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Cabot Prime Pro Week Ending October 29, 2021

Cabot Prime Pro Week Ending October 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 market’s ups and downs this week, believing they to be normal volatility after such a promising three-week run. He’s careful not to get too far over his skis given that many stocks still have yet to report earnings, but he definitely likes what he sees and is remaining mostly bullish.


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Advisory Services

Cabot Growth Investor

Bi-weekly Update October 28: Remain optimistic. Some indexes and stocks have hit a bit of turbulence of late, and with earnings season still in full swing, the potential for further wobbles is certainly there. But our market timing indicators are still positive and the action of leading stocks remains very solid, so we’re staying mostly bullish. Ideally, we’ll put some money to work in fresh earnings winners going ahead, but tonight we’ll stand pat with our 24% cash position and current crop of stocks. We have no changes tonight.

Bi-weekly Issue October 21: Still, the action of the past couple of weeks (combined with many signs that investors have become worried) certainly looks like a bullish change of character. We wouldn’t be buying whole-hog, but we’re putting some more of our cash hoard to work—in the Model Portfolio, we’re averaging up on Asana (ASAN) and buying a full-sized position in CrowdStrike (CRWD), leaving us with a cash position of 24%.

Cabot Top Ten Trader

Movers & Shakers October 29: After three very constructive weeks, the market has had more volatility this week as investors react to economic/inflation reports and a slew of earnings. As of this morning, the big-cap indexes are still up a bit (less than 1%) while broader indexes are in the red.

Weekly Issue October 25: The past three weeks have gone about as well as anyone could have hoped (assuming you’re a bull), with three main positive things. First and foremost, the major indexes have rallied enough to quickly flip the intermediate-term trend back up. Mike’s Top Pick is Netflix (NFLX), which isn’t the young buck it once was, but business is doing great and the stock is picking up steam after breaking out from a year-long 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 Earnings October 28: We don’t own a position in Apple (AAPL) in the Cabot Options Trader/Cabot Options Trader Pro portfolios. That being said, Jacob knows many of you do, or have interest in getting involved for the announcement this afternoon.

Cabot Options Trader Basic & Pro Earnings October 26: The last two days there has been a surge of call buying in the Bio-Tech and Pharmaceutical sectors, including these trades: Today – Buyer of 10,000 SPDR Bio-tech ETF (XBI) January 135 Calls for $3.15 – Stock at 124

Cabot Options Trader Basic & Pro Trade Alert October 26: Adjust Existing Position: Sell a Quarter of the Boston Scientific (BSX) November 43 Calls for $1.90 or more. Hold the remaining Quarter.

Cabot Options Trader Basic & Pro Trade Alert October 25: Sell Half of Existing Position: Sell HALF of your Freeport McMoRan (FCX) March 38 Calls for $4.90 or more.

Cabot Options Trader Pro Weekly Review October 25: Long positions: KWEB, CSCO, CGC, FCX, JETS, BSX, MRVL, MS, UBER. Bearish Positions: None

Cabot Options Trader Basic Weekly Review October 25: Fueled by better-than-expected earnings last week the S&P 500 rose 1.6%, the Dow climbed 1.1%, and the Nasdaq added 1.3%. Despite the strong week, on Friday traders’ enthusiasm for the recent rally faded a bit after Fed Chairmen Jerome Powell’s commented that the central bank was “on track” to begin reducing its purchases of assets.

Cabot Undervalued Stocks Advisor

Weekly Update October 27: Our view on one-trick ponies like Tesla (TSLA) and Facebook (FB). We comment on earnings from Dow (DOW) and Sensata Technologies (ST) and provide updates on our thoughts on ConocoPhillips (COP) and other recommended stocks.

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 25: Tim’s featured stock CrowdStrike (CRWD), is one of a handful of “new-age” cybersecurity players that are benefiting as legacy systems grow outdated in the Cloud era. The firm’s claim to fame is its Falcon platform, which has been known as the best-in-class endpoint protection offering out there. (Endpoints are basically any device or server that connects to a network.) Clients simply download some software on every endpoint device and let it run in the background, serving as an intelligent shield against attacks.

Cabot Explorer

Bi-weekly Issue October 28: There are many ways to get investment ideas, but more than one successful investor has told me it all begins for them with reading the humble front page of a national newspaper. Try scanning the headlines and read the stories that make the front page. Carl’s new recommendation Coupa Software (COUP), specializes in software that provides cloud-based business through its spend management platform. Its platform connects organizations with suppliers globally, and provides visibility into and control over how companies spend money, optimize supply chains, and manage liquidity, as well as enables businesses to achieve savings that drive profitability.

Bi-weekly Update October 21: Explorer stocks are trending up, with some exceptions. Recent idea Else Nutrition (BABYF) took a hit early last week after raising capital and diluting shareholders. This is a young company and speculative stock. On the other hand, Sea Limited (SE) continued its strength and Cloudflare (NET) is now up 138% so far this year. Novonix (NVNXF) is getting back in form and nudged upward from 4 to 4.4 as it hopefully moves back to its year high, making it one of our best ideas for 2021.

Cabot Small-Cap Confidential

Weekly Update October 28: This week has been all about earnings, even though we’ve only heard from one company in our portfolio. That company is Repligen (RGEN), which reported this morning (the stock is reacting well). Notes on that report are below. Bigger picture, what has jumped out to me this week is the continued impressive growth from Microsoft (MSFT) and Alphabet (GOOG) in the tech world, and Thermo-Fisher (TMO) in MedTech.

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

Weekly Update October 27: New highs are good. Nine portfolio positions are at or near the 52-week high. Let’s be happy. Earnings have come through once again and have revived this market after a cranky September. So far, 140 S&P 500 companies have reported and 82% exceeded expectations. That’s significantly higher than an average of 66% that historically beat estimates. It looks like companies are overcoming supply and inflation issues, at least in the aggregate.

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.

Cabot Marijuana Investor

Monthly Issue October 28: The good news: Both new and mature markets are still growing. U.S. sales were $17.2 billion in 2020, up 40% from 2019, and are expected to hit $36 billion by 2025 and $64 billion by 2030 (roughly the size of the current illicit market). Competition is strong, which is healthy. And even Amazon, whose expertise is getting people what they want, is backing lobbying for legal marijuana. The bad news: The administration in Washington continues to ignore voters’ appetite for legalization. But individual representatives in Washington continue to craft measures that would chip away at illegality.

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.

Cabot Early Opportunities

Special Bulletin October 29: iHeartMedia (IHRT) tripped my mental stop at 20.7 this week and I wanted to give it a little time to show us what it’s made of. But even in the wake of a good report (and reaction) to podcast megastar Spotify (SPOT), which cited strong advertising trends in their quarter, shares of IHRT keep heading south. While I hate to sell so close to earnings (next week) the divergence of this stock as compared to our others is just too dramatic to ignore. Let’s step aside. Sell.

Special Bulletin October 29: Dynatrace (DT) reported quarterly revenue of $226.4 million (+33% in constant currency) which was above consensus. Subscription revenue of $212.6 million (+33% constant currency) drove the upside performance. The market’s reaction wasn’t great, despite the strong performance, possibly because of lower operating margins vs. the previous quarter (due to higher sales & marketing and R&D spending) and lower annualized recurring revenue (ARR) when factoring in foreign exchange conversions.

Monthly Issue October 20: There are a lot of things investors could focus on these days, ranging from potential impacts of supply chain disruptions and labor shortages to the big-picture economic effects of inflation and rising interest rates. But really, for the coming weeks it’s going to be all about earnings season. We’re all looking for insights into how individual companies are being impacted by the aforementioned challenges (and more) and what opportunities they’re successfully chasing down. Tyler’s top pick is Dynatrace (DT).

Cabot Profit Booster

Weekly Issue October 26: Fueled by better-than-expected earnings last week the S&P 500 rose 1.6%, the Dow climbed 1.1%, and the Nasdaq added 1.3%. Despite the strong week, on Friday traders’ enthusiasm for the recent rally faded a bit after Fed Chairman Jerome Powell’s commented that the central bank was “on track” to begin reducing its purchases of assets. Jacob’s new stock recommendation is Marathon Oil (MRO).

Cabot Micro-Cap Insider

Weekly Update October 27: P10 Holdings (PX) recently priced its IPO/uplisting. The stock was priced at $12, below the original $14 to $16 range. Existing shareholders saw their PIOE shares exchanged for PX shares (the new symbol). As part of the IPO (which really should be viewed as a secondary), the company raised ~$240MM to de-lever and strengthen its balance sheet for additional acquisition opportunities.

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.

Cabot Income Advisor

Monthly Issue October 27: The market is at another new all-time high. The S&P 500 is up almost 100% since the bear market low in March of last year. Stocks have fully recovered from the pandemic and then some, or so it may seem. Tom’s featured stock FS KKR Capital Corp. (FSK), is the second largest publicly traded BDC that specialized in high interest secured loans to middle market U.S. companies.

Weekly Update October 20: Supply chain issues and inflation threaten to spoil the party and limit profits. But earnings have been strong and better than expected so far. Bank earnings were stellar. This week, several other companies including Travelers Companies (TRV), Johnson & Johnson (JNJ), and Procter & Gamble (PG) reported earnings above expectations, suggesting that regular companies will overcome supply chain issues and generate strong profits.

Cabot Turnaround Letter

Weekly Update October 29: This week’s note includes comments on earnings reports from ten recommended companies as well as The Catalyst Report. Our podcast also includes our views on Facebook (FB) and the metaverse, and the secret of low expectations.

Monthly Issue October 27: We make our case for four consumer staples stocks that have been discarded and now look like bargains, including Campbell Soup (CPB), Calavo Growers (CVGW), Energizer Holdings (ENR) and Utz Brands (UTZ). We also discuss four decent banks with P/Es below 10x, including Amalgamated Financial (AMAL), Citigroup (C), Hope Bancorp (HOPE) and Horizon Bancorp (HBNC). Our featured BUY is Kaman Corporation (KAMN). Investors see a low-margin aerospace contractor tied to the soft commercial jet market and a fading weapons igniter program, but we see a beaten-down stock of a company with capable new leadership that is working to highlight a valuable precision engineering segment that otherwise is hidden behind several lackluster businesses.

Ask the Experts

Cabot Early Opportunities

Question: I still have a large position in GLBE. Could you please give me your current thoughts on the stock.

Tyler: Still a fan of the stock and the long-term growth story. Global e-commerce is going to be an increasingly bigger part of consumerism as people see more of what’s out there around the world, and as companies like GLBE make it as easy to buy from somewhere in the U.K., Europe, Latin America, etc. (or the U.S., for the rest of world) as it is to buy domestically. That’s the big picture attraction to me.

Short-term, a little worried about supply chain issues & Covid flare ups. And challenges social media companies have had getting ads in front of consumers with new privacy rules. But impossible to know exactly which products/suppliers/etc. are being affected and if/how that will affect GLBE in the next quarterly report. Some of the newer tech cos (U, APP, APPS, etc.) may easily be getting those ads in front of eyeballs whereas SNAP, FB, etc. aren’t. I think it’s just so product and seller specific that it’s hard to make any big generalizations. It’s not like we’re talking engines for lawn mowers or semiconductors for laptops or some other narrow category here.

As always, at the end of the day it just comes down to position sizing and risk in the individual stock, and trying to make sure you’re balancing the risk and opportunity.

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.