Cabot Prime Pro Week Ending July 31, 2020
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, In this week’s video, Tyler Laundon talks how the broad evidence in the market is largely positive, despite a lot of the negative headlines investors are hit with every day. He talks about three rapid-growth small companies that will report earnings in the coming weeks and which may be of interest to long-term investors.
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Advisory Services
Cabot Growth Investor
Bi-weekly Issue July 30: Looking at the entire picture, we think you should stay on the freeway (remain mostly bullish), but it’s prudent to get out of the passing lane and ease off the accelerator (prune a bit and/or tighten mental stops). In the Model Portfolio, we pared back a couple of weeks ago and are still sitting with around 19% in cash and are up handsomely on the year; from here, we’re willing to move in either direction, but tonight Mike has no changes as he sees what earnings season brings.
Bi-weekly Update July 23: Remain bullish, but don’t get too aggressive. Growth stocks and the market are still in uptrends, so we’re sticking with a heavily invested stance, but many leaders have wobbled of late, the number of stocks hitting new highs has dried up a bit and earnings reports are coming up for a ton of names. Overall, we’re willing to move in either direction (buy or sell), but right here, we think our current stance (20% cash, some hold ratings, some buy ratings) makes sense as we see what earnings reports bring. Mike has no changes tonight.
Other Stocks of Interest July 16: Follow ups to stocks featured March 12, 2020 (issue 1441) to July 16, 2020 (issue 1450). Since many of the stocks written about in Other Stocks of Interest don’t make their way into the Model Portfolio, you won’t see them followed on a regular basis in the issues. However, we are monitoring these stocks, and this listing gives you a quick view of our latest thoughts.
Cabot Top Ten Trader
Movers & Shakers July 31: Overall, not much has changed with our thinking—this is a bull market, and with the big-picture evidence bullish, we expect higher prices down the road. Indeed, few leading stocks have cracked and we’re seeing more join the party. That said, near-term, many names have lost a little steam; the number of stocks hitting new highs has been easing for most of July on the Nasdaq, and that index has hit some resistance for the first time since the March lows. That’s far from a red flag, but it does mark a small change in character. From here, we’re OK moving in either direction. If the continued positive action following earnings reports continues, it will probably have us extending our line; if the Nasdaq falters, though, we could pare back a bit. Right now, though, we’re comfortable with our Market Monitor at a level 7. Today’s suggested buys are: Alibaba (BABA) and Coupa Software (COUP). There are two recommended sells today: Biohaven Pharma (BHVN) and Bloom Energy (BE).
Weekly Issue July 27: After an impressive four-month rebound, many investors are nervously expecting the return of volatility during earnings season. But despite some recent choppiness among the leading stocks, the market remains largely unperturbed. Growth stocks are holding up well, while the major indices remain above their key trend lines. And while there are signs lately of increased demand in defensive areas of the market, the more aggressive segments remain strong. Finally, a healthy number of stocks are still making new 52-week highs on both major exchanges, while new lows have been remarkably sparse. All of this tells us that the intermediate-term trend still favors the bulls. While volatility may yet rear its head, we’ll continue to follow the weight of evidence. This week’s list contains a nice mix of some of today’s leading themes: healthcare, internet, real estate/home improvement and education. Mike’s Top Pick is Owens & Minor (OMI), which has a solid story and has broken out of an extended base on more than 10 times normal volume.
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 July 30: Tonight is a monster on the earnings front as Apple (AAPL), Amazon (AMZN), Facebook (FB), Google (GOOG) and many more will report after the close. This comes after many growth stocks, such as PayPal (PYPL), Qualcomm (QCOM) and several other companies, reporting after the close last night, beat expectations and whose stocks are surging higher today. Both PYPL and QCOM are now on Jacob’s radar for new positions.
Cabot Options Trader Basic and Pro Trade Alert July 28: Covered Call: Buy Silver ETF (SLV) Stock and Sell the August 23 Call (exp. 8/21) for a net price of $21.50 or less.
Cabot Options Trader Stocks on Watch July 27: Jacob has never been a big Gold or Silver trader. That being said, having read your many emails the last couple of days he knows that many of you are interested in these precious metals as Gold is up 13% this month and Silver is higher by 22% in just the last five days. Because of the interest in this sector he wanted to bring to your attention the big trade made last Thursday that he noted this morning, as well as the option activity today if you were looking for ideas.
Cabot Options Trader Pro Weekly Update July 27: Jacob has eight long positions: GLUU, GILD, JD, MU, PTON, SNAP, XLF, ZNGA and one short position: QQQ December Puts
Cabot Options Trader Weekly Update July 27: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week unchanged. It was certainly an interesting day for the VIX on Friday as the Nasdaq fell more than 1% for the second straight day, and many growth stocks posted back-to-back ugly days. Why does Jacob say it was interesting? One would have assumed the VIX would be higher on Friday given these negative market conditions … but instead the “fear index” was down. This lack of a rising VIX could be an interesting tell as this would lead Jacob to believe that traders are not worried about a more meaningful decline.
Cabot Undervalued Stocks Advisor
Weekly Update July 29: In the past few weeks, Bruce has received a number of questions from subscribers about energy stocks. While we probably have reached “peak oil” at 100 million barrels/day, global demand will remain sturdy and needs to be filled. Permanent impairment of many U.S. oilfields along with the broken E&P business model, and possible civil unrest in 3-5 years as currently-stable Mid-East regimes lose their ability to subsidize their populations, could weaken supplies. Eventually, demand for energy services will return while many low-quality providers will have vanished. It is very unclear yet when and at what price oil and natural gas will begin to reflect this scenario. Yet, while the near-term looks grim, these scenarios paint an optimistic longer-term picture. Bruce has two portfolio changes today: Dow (DOW) moves from Buy to Hold and Nvidia (NVDA) moves from Strong Buy to Buy.
Monthly Issue July 1: As the new Chief Analyst for the Undervalued Stock Advisor, Bruce Kaser, would like to thank you for reading this month’s letter. He knows you have many sources of investment ideas and advice, and he appreciates your interest in our service. Today’s featured companies include an undervalued but high-quality and well-capitalized consumer apparel company, Columbia Sportswear (COLM), as well as Quanta Services (PWR), Dow Inc (DOW) and Equitable Holdings (EQH). Here are today’s portfolio changes: Columbia Sportswear (COLM) is a new Buy, Quanta Services (PWR) moves to Buy from Hold and Marathon Petroleum (MPC) moves to Hold from Buy.
Cabot Stock of the Week
Weekly Issue July 27: The market’s main trend remains up, and thus our goal continues to be maintaining a full and diversified portfolio of high-potential stocks. For today’s recommendation, B&G Foods, Inc (BGS), Tim is going with a very high-yielding grocery wholesaler whose business has boomed as American dining has shifted from restaurants to the home. The stock was originally recommended by Tom Hutchinson in Cabot Dividend Investor. Tim has three portfolio changes today, SelectQuote (SLQT) and Vertex Pharmaceuticals (VRTX) move to Sell and Zoom Video (ZM) moves from Hold to Buy.
Cabot Global Stocks Explorer
Special Bulletin July 31: NovoCure (NVCR) and Gilead (GILD) both reported earnings yesterday and they remain Buys.
Bi-weekly Update July 30: Today, Carl addresses an issue that some of you have been asking about – the Holding Foreign Companies Accountable Act, which has already passed the U.S. Senate and will likely become law by the end of the year. The legislation’s aim is to bring Chinese companies listed on U.S. exchanges into compliance with Public Company Accounting Oversight Board policies regarding review of corporate audits. Carl has no portfolio changes today.
Bi-weekly Issue July 23: Today’s new recommendation, Novocure Ltd. (NVCR), is in the spirit of the mission of the Cabot Explorer, to scour the world for the best companies on the edge of the new: from green energy and transportation, emerging and frontier markets, financial technology (fintech), medicine and science, space, and rare resource as well as digital payments and e-commerce. Carl has one change today: Trip.com (TCOM) moves from HOLD A HALF to SELL.
Cabot Small-Cap Confidential
Special Bulletin July 31: Goosehead Insurance (GSHD) reported last night what can only be described as an outstanding quarter. Revenue of $30 million was up 54% and beat by $5.2 million while adjusted EPS of $0.25 beat by $0.15. Those reported results are enhanced a little because of a change from ASC 605 to 606 accounting in Q4 2019, but that transition is still factored into analyst estimates. With business booming management has the confidence to increase full-year revenue guidance to a range of $104 million to $109 million, implying 34% to 41% growth. That compares favorably to consensus revenue of $100 million (19% growth). It remains a Hold.
Weekly Update July 30: Our portfolio has been largely treading water for a few weeks. That’s not surprising given that we’ve been waiting for earnings season to start (it finally has!) and that there’s this persistent sense that bad news for the economy resulting from the coronavirus equal more stimulus and accommodative fiscal policy equals support for equity markets and, in some ways, good news for certain tech and MedTech companies. That’s a bit oversimplified, but Tyler thinks you know what he means – bad news from the pandemic doesn’t necessarily mean bad news for all stocks. What a strange time we are living through. There are no portfolio changes today.
Monthly Issue July 2: Digital payments were already a big trend prior to Covid-19. But the pandemic has pulled forward demand for solutions that help businesses pay and get paid whenever, wherever, and however. Today Tyler is profiling a small company, Repay Holdings (RPAY), that specializes in payment processing solutions. It’s relatively new to the public markets and has a market cap well under $2 billion. While areas of its business have been harmed by the pandemic, the big-picture story remains great. And management reported record sales activity in both March and April. And the stock’s looking great.
Cabot Dividend Investor
Weekly Update July 29: Tom remains cautious about the market in the months ahead for several reasons. One is that the financial damage from the lockdowns is just now being realized. The damage assessments are coming in with second quarter earnings reports. So far, earnings season hasn’t had that much of an impact on the overall market. He doesn’t think investors know quite what to make of this quarter. It’s bad. But everyone knows that going in. Also, unlike most earnings seasons, this one doesn’t really portend what lies ahead. It’s sort of a one-off disaster that the market seems to have moved beyond a long time ago. Tom has no rating changes today.
Monthly Issue July 8: While everyone is focused on the near-term risks and inconveniences of this pandemic, lasting changes are being forged. Major events have a way of reshaping the American psyche and changing behavior. This pandemic ordeal is forever altering aspects of our culture, creating an a unique opportunity for investors. In this month’s issue Tom highlights a stock that directly benefits from the fact that people will continue to do more things from home than they did before the pandemic. B&G Foods Inc. (BGS), sells popular packaged food brands. Business is booming and should stay good for a long time. He has no other portfolio changes.
Cabot Marijuana Investor
Monthly Issue July 29: The long-term strategy remains unchanged. Own the leaders. Sell the losers. And remember that someday, when marijuana is declared legal across the U.S., the institutions will come running. Short-term, Tim has a few pointers on playing hot stocks in hot times like the present. If you’re an aggressive investor keeping a close eye on your stocks, feel free to load up on the strongest ones and ride them as long as they go up—while cutting losses short. A concentrated portfolio in the hottest stocks can make big money fast (but sometimes lose it fast, too). If you’re less aggressive, however, and don’t like the risk, take your time. Wait for lower-risk entry points. Wade in slowly. The game is still in its early innings. Our portfolio became fully invested last week and remains so today, in the black for the year while the index is still in the red.
Update July 22: The strength in marijuana stocks that began two weeks ago with breakouts by the stocks of the four leading U.S. providers has continued this week, so now Tim is going to take the portfolio to a fully invested position. But first he’s going to sell Akerna (KERN), the software stock that never got going and that now presents us with an intolerable loss. The proceeds from that sale plus the portfolio’s remaining 8% cash will be split equally, used to average up in current holding Cresco Labs (CRLBF), which looks great, and to establish a new position in GW Pharmaceuticals (GWPH).
Special Report: April 29, 2020
U.S. Vertically Integrated Multistate Operators (MSOs)Cabot Early Opportunities
Special Bulletin July 30: Tyler updates us on four portfolio stocks. Bloom Energy (BE) falls after reporting, it remains a Buy, SelectQuote (SLQT) is still sliding and moves to Hold, OneWater (ONEW) Marine moves To Hold and Dynatrace (DT) remains at Hold.
Monthly Issue July 15: This month’s Issue of Cabot Early Opportunities features a fresh group of stocks that offer varying risk profiles and exposure to rapid-growth markets. Tyler has a company with a disruptive security platform that acts as a guardian of the internet, a MedTech innovator, Schrodinger (SDGR), (his top pick) with two exciting growth businesses, a clean-energy stock looking to put a troubled past behind it, a little-known gaming company and another software player that’s offering crucial communication services during the pandemic.
Cabot Profit Booster
Weekly Issue July 28: The Stock –Meritage Homes (MTH) MTH shares traded in a tight range from last July to March of this year, between 65 and 75. The stock dropped sharply in March, however, as the pandemic gave an unexpected surprise to the home building stocks. But the stock rebounded impressively in April and has built some impressive momentum.Stop — 84. The Covered Call Trade: Buy Meritage Homes (MTH) Stock at 100, Sell to Open September 100 Strike Calls (exp. 9/18) for $6, or a Net Price of 94 or less.
Update July 17: It was another fantastic month for the Cabot Profit Booster portfolio, and with today being the expiration of July options we are likely going to close seven positions for full profits ranging from 5.4% to 12.3%. Jacob updates us with the details and instructions.
Cabot Micro-Cap Insider
Weekly Update July 29: Rich recently had the chance to speak to the CEO of Riviera Resources (RVRA). He came away from the conversation incrementally more negative. His upside case is unlikely for the foreseeable future as natural gas prices and volumes should remain depressed. As such, he’s decreasing his price target to $3.50. Nonetheless, this price target still implies significant upside. There are no other changes today.
Monthly Issue July 8: This issue, Rich profiles Greystone Logistics (GLGI), a classic micro-cap company that is growing earnings 140% this year but only trades at 6.6x earnings. The current recommendations have performed very well and, importantly, the long-term performance of micro caps as a group speaks for itself (18% annual CAGR). Rich continues to find many attractive, growing micro caps trading at cheap valuations, and look forward to sharing them in future issues.
Special Report
A Defensive Healthcare Stock with 100% UpsideSpecial Report
The Best Way to Play the Oil Market DislocationCabot Income Advisor
Weekly Update July 29: Tom writes that many stocks out there are still very cheap and high yielding. But many dividend cuts will be forthcoming as the financial impact is realized. The quarter should provide much clarity about which high-yielding stocks have dividends that can weather the storm. It is likely that this quarter’s results will green-light some high-yielding investment that he has avoided so far. The environment for income is good, and about to get better.
Monthly Issue July 22: Although the prices of all the portfolio positions are higher than when originally purchased, they all still represent good value at current prices and are BUY rated. The market is still trending higher and has shown strong resilience in the face of bad virus news. The trend is good but things can change. Tom’s featured stock today is: U.S. Bancorp (USB), the fifth largest bank in the United States and the country’s largest regional bank with over 3000 bank branches in 25 states in the Western and Northern U.S.
Special Report:
Off the Radar Cash GeneratorsSpecial Report:
The Covered Call Income MachineWall Street’s Best Investments
Daily Alert July 31: TFI International Inc. (TFII) Internet Wealth Builder
Daily Alert July 30: Artisan Small Cap Fund Investor Shares (ARTSX) Moneyletter
Daily Alert July 29: Chegg, Inc. (CHGG) Cabot Growth Investor
Daily Alert July 28: MGM Resorts International (MGM) The Buyback Letter
Daily Alert July 27: LTC Properties, Inc. (LTC) Forbes Dividend Investor
Monthly Issue July 16: Nancy writes that the markets are certainly keeping us on our toes! She really didn’t know what to expect when she began calculating the returns for this Mid-Year Top Picks issue. We’ve had so much volatility; a big disruption in March, as coronavirus took hold; and many sectors that just haven’t bounced back. Despite the ongoing devastation of COVID-19, our contributors have broken all of our records, averaging a gain of 16.41%, while the Dow fell 8.6%, the S&P 500 is down 1.2% and only the Nasdaq is in positive territory, with gains of 18.3%. Even better, our Top 5 picks averaged 221.48%! In this month’s issue, she brings you an update on many of our 2020 Top Picks, along with several new non-Top Picks ideas.
Ask the Experts
Cabot Options Trader
Question: Any guidance on how do you manage patience and eagerness to get into a trade and holding on to it especially during high volatility?
Jacob: That is a super tough question. And trust me I make PLENTY of mistakes in that department (we all do). I guess at the end of the day you almost have to tune out the Fear of Missing Out (FOMO) in your brain if it is trying to pull you into not ideal set-ups. And conversely you have to pay attention to how much time is left until expiration in an options position if it is going against you in the short term.That being said, chasing when you have FOMO does work in bull markets, and puking positions regardless of time is the right move in bear markets. At the end of the day, if you like a trade go with it ... and then live with the consequences if it fails. Not even the greatest traders in the world will get every trade right.
Cabot Early Opportunities
Question: What’s your latest thinking on Schrodinger (SDGR) and DraftKings (DKNG)? Both are roughly 20% off their highs.
Tyler: I still like both SDGR and DKNG and expect to keep both at buy. Both are high growth and high valuation stocks, but for good reasons IMO. SDGR is having it’s first major pullback since the market crash and I think long-term investors could continue to buy. DKNG is moving around based on speculation about what will happen with all the sports seasons and how that could affect things. While things could certainly change, provided these stocks find support at “reasonable” levels (a relative term) I expect to keep both in our portfolio.
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts from July 15, 2020 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.
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 Global Stocks Explorer | Cabot Growth Investor | Cabot Marijuana Investor | Cabot Stock of the Week | Cabot Undervalued Stocks Advisor | Cabot Dividend Investor |
---|---|---|---|---|---|---|---|
ABBV | Hold | Buy | |||||
AMZN | Hold | ||||||
APHA | See Advisory | ||||||
APPF | Hold | ||||||
ARE | Hold | ||||||
ARNA | Buy | ||||||
AVGO | Hold | ||||||
AVLR | Hold | ||||||
BABA | Hold | ||||||
BGS | Buy | Buy | |||||
BIG | Hold | ||||||
BIP | Buy | Buy 2/3 | |||||
BMY | Strong Buy | ||||||
BSCL | Buy 1/2 | ||||||
BUG | Hold 1/2 | Buy | |||||
BYND | Sold | ||||||
CCI | Hold 1/2 | ||||||
CDLX | Hold | ||||||
CGC | See Advisory | ||||||
CHGG | Buy | Buy | |||||
COLM | Buy | Buy | |||||
CRLBF | See Advisory | ||||||
CRON | See Advisory | ||||||
CURLF | See Advisory | ||||||
DBSDY | Buy 1/2 | ||||||
DOCU | Hold | ||||||
DOW | Hold | ||||||
DXCM | Hold | ||||||
EPD | Hold | ||||||
EQH | Strong Buy | ||||||
EVBG | Buy | ||||||
EVER | Hold 1/2 | ||||||
FVRR | Hold 3/4 | ||||||
GFL | Buy | ||||||
GILD | Buy 1/2 | ||||||
GM | Strong Buy | ||||||
GRWG | See Advisory | ||||||
GSHD | Hold 3/4 | ||||||
GTBIF | See Advisory | ||||||
GTLS | Buy | ||||||
GWPH | See Advisory | ||||||
HTHT | Hold | ||||||
IIPR | See Advisory | Hold 2/3 | |||||
INSP | Hold | ||||||
KERN | Sold | ||||||
KL | Buy 1/2 | ||||||
KPTI | Buy | ||||||
LGIH | Buy | ||||||
MKSI | Hold | ||||||
MO | Buy | ||||||
MPC | Hold | ||||||
NEE | Hold | Hold 1/2 | |||||
NET | Buy | Buy | |||||
NVCR | Buy | ||||||
NVDA | Hold | Buy | |||||
OKTA | Hold | ||||||
PGX | Hold 1/2 | ||||||
PLMR | Buy | ||||||
PWR | Buy | ||||||
QCOM | Hold 2/3 | ||||||
QTWO | Buy | ||||||
REMX | Buy 1/2 | ||||||
RGEN | Buy | ||||||
RNG | Hold | ||||||
RPAY | Buy | ||||||
SE | Hold 1/2 | Hold | |||||
SLQT | Sell | ||||||
SPCE | Buy | Buy | |||||
SSO | Buy | ||||||
STAG | Hold 1/2 | ||||||
SWRAY | Buy | ||||||
TCNNF | See Advisory | Buy | |||||
TCOM | Sold | ||||||
TDOC | Buy | ||||||
TLRY | See Advisory | ||||||
TOT | Hold | ||||||
TPB | See Advisory | ||||||
TSLA | Hold | ||||||
TSN | Buy | ||||||
TWLO | Buy | ||||||
UEIC | Strong Buy | ||||||
VLO | Hold 1/2 | ||||||
VOYA | Strong Buy | ||||||
VRTX | Sell | ||||||
VZ | Buy | ||||||
WING | Buy | ||||||
XEL | Hold 2/3 | ||||||
ZM | Buy | ||||||
ZS | Hold |