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Cabot Prime Pro Week Ending January 29, 2021

Cabot Prime Pro Week Ending January 29, 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 discusses the wild action this week–he’s seen some suspicious (and a little abnormal) selling, but he’s also seen a lot of stocks find support at key levels so far. In response, he’s paring back, but he’s keeping his watch list fresh should the market stabilize in the days to come. Stocks mentioned include GS, HALO, GH, ONEM, CLF, FTCH, PINS, PENN and DKNG.


Cabot Micro-Cap Insider Member Call – February 2021

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Investing in Marijuana Stocks

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Advisory Services

Cabot Growth Investor

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.

Special Bulletin January 27: From a top-down perspective, the market and our trend-following indicators are in fine shape, but we’re now seeing some big-picture yellow flags (tons of speculative activity) and, more important, growth stocks are beginning to look iffy. We’re not selling wholesale, but we do have a few tweaks today: We’re selling one-third of our shares of Five Below (FIVE), one-quarter of our remaining shares of both Roku (ROKU) and Pinterest (PINS) and placing Uber (UBER) on Hold. Our cash position will now be around 27%.

Bi-weekly Update January 21: Remain bullish but pick your spots. The Model Portfolio is off to a good start this year, which is always a good thing, but we’re not seeing many solid entry points and there’s no question the environment is hot and heavy. Mike has no changes tonight, and we’re holding 18% in cash.

Cabot Top Ten Trader

Movers & Shakers January 29: 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 three Buy recommendations: AGCO Corp. (AGCO), Guardant Health (GH) and LPL Financial (LPLA).

Weekly Issue January 25: It’s usually hardest to keep things simplest, which is why we put our main emphasis on the trends of the major indexes and action of leading stocks—and with both of those still positive, we’re sticking to a generally bullish stance. However, there’s little doubt we’re seeing some late-in-the-advance happenings (heavily-shorted stocks going to the moon, wild rotation intraday among sectors, etc.) and, chart-wise, nearly everything is sticking straight up in the air (the Nasdaq was about 1,100 points above its 50-day line this morning). Mike’s Top Pick is Cleveland-Cliffs (CLF), which is finally beginning to pull in after a big run—further dips would be tempting.

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 Stocks on Watch January 28: The market is bouncing back from a nasty day yesterday, with the S&P 500 trading higher by 1.8%. The assumed reason behind the big market decline yesterday was forced selling from hedge funds who were caught short Gamestop (GME), AMC Entertainment (AMC) and Bed Bath & Beyond (BBBY), all of which exploded higher via a short squeeze, which battered the hedge fund world.

Cabot Options Trader Basic & Pro Trade Alert January 27: Sell your UBER (UBER) March 38 Calls for $10.50 or more.

Cabot Options Trader Basic & Pro Earnings Update January 27: Apple (AAPL) will report earnings today after the close. While I sold my position two days ago, as I was becoming a bit concerned about the market, and wanted to lock in my profit of 135%, I’ve heard from plenty of subscribers who did not sell, which is totally fine.

Cabot Options Trader Basic & Pro Trade Alert January 27: Sell your Cloudflare (NET) May 70 Calls for $13.50 or more.

Cabot Options Trader Pro Earnings Update January 26: Microsoft (MSFT) is the first of the mega-cap technology stocks to report earnings, today after the close. We are holding the March 220/240 Bull Call Spread which is at a potential profit of approximately 50%.

Cabot Options Trader Basic & Pro Market Update January 25: First, it’s extremely difficult to pinpoint the short-term twists and turns of the stock market. That’s precisely while I rely more on my bullish/bearish option order flow data to reveal the tone of the market. For now, option activity isn’t signaling a deep market decline is coming.

Cabot Options Trader Basic & Pro Trade Alert January 25: Sell Existing Position: Sell your Apple (AAPL) April 125 Call for $21 or more.

Cabot Options Trader Basic Weekly Update January 25: The Chicago Board of Options Exchange Volatility Index (VIX) fell 10% last week, closing at 21.91. The fact that the VIX remains above 20 as the indexes continue to make new highs is very interesting. In “normal” times I would expect the VIX to trade closer to 15 than 20, with the S&P 500 at all-time highs.

Cabot Options Trader Pro Weekly Update January 25: Long positions: AAPL, FCX, NET, GM, MSFT, SNAP, SONO, UBER, XLF, MJ

Cabot Undervalued Stocks Advisor

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.

Monthly Issue January 6: While our investment recommendations focus on specific stocks, we like to keep these macro trends in mind. Investors generally prefer stocks that ride these trends. But, sometimes the most appealing stocks are those that superficially seem to go against these trends (leading to investors avoiding them) yet have either fundamental traits that sidestep these trends or have overly discounted valuations. Some of these secular trends are favorable and clear positives (tech and health, as examples) yet others are concerning (China, market cycles, government spending). Bruce has no portfolio changes today.

Cabot Stock of the Week

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.
Weekly Issue January 25: Overall, the market remains very healthy—though frothy. I’m happy to be in sync with the trend, which is why the portfolio remains heavily invested. But Tim also values the stability of lower-risk stocks that are likely to resist the strong gravitational pull that will take over when the market finally rolls over. Tim’s featured stock Xcel Energy (XEL), is a regulated electric and natural gas utility serving 3.7 million electric customers and 2.1 million natural gas customers in eight states, primarily in the northern and southwestern U.S. It is also one of the largest renewable energy providers in the U.S. with 28% of electricity sales generated from alternative energy sources in 2019. Tim has no portfolio changes.

Cabot Global Stocks Explorer

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.

Special Bulletin January 22: Based on the below press release highlighting the agreement for Australia’s Lynas to build a rare earths refinery in Texas, Carl recommends you sell your MP Materials (MP) position. He will have more on this in the next update.

Bi-weekly Issue January 21: In 2020, the pandemic accelerated a clear trend that caught the imagination of investors: the emerging digital economy and the digital-based stocks that thrive in it. These companies benefit from several advantages: low capital requirements, the ability to scale up revenue quickly, and the high margins that can come with a low headcount. Carl’s new recommendation Foley Trasimene Acquisition II (BFT) (Merging with Paysafe), is a Special Purpose Acquisition Company (SPAC) formed in October 2020 by Bill Foley. A SPAC is a company with no commercial operations that is formed strictly to raise capital through an initial public offering (IPO) for the purpose of acquiring an existing private company.

Cabot Small-Cap Confidential

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.

Monthly Issue January 7: Tyler’s new recommendation, Porch Group (PRCH) is a business-to-business-to-consumer (B2B2C) software company that offers a proprietary ERP/CRM platform to home services companies in the U.S. It also offers home services comparison and booking tools for consumers. Porch has a market cap of $1 billion. Porch Group grew revenue by 43% to $77.6 million in 2019, which ended with 10,585 customers (up 20%) and $444 in revenue per account (monthly, up 29%). Things got off to strong start in 2020 but, not surprisingly, the pandemic put a dent in Q2.

Cabot Dividend Investor

Weekly Update January 27: The market is down today with the Dow falling 400 points so far. It might get uglier before the day is over. Of course, Tom doesn’t know if today’s action indicates the beginning of a steeper selloff or not. But either way, the market is overdue for a pullback. The market never goes straight up for long. Pullbacks and corrections are normal and healthy in even the strongest bull markets. Tom is still bullish about the rest of the year and will consider a pullback a buying opportunity ahead of a promising year. Click here to listen to the podcast. Tom has multiple 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

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.

Weekly Update January 20: Canopy (CGC) last Thursday filed an early warning report relating to a new option it has acquired, which if exercised would give it a greater than 10% stake in TerrAscend (TRSSF). The option will be triggered if there is a change in the legal status of cannabis in the U.S.—which of course we are all expecting eventually. Canopy said it has no immediate plans or intentions with regard to TerrAscend, but this would give it a nice foothold in the country. Tim has no portfolio changes this week.

Cabot Early Opportunities

Special Bulletin January 28: It’s hard to say if this round of fun with Virgin Galactic (SPCE) is beginning to unwind or if the stock will be up 20% tomorrow (to pick a random number). However, judging by the action in many of the most speculative short squeeze stocks today (GME, NOK, AMC, etc.) there appears to be significant unloading today. Tyler likes Virgin’s story and the stock and thinks it will trade higher than now at some point in the future, but he also think this recent surge is unnatural. Tyler suggest selling one quarter (or up to half) of your position to lock in a roughly 150% gain. Sell a quarter.

Special Bulletin January 27: The market has been searching for direction this week and we’ve seen an uptick in “the crazy.” If you don’t know what I mean just Google “Short Squeeze GME” and read about the likely collective impact of retail investors teaming up on some stocks to put pressure on those with significant short interest. BLI moves to SELL. ARRY, CSTL, CRSR, FOUR, TFFP, VRNS move to HOLD.

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

Trade Alert January 27: Coeur Mining (CDE) triggered our stop this morning, therefore it is time to exit this trade. Unfortunately, this trade did not work out, and we will take our first Profit Booster loss in MANY months. That being said, we have several open positions that are working well, and should offset this CDE loss.

Weekly Issue January 26: The stock market has been swinging up and down in recent days as investors digest fourth-quarter earnings results and look for the next catalyst to move markets. That said, it’s a good idea to get a bit more defensive with new positions, focusing on established stocks that are less volatile. Jacob’s new stock recommendation is Goldman Sachs (GS).

Cabot Micro-Cap Insider

Weekly Update January 27: If the market does get choppy over the next couple of months, just know that it is completely normal and expected. Rich would use it as an opportunity to add to high conviction ideas or to add to ideas that are trading above his buy limit. One example is Zedge Inc (ZDGE). Rich’s recommendation is to buy it at 6.50 or lower. Unfortunately, the stock shot up after he recommended it to above his buy limit so he didn’t have a chance to buy any shares. Zedge is a name that Rich will watch closely with an eye for adding if we see market weakness. Rich will give an update on all his recommendations below, but he want to spend a few minutes in his introduction on Medexus Pharmaceuticals (MEDXF).

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

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.

Weekly Update January 20: In last week’s update, AGNC Investment Corp. (AGNC) and Brookfield Infrastructure Partners (BIP) were purchased. Outstanding calls in Altria (MO), Enterprise Product Partners (EPD) and U.S. Bancorp (USB) expired on Friday as well. All three stocks closed above the strike price and were called. That is to be expected when the market rises sharply, especially when the rally is led by previously downtrodden stocks like those that were called. Strong returns were generated on all positions in a short amount of time. And the newsletter is well-ahead of schedule to earn a double-digit annualized income return, close to 20%.

Cabot Turnaround Letter

Weekly Update January 29: This week we had four companies reporting earnings – General Electric (GE), Valero Energy (VLO), Western Digital (WDC) and Xerox (XRX). General Electric (GE) – Led by impressive new CEO Lawrence Culp, GE finally appears to be righting its otherwise severely damaged business. Key ingredients include a clear strategic focus on execution, cash flow and debt reduction, and leadership changes deeper in the company. Overall, fourth-quarter results were encouraging, particularly with free cash flow showing continued strength. 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: I’m sure you are getting many questions about GME. If we believe it will drop, what is an attractive put to buy? Or any other thoughts on the topic.

Jacob:Put prices are INSANE in GME. The higher the stock goes, the more expensive the puts get. This is because everyone is trying to short GME, but they can’t sell the stock short. So they turn to Put options. If I were looking to buy a GME put, I suppose I might look at the March 170 puts, but they are way too expensive, and I am not going there myself.

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
ABBVSell 1/3
APT.AXHold 1/2
BFTBuy 1/2
BIPBuyBuy 2/3
BMYStrong Buy
BSCLBuy 1/2
CGCSee Advisory
CRLBFSee Advisory
CRWDBuy 1/2Buy
CURLFSee Advisory
FIVESell 1/3
FVRRHold 3/4
GRWGSee Advisory
GSHDHold 3/4
GTBIFSee Advisory
HALOBuy Another 1/2
IIPRSee AdvisorySold 1/3
INSPHold 3/4
JUSHFSee AdvisoryHold 2/3
LGIQBuy 1/2
LLYSold 1/3
NEEHoldHold 1/2
NEOBuy 1/2
NETHold 1/2
NVCRBuyBuy Another 1/2Buy
PGXHold 1/2
PINSSell 1/4Buy
QCOMHoldHold 2/3
ROKUSell 1/4
SEHold 1/2Hold
SOLOBuy 1/2
SPCESell A Half, Hold A HalfTake Partial Profits
STAGHold 1/2
TCNNFSee AdvisoryHold
TPBSee Advisory
TRSSFSee Advisory
TSMBuy 1/2
XELBuyBuy 2/3