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Cabot Prime Pro Week Ending October 15, 2021

Cabot Prime Pro Week Ending October 15, 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 solid rebound in the market and individual stocks, with some names actually rebounding all the way back to new highs. That said, the move hasn’t been enough to turn the trend back up, so Mike is sticking with a cautious stance, but he has his watch list in order in case the rally confirms itself on the upside next week.


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Cabot Retirement Club Member Call

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Advisory Services

Cabot Growth Investor

Bi-weekly Update October 14: Remain cautious, but don’t ignore the action of individual stocks. Our Cabot Tides remain negative (neutral at best), but as opposed to much of this year, growth stocks are showing great strength. We still mostly favor staying close to shore, as the market correction could have further to go. But today we’re going to buy a half-sized position in Ambarella (AMBA), which we think is a leading glamour name. That will leave us with around 38% in cash. Details below. We’re also restoring our Buy rating on Cloudflare (NET).

Bi-weekly Issue October 7: We’re now about a month into this market correction, which to this point has been relatively garden-variety—from the high in early September to its low earlier this week, the S&P 500 slipped 5.9%, while growth-oriented indexes did a bit worse (Russell 2000 Growth down 7%, Nasdaq down as much as 8%, etc.). And individual stocks are in a similar boat, with many cracking intermediate-term support but few showing any longer-term abnormal action.

Cabot Top Ten Trader

Movers & Shakers October 15: Last week’s market bounce was encouraging but inconclusive—the major indexes rallied at a key level, and many leading (and potential leading) stocks did the same. That said, at best, most things were still stuck in neutral, with few names really powering ahead and the indexes still in intermediate-term downtrends.

Weekly Issue October 11: In true 2021 fashion, just when the market looked ready to go over the falls last week the buyers stepped in, pushing the major indexes sharply higher (recouping nearly 50% of the month-long correction in just three days and seeing many individual stocks pop as well). Mike’s Top Pick is LPL Financial (LPLA), which won’t be your fastest mover but has staged a good-looking breakout in recent weeks.

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 October 13: Higher Risk Trade: Buy the Freeport McMoRan (FCX) March 38 Calls (exp. 3/18/2022) for $4.60 or less.

Cabot Options Trader Basic & Pro Earnings Update October 13: Morgan Stanley (MS) will report earnings tomorrow before the opening bell. Headed into the event we are holding half of a position, having locked in profits of approximately 20% on the first half of the trade.

Cabot Options Trader Pro Trade Alert October 13: Adjust Existing Position: Against MS January 100 Call, Buy Back the October 115 Call, and Sell the December 110 Call (exp. 12/17)

Cabot Options Trader Basic & Pro Stocks on Watch October 12: Let’s start with AT&T (T), which has been a total mess since May as the stock has fallen from a high of 33.5 to a new low today at 25.5. This stock decline, as seen below, has now pushed the dividend yield on T above 8%.

Cabot Options Trader Pro Weekly Review October 11: Long positions: KWEB, CSCO, CGC, DVN, JETS, BSX, MS, UBER. Bearish Positions: None

Cabot Options Trader Basic Weekly Review October 11:The three leading indexes pushed higher this past week as the S&P 500 rose 0.78%, the Dow gained 1.22%, and the Nasdaq added 0.08%. Following a choppy and volatile start to the week, on Thursday politicians kicked the debt-ceiling can down the road, which seemed to make investors happy, at least for the day.

Cabot Undervalued Stocks Advisor

Weekly Update October 13: The U.S. economy is currently in an early inflation stage. Inflation appears localized in specific assets and products, including housing, energy and other cyclical commodities, entry-level wages, cars, and some food products. As long as inflation remains constrained to relatively narrow categories, there is probably limited incremental risk to a portfolio’s long-term purchasing power. Investors can adapt by buying shares of companies that directly benefit from this inflation.

Monthly Issue October 6: Official inflation numbers are, of course, starting to rise quickly. The August CPI increased 5.3% from a year ago (even as the housing component continues to significantly understate inflation). Curiously, major appliance makers are curtailing production of their lower-priced models to prioritize their more expensive and higher-margin models – this won’t be good for keeping inflation rates low.

Cabot Stock of the Week

Weekly Issue October 11: Long-term market trends remain positive, but short-term trends have become troubling in recent weeks (last week we sold three stocks). Tim’s featured stock Veeco Instruments (VECO), is a play on this middle-leg market as an American high-quality provider of state-of-the-art semiconductor fabrication equipment. The company delivers the leading-edge technology to U.S.-based and international high-end-class chipmakers, some of which are 100% reliant on Veeco technology to deliver the next-generation chips.

Cabot Explorer

Bi-weekly Issue October 14: A country’s brand is largely framed by the perception of its people, power, reliability and influence. This perception can be just as important as a country’s real economic and military power. In short, a country’s brand largely reflects a country’s character. Carl’s new recommendation Bombardier Inc. (BDRBF), is a global leader in aviation with a niche in private and corporate markets, and is making a splash at this week’s aviation show in Las Vegas. It provides world-class products in passenger comfort, energy efficiency, reliability and safety.

Bi-weekly Update October 7: U.S. crude oil hit a seven-year high as stocks, especially tech stocks, face headwinds. Today I am moving dominator Taiwan Semiconductor (TSM) to a Sell as Taiwan, America, China and Japan play a dangerous game. China sent 52 warplanes into the islands air buffer zone after the U.S. and allies held exercises nearby.

Cabot Small-Cap Confidential

Weekly Update October 14: The biggest stories this week weren’t all that different from last week, namely supply chains, interest rates/inflation, and Covid. But this week has a decidedly different feel to it, possibly because we’ve added earnings season into the mix and, so far, that’s going pretty well.

Special Bulletin October 8: Today is something of a battleground day for Accolade (ACCD) given that the stock slid into yesterday’s earnings call near the low end of its 2020 trading range amidst concerns that the Delta variant would challenge the critical selling season, which is underway right now.

Monthly Issue October 7: Tyler’s new recommendation Rani Therapeutics (RANI) is a clinical-stage biotechnology company that is developing an orally administered pill – the RaniPill – to deliver biologics into the body. This pill is designed to give a precise therapeutic dose of treatments that are currently only available with injections. Rani’s platform is different from many other oral pill formulations for injectable biologics because it doesn’t change the drug at all.

Cabot Dividend Investor

Monthly Issue October 13: Tom’s featured stock Compass Diversified (CODI), is a holding company that invests in niche middle-market businesses, a segment historically reserved for traditional private equity. It owns ten companies, six in branded consumer businesses and four niche industrial companies. The businesses are unrelated and therefore provide diversification. The branded businesses include companies that make and sell outdoor wear, food warming systems, baseball equipment, diamonds, and baby products. The industrial businesses make circuit boards, magnetic technologies, and custom packaging.

Weekly Update October 6: September was ugly. The S&P 500 fell 4.8% for the month. But that month is over. Now we are in what is only the second worst month of the year historically. So far, October has been volatile. There have been strong rallies that quickly become undone in the following days. The market is still even for the month, but it looks very unsteady. It’s not inspiring a lot of confidence. It can’t take another bad headline.

Cabot Marijuana Investor

Update October 13: The good news is that the marijuana industry is growing rapidly, with the leading companies continuing with their programs of store openings and acquisitions. The bad news is that the stocks of these leading companies remain in correction mode, as they have been since February.

Monthly Issue September 29: Since the marijuana sector peaked in February, the Global Cannabis Stock Index has lost 50% of its value. That’s the cost of investing in hot young growth industries. But the fundamentals of the industry remain exceedingly attractive, so there’s no question that eventually, this long slow bottoming process will give way to a new uptrend. In the meantime, our dual focus on the leading companies in the industry (measured by revenues and earnings) and the strongest stocks in the sector (measured by chart strength) will keep us in the stocks that are most likely to lead the next advance.

Cabot Early Opportunities

Special Bulletin October 8: We jumped into Bellring Brands (BRBR) as a trade in September and the stock has slid since. It’s down less than 10%, but the trajectory is clearly not working in our favor and I’m not going to let a trade attempt turn into something significant. We’re moving on. Sell

Special Bulletin October 4: We’re seeing the ugly action from last week continue today so we’ll take a few steps to protect some of our hard fought profits. Here are today’s suggested actions: Sell Bentley Systems (BSY). We’ve held the stock since April and still have a 16% profit, even after the recent retreat. With shares falling through 60 today we’ll walk away and put BSY back on the watch list.

Monthly Issue September 15: From Tyler’s perspective growth has been where it’s at lately. We all tend to focus on what’s right in front of us, but even when flipping through dozens of charts of other types of stocks lately it seems like those that are working the best are the ones growing the fastest. In particular, software and rapid growth IPO stocks have been on fire. Case in point is Upstart (UPST), which is up 126% for us in just two months.

Cabot Profit Booster

Update October 15: Today is the expiration of October options and three of our positions will likely expire for profits. The details are below, but the headline is we are simply going to let these situations play themselves out today, and then will revisit where we stand Monday/Tuesday of next week.

Weekly Issue October 12: The three leading indexes pushed higher this past week as the S&P 500 rose 0.78%, the Dow gained 1.22%, and the Nasdaq added 0.08%. Following a choppy and volatile start to the week, on Thursday politicians kicked the debt-ceiling can down the road, which seemed to make investors happy, at least for the day. Unfortunately, that investor excitement was short-lived as the September jobs report on Friday came in at 194,000 new jobs added, well under the expectation of 500,000. The market managed to close Friday only slightly lower despite the bad news. Jacob’s new stock recommendation is Builders FirstSource (BLDR).

Cabot Micro-Cap Insider

Monthly Issue October 13: Rich’s new recommendation Leatt (LEAT) Corporation, is a South African company that designs and manufactures protective equipment for motor bike riders. Despite a revenue compound annual growth rate (CAGR) of 24% from 2017 to 2020, and an EPS CAGR of 165%, the stock trades at a forward P/E multiple of just 13.2x. Insiders own 45% of shares outstanding, and I expect strong growth ahead. My price target of 36 implies significant upside ahead.

Weekly Update October 6: This week we had little news with our recommendations (more updates below), but we had two highlights. Liberated Syndication (LSYN) announced that it hired a full time CFO. This is positive news. P10 Holdings (PIOE) announced that it has made two relatively small acquisitions.

Cabot Income Advisor

Weekly Update October 13: So far, October looks better than September for the market. After falling 4.8% in September, the worst month since the pandemic recovery began, the S&P 500 is up slightly for October. But we might not be out of the woods yet. Much will depend on earnings this quarter. Earnings have been spectacular throughout the pandemic recovery and have propelled the market higher. But things are less certain this quarter.

Special Bulletin September 24: Trade Alert: Sell USB November 19th $60 calls at $2.30 or better.

Monthly Issue September 22: The dicey market prognosis creates two issues for the portfolio. One is that it isn’t a great time to buy anything. Stocks aren’t down much yet and the near future looks bleak. The other issue is that the recent downward bias has shrunken call premiums, as less investors are willing to bet on higher prices. Tom’s featured stock AGNC Investment Corp. (AGNC), is a mortgage real estate investment trust that invests predominantly in U.S. Government-backed residential mortgages. It pays a very high dividend yield and makes payments on a monthly basis.

Cabot Turnaround Letter

Weekly Update October 15: This week’s update includes our comments on earnings from Walgreens Boots Alliance (WBA) and Wells Fargo & Company (WFC) as well as commentary on several stocks. Next week, Baker Hughes (BKR), Mattel (MAT), Dril-Quip (DRQ) and Xerox (XRX) are scheduled to report earnings.

Monthly Issue September 29: Most investors, and the general public, seem to regard the transportation industry as somewhat dull. No doubt, there is little inspiration that comes from waiting at airports, driving in city traffic, or watching delivery trucks start-n-stop their way through neighborhoods. Bruce’s has one buy recommendation: TreeHouse Foods, Inc. (THS). TreeHouse Foods is one of the nation’s largest independent private label food manufacturers.

Ask the Experts

Cabot Micro-Cap Insider

Question: Natural gas prices are skyrocketing I think EPSN was a great pick. I wanted to ask what are your expectations towards IDT earnings that are coming ahead first week of October? After a bull run price has dropped since the choppy market.

Rich: Yes I think EPSN is positioned very well here. The company has 2/3 of its product hedged in the $3/Mcf range, but 1/3 has exposure to the spot market. From November ’21 to March ’22, 30% of production is hedged at ~$3.34/Mcf, but 70% of production is exposed to the soaring spot market.I don’t have much insight into IDT’s upcoming earnings, but I would expect the strong trend to continue although the stock has gotten a little choppier.

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
ASANBuy 1/2
CCHWFSee Advisory
CGCSee Advisory
CHPTBuy a 1/2Sold
CRLBFSee Advisory
CURLFSee Advisory
FSRBuy a 1/2
GRWGSee Advisory
GTBIFSee Advisory
IIPRSee Advisory
JUSHFSee Advisory
MRVLBuy a 1/2Buy
NETHold a 1/2Buy
NVNXFBuy a 1/2
SEBuy a 1/2Hold
SPCEHold a 1/2
SSOHold 1/2
TCNNFSee Advisory
TPBSee Advisory
TRSSFSee Advisory
VECOBuy a 1/2Buy