Cabot Prime Pro Week Ending December 14, 2018
Cabot Weekly Review (Video)
In this week’s stock market video, Paul Goodwin gives his thoughts on the market and looks at a few stocks that are performing better than the market. The trend is still down and cash is your best friend at the moment, however it’s good to be on the lookout for strong stocks once the market gets going.
Advisory Services
Cabot Growth Investor
Bi-weekly Update December 12: Remain defensive, but keep an open mind. Following last week’s big decline, the market has shown some resilience, and Mike continues to see a growing number of stocks showing great resilience. Even so, our Cabot Tides green light from two weeks ago has disappeared and the longer-term Cabot Trend Lines remain down, so we continue to advise a cash-heavy posture as we patiently wait for confirmation the buyers have taken control. He has no changes in the Model Portfolio tonight.
Bi-weekly Issue December 5: Mike is still OK doing a little buying if you have a ton of cash on the sideline—he added Exact Sciences (EXAS) and Twilio (TWLO) last week, though the Model Portfolio remains more than 70% in cash. From here, as always, our next moves will be determined by the market’s action. In tonight’s issue, Mike reviews our three stocks and dives into a bunch of names we’re watching. He also discusses one prior big winner that seems set up for higher prices—if the market cooperates.
Other Stocks of Interest December 13: Follow ups to stocks featured July 4, 2018 (issue 1397) to December 5, 2018 (issue 1408). 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 December 14: It’s been a relatively choppy week, with Monday seeing many major indexes briefly sinking to new lows before reversing higher, a modest bounce mid-week, and this morning looking like another sharp drop. Following the open, it appears the S&P 500 will be down a fraction of a percent on the week, while the Nasdaq will be up by a similar amount. Here are Mike’s buy ideas today: Ciena (CIEN), Elastic (ESTC), PayPal (PYPL) and Tableau Software’s (DATA), and this week’s sells: Canada Goose (GOOS), Decker’s Outdoors (DECK), Dine Brands (DIN), Genomic Health (GHDX), Mosaic (MOS), Petrobras (PBR) and Repligen (RGEN).
Weekly Issue December 10: Mike says it’s best to take things day-by-day and go with the evidence—which, today, means holding plenty of cash. This week’s list, though, is a good place to start building a watch list if you’ve yet to do so, as many of these stocks look like they want to move higher if the market gets going. Our Top Pick is MongoDB (MDB), a stock that actually nosed to new highs after earnings before pulling back in.
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 Market Update December 14: Today, unfortunately for the bulls, there are several market leaders that are falling on news. Costco (COST) is lower by 7% following earnings and Adobe (ADBE) is down 5% on earnings as well. However, into the decline in ADBE a trader initiated a bullish position looking for a rebound. Also, Jacob gives us three ways that traders have been positioning into the market decline is by rolling positions that are at a loss or running out of time in an effort to better profit should the stock or market turn.
Cabot Options Trader Market Update December 13: The market continues to test both the bulls and bears. This morning, like so many before it, stocks opened strong, but the move was promptly sold into and the major indexes are now down marginally on the day. Jacob sees no edge in buying or selling right now as he has a long list of what he likes about the market, and what he does not.
Cabot Options Trader Stocks on Watch December 11: Last week Jacob noted call buying in the Oil Services (OIH), and today he is continuing to see bullish activity. Then there’s Carvana (CVNA), which was a rocket ship in the first half of 2018, trading as high as 72.5. However, today CVNA is trading at 36. However, into the deep decline, a trader/traders have started to build positions looking for a rebound.
Cabot Options Trader Weekly Market Update December 10: This week there are several potential market-moving events, including the Brexit vote on Tuesday, which has the potential to bring down the government of British Prime Minister Theresa May. Also, the European Central Bank has its monetary policy meeting on Wednesday, and there will be a steady flow of U.S. economic data including Tuesday’s Producer Price (PPI), Wednesday’s Consumer Price Index (CPI), Thursday’s Export and Import Prices and Friday’s Retail Sales. And while all of the items listed above can move the market, big picture Jacob expects rumors and headlines on trade to be the primary driver of market movement this week.
Cabot Options Trader Pro Weekly Market Update December 10: Jacob has four long positions: ON, RF, TWTR and XLNX, one position not impacting his decision making: PSTG and one short position: QQQ Bear Put Spread.
Cabot Undervalued Stocks Advisor
Weekly Update December 11: U.S. stock markets continue to suffer, revisiting lows from October and November. We could see modest improvement through year end, but Crista doesn’t expect a strong stock market rebound until at least January. She is moving several stocks to a Hold recommendation today, because they have fallen below recent trading ranges. Apple (AAPL) moves from Strong Buy to Hold, Comerica (CMA) moves from Buy to Hold, Knight-Swift Transportation (KNX) moves from Buy to Hold, Marathon Petroleum (MPC) moves from Buy to Hold, Skechers (SKX) moves from Buy to Hold and Supernus Pharmaceuticals (SUPN) moves from Strong Buy to Hold.
Monthly Issue December 4: Crista expects December to deliver a nice stock market rebound, which will be somewhat restrained by tax-loss selling, especially among some of the very popular FANG stocks. Then in January, as long as something big and unexpected does not occur, she expects the S&P 500 to retrace its September highs. That could actually happen in December, but January seems more realistic to me.Today’s featured stocks include DowDuPont (DWDP), which moves to Strong Buy. General Electric (GE), General Motors (GM) and United Technologies (UTX). Though Christ is not adding GE, GM or UTX to the portfolios.
Cabot Stock of the Week
Weekly Issue December 11: Last week Tim told you that he’d received a new buy signal from our intermediate-term market-timing indicator—but it didn’t last long. The market’s widespread selling on Wednesday and Thursday quickly turned it negative again. So capital preservation is once again of primary importance—though the charts say the time is ripe for at least a modest bounce. This week’s recommendation is Voya Financial (VOYA), a retirement, investment management, employee benefits and insurance company serving 47,000 institutional clients and nearly 4.5 million individual retirement plan investors in the United States. There are two portfolio changes today: Canada Goose (GOOS) moves from Buy to Hold and Ulta Beauty (ULTA) from Hold to Sell.
Cabot Emerging Markets Investor
Bi-weekly Issue December 13: The nascent buy signal from the Emerging Markets Timer has fizzled out a bit, but we’re still mostly encouraged by the overall action—EM stocks hit their lows in late October, held solidly above those lows even during last week’s sharp dip and some stocks are perking up. But, net-net, the action of the past couple of months has been a solid bottoming effort. Among our stocks, there are plenty of good and a couple of iffy situations, but overall, Paul has no changes in tonight’s issue. In today’s issue we’re revisiting old Friend, AutoHome (ATHM), the premier online automobile shopping site in China. It’s rated Buy a Half.
Bi-weekly Update December 6: Trade war uncertainties have nipped our young buy signal in the bud, but the situation is highly fluid, so Paul will be making portfolio choices on a stock-by-stock basis. The only change in the portfolio today is that he’s dropping Huya (HUYA) from the Watch list.
Cabot Small-Cap Confidential
Weekly Update December 14: Tyler writes about the Japanese phrase, hara hachi bu, that translates into something like “belly 80 percent full,” or “eat until you are eight parts full,” and compares it to the current market. In today’s update, he’s moving Q2 Holdings (QTWO) to Buy.
Special Bulletin December 13: Our portfolio includes a few stocks that we took partial gains on a while back and which haven’t been able to get going in the right direction since. And one that never got going in the first place. IntriCon (IIN) has been trending down for months now and while we’ve booked some profits along the way we now have a modest loss on our remaining position. Tyler says to Sell another quarter. This should leave you with just one quarter of your initial position. AxoGen (AXGN) is another stock that’s been trending down since we sold half our position in October. Sell a quarter to lock in an 80% gain, and hold the remaining quarter of your initial position. Altair Engineering (ALTR) is a stock we stepped into in early October, right before the broad market fell apart. The timing was awful, and that’s reflected in our current return. Tyler says to reduce our position size by selling a half.
Monthly Issue December 7: Today’s recommendation, Codexis (CDXS), is an industrial biotechnology stock. And the secret to its success lies in a proprietary technology platform that uses artificial intelligence and machine learning to create new proteins for use in various industries. Tyler is buying a half position. There is only one portfolio change this week, Chefs’ Warehouse (CHEF), moves to Hold.
Cabot Dividend Investor
Weekly Update December 12: Although Chloe was optimistic when the market strengthened two weeks ago, for now it’s time to stay defensive. In our portfolio, that means selling half of AllianceBernstein (AB), which has suddenly lost significant support, and the rest of ONEOK (OKE), which is hitting new lows. Broadridge Financial (BR) and BB&T Corp. (BBT) could be next to go if the market continues to struggle. However, some sectors are still working well, and she’s moving both our REITs—Community Health Trust (CHCT) and STAG Industrial (STAG)—back to Buy today.
Monthly Issue November 28: Today Chloe is adding one more utility to the Safe Income tier, NextEra Energy (NEE). The market has stabilized a bit, and Chloe is moving the rest of the Safe Income holdings back to Buy: Ecolab (ECL) and UnitedHealth (UNH). Riskier investments are still in limbo though, and in the high yield tier she is selling another third of our ONEOK (OKE) shares, due to the stock’s continued decline.
Cabot Marijuana Investor
Update December 3: Tim has a quick update on Aphria (APHA) and MedMen (MMNFF). He also talks about the strategy of averaging up, rather than averaging down.
Monthly Issue November 29: In today’s issue, Tim has no new buy and sell recommendations, but you’ll find updates on all the stocks. And as we head toward the last of 2018, he’s very optimistic that the sector will have another great run in 2019—just when most investors least expect it!
Wall Street’s Best Investments
Daily Alert December 14: Fidelity Japan Smaller Companies (FJSCX) from Moneyletter
Daily Alert December 13: Fabrinet (FN) from Upside
Daily Alert December 12: Masco Corporation (MAS) from Directinvesting.com
Daily Alert December 11: BioCryst Pharmaceuticals, Inc. (BCRX) from Schaeffer’s Investment Research
Daily Alert December 10: Ross Stores, Inc. (ROST) from Hendershot Investments
Monthly Issue November 14: Nancy’s Spotlight Stock Comcast Corporation (CMCSA), is pushing growth via mergers and acquisitions, including its recent $40 billion acquisition of the 39% percent of the company owned by Twenty-First Century Fox. In her Feature article, Nancy says that Comcast looks undervalued at a P/E of just 7.47. Yet, the company is forecast to grow its earnings some 23% this year and another 10.3% in 2019. Add in the dividend yield, and the future looks bright for Comcast investors.
Wall Streets Best Dividend Stocks
Daily Alert December 14: MDC Holdings, Inc. (MDC) from The Prudent Speculator
Daily Alert December 13: Oaktree Capital Group, LLC (OAK-PB) from Forbes/Lehmann Income Securities Investor
Monthly Issue December 12: This month’s Spotlight Stock, Bank of Hawaii Corporation (BOH) is a 120-year-old regional financial services company with $16.9 billion in assets. Through its subsidiaries, the company provides a broad range of financial products and services to businesses, consumers and governments in Hawaii, Guam and other Pacific Islands. In her Feature article, Nancy delves further into the Regional Banking industry, discussing its recovery since the worldwide recession, as well as the pros of investing in our Spotlight Stock.
Daily Alert December 12: Harley-Davidson, Inc. (HOG) from High Yield Wealth
Daily Alert December 11: Sell: Saul Centers, Inc. Series D Cumulative Preferred (BFS-PD) from Jack Adamo’s Insiders Plus
Daily Alert December 11: Public Storage 5.40% Cumulative Preferred Share of Beneficial Interest, Series B (PSA-PB) from Jack Adamo’s Insiders Plus
Daily Alert December 10: BCE Inc. (BCE) from Internet Wealth Builder
Ask the Experts
Cabot Emerging Markets Investor
Question: Hello Paul, How are you? What do you think of WB? It seems to be perking up a bit. It sounds kind of like a FB (semi- similar) company. I am currently in another newsletter, but this one came to my attention. Also MOMO is kind of similar also? Anyway, I was just wondering if you had a good opinion of WB.
Paul: I’m doing fine, although the weakness in both domestic and emerging markets is kind of a drag. Weibo is basically a messaging company, although a Chinese message can contain as much information as a typical Facebook post. The company was spun off by Sina.com in 2014 and made a great run in 2016 and 2017. The recent bounce has been encouraging, but I’m not sure I trust that apparent double bottom in October/November. I sold half of the portfolio’s position in April, then sold the rest in May. Good fundamentals (75% revenue growth in 2017 and projected 48% earnings growth this year and 20% in 2019.) What it really needs is for the Chinese ADR universe to get moving again. The bounce has been nice, but it’s still not a convincing uptrend. As for MOMO, at least on a chart basis, it’s a dead rat in the gutter right now.
Cabot Growth Investor Investor
Question: Do you put any credence in the dow theory/transports market indicator?
Mike: No, not really -- we do see some loose linkage between having both the Industrials and Transports hitting lower lows together and the overall economy. But when it comes to market timing, we focus less on levels and more on trends; they tend to be less open to interpretation, more reliable overall and, most importantly, always keep you on the right side of big moves, up or down. Thus, no, we’re not huge Dow Theory people.
Cabot Small-Cap Confidential
Question: You wrote about “secular” growth stocks. What do you mean?
Tyler: Secular stocks are those that should continue to grow in just about any market. Conservative secular stocks do things like make food and cigarettes. More aggressive secular growth stocks sell things like security software. It’s important to recognize that a secular growth trend doesn’t imply limitless growth, or that a stock with exposure won’t drop or suffer multiple compression. It just means a relatively durable growth trend that should last several years.
Cabot Options Trader
Question: I received Mike’s report today. It’s very interesting. However I would like to know if you think any of the recommendations might be good candidates for in the money options. Or which ones you think offer the most promise for short term in the money options. Thank you for your help.
Jacob: I am going to review Mike’s report this weekend and look for options plays for Cabot Options Traders. I do know top of mind that GLUU has seen bullish option activity recently ... though that stock gets hot and cold very fast.
Premium Reports
Cabot’s 10 Favorite Low-Priced Stocks for 2019
Special ReportDecember 13: Welcome to Cabot’s 10 Favorite Low-Priced Stocks for 2019, our annual pick of some little-known stocks that, for one reason or another, have a great shot of tacking on some great gains in the short-term (and, if things go well, longer-term, too). Of course, the market environment hasn’t been following the usual script—instead of a strong November-December, the market is scuffling. That will require some patience and picking your spots on the buy side, but ideally will work to our advantage (creating more advantageous entry points), too.
Cabot’s 10 Best Canadian Small-Cap Stocks
Special ReportAugust 31: 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 there are market-beating returns available to investors willing to step abroad too. And one of the easiest places to find them is just over the border with our neighbor to the north, Canada.
10 Monthly Dividend Stocks to Buy for Year-Round Income
Special ReportAugust 9: Dividend-paying stocks are favorites of retirees and other investors who live off income from their investing portfolios. Like bonds, dividend-paying stocks provide a steady income stream that you can spend without eroding your principal. Unlike bonds, many stocks increase their dividends over time, so your income stream can actually rise each year. This report includes profiles of Chloe’s 10 favorite monthly dividend payers, each of which offers a unique mix of yield, capital appreciation and safety. If you’re looking for monthly income, you’re sure to find at least one that’s right for you.
Cabot’s 10 Best REITs to Buy Now
Special ReportJuly 18: Nancy has always loved real estate; in fact, she owns a small real estate franchise. But she loves the idea of a diversified real estate portfolio and REITs fit the bill. They have been excellent investments for her subscribers over the years as they offer the perfect opportunity to buy real estate with very little capital. And she believes the boom cycle in real estate is far from over. With that in mind, she set out to find the 10 Best REITs for today’s economy and market. She looked at growth, valuation, dividend yield, and fundamental and technical strength.
Cabot’s 10 Best Covered Calls on Dividend Stocks
Special Report April 12: With interest rates just coming off of historically low levels, income investors have been desperately searching for alternative sources of yield. Dividend stocks are the obvious answer. But there’s an even better way to create yield: by executing a covered call strategy on stocks that pay dividends.
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.