Cabot Prime Pro Week Ending November 16, 2018
Cabot Weekly Review (Video)
In this week’s stock market video, Mike Cintolo advises keeping it simple—while there’s been a lot of movement during the past month, the trends remain down, so he remains in a defensive stance. That said, he’s keeping his eyes open as well, with a bunch more growth stocks showing resilience that he’s putting on his watch list.
Advisory Services
Cabot Growth Investor
Bi-weekly Update November 14: Remain defensive. There’s been plenty of volatility in recent weeks, but nothing has really changed with the market (trends are down) or our stance (highly defensive). Mike is not heading to our Panic Room, though, as a strong rally from here could actually produce a Cabot Tides buy signal. In the Model Portfolio, Mike has no changes tonight (though we have TDOC on a tight leash), with three stocks and a cash position of around 76%.
Bi-weekly Issue November 7: Remain defensive, but if you haven’t done so yet, get your watch list ready. In the Model Portfolio, Mike sold GrubHub (GRUB) last week after its earnings drop, leaving us with 76% in cash. In this issue he runs through some scenarios for buying, but tonight, he’s sitting tight.
Other Stocks of Interest November 9: Follow ups to stocks featured June 6, 2018 (issue 1395) to November 7, 2018 (issue 1406). 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 Weekly Update November 16: Mike remains open to anything, and you should, too. It’s important to avoid preconceived notions of what the market can or can’t do going forward. At this point, the evidence remains negative, of course, but a few good days could actually result in an intermediate green light, which would prompt us to put some (not all) money to work. Today’s buy ideas are Cadence Design (CDNS), Omnicell (OMCL), and Tesla (TSLA). There are four sells today: Acadia Pharm. (ACAD), Kirkland Lake Gold (KL), Nordstrom’s (JWN) and Pacira Pharm. (PCRX).
Weekly Issue November 12: This week’s list is chock full of earnings winners, which, encouragingly, are generally holding up well despite the market’s latest slide. Mike’s Top Pick is Etsy (ETSY), whose growth is picking up steam and stock is acting great. The Market Monitor at a level 4.
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 Position Update November 16: Xilinx (XLNX) continues to defy any market weakness, trading higher by another $2.50 today. This strength has pushed our position to a potential profit of 200%. However, because the market continues to look shaky, Jacob is going to set a mental stop on his calls. With the stock trading at 91, the calls originally purchased for $5.02 are now worth $15. He is going to set his mental stop at $10.
Cabot Options Trader Pro Trade Alert November 16: Buy back your Nasdaq ETF (QQQ) November 165/162 Bear Put Spreads for $0.25 or less.
Cabot Options Trader Position Update November 15: Xilinx (XLNX) is making a new high this afternoon at 87.70. This has pushed our calls originally purchased for $5.02 to a new high of $12.50 today, or a potential profit of approximately 150%. Jacob is going to continue to hold his calls for more upside.
Cabot Options Trader Pro Position Update November 15: The Nasdaq ETF (QQQ) is trading marginally higher today at 165.3, which has pushed the QQQ slightly above the 165 short strike price headed into expiration tomorrow. However, because the QQQ is so close to the strike price, unless there is a big rally today/tomorrow, plan on receiving a trade alert from Jacob tomorrow to close the spread. However, if you know that you won’t be available to act tomorrow, Jacob strongly recommends closing the spread today.
Cabot Options Trader Market Watch November 14: One stock that has been on Jacob’s watch list for earnings strength is ON Semiconductor (ON). The company blew away earnings expectations last week, and the stock rallied nicely. However, as is the case with most earnings winners recently, the weak market eventually dragged the stock lower. Should the market strengthen, ON is at the very top of his watch list for a new bullish position.
Cabot Options Trader Pro Trade Alert November 14: Exit Half of Existing Position: Buy back HALF your Nasdaq ETF (QQQ) November 165/162 Bear Put Spreads for $1.10 or less.
Cabot Options Trader Stock on Watch November 13: General Electric (GE) has been a total disaster having lost 73% in the last three years. Big picture, Jacob has no clue if GE is going bankrupt, or if the newly hired CEO will turn the company around. However, if he wanted to play bankruptcy, or a stock bounce, he has a couple of trade ideas.
Cabot Options Trader Weekly Market Update November 12: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week at 17.36, or lower by 11%. The 16-18 range in the VIX was fairly sticky all week.
Cabot Options Trader Pro Weekly Market Update November 12: Jacob has six long positions: PAGS, PSTG, RF, QQQ Iron Condor, Twitter and XLNX and one short position: QQQ.
Cabot Undervalued Stocks Advisor
Special Bulletin November 13: Voya Financial (VOYA – yield 0.1%) issued a press release this afternoon, shortly before the start of its Investor Day. The company is announcing higher profit goals through 2021, a plan to increase the dividend yield to 1.0% by mid-2019 and a commitment to ongoing share repurchases. Crista is moving the rating from Buy to Strong Buy. Also, Baker Hughes, a GE Company (BHGE – yield 3.0%) and its majority owner, General Electric (GE) have agreed to various business changes that will decrease General Electric’s ownership in Baker Hughes sooner than originally planned. Continue to Hold BHGE.
Weekly Update November 13: Crista says that her portfolio stocks achieved another successful quarter of results, generally pleasing Wall Street with upside surprises as opposed to earnings disappointments or news of corporate difficulties. Nevertheless, 2018 has been a difficult year for stock investors, with the S&P 500 index delivering two 10% corrections. The best of companies can easily have their share prices languish for months on end, as we’ve seen all year. Today, there are no portfolio changes.
Monthly Issue November 6: Crista continues to expect many stocks to remain low through year end, possibly followed by quite a bull run in January. Today’s featured stocks include Martin Marietta Materials (MLM) and Synchrony Financial (SYF) and a new addition to the Buy Low Opportunities Portfolio, Apple Inc. (AAPL). Today’s portfolio changes are: BB&T (BBT) and WestRock (WRK) both move from Hold to Buy.
Cabot Stock of the Week
Weekly Issue November 13: Today’s recommendation, Alexion Pharmaceuticals (ALXN) is a biopharmaceutical company that researches and manufactures treatments of severe and rare health disorders. It was recently recommended by Crista Huff, in Cabot Undervalued Stocks Advisor. Here are Tim’s Portfolio changes: Altair Engineering (ALTR) moves from Hold to Buy, Match.com (MTCH) from Buy to Hold and MedMen (MMNFF) from Hold to Buy.
Cabot Emerging Markets Investor
Bi-weekly Issue November 15: Our Emerging Markets Timer remains negative, though the next few sessions will be key to watch. The decent-looking bounce in the iShares EM Fund (EEM) ran into strong resistance near its 50-day line earlier this month. But despite the recent slide, the fund is holding above its October lows and hanging around its lower (25-day) line—a good two or three days from here could produce a green light. Tonight’s recommendation is Tencent Holdings (TCEHY). Among the Chinese ADRs enjoying bounces in the past couple of days, Tencent Holdings is probably the best known. Paul has it rated Watch. There is one portfolio change tonight: Paul is selling Ecopetrol (EC) which held up very well when oil prices initially started to skid, but the mini-crash in that commodity (and meltdown in all energy stocks) has been too much for the stock to resist—shares have been under strong distribution and dipped below their 200-day line this week.
Bi-weekly Update November 8: The Cabot Emerging Markets Timer is heading in the direction of a new buy signal, but isn’t there yet. Despite the lack of a formal buy signal, Paul is going to put a small amount of the huge cash hoard to work and buy a half position in MiX Telematics (MIXT). There are no other changes tonight.
Cabot Small-Cap Confidential
Weekly Update November 16: The major market indexes have been retracing their steps back to their late-October lows. As Tyler has stated several times, he continues to see this as a normal, albeit significant, market correction (not unlike the one in 2015 that preceded a mini-bear market). If we focus on the right things we will come out the other side just fine. There are two portfolio changes today: Goosehead Insurance (GSHD) moves to Hold and Tyler says to sell another quarter of IntriCon (IIN) and Hold the last Half.
Special Bulletin November 12: Apptio (APTI) is surging over 50% today on news that Vista Equity Partners will buy the firm for $1.84 billion, equal to $38 a share. Tyler is going to Sell and book a gain on the Apptio position. If you feel like holding a small stake just in case there’s a better offer, go for it!
Monthly Issue November 2: After taking partial gains on many positions in October we’ve largely sat back and watched the action with reduced exposure. While we took some money off the table, the money we’ve left in has produced positive returns over the past week – our portfolio moved 4% higher. Tyler’s new recommendation is Repligen (RGEN), a pure-play supplier of bioprocessing technologies that make it more efficient to manufacture biologic drugs, while ensuring high quality and safety standards. He will start with half a position.
Cabot Dividend Investor
Weekly Update November 14: After spiking last Wednesday, the major indexes have, predictably, pulled back over the past week. As Chloe’s colleagues and she have all written multiple times in recent weeks, stock market bottoms are rarely an event; they’re a process. She has no rating changes today, but gives you brief updates on all the holdings.
Monthly Issue October 31: Today Chloe is adding another conservative consumer staples stock to the Safe Income tier, Hormel Foods (HRL), which she expects to provide us with a secure income stream for a long time. She also looks into why REITs have been doing so well recently.
Cabot Marijuana Investor
Update November 16: Tim is in Las Vegas at MJBiz.com, the biggest gathering of cannabis industry professionals. But he’s got so much on his mind—partly from what he’s learned in the past two days at the conference and partly from what our stocks have been doing. So here he is, with an update on the industry, and a reminder of some of the best practices of investing in these exciting stocks, as well as a quick look at the charts.
Monthly Issue October 25: Short-term, Tim’s advice is to hold off new buying on most of these stocks and let this correction run its course a little longer. If things perk up, both in the marijuana sector and in the broad market, he’ll be happy to jump right back in, but for now, he’ll stand pat.
Wall Street’s Best Investments
Daily Alert November 16: Vulcan Materials (VMC) from Shortex Market Letter
Daily Alert November 15: Evolent Health, Inc. (EVH) from Canaccord Genuity Research
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.
Daily Alert November 14: VeriSign, Inc. (VRSN) from Cabot Top Ten Trader
Daily Alert November 13: Livent Corporation (LTHM) from Pivotal Point
Daily Alert November 12: Alliance Data Systems Corporation (ADS) from Validea Hot List Newsletter
Wall Streets Best Dividend Stocks
Daily Alert November 16: Amgen Inc. (AMGN) from Argus Weekly Staff Report
Daily Alert November 15: Blackstone Group L.P. (BX) from Cabot Undervalued Stocks Advisor
Daily Alert November 14: New Mountain Finance Corporation (NMFC) from Contrarian Outlook
Daily Alert November 13: Corning Incorporated (GLW) from The Prudent Speculator
Daily Alert November 12: Miller/Howard High Income Equity Fund (HIE) from Forbes/Lehmann Income Securities Investor
Monthly Issue November 7: This month’s Spotlight Stock, Brookfield Property Partners (BPY-UN.TO, BPY), is a diversified global real estate company. It owns, operates, and develops a large portfolio of office, retail, multifamily, industrial, hospitality, triple net lease, self-storage, student housing, and manufactured housing assets. In her Feature article, Nancy writes that it’s not only residential real estate that has seen phenomenal growth since the recession. Commercial real estate (CRE) is also booming, and is expected to grow 5% annually and reach revenue of $4 trillion over the next four years.
Ask the Experts
Cabot Options Trader
Question: I didn’t get in to XLNX when you recommended it. However I decided to get in today with the March 15, 82.50 calls for $8.30. Does this look like a good position to you?
Jacob: I LOVE the way XLNX looks. And the company got another upgrade this morning. However, until this market turns it’s going to be tough. But yes, if there was one stock I liked best, it would be XLNX, and the March 82.5 calls are a good way to play it.
Cabot Top Ten Trader
Question: I have a question about Shell (SHLX:NYSE) It has been going down recently even with great profits and as of today a dividend yield of over 8%. I realize oil is volatile right now but this seems to be a good stock. What am I missing?
Mike: Thanks for writing. So SHLX is one of many midstream MLPs that’s basically a “dropdown” entity I think from its parent -- basically they spun off some of their midstream operations.
The question with these is how secure are their cash flows if energy prices tank, how much debt do they have, etc. I would guess most are fine but, to be frank, I’m not an expert on them, though I know many are anticipating good distribution growth for many years just based on organic projects. But I’m going to abstain from giving an opinion here as I’ve never really studied this company, and not sure how lower oil prices would affect it.
Cabot Growth Investor
Question: as controversial as it is (for a number of, i think, pretty obvious reasons), would you, in a word, buy FB now? any thoughts on that one?
Mike: So, in a word, no, though I’m not bearish on it per se -- but you’re talking about a stock below all moving averages, a company with slowing growth and a market that’s in a downtrend. It could easily do OK, and I’m not anticipating the stock falling 30% from here or anything like that; as always, if you want to nibble, that’s fine. But I think the bigger money will be patiently waiting for a buy signal and grabbing some resilient names that have shown power.
Premium Reports
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 Buy and Hold Stocks for 2018
Update July 13, 2018: Today, Crista updates investors on portfolio news and performance of the stocks in Cabot’s 10 Best Buy and Hold Stocks for 2018. In terms of individual stock performance, Supernus Pharmaceuticals (SUPN) is up 34.6% YTD through July 12, while Universal Electronics (UEIC) is down 28.0% YTD. The performance of the remaining stocks ranges between +19.5% and -18.2%.
Update June 12, 2018: On June 11, 2018, USG Corporation (USG) announced that its Board of Directors agreed for the company to be acquired by Gebr. Knauf KG for $44 per share in cash. Crista suggestion is that investors sell USG now, rather than wait for the remaining $0.96 per share to accrue from the special dividend and the remaining potential capital appreciation.
Cabot’s 10 Best Takeover Stocks
Special ReportUpdated August 10: There are a variety of reasons that a corporation might want to purchase another company. They might want to acquire a company’s patents or products to enhance their product lines; access the company’s distribution network and sales relationships; or simply aim to increase their earnings growth rate by purchasing a very profitable company within a related industry. After all, stronger earnings growth leads to better share price appreciation—a topic that boards of directors care very much about. Crista’s investment strategy, which combines both growth and value criteria, inadvertently identifies potential takeover targets. That’s because big companies and she often seek the same thing: stock investments in undervalued, financially thriving companies that can deliver profits to investors. The ten companies are all undervalued growth stocks. What’s more, they’re small enough that big competitors and peers within their sectors could easily finance their acquisitions, often through current cash flow.
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.
Cabot’s 10 Best Small-Cap Cloud Computing Stocks to Buy Now
Special ReportUpdated August 10: If you’re a growth investor, you need to own cloud software stocks. It’s just that simple. Cloud computing is changing the world. It’s powering massive growth in companies across sectors, empowering digital transformations, enabling new generations of connected technologies and changing how people live their lives. Tyler Laundon lays out the landscape and names his 10 best small-cap cloud computing stocks.
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.