS ONLY: January 21, 2020 Sign up now.

Advisory Services

Cabot Growth Investor

Bi-weekly Issue December 30: It’s been a long, strange 12 months, but it’s also been a very prosperous period, at least for growth investors—with one day left in the year, the Model Portfolio is up around 60%, easily besting most major indexes. Happily, that builds on our track record for the past few years (up 160% over the past four years vs. half that for the S&P 500) and longer term (topping the S&P by 4.6% annually, not including dividends, since I took over 14 years ago). Whatever the exact numbers, we hope you were solidly in the black in 2020 as well. Mike has no portfolio changes this week.

Bi-weekly Update December 23: Remain mostly bullish, but keep your feet on the ground. The market continues to handle itself well despite some iffy news headlines this week, with some growth stocks going vertical. How it plays out once the calendar turns will have to be seen, but there’s no question most of the evidence remains positive. Today, we’ll stand pat in the Model Portfolio, which holds around 19% in cash. Mike has no portfolio changes.

Special Report December 17: Cabot’s 10 Favorite Low-Priced Stocks for 2021 (look for it in the Special Report Section)

Cabot Top Ten Trader

Movers & Shakers December 30: We do think many of this week’s pullbacks could develop into nice early-stage entries, though we’d prefer some of these names settle down for a few days. Still, stocks like Adient (ADNT), Applied Materials (AMAT), Redfin (RDFN), Zillow (Z), Floor & Décor (FND) and even PayPal (PYPL) look fairly good on a risk/reward basis here. Mike also suggests selling four stocks this week.

Weekly Issue December 21: News of travel restrictions due to a new strain of the virus over in Europe hit the major indexes early today, but when it comes to our analysis, the reason for the initial selloff is secondary—the setup for an air pocket has been around for a couple of weeks as sentiment was elevated and most stocks and indexes were extended to the upside. Thus, today’s hiccups weren’t totally unexpected, but the damage was limited; at day’s end, the major indexes held up well and remain in intermediate-term uptrends, as do most stocks. Mike’s Top Pick is Elastic (ESTC), which has finally, decisively gotten going from a long 20-month IPO base.

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 Trade Alert December 30: Buy the Freeport-McMoRan (FCX) May 27 Calls (exp. 5/21) for $3.70 or less.

Cabot Options Trader Pro & Basic Market Update December 29: Yesterday we witnessed the revenge of the FAANGs... or at least their return to outperforming the overall market again. And perhaps this is the beginning of a trend that is worth watching.

Cabot Options Trader Pro & Basic Targets December 28: As we approach the end of 2020, the annual tradition of Wall Street analysts predicting where the S&P 500 will close next year has begun. Here are some of those targets/guesses from the top Wall Street firms. Fair warning, these Wall Street professionals may only be marginally better at predicting the future than you

Cabot Undervalued Stocks Advisor

Weekly Update December 30: With the turn of the calendar only a few days ahead, just about every investor is mapping out their market views for the coming year. Some do this formally, like Wall Street brokerage firms who publish their opinions on where the S&P 500 and interest rates will finish next year and their outlooks for all sorts of economic and financial indicators. Others will informally develop their views and expectations for the coming year. Bruce has one portfolio change this week: U.S. Bancorp (USB) – new Buy.

Monthly Issue December 3: Stocks have surged this past month, with the S&P 500 returning 11% in November. Other major indices, including the Dow Jones Industrial Average and the Nasdaq Composite, produced similarly strong returns. These kinds of returns would make a good year in most investors’ eyes. For the year-to-date, the S&P 500 has generated a 14% return – a very respectable gain for any year. That it occurred in a year like 2020, with a global pandemic that shut down much of the economy, a domestic presidential change-over, social unrest, and countless other unusually disruptive events is truly remarkable. Bruce has one portfolio change today: Broadcom (AVGO) – from Hold to Sell.

Cabot Stock of the Week

Weekly Issue December 21: As we approach the year-end, market trends remain strong (notwithstanding today’s opening action), and odds are that the strength will continue a little longer, as our tax laws favor delaying profit-taking until the new year. After the calendar turns, however, the odds of a major correction increase. In the meantime, Tim continues to recommend that you be heavily invested in a diversified portfolio of good stocks. Tim’s featured stock is Companhia de Saneamento Basico do Estado de Sao Paulo:SABESP (SBS), the largest water company in Brazil. Tim has one portfolio change: Eli Lilly & Company (LLY) to Sell.

Cabot Global Stocks Explorer

Bi-weekly Update December 31: As we head into a new year, Carl would like to thank all of you for your support and wish you all both good health and profits in 2021. But today, we have a piece of unfinished business that needs to be dealt with – Alibaba (BABA). Alibaba has been a holding far longer than when I took over this advisory service two years ago and has recently been a legacy hold. It is one of the giants of China’s economic rise and a platform that touches just about every Chinese citizen. Carl has two portfolio changes: Alibaba (BABA) from HOLD TO SELL and Virgin Galactic (SPCE) From BUY to HOLD.

Bi-weekly Issue December 10: A stimulus bill looks like it is right around the corner but we need to get through this winter before vaccines are widely available. Facebook faces a real challenge to break it up and accept legal liability for content. An EU-China summit is cancelled after China tried to limit speakers critical of China’s clampdown of Hong Kong. On the Explorer front this past week, MP Materials (MP) and NovoCure (NVCR) were particularly strong as Sea Limited (SE) briefly made a new high at 200. As promised, our new idea this week hails from Brazil and is a monopoly play on the most essential of all resources.

Cabot Small-Cap Confidential

Weekly Update December 30: This week between Christmas and New Year is always odd because so many market participants are taking time off. My news feeds have basically shut down and there’s little company-specific news of substance. The main thing on my mind is how all the tech stocks will perform in the January and February given vaccine rollouts and the potential risk of rotation into more cyclical names. This isn’t a hot take – a lot of people are watching for the same thing so it may amount to nothing. In my view I think a period of consolidation for a lot of these ultra-hot stocks would be a good thing. Tyler has no portfolio changes.

Monthly Issue December 3: Tyler’s new recommendation, Personalis (PSNL) is a cancer genomics company offering next-generation sequencing (NGS) solutions and data analysis services to support personalized cancer vaccine and cancer immunotherapy development. It also provides sequencing and data analysis to support population sequencing initiatives. Personalis has a market cap of $1 billion. Customers of cancer genomic services are primarily pharma and biotech companies, universities and non-profits. Customers of population sequencing initiatives are primarily government entities, led by the U.S. Department of Veterans Affairs (VA).

Cabot Dividend Investor

Weekly Update December 30: Despite a global pandemic and an economic crash, stocks had a great year. As of yesterday’s close all three indexes are higher for the year and very near all time highs. The S&P 500 is up over 14% while the tech-laden Nasdaq is up an astounding 42% YTD. The portfolio is well positioned with great performing stocks that are continuing to kill it, as well as underperforming stocks that are turning things around fast. Things look good. Click here to listen to the podcast. Tom has no changes this week.

Monthly Issue December 9: The vaccine is changing everything. Stocks that had been left for dead by the market recovery are springing back to life and leading the market higher. One area of opportunity ahead of the New Year is in banks stocks. As a cyclical sector, banks took it on the chin during the pandemic. They crashed during the bear market and have lagged the recovery. But they are rising fast and have great momentum ahead of what looks to be a promising year for the sector. In this issue, I highlight one of the very best and most profitable banks in the country, U.S. Bancorp (USB). It still sells at a great value, pays one of the highest dividends in the industry and now has solid upward momentum.

Cabot Marijuana Investor

Monthly Issue December 30: First, the long-term trend of the market, over the centuries, is up, reflecting the growing value added by our civilization. That’s why it pays to invest. Second, the fundamentals of the leading companies in the marijuana sector remain extremely favorable. Revenue growth at the companies in our portfolio averaged 170% in the latest quarter. And that was not the result of any huge outlier; the median growth rate was 131%. Third, the legal situation continues to improve, with the state-by-state march toward legalization continuing and the incoming federal administration almost certain to be more friendly to the industry than the outgoing. Fourth, the leading stocks in the sector are still strong today—and as experienced momentum investors know, the final phase of a bull run can be very profitable. Tim has three rating changes: Jushi Holdings (JUSHF), Turning Point Brands (TPB) and Village Farms (VFF) to Hold.

Weekly Update December 23: Marijuana stocks as a whole remain very strong as we head into the holiday season, where trading is expected to be lighter and news announcements few. Interestingly, the Canadian marijuana stocks have been weaker than the U.S. stocks in recent weeks—so it’s good that we have only one Canadian. Tim has no portfolio changes this week.

Cabot Early Opportunities

Monthly Issue December 16: The rumblings about stocks, and growth stocks in particular, getting overheated have gotten louder in December, thanks in no small part to the huge performance of IPOs like DoorDash (DASH), Snowflake (SNOW) and AirBnb (ABNB), and the lofty valuations that many growth stocks have been able to sustain so far. Rumblings don’t always translate to a correction. And in fact, questioning outstanding performance is generally a good thing. But still, the point is that investors should not get complacent. There is always a correction coming at some point and it’s best to realize that so when it comes, you’re not surprised. It’s just part of investing. Overall, Tyler recommends keeping two hands on the wheel, two eyes on the road, and proceed cautiously. Today’s Top Pick is Array Technologies (ARRY), which went public in October and has a market cap of $4.9 billion, is one of the world’s largest manufacturers of ground-mounting systems used in utility-scale solar energy projects.

Cabot Profit Booster

Weekly Issue December 29: This is one of the two weeks a year where Cabot Top Ten Trader is not published, which means there won’t be a new Profit Booster covered call trade this week. That being said, Jacob did want to note that our four open positions (AA, UBER, ADNT, CDE) are all in good shape. Also, Jacob wanted to look back on our first year of Cabot Profit Booster … and he is happy to report the strategy exceeded even his wildest expectations!

Cabot Micro-Cap Insider

Weekly Update December 30: Rich is happy to report that everything looks good for BBX Capital. The stock is only trading at 30% of book value and should generated significant earnings in 2021. Further, the Levin family owns 42% of the company’s stock so we are well aligned as shareholders of the company. Otherwise, there were no major updates in terms of Rich’s recommendations.

Monthly Issue December 9: Today, Rich believes sentiment indicators continue to suggest the market may be due for a pullback. The Citi Panic/Euphoria model suggests sentiment is high right now. Rich’s new recommendation FlexShopper (FPAY) is a rapidly growing company in the virtual lease-to-own market. Despite rapid growth and margin expansion, it is only trading at 5.0x forward earnings. Importantly, the Chairman of FlexShopper owns over 20% of the company and has been buying more stock as fast as he can in the open market. Rich sees 100%+ upside over the next year. Please read the issue for more recommendation updates.

Cabot Income Advisor

Weekly Update December 30: The purpose of this advisory is to generate a high double digit annual income while not only preserving your principle but growing it as well. Here are the returns generated so far from both expired position as well as those that are still pending. The situation looks bright in 2021. Several high dividend paying stocks and sectors have had a big move higher after the vaccine announcements. These stocks still offer value and high dividends and should continue to move up as the economy moves toward a full recovery in the months ahead. It promises to be a fantastic environment to generate high dividends and sell high priced calls.

Monthly Issue December 23: Although the pandemic disrupted our lives and crashed the economy, the market loved it. All three major market indices are higher for the year and within a whisker of the all time highs. The S&P 500 is up over 14% YTD and the technology-laden Nasdaq is over 40% higher on the year. Tom has one new featured stock Chevron Corporation (NYSE: CVX) and multiple portfolio changes.

Cabot Turnaround Letter

Weekly Update December 31: This month saw several major mergers/acquisitions and changes in CEOs and at least two high-profile activist campaigns. We expect heavy catalyst activity in 2021, particularly as the strong stock market and accelerated changes in the competitive environment heighten the sense of urgency by managements and shareholders to take bold action. Bruce has one change this week:Royal Dutch Shell (RDS/B) – Reducing our price target to 53 from 85. Click here to listen to the podcast.

Monthly Issue December 23: Following the S&P 500’s incredibly strong 33% total return last year, adding to a remarkable decade-long bull market, it would have seemed a stretch to think that 2020 would bring more gains. Had we known that the world would be rattled by a devastating pandemic that brought a 10% drop in global economic output and a 31.4% plunge in U.S. output in the second quarter, we would have been shocked if the market was even flat for the year. Bruce’s has one buy recommendation: Ironwood Pharmaceuticals (IRWD) and two sell recommendations: GameStop (GME) and Freeport-McMoran (FCX).

Wall Street’s Best Investments

Daily Alert December 31: DoubleLine Income Solutions Fund (DSL) Brinker Fixed Income Advisor
Daily Alert December 30: Berkeley Lights, Inc. (BLI) Cabot Early Opportunities
Daily Alert December 29: Walgreens Boots Alliance, Inc. (WBA) Sure Dividend Newsletter
Daily Alert December 28: Cassava Sciences, Inc. (SAVA) Cotton’s Technically Speaking

Monthly Issue December 17: Despite all the challenges, the markets have held up very well, and the Dow Jones Industrial Average has surpassed the big 30,000 mark several times in the last few weeks. Unemployment continues to decline, with the rate dropping to 6.7% in November. Consumers are shopping for the holidays, with online Thanksgiving sales up 21.5%, to $5.1 billion. I know my finger is sure hitting the ‘buy’ button a lot more this year! Hopefully, 2021 will remove some of the uncertainties that the virus has wrought, and the economy can begin to speed up its recovery. And while the markets have done very well this year, there are still pockets that are undervalued, many of which are represented in our pages this month. Nancy begins this issue with our Spotlight Stock, Companhia de Saneamento Básico do Estado de São Paulo – SABESP (SBS) the largest water company in Brazil, which is expanding to deliver services outside its borders. In Nancy’s Feature article, she further explores that growth—as well as the rising need—for potable water in Latin America.

Ask the Experts

Cabot Options Trader

Question:If I was going to play some options trades based on Mike’s Top 10 how would I do that? Do I find short term contacts? What strike price do I get it at? Let’s use ESTC for example: 147-153 buy range

Jacob: There are many Cabot Options Traders subscribers who buy calls based on Mike’s stock pick. My general rule, is buy calls slightly out-of-the-money, and 3-6 months until expiration. Something along the lines of the May 160s in the ESTC example.

Quarterly Cabot Analyst Meeting

The recording of the Cabot Prime Members Meeting with the Analysts from October 21, 2020 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
APT.AXBuy 1/2
BIPBuy 2/3
BSCLBuy 1/2
CGCSee Advisory
CRLBFSee Advisory
CRWDBuy 1/2Buy
CURLFSee Advisory
FVRRHold 3/4
GRWGSee Advisory
GSHDHold 3/4
GTBIFSee Advisory
HALOBuy 1/2
IIPRSee AdvisoryHold 2/3
INSPHold 3/4
JUSHFSee AdvisoryHold 2/3
LGIQBuy 1/2
NEEHoldHold 1/2
NEOBuy 1/2
NETHold 1/2
NVCRBuyBuy Another 1/2Buy
PGXHold 1/2
QCOMBuyHold 2/3
SEHold 1/2Hold
SOLOBuy 1/2
STAGHold 1/2
TCNNFSee AdvisoryHold
TPBSee Advisory
TRSSFSee Advisory
TSMBuy 1/2Buy
XELBuy 2/3