Cabot Prime Pro Week Ending November 2, 2018
Cabot Weekly Review (Video)
In this week’s stock market video, Mike Cintolo talks about the market’s encouraging first steps this week—a short-term low may be in place, and he likes what he’s seeing from an increasing number of growth stocks. That said, the intermediate-term trend is still clearly down, so Mike is staying defensive and advises using the bounce to either let go of broken stocks you’re stuck with, and, more importantly, ID’ing stocks that are showing big signs of relative strength.
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Cabot Growth Investor
Bi-weekly Update October 31: Remain defensive. The market has finally gotten off its knees, but Mike’s two main trend-following indicators are bearish and most stocks are still in rough shape. He has no preconceived notions, and he’s continuing to overhaul the Watch List. There are no portfolio changes tonight.
Special Bulletin October 29: Today’s message concerns Grubhub (GRUB), which reported a great third quarter last week, but also announced its intention to invest more money during the next quarter or two, which is likely to crimp earnings. In this environment, that news brought a big wave of selling, causing the stock to dive below long-term support on big volume. Mike will sell what’s left of his relatively small position tomorrow.
Bi-weekly Issue October 24: Stay defensive and remain patient. In the Model Portfolio, Mike sold the remaining shares of Ligand last Friday, leaving us with a large 71% cash position, which provides not only a cushion against any further market plunges but also plenty of buying power for fresh leaders when our indicators turn green. And he’s also keeping tight stops on the remaining positions.
Other Stocks of Interest October 30: Follow ups to stocks featured May 23, 2018 (issue 1394) to October 24, 2018 (issue 1405). 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 2: In the short term, the fact that the major indexes (and many individual stocks) put in three straight days of gains (on solid volume to boot) is a good sign; you can never be sure of such things, but it’s certainly possible we have a short-term low to work from. Today’s buy ideas are Five Below (FIVE ), Dine Brands (DIN), and GasLog (GLOG). Mike has five stocks that tripped their stops, either due to market pressures or earnings. American Outdoor Brands (AOBC), Callaway Golf (ELY), Ecopetrol (EC), Ensco (ESV ) and Rowan Co. (RDC).
Weekly Issue October 29: This week’s Top Ten has the first batch of earnings winners and other resilient stocks showing some big-volume accumulation. Mike’s Top Pick is Tractor Supply (TSCO), a steady company that’s found excellent earnings-induced support, even hitting a new high today. If you want in, aim to nibble 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 Position Updates October 31: Jacob updates us on Twitter (TWTR) and Xilinx (XLNX). And when he sends out a trade alert, explains why he gives a price that should be easily achievable.
Cabot Options Trader Pro Alert October 31: Sell Half of Existing Position: Sell HALF your Twitter (TWTR) March 33/39 Bull Call Spreads for $2.60 or more.
Cabot Options Trader Earnings October 31: Earnings this afternoon and tomorrow morning are mostly void of high profile stocks. However, Thursday evening we will get reports from Apple (AAPL) and several other potential market leaders: Fortinet (FTNT) earnings Thursday after the close, Teladoc (TDOC) earnings Thursday after the close and Starbucks (SBUX) earnings Thursday after the close.
Cabot Options Trader Position Update October 31: Xilinx (XLNX) is trading higher today by $2, and is making a new high at 84. Jacob is going to continue to hold his position for more upside.
Cabot Options Trader Alert October 30: Sell HALF of Existing Position: Sell HALF your Twitter (TWTR) March 33 Calls for $5 or more.
Cabot Options Turnaround Plays October 30: The market, and especially individual stocks, have been rocked this month. Call it a rolling bear market, an under the surface crash or a valuation reset, it really doesn’t matter – the pain for the bulls has been intense. But with those declines come some potential opportunities once a rebound begins. How would Jacob play a rebound in a stock that has been hit hard? He gives some examples.
Cabot Options Trader Earnings October 30: Jacob reports on four stocks that will be reporting earnings either tonight or tomorrow morning: Facebook (FB) earnings today after the close, Electronic Arts (EA) earnings today after the close, IQIYI (IQ) earnings today after the close and General Motors (GM) earnings tomorrow before the open.
Cabot Options Trader Earnings Winners and Losers October 29: As Jacob scans the market for stock strength/weakness, five stocks are grossly underperforming today … and all are earnings losers from last week. Conversely, in terms of bullish option positioning so far today all four trades on my list come from recent earnings winners.
Cabot Options Trader Earnings Update October 29: Jacob writes that, like last week, and likely until the market settles down, volatility is extremely expensive, and skew is pricing in extreme risk to the downside and upside, for all companies reporting today/tomorrow.
Cabot Options Trader Weekly Market Update October 29: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week at 24.16, or higher by 21.5%. This elevated level in the VIX seems high, but at the same time “fair” given the moves in the market to close the week as the S&P 500 fell by 3% on Wednesday, gained 1.86% on Thursday and fell 1.73% on Friday.
Cabot Options Trader Pro Weekly Market Update October 29: 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 1: After reporting earnings, Crista has changed the ratings on four stocks from Hold to Buy: DowDuPont (DWDP), Marathon Petroleum (MPC), Quanta Services and Voya Financial (VOYA).
Special Bulletin October 31: Crista has a correction to yesterday’s weekly update regarding KLXE.
Weekly Update October 30: Today, Crista writes that many of our stocks are sitting at annual lows. It’s okay for risk tolerant investors to buy such stocks, as long as the corporations themselves are healthy and thriving. However, she will continue to ask you to wait until January 2 to begin buying these stocks. Concentrate your current purchases on stocks with neutral-to-bullish price charts. Here are today’s portfolio changes: Knight-Swift Transportation (KNX) moves from Hold to Buy, Southwest Airlines (LUV) moves from Strong Buy to Hold and Synchrony Financial (SYF) moves from Strong Buy to Hold.
Monthly Issue October 2: Today’s featured stocks include Alexion Pharmaceuticals (ALXN), CIT Group (CIT), and a new addition to the Growth & Income Portfolio: Delta Air Lines (DAL). Today’s portfolio changes are: Blackstone Group LP (BX) moves from Buy to Hold, Delek U.S. Holdings (DK) moves from Strong Buy to Hold and Martin Marietta Materials (MLM) moves from Strong Buy to Hold. Crista also writes about General Electric (GE).
Cabot Stock of the Week
Weekly Issue October 30: Today’s recommendation, MedMen Enterprises (MMNFF), is a young, fast-growing company in the fastest-growing industry in the U.S., so risk is high. However, it’s temporarily at a low, thanks to the market correction, so this might be a great buying point. Here are tonight’s Portfolio changes: GrubHub (GRUB) moves from Hold to Sell and Centennial Resource Development (CDEV) from Buy to Hold.
Cabot Emerging Markets Investor
Bi-weekly Issue November 1: Our Emerging Markets Timer remains clearly negative, as the intermediate-term downtrend in EM stocks continues. Given the evidence, Paul is sticking with his defensive stance, but after many months of poor action, now’s not the time to stick your head in the sand—earnings season is likely to reveal some initial signs of new leadership for the next advance. Tonight’s recommendation is MiX Telematics (MIXT), a South African software designer that’s making a global mark in software that lets companies manage their truck and car fleets and other mobile assets like buses, vans and trailers.
Special Bulletin October 31: Earnings season has taken its first bite out of one of our holdings. iQIYI (IQ) reported its latest quarterly results after the close on Tuesday and the news was not well received. Paul will sell the portfolio’s half position in IQ immediately and recommend that you do the same. SELL.
Bi-weekly Update October 25: The Cabot Emerging Markets Timer is solidly negative, and the U.S. indexes have joined in the decline. Paul is going to increase our cash position by selling our half position in RYB Education (RYB) and nudge our defensiveness up a tic by moving Ecopetrol (EC)to a Hold.
Cabot Small-Cap Confidential
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.
Special Bulletin October 30: Our portfolio’s earnings season kicked off with a bang last night with three companies opening their books from Q3. As Tyler expected the reactions were significant and unpredictable. We took partial profits on all positions ahead of earnings and have kept them rated hold into the events. The stocks are: AxoGen (AXGN), AppFolio (APPF) and Apptio (APTI).
Weekly Update October 26: The market hates uncertainty and it is getting it by the bucket-full right now. If you need a simple explanation for this volatility, that’s it. Tyler says you can keep averaging in to the stocks he has rated buy. If you’re brave, feel free to nibble on a few shares of those stocks we’ve taken partial gains on and that are going into earnings next week with a hold rating. One thing he knows for sure is that there will be big moves in some of these stocks after earnings.
Cabot Dividend Investor
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.
Special Bulletin October 30: Ecolab (ECL) reported middling third-quarter results this morning, and the stock opened 6% lower, although it’s already making up some of those losses. Chloe is moving ECL to Hold today.
Weekly Update October 24: Today, Chloe is selling the rest of McGrath RentCo (MGRC) and Occidental Petroleum (OXY), which has no obvious support level, and in which we have a 15% loss. She is also selling half of CSX Corp. (CSX), which has fallen 7.5% over the past week despite reporting estimate-beating earnings. And, Dunkin’ Brands (DNKN) and UnitedHealth Group (UNH) move to Hold.
Cabot Marijuana Investor
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.
Update October 16: Tomorrow’s the day that stores across Canada begin selling marijuana legally, and as Tim has said several times before, he believes the odds are that this will mark an intermediate-term top for many of the stocks in the sector. Thus, he’ll be taking partial profits in all the portfolio’s Canadian producers today (that’s six stocks) by selling half of each position. Aurora Cannabis (ACBFF), Canopy Growth (CGC), Cronos Group (CRON), HEXO Corp. (HYYDF), and Organigram (OGRMF).
Wall Street’s Best Investments
Daily Alert November 2: Vanguard Healthcare ETF (VHT) from The No-Load Fund Investor
Daily Alert November 1: Luminex Corporation’s (LMNX) from Nate’s Notes
Daily Alert October 31: Sell: Wintrust Financial Corporation (WTFC) from Upside
Daily Alert October 31: Fiat Chrysler Automobiles N.V. (FCAU) from Technology & Opportunity
Daily Alert October 30: UnitedHealth Group Incorporated (UNH) from Internet Wealth Builder
Daily Alert October 29: Core-Mark Holding Company, Inc. (CORE) from Pivotal Point
Monthly Issue October 17: Nancy’s Spotlight Stock is Brookdale Senior Living (BKD), the nation’s largest operator of housing for seniors. In her Feature article, she delves into how the aging of our population is creating vast opportunities in this sector, as well as some of the specifics that are driving the improvements for our Spotlight company.
Wall Streets Best Dividend Stocks
Daily Alert November 2: Melcor Developments Ltd. (MRD.TO) from Internet Wealth Builder
Daily Alert November 1: Sell: McGrath RentCorp (MGRC) from Cabot Dividend Investor
Daily Alert November 1: Consolidated Edison, Inc. (ED) from Cabot Dividend Investor
Daily Alert October 31: Healthcare Trust of America, Inc. (HTA) from The Intelligent REIT Investor
Daily Alert October 30: Lincoln Electric Holdings, Inc. (LECO) from DRIP Investor
Daily Alert October 29: Avangrid, Inc. (AGR) from Conrad’s Utility Investor
Monthly Issue October 10: This month’s Spotlight Stock, Carnival Corporation (CCL), is in one of Nancy’s favorite industries—cruising! The company is the largest in the sector, offering cruises that target all socioeconomic ranges. In her Feature article, she explores the industry, which is seeing unprecedented demand right now.
Ask the Experts
Cabot Options Trader
Question: Based on the news today, I was wondering if you have any thoughts on potentially adding a longer dated Call option on Red Hat. The offer is for $190/share in cash, with both boards approving the deal. Expectations are that it will close in the 2nd half of 2019. With that said, either the market doesn’t think the deal will close, or there is concern about possible competing bids. Either way, with the current price being $20/shr lower than the offer, I was wondering if there might be an opportunity here. Your thoughts and opinions are appreciated. Thanks for the great service!
Jacob: You know the expression “There is No Free Lunch”? That fits perfectly in this situation, as the options market nearly perfectly prices takeovers once they have been announced. Here is what I mean ... IBM/RHT deal will likely close in fourth quarter. So the price of the stock really won’t go to 190 until right before the deal closes. So even if RHT stock rallies $1-$4, any calls expiring in the next several months won’t move higher as the market knows that 190 is the likely price late in 2019. So then we look at options expiring in January 2020 which is closer to the deal closure. For example the January 170 calls. Well they are worth $18. So if the deal closes at 190, the most a buyer of those calls can make is $2. However, if the deal falls apart, he/she would lost $18. Not the best risk/reward. Unfortunately there isn’t much opportunity in this deal .. unless another buyer swoops in.
Cabot Dividend Investor
Question: Unexpectedly, MGRC gapped up on earnings today. I was hoping for a little rebound to sell. Should I hold on to it for a few more days and see if this gap sustains?
Chloe: Good question. I’m glad you got your rebound, but the gap up was so big I agree that it makes it harder to decide what to do now. Since it’s impossible to predict what will happen next, I’d go with a risk-management strategy. Such as: 1) Sell half now, while the stock is up here. If it starts to decline again, then you can sell the rest. If it moves up instead, you can hold the rest. Or: 2) Set a sell order (mental or real) around 51 or 52. That way you won’t let the stock retreat all the way back to 45 without taking advantage of this bounce, but if it does climb from here, you’ll be around for those gains.
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.