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Cabot Prime Pro Week Ending October 8, 2021

Cabot Prime Pro Week Ending October 8, 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.


Cabot Prime Members Meeting with the Analysts: 4th Quarter 2021

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Cabot Micro-Cap Insider Member Call

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3 Stocks to Play the Coming American Solar Boom

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Cabot Retirement Club Member Call

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Advisory Services

Cabot Growth Investor

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.

Bi-weekly Update September 30: Remain cautious. Our Cabot Tides remain under pressure, with the indexes (including growth indexes and funds) showing no ability to bounce in recent days. On the plus side, sentiment is getting pretty dour (a good thing down the line) and many growth stocks are still hanging in there, but we’re playing mostly defense and seeing how this correction plays out. Earlier this week, we cut bait on DocuSign (DOCU) and placed Cloudflare (NET) on Hold, leaving us with 45% in cash. We’ll sit tight tonight, but will be on the horn with any other actions in the days to come.

Special Bulletin September 28: Growth stocks (and, today, the market as a whole) are seeing follow-on selling after last week’s crack. Many stocks are pulling in normally, but some aren’t, including a couple of our names. In the Model Portfolio, we’re forced to cut bait with DocuSign (DOCU) and we’re placing Cloudflare (NET) on Hold. We came into this week with around 36% in cash, and today’s sell will lift that to a beefy 45%.

Cabot Top Ten Trader

Movers & Shakers October 8: The past two weeks have been 2021 in a nutshell. Two weeks ago, stocks came into trading having bounced nicely, but instead of following through, the indexes and leaders cascaded. Then, this week, when things looked close to going over the falls, we’ve seen an excellent rebound, with the major indexes recouping 45%-ish of their losses in just a couple of days.

Weekly Issue October 4: For many weeks, we’ve been writing that there’s more good than bad in the market, and indeed, while choppy, many names did work their way jadedly higher. But now the shoe is on the other foot: The intermediate-term trend is now down for the major indexes, and we’re starting to see more and more individual stocks follow suit. Mike’s Top Pick is CF Industries (CF), which is emerging from a multi-month dead period with a lot of power; as with most names in this market, try to buy on weakness.

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 October 8: This week “Open the Economy” stocks have led bullish option activity in a big way. For example, here is an early look at my daily order flow list from this morning.

Cabot Options Trader Basic & Pro Stocks on Watch October 6: Marvell Technology (MRVL) popped on my radar this afternoon following a very positive investor day that sparked a stock rally of 7.5%. This impressive reaction to the company’s investor day has pushed MRVL stock within striking distance of its all-time high, which is a somewhat herculean effort given the weak market conditions.

Cabot Options Trader Pro Weekly Review October 4: Long positions: KWEB, CSCO, CGC, DVN, JETS, BSX, MS, UBER. Bearish Positions: None

Cabot Options Trader Basic Weekly Review October 4: It wasn’t a pretty week for the market as the S&P 500 declined 2.20%, the Dow lost 1.36%, and the Nasdaq pulled back 3.20%. After seven straight months of gains, the S&P 500 took a breather. The benchmark index sank 4.8% in September, which marked its worst month since March 2020.

Cabot Undervalued Stocks Advisor

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.

Weekly Update September 29: Across almost the entire length of the yield curve, interest rates are ticking up. The benchmark 10-year Treasury yield reached 1.53% and may be headed back toward its December 2019 rate of about 1.90%. In an economy that is showing rapid growth, with inflation well above the Fed’s 2% target and likely at 6% or more if housing prices were properly factored in, a sub-2% 10-year Treasury yield doesn’t seem to make sense.

Special Bulletin September 24: We are initiating coverage of ConocoPhillips (COP) with a BUY rating. Our interest in oil and natural gas exploration and production (E&P) companies has been warming up lately. Many of these stocks are beaten down, yet oil prices have remained resilient, leaving producers like ConocoPhillips meaningfully undervalued.

Cabot Stock of the Week

Weekly Issue October 4: The major indexes have trended down over the past month, as the chorus of worries about over-regulation in China and inflation here in the U.S. has grown. Tim’s featured stock Signet Jewelers (SIG), is the largest retailer of diamond jewelry in the world and the largest specialty jewelry retailer in the U.S., U.K. and Canada under the brands Kay Jewelers, Zales, Jared, Ernest Jones and more; all told, the firm operates around 2,800 stores.

Cabot Explorer

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.

Bi-weekly Issue September 30: Xu Jiayin was China’s richest man, a symbol of the country’s economic growth who helped move poor villages into cities for the rising middle class. His company, China Evergrande Group, became one of the country’s largest property developers, and he enjoyed hobnobbing with the elite, trips to Paris to taste rare French wines, a million-dollar yacht, and private jets. Now the company has nearly $300 billion in debt, has missed interest payments on loans, and has 800 unfinished projects in more than 200 cities across China. Carl’s new recommendation Else Nutrition Holdings (BABYF), a young, Israeli-headquartered, plant-based food and nutritional company aimed at babies and toddlers.

Cabot Small-Cap Confidential

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.

Special Bulletin October 4: With the weakness in growth stocks persisting into this week, we’re going to offer up a couple of sacrificial positions to the market Gods. Beyond the rather obvious benefits of reducing exposure when the market is falling and having that capital available when things turn around, both these companies have near-term growth challenges that held shares back recently. First up is On24 (ONTF). Second on the chopping block is Q2 Holdings (QTWO).

Weekly Update September 30: The market rallied last week despite the happenings with Evergrande and the Fed’s indication that tapering should begin in a few months, then a rate hike cycle could begin later next year or early 2023. But things have been very different this week. Also, Cerence (CRNC) has languished for a while and shares are off 7% this week on no news. Today’s break below 100 (a rough zone of support) isn’t great to see and if we’re speculating could easily be tied to renewed supply chain concerns that could adversely impact auto deliveries for longer than previously expected. We will respect this dip and move to hold.

Cabot Dividend Investor

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.

Monthly Issue September 8: It’s still an amazing market. The S&P is up 96% from the bear market low in March of 2020. The index is also up over 20% so far this year. It may seem too good to be true. It feels like the market is overdue for trouble. And we are heading into what is historically the worst time of year for stocks, September and October. Meanwhile, the Delta variant is still wreaking havoc and inflation is persistent. Tom’s featured stocks are AGNC Investment Corp. (AGNC) and U.S. Bancorp (USB).

Cabot Marijuana Investor

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.

Update September 22: The simple fact is that the major market indexes are still high, even after Monday’s plunge, and thus a correction is to be expected, at some point. And whether that correction is blamed on a Chinese real estate company or inflation numbers or what the Fed does next really doesn’t matter. What matters (for this advisory service) is that marijuana stocks have already had their big correction—though of course it can get bigger. The index is already 51% off its February high—and some of our stocks have corrected even more.

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

Weekly Issue October 5: Last week the major indices pulled back in a meaningful way. The S&P 500 lost 2.20%, the Dow declined 1.36%, and the Nasdaq pulled back 3.20%. The benchmark index sank 4.8% in September, marking its worst month since March 2020. It was also the first losing month for the S&P after seven straight months of gains. The outlook didn’t look much brighter Monday as the market saw another bout of losses. Jacob’s new stock recommendation is International Game Technology (IGT).

Update October 4: The market is having another ugly day, and two of our stocks (SONO and TX) that recently broke our mental stops have not shaped up post-quarter-end last Thursday. While it’s possible that the market, and these stocks, will bounce in the days to come, it’s also possible that the recent 5-6% declines in the indexes are the start of a larger fall. For that reason, we are going to exit these positions today, and will not roll to new call sales.

Cabot Micro-Cap Insider

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.

Monthly Issue September 9: Rich’s new recommendation Cipher Pharma (CPHRF) is a cheap, Canadian specialty pharma company that has a promising pipeline. Despite strong potential, the stock trades at a draconian valuation. Insider ownership is high and insiders have been buying the stock in the open market. Further, the company is buying back its own shares in the open market. Downside protection is high given net cash on its balance sheet and strong free cash flow generation. My price target of 2.50 implies good upside over the next 12 months.

Cabot Income Advisor

Weekly Update October 6: Earnings could save or sink the market. It’s still a great earnings environment. S&P 500 earnings are expected to grow 28% on average over last year’s quarter. It’s not the 88% growth of last quarter but it’s still light years better than average. And earnings have continually exceeded expectations. Earnings could deliver a reignited bull market.

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 8: This week’s update includes our comments on Lamb Weston’s (LW) earnings as well as commentary on several stocks. We had no ratings changes this week. Next week, Wells Fargo & Company (WFC) and Walgreens Boots Alliance (WBA) report earnings, on Thursday.

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 1/2Sell
CRLBFSee Advisory
CURLFSee Advisory
FSRBuy a 1/2
GRWGSee Advisory
GTBIFSee Advisory
IIPRSee Advisory
IBMBuy a 1/2
JUSHFSee Advisory
MRVLBuy a 1/2Buy
NETHold a 1/2Hold
NVNXFBuy a 1/2
PLTRBuy a 1/2
SEBuy a 1/2Hold
SPCEHold a 1/2
SSOHold 1/2
TCNNFSee Advisory
TPBSee Advisory
TRSSFSee Advisory
VECOBuy a 1/2