Cabot Prime Pro Week Week Ending April 19, 2019
Cabot Quarterly Market Report and TeleconferenceQuarterly Market Report
April 17, 2019: The first quarter of 2019 was as good as the previous one was bad. And that’s not surprising. In fact, in his last quarterly report, Tim concluded by writing, “What the charts are signaling now is quite bullish! So don’t be afraid. Follow your favorite Cabot analyst. Use appropriate risk management tools. And make some money while the market is once again going the right way.” To listen to the Quarterly Analyst Teleconference click the button below.
Stock Recommendation Tracker
By request, we have added a new feature to your Cabot Prime Weekly Summary—the Stock Recommendation Tracker. It 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 to the portfolios or any changes to our recommendations over the previous week. We will 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 generally positive action, but also highlights a couple of yellow flags that haven’t been resolved. He’s still seeing a ton of potential buying setups in a variety of industries, but the next week or two should be key to see if the on-again, off-again selling pressure in many leading stocks dry up–or spread to other corners of the market.
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Cabot Growth Investor
Bi-weekly Update April 18: Remain bullish, but keep your antennae up. Technology-related growth stocks have again come under pressure and many are near key intermediate-term inflection points. (Leaders from other groups still generally look fine.) Much more weakness could have Mike paring back a bit, but tonight he has no changes since even the stocks that have been dinged are holding support. Our cash position is 17%.
Bi-weekly Issue April 11: While not perfect, the evidence remains very good—the big-picture outlook still points toward us being in the early stages of a new bull phase, and near term, Mike is beginning to see buying power return. Because of our two recent sales, we had built up 27% in cash, but tonight Mike will add two half-sized positions—one in Okta (OKTA), filling out our stake, and another in Carvana (CVNA), which he thinks has great potential. He’s also placing Five Below (FIVE) back on Buy. The cash position will now be around 17%.
Other Stocks of Interest April 12: Follow ups to stocks featured November 7, 2018 (issue 1406) to April 11, 2019 (issue 1476). Since they’re not in the Model Portfolio, you don’t see them followed on a regular basis. However, we are monitoring these stocks, and this listing gives their current momentum status.
Cabot Top Ten Trader
Movers & Shakers April 19: It was a quiet week for the major indexes, with the S&P 500 and Nasdaq both nearly unchanged, but that hid another round of rotation under the surface, with sectors like transports and financials rising solidly while small-cap indexes were down 0.75% and many technology- and medical-related growth stocks took hits. Mike’s buy ideas this week are: CoStar Group (CSGP), Invitae (NVTA) and Woodward (WWD). This week’s selling cracked a bunch of stocks that were acting iffy and/or caused some names to trip their stops. Mike has 13 Sells.
Weekly Issue April 15: Looking at the evidence, the vast majority of it is bullish, so Mike is, too—he’s bumping the Market Monitor up to a level 8 in tonight’s issue. That said, earnings season is just getting underway for most stocks, which will obviously be important. There will surely be the usual ups and downs, but he’ll be looking to see if any new leadership emerges or, conversely, if some of the leading stocks that have had good moves show abnormal weakness. In the meantime, he’s just following the system, looking for strong stocks that are relatively early in their overall runs. His Top Pick this week is Okta (OKTA), which looks to be resuming its run after a seven-week rest.
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 Earnings Update April 18: Our lone April option position is the April 16 call that we are short in Regions Financial (RF), which reported earnings and revenues mostly in-line with estimates this morning. In reaction to the earnings RF is trading marginally lower at 15.40. Jacob would expect the RF April 16 call that we are short will expire worthless. However, depending on how RF, as well as the market is trading, he may buy this call back and sell a May call later today.
Cabot Options Trader Stocks on Watch April 17: Yesterday I noted the recent bullish option activity in Salesforce.com (CRM) as a trader had accumulated approximately 19,000 June 160 calls the last two weeks. Today, as CRM has pulled back a bit with its growth stock peers, the trader is already rolling to a new position to get better upside exposure. While the leading growth stocks like CRM have largely chopped around in recent weeks, two sectors that have been hit very hard are Healthcare (XLV) and Biotech (XBI).
Cabot Options Trader Position Update April 17: Las Vegas Sands (LVS) will report earnings after the close tonight and Regions Financial (RF) will report before the open tomorrow.
Cabot Options Trader Alert April 16: Sell Existing Position: Sell the Remainder of your Cronos Group (CRON) July 22 Calls for $0.50 or more.
Cabot Options Trader Stock on Watch April 16: The stock that has had the steadiest big premium call buying in the last several weeks is Salesforce.com (CRM). Jacob really likes the set-up in CRM as the trader has accumulated over 19,000 calls with approximately $15.4 million in premium at risk.
Cabot Options Trader Earnings April 16: Netflix (NFLX) will report earnings today after the close. With the stock trading at 355, the options market is pricing in a move of $26, or 329 to the downside and 381 to the upside.
Cabot Options Trader Weekly Market Update April 15: Our portfolio is pretty full right now. Jacob certainly can add more positions if option order flow ramps up in a new stock, though he may keep some dry powder and wait for earnings season to ramp up the next two weeks so that he can buy the next earnings stars.
Cabot Options Trader Pro Weekly Market Update April 15: Jacob has nine long positions: CRON, GLW, JD, LULU, LVS, MSFT, RF, SBUX and SE, and one short position, QQQ.
Cabot Undervalued Stocks Advisor
If you missed Crista’s webinar Thursday, Great Growth & Value Stocks That Are Poised for Immediate Upside, you can click here to listen to it.
Special Bulletin April 18: Alexion Pharmaceuticals (ALXN) and Supernus Pharmaceuticals (SUPN) each move to Hold recommendations; Blackstone Group (BX) announced a conversion to a corporation, and moves to a Strong Buy recommendation; Schlumberger (SLB) reported a good first quarter; Sleep Number (SNBR) fell after reporting a strong earnings beat and Synchrony Financial (SYF) reported a big earnings beat.
Weekly Update April 16: Crista writes that we have obviously lived through a very difficult period in the stock market recently, from which most of the portfolio stocks are recovering or have already recovered. Hopefully we will not see another similarly ugly stock market downturn for several years, but there are no guarantees. If you stick with high quality companies—profitable, growing companies without any major red flags—they usually recover in the months following stock market downturns. There are five portfolio changes today: Abercrombie & Fitch (ANF) moves from Hold to Buy, Dow Inc. (DOW) moves from Buy to Strong Buy, D.R. Horton (DHI) moves from Hold to Retired, Mosaic Company (MOS) moves from Buy to Hold and WestRock Company (WRK) moves from Hold to Sell.
Monthly Issue April 2: Crista writes of two unusual changes that are happening within the portfolio stocks today. DSW Inc. (DSW) officially changes its name and stock symbol to Designer Brands (DBI); and Dow Inc. (DOW) begins trading separately from DowDuPont (DWDP). She also has quite a few changes today: Comerica (CMA) moves from Buy to Strong Buy, Dow Inc. (DOW) joins the Growth & Income Portfolio with a Buy recommendation, DowDuPont (DWDP) moves from Strong Buy to Buy, DSW Inc. (DSW) changed their name to Designer Brands (DBI), Schlumberger (SLB) moves from Hold to Buy and Synchrony Financial (SYF) moves from Hold to Strong Buy.
Cabot Stock of the Week
Weekly Issue April 16: The bull market of 2019 remains intact, with four of the five U.S. indexes Tim follows hitting new highs today—the exception remains the small-cap index. Thus, his advice remains the same: be heavily invested in a diversified group of high-potential stocks. And when he thinks diversified, he also thinks internationally, because while the U.S. remains the world’s largest economy, many emerging markets are growing faster, and offer opportunities to invest in growth stocks that are overlooked by U.S. investors. Today’s recommendation is one of these. LexinFintech Holdings (LX) was originally recommended by Carl Delfeld in Cabot Emerging Markets Investor. There are no portfolio changes tonight.
Cabot Emerging Markets Investor
Bi-weekly Issue April 18: Emerging markets stay strong into the second quarter with China leading the way and calming markets with Beijing delivering a 6% growth number. Carl’s new recommendation is Largo Resources (LGORF), a company that delivers a key ingredient that turns steel into “super steel” as well as playing a key role in electrifying the grid. He has one portfolio change today: TAL Education (TAL) moves from Hold a Half to Sell due to relative underperformance.
Bi-weekly Update April 11: As we enter the second quarter, emerging markets are on solid footing in a constructive uptrend as EEM remains just above both 50-day and 25-day moving averages. In light of Carl is positive and increasing his allocation. He is taking a full position in Tencent (TCEHY), which moves from Buy a Half to Buy. TAL Education (TAL) moves from Buy a Half to Hold a Half.
Cabot Small-Cap Confidential
Weekly Update April 19: In today’s Update Tyler highlights two things: small cap versus large cap relative sector performance, and this week’s healthcare/medtech/biotech stock dive. There are no portfolio changes today.
Monthly Issue April 5: Today’s stock, Quanterix (QTRX), is an exciting story of a young company that appears to be in the early innings of its growth curve, but has made it far enough with respect to technology development, customers and strategic partnerships to attract attention from larger investors. Revenue was up 60% in 2018, and is projected to keep growing at a rapid rate. Tyler also updates all the stocks in the portfolio and has one change today: Avalara (AVLR) moves from to Buy to Hold.
Cabot Dividend Investor
Weekly Update April 17: Tom writes that the bull market lives, and probably for a while longer. Those who were preaching gloom and doom last December have been proven wrong and the economy is actually in pretty good shape. Of course, there could be a recession looming two years out. He doesn’t know. But it seems clear that no recession looms on the radar, a year or less from now. There is one portfolio change today: Tom is selling Hormel Foods (HRL) –This is an excellent food company that had a fantastic year last year in a turbulent market, returning over 30%. But the stock has run out of momentum while other defensive stocks have been going strong. Sell.
Monthly Issue March 27: Tom writes that this is a tricky environment. He believes dividend stocks are in the sweet spot of this late stage economic cycle market. The December selloff gave most investors a hangover and increased the appetite for income and recession resistant businesses. His featured stock this month is, Brookfield Infrastructure Partners L.P. (BIP) , a company that owns and operates infrastructure assets all over the world. It particularly focuses on high quality, long-life properties that generate stable cash flows, have low maintenance expenses and are virtual monopolies with high barriers to entry. Tom has three rating changes since last week’s update, General Motors (GM) moves from Hold to Sell, American Express (AXP) from Hold to Buy and UnitedHealth Group (UNH) from Buy to Hold.
Cabot Marijuana Investor
Update April 18: As of today, the Marijuana Index was up 41.6% year-to-date, while our Marijuana Portfolio was up 50.4%, the difference attributable not so much to stock selection as to stock weighting. Tim is making several adjustments today and is adding two new positions: The portfolio will now sell half of its Aphria (APHA) position, sell half of its Aurora (ACB)position, sell half of its Cronos (CRON) position, and sell half of its Turning Point Brands (TPB) position. This will take the portfolio to about 24% cash. Then Tim will take a fourth of that cash and split it among new positions in Charlotte’s Web Holdings (CWBHF) and Village Farms (VFF).
Monthly Issue March 28: Tim says that CBD is hot, and acquisitions in the cannabis industry seem to occur daily, but the biggest marijuana stocks are cooling, at least for a while. Long-term, however, he remains very bullish on both the companies and the stocks in the industry and is truly enjoying staying on top of the developments. Tim is making one small change in the portfolio by averaging up in Kush Bottles (KSHB), increasing our position by one-third its current size.
Wall Street’s Best Investments
Daily Alert April 19: Sell: Expedia Group, Inc. (EXPE) from Ian Wyatt’s Million Dollar Portfolio
Daily Alert April 19: Firsthand Technology Value Fund, Inc. (SVVC) from Ian Wyatt’s Million Dollar Portfolio
Daily Alert April 18: LexinFintech Holdings Ltd. (LX) from Cabot Emerging Markets Investor
Daily Alert April 17: SS&C Technologies Holdings, Inc. (SSNC) from Dow Theory Forecasts
Daily Alert April 16: Perkins Discovery Fund (PDFDX) from The Chartist Mutual Fund/ETF Letter
Daily Alert April 15: Etsy, Inc. (ETSY) from Canaccord Genuity Research
Monthly Issue April 10: The retail environment is changing rapidly due to e-commerce, with most brick-and-mortar stores trying to find new strategies to survive Amazon. However, Nancy’s Spotlight Stock this month, Costco Wholesale (COST), is one retailer that is finding success in both channels. In her Feature article, she explains a bit more about the company’s strategy and its biggest advantage—consumer loyalty.
Wall Streets Best Dividend Stocks
Daily Alert April 19: Dana Incorporated (DAN) from AlphaProfit Sector Investors’ Newsletter
Daily Alert April 18: iShares 20+ Year Treasury Bond ETF (TLT) from Stock Trader’s Almanac
Daily Alert April 17: Brookfield Infrastructure Partners L.P. (BIP) from Cabot Dividend Investor
Daily Alert April 16: Duff & Phelps Global Utility Income Fund Inc. (DPG) from Contrarian Outlook
Daily Alert April 15: Paychex, Inc. (PAYX) from Argus Weekly Staff Report
Monthly Issue April 3: Our issue this month begins with Nancy’s Spotlight Stock, Lexington Realty Trust (LXP), a Real Estate Investment Trust that is in the midst of a transformation and whose shares are trading at bargain levels. In her Feature article, Nancy explores the direction in which the REIT is moving, highlighting the opportunities in that sector.
Ask the Experts
Cabot Options Trader
Question: I have been watching MRVL stock. It’s been in the rise for weeks with high volume and bullish option activity. It’s moving without any real news. Any thoughts on this stock. Appreciate great work you do.
Jacob: MRVL, and virtually all semiconductor stocks have been on a MONSTER run. And there has been call buying in MRVL as seen in some of my daily morning emails. If I were to try to play more upside I might .. Buy to Open the MRVL August 25 Calls for $2 Though of note earning season is really getting in gear in the next week and plenty of MRVL peers will be reporting ... for better or worse.
Question: Are you as astonished as I am about the sell off in LVS? What’s your take on what’s going on? This is surely unexpected.
Jacob: Astonished? Not really. While the company beat earnings and revenue expectations last night, the stock had ran up into the earnings report and under the surface the market has been weakening a touch. So I’m certainty not shocked. However, if the market gets going again, I would expect LVS to be a leader. And I’m not alone. Here is a trade made this morning: Buyer of 15,000 Las Vegas Sands (VLS) September 67.5 Calls for $4.70 – Stock at 68
Cabot Marijuana Investor
Question: What price does EDXC have to go to before you will recommend buying it? I have been watching it and it’s been going up. Thanks and have a great day.
Tim: Yes, the chart is impressive. I wish I’d recommended it as a buy when I first mentioned it two weeks ago; it’s up 74% since then! You could try to buy the next time the stock pulls back to its 25-day moving average, but I don’t think I’ll officially recommend it until the stock climbs above the $1 level. There are plenty of good stocks up there, and the higher prices tend to provide a little more stability/predictability. In short, I just don’t like the extra risk of buying stocks below a dollar.
Cabot Prime Pro Quarterly ReportSpecial Report
April, 2019: The first quarter of 2019 was as good as the previous one was bad. And that’s not surprising. In fact, in his last quarterly report, Tim concluded by writing, “What the charts are signaling now is quite bullish! So don’t be afraid. Follow your favorite Cabot analyst. Use appropriate risk management tools. And make some money while the market is once again going the right way.”
Cabot’s Ten Best Canadian Small-Cap StocksSpecial Report
Updated March 6, 2019: One of the generally accepted wisdoms over the past couple of years has been that the U.S. stock market is where the action is. But relative performance of ex-U.S. markets is showing that’s no longer the case. There are market-beating returns available to those investors willing to step abroad. And one of the easiest steps to take is just over the border with our neighbor to the north, Canada. For the modestly adventurous investor, I think there are quite a few Canadian stocks worth a look right now.
Cabot’s Best Safe Investments for Uncertain TimesSpecial Report
December 21: This report gives you some suggestions of the safest, productive places to put your money when the market gets bumpy.
A Richer Retirement
Special Report This handbook is designed to help you secure a better, longer, richer retirement for yourself by making the most of your savings both before and during retirement.
Guide to Cabot Prime Pro
This Guide to Cabot Prime Pro will help you make the best use of your Prime membership to create a strong personal portfolio.
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.
|Stock||Cabot Small-Cap Confidential||Cabot Emerging Markets Investor||Cabot Growth Investor||Cabot Marijuana Investor||Cabot Stock of the Week||Cabot Undervalued Stocks Advisor||Cabot Dividend Investor|
|LGORF||Buy a Small Position|
|OKTA||Buy another Half|