Cabot Prime Pro Week Ending November 20, 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, Mike Cintolo talks about the encouraging action this week, which featured far less volatility and a lot of firming up among individual stocks. He’s still going slow given the crosscurrents but put some money to work this week and relays many of the names he’s watching for coming breakouts.
UPCOMING CABOT EVENTS:
Two Basic Options Trades to Make Money on Growth Stocks
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Cabot Retirement Club Member Call - November 2020
FREE WEBINAR FOR PRIME MEMBERS ONLY: December 1, 2020 Sign up now.
Cabot Micro-Cap Insider Member Call – December 2020
FREE WEBINAR FOR PRIME PRO MEMBERS ONLY: Thursday, December 10 Sign up now.
Cabot Growth Investor
Bi-weekly Issue November 19: While the market has shaped up nicely in recent weeks, the bucking bronco environment for growth stocks chopped us out of a couple of names—combined with our lack of new buying, that ballooned our cash position to north of 50%. We thought that was too high, but we decided to wait a few days given the meat-grinder situation for growth stocks out there. Happily, though, we’re now seeing more growth titles shape up. The Model Portfolio came into this week with a bunch of cash on the sideline so we’re going to fill out our position in Roku (ROKU) and add a new half-sized position in Uber (UBER), leaving us with around 42% in cash.
Bi-weekly Update November 12: Stay cautious for now as we wait to see whether growth stocks can find their footing (which they’ve done for a couple days in a row now). The overall market looks good, and after taking partial profits in Pinterest (PINS) and cutting our loss in Datadog (DDOG) this week, our cash position is well over 50%, which is likely too high. However, given the action, we’d like to see a couple more days of stabilization before putting money back to work. Mike has no new changes tonight.
Other Stocks of Interest November 5: Follow ups to stocks featured July 2, 2020 (issue 1449) to November 5, 2020 (issue 1458). 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 November 20: After three crazy weeks in a row, things quieted down this week, and we take that as a constructive sign—the S&P 500 and Nasdaq are flat-ish to up a bit this week, while the broader small- and mid-cap indexes are higher by 1% to 2%. Mike’s Buy ideas today are: Invitae (NVTA) , Target (TGT), Zillow (Z). Mike suggests If you bought some GrowGeneration (GRWG) a few weeks ago with us, you’ve sat through a tough pullback and seen a moonshot in recent days. Consider taking partial profits here and trailing a stop for what hopefully will morph into a home run.
Weekly Issue November 16: If you look at the weekly charts, the trends of the major indexes and most stocks are pointed up—i.e., this is still a bull market, and the trends and other factors (such as the unusual strength seen two weeks ago) portend higher prices down the road. That said, there’s no question the environment remains extremely news-driven (mostly with vaccine news, but also economic reports and government policy outlooks), with plenty of crosscurrents depending on the day. Our Top Pick is Lam Research (LRCX), which looks like a leader in the resilient chip equipment sectors.
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 Pro Trade Alert November 19: Adjust Existing Position: Against your Qualcomm (QCOM) January 120 Call, Sell the January 170 Call (exp. 1/15/2021) for $1.50 or more.
Cabot Options Trader Pro Trade Alert November 18: Adjust Existing Position: Against your GM March 31 Calls, Sell the December 48 calls (exp. 12/18/2020) for $0.70 or more.
Cabot Options Trader Basic and Pro Position Update November 18: Jacob’s updating his General Motors (GM) position Higher by $2. Our March 31 Calls originally purchased for $4.30 are now worth $13.75, or a potential profit of 220%. Jacob is raising his mental stop from $8 to $10.
Cabot Options Trader Position Update November 18: Jacob’s updating his General Motors (GM) position Higher by $2. Our March 31 Calls originally purchased for $4.30 are now worth $13.75, or a potential profit of 220%. Jacob is raising his mental stop from $8 to $10.
Cabot Options Trader Basic and Pro Trade Alert November 16: Sell your Financials (XLF) January 23 Calls for $4.40 or more.
Cabot Options Trader Basic and Pro Mental Stops November 16: TSM is trading higher by another 5.5% today and at a new all-time high. This has helped push our January 85 Calls that were originally purchased for $7.69 to be worth $14.90, or just short of a 100% potential profit. Jacob is going to set a new mental stop on our calls at $10.
Cabot Options Trader Pro Weekly Update November 16: Jacob has nine long positions: GM, MSFT, NET, UBER, QCOM, SNAP, TSM, XLF, ZNGA and one short position: QQQ December Puts
Cabot Options Trader Basic Weekly Update November 16: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week marginally lower at 23. Interestingly, despite the positive coronavirus vaccine news, the VIX remains well above 20... though conversely, Jacob believes this expensive VIX also could be explained by the rising virus numbers and what that means for the global economy.
Cabot Undervalued Stocks Advisor
Weekly Update November 18: While pulling back a bit from the sharp jump on Monday, November 9th, the market rebounded on additional encouraging Covid vaccine results this week. While it is impossible to accurately predict the producer, timing, effectiveness and uptake of a vaccine, it is becoming clearer that scientists are getting a handle on Covid. This week Bruce has new Portfolio changes for: Cisco Systems (CSCO), General Motors (GM), Universal Electronics (UEIC) and Marathon Petroleum (MPC).
Monthly Issue November 4: This past week at least modestly illustrated the merits of a value strategy. Two of our three “Strong Buy” stocks, Molson Coors Beverage Company and Equitable Holdings, surged on company-specific news that highlighted their underlying value. Other “non-value” stocks not on our recommended list, like Apple, Amazon, Microsoft and Facebook, provided company-specific news that should have been flattering but instead sent their stocks down between 5% and 9%. For investors that focus on high-growth and momentum-driven stocks, having at least a few value stocks can provide portfolio stability. This added stability can help boost investor resolve to stay the course when markets get sloppy and the macro news looks grim, as it did late last week. Bruce has two portfolio changes today: Columbia Sportswear (COLM) and Marathon Petroleum (MPC) both move from Hold to Buy.
Cabot Stock of the Week
Weekly Issue November 16: The bull market rolls on, with today’s news about Moderna’s vaccine providing a high-profile reason to be optimistic about reopening the economy. And what better symbol of the economy is there than a Coca-Cola? The stock is strong, it’s cheap and it pays a 3% dividend. It was originally recommended by Bruce Kaser in Cabot Undervalued Stocks Advisor. Tim has one portfolio change today: Agnico Eagle Mines (AEM) to Sell.
Cabot Global Stocks Explorer
Bi-weekly Update November 19: Markets steadied this week as the political situation became clearer and prospects for Covid-19 vaccines becoming available in the first half of 2021 seem more promising. The Explorer portfolio performed well this week, with a couple of ideas breaking out to new highs. This week, Sea Limited (SE) reported third-quarter financial results. This Singapore-based company’s revenue doubled to $1.2 billion for the quarter and it boosted annual forecasts for two key businesses. There are no portfolio changes today.
Bi-weekly Issue November 12: Election results seem clear and will have a mixed impact on investor appetites. While still up in the air due to a pair of Georgia run-off elections, it seems likely that the GOP will control the U.S. Senate and thus be able to block any significant tax increases. Today, Carl’s new recommendation, Fortress Value Acquisition Corporation (FVAC), is a special purpose acquisition company (SPAC) that is merging into MP Partners to become MP Materials. The company owns and operates one of the world’s largest integrated rare earth mining and processing facilities in Mountain Pass, CA.. There is one portfolio change today: VanEck Rare Earth/Strategic Metals ETF (REMX) moves from Buy a Half to Sell.
Cabot Small-Cap Confidential
Weekly Update November 19: After an insane couple of weeks this one has felt relatively calm. There is still plenty of market-moving news around the election, vaccines, the pandemic’s frightening trajectory, etc. but I think we’ve all become somewhat accustomed enough to alarming headlines – within a certain range – that it’s harder to get shaken now than in the past. Tyler has changed Palomar (PLMR) to a HOLD
Special Bulletin November 18: Cerence (CRNC) reported Q4 and full-year 2020 results this week that came in much better than analysts expected. Revenue was up 9.5% to $91 million and beat by $11.3 million while adjusted EPS of $0.61 beat by $0.26. Adjusted gross margin was nearly 72%, up from 67.4% in the year ago quarter. Tyler is keeping CRNC as a buy, but advises to try and buy on pullbacks. We’re up roughly 47% since Tyler added CRNC on October 1.
Monthly Issue November 5: Today’s recommendation, BioLife Solutions (BLFS), designs and manufactures bioproduction tools, hypothermic storage solutions and cryopreservation freeze media for the tissue engineering, cell therapy and gene therapy markets. Products include biopreservation media, automated thawing devices, cloud-connected shipping containers and freezer technologies. In the near-term, look to buy down to support around 26 and up to 35. Following the Q3 earnings report tonight Tyler will update his rating and outlook. Average in!
Cabot Dividend Investor
Weekly Update November 18: This year continues to amaze. The market had another big rally this week on news of very positive late-stage trial results for a coronavirus vaccine from pharmaceutical company Moderna (MRNA). The S&P 500 soared to a new all-time high, the first since early September. The post pandemic rally may be upon us now, and for the rest of the year. That’s fantastic news because the rest of the portfolio is doing great. Certain stocks are absolutely killing it. The revival of the downtrodden stocks bodes very well for portfolio performance going forward. Tom has rating changes for Enterprise Product Partners (EPD) andVerizon Communications (VZ).
Monthly Issue November 11: Some long dormant positions and well as the underperforming stocks are reawakening. The most notable change so far is in the health care stocks, AbbVie (ABBV) and Eli Lilly (LLY). ABBV has soared 22% since late October and LLY is 13% higher in the same time frame. In addition the two energy stocks, Enterprise Product Partners (EPD) and Valero Energy (VLO), may be on the cusp of reversing the hideous performance so far this year. The best performing stocks, Innovative Industrial Properties (IIPR) and Qualcomm (QCOM), are continuing to soar ever higher. Due to the valuation and momentum, Tom believes LLY and ABBV are the most attractive stocks to buy right now. This month’s featured stock is Realty Income (O).
Cabot Marijuana Investor
Weekly Update November 18: A wave of quarterly reports in recent days means most of our companies have reported—the exceptions being Jushi (JUSHF) and TerrAscend (TRSSF), which has preannounced. The verdict from these reports is clear and simple: Business at these companies is booming! Tim describes the most attractive stocks using Bigger, Faster, Stronger analogy. Bigger refers to revenues. The biggest now are Curaleaf (CURLF), Green Thumb (GTBIF) and Cresco (CRLBF). Faster refers to the rate of revenue growth. The fastest-growing now are Cresco, Innovative Industrial Properties (IIPR) and Curaleaf. Stronger refers to the stocks’ momentum. The strongest now are GrowGeneration (GRWG), TerrAscend (TRSSF) and Cresco.
Monthly Issue October 28: Remain heavily invested in a diversified group of the stocks recommended here, but keep an eye on the stocks in case trends change. And remember the importance of position sizing; a major reason that our portfolio has outperformed the index this year is that we’ve overweighted the strongest stocks, while underweighting the weakest. The only substantial change in the portfolio today is a downgrade of Innovative Industrial Properties (IIPR) to Hold.
Cabot Early Opportunities
Monthly Issue November 18: The current investing climate is one of the most fascinating in history. We are in an economic recovery, which suggests investors should stay long stocks. We also have an incoming president intent on reducing the sense of chaotic leadership that accompanied the Trump White House and bringing back a sense of relative calm to U.S. leadership. That, combined with what is likely to be a republican controlled senate, is also bullish for stocks. Then we have the pandemic. Tyler suggests being prepared for conflicting headlines driving erratic trading action as we deal with an intensifying pandemic and a path toward vaccine distribution. Overall, Tyler believes now is a good time to keep new positions somewhat smaller than normal and average up to a full position with more purchases (three to five purchases to get to a full position seems about right). Today’s Top Pick is Avantor (AVTR), is a diversified global supplier of mission-critical products and services to customers in the life sciences, advanced technologies, applied materials, and education and government markets.
Special Bulletin November 13: Tyler recommends a Sell for Jamf (JAMF).
Cabot Profit Booster
Update November 19: Friday is November expiration, and Jacob is happy to report that all three of our covered call positions expiring Friday will likely close for full profits ranging from 10.75% to 14.09%.
Weekly Issue November 17: This Friday is the expiration of November options, and Jacob is happy to report that our three covered call positions expiring this week are in great shape. The marijuana industry just got a little less “hazy,” as voters approved recreational use in Arizona, Montana, New Jersey and South Dakota, and medicinal use in Mississippi and South Dakota during this month’s elections, leaving just 15 states that still outlaw the product. The Stock – Canopy Growth (CGC) makes cannabis and hemp-based products, including dried flower, hemp, vape pens and cartridges, THC- and CBD-infused beverages, beauty, skincare, wellness, and sleep products, as well as edibles. Stop – 19. The Covered Call Trade- Buy Canopy Growth (CGC) Stock at 25, Sell to Open December 25 Strike Calls (exp. 12/18/2021) for $1.50, or a Net Price of 23.50 or less.
Cabot Micro-Cap Insider
Weekly Update November 18: This was a busy week, with many of our companies reporting earnings. This week, hopTo, Liberated Syndication, Medexus, P10 Holdings, and U.S Neurological Holdings reported earnings. In summary, the reports were largely in line with expectations. Good but not great. Nothing that was thesis-changing. Rich has changed the Medexus buy limit to Buy under 4.50.
Monthly Issue November 11: Today, Rich is going full steam ahead and recommending an investment in a company that has successfully executed a turnaround, transitioning from a mainly print focused business to a software/tech-enabled services business. Donnelley Financial Solutions (DFIN) with modest earnings growth and multiple expansions, coupled with significant debt pay down, the stock should hit 40 by 2024, implying almost 200% upside.
Cabot Income Advisor
Weekly Update November 18: This has been quite a year. As the virus rages and the election outcome remains uncertain, the market soars to a new all time high. Go figure. The market rallied this week on news of positive late stage trial results on a coronavirus vaccine by biotechnology company Moderna (MRNA). It is the second big vaccine announcement in a week. A second vaccine candidate makes it more likely that there will indeed be a vaccine coming in the near future. There are two “Special Alerts” in this update for covered calls on ABBV and EPD.
Monthly Issue October 28: Several portfolio positions on which covered calls were written exceeded the strike price on options expiration and were likely called away. These stocks include IIPR, QCOM, USB, SBUX and BIP. This happens in an up market. You were rewarded for your troubles will a high income return from capital appreciation as well as the call premium and dividends. Tom’s featured stock this month is: B&G Foods, Inc. (BGS).
Cabot Turnaround Letter
Weekly Update November 20: This week three companies reported earnings: Macy’s (M), Oaktree Specialty Lending (OCSL) and Vodafone (VOD). We also review Toshiba’s (TOSYY) earnings that were reported last week. Bruce has no rating or price target changes this week. To listen today’s podcast and view the latest Catalyst Report click here.
Monthly Issue October 28: This month Bruce looks at the oil refining industry. Unlike many technology stocks, this group is the opposite of “priced for perfection.” The industry’s products will remain relevant for a long time, despite investors’ enthusiasm for a shift to electric-powered vehicles. Also, the pandemic will eventually pass and demand for refined products (gasoline, diesel, heating oil and jet fuel) will return, lifting these company’s earnings and stock prices. We acknowledge the tax and regulatory risks but see real value in the higher quality and better-financed refinery companies. Bruce’s feature recommendation is the oil refining company Valero Energy (VLO), offering what he sees as the best risk/reward traits among a group with strong cyclical turnaround potential.
Wall Street’s Best Investments
Daily Alert November 20: Regions Financial Corporation (RF) (MELI) Forbes Dividend Investor
Daily Alert November 19: MercadoLibre, Inc. (MELI) The Chartist
Daily Alert November 18: Innovative Industrial Properties, Inc. (IIPR) Safe Money Report
Daily Alert November 17: Intel Corporation (INTC) Forbes Dividend Investor
Daily Alert November 17: Hanesbrands Inc. (HBI) Forbes Dividend Investor
Daily Alert November 16: Wayfair Inc. (W) Canaccord Genuity Research
Monthly Issue November 19: October was a surprisingly good month for the markets, until the very end, when investors took a rest. But since the election, they’ve come in off the sidelines and the markets are now close to all-time highs. Investors love the idea of a divided Congress. As well, the unemployment picture continues to improve, although with the coronavirus causing more widespread shutdowns, we may see a temporary rise—at least until the vaccinations begin distribution. And that certainly looks promising, with both Pfizer and Moderna sharing terrific stats this past week. Nancy begins this issue with our Spotlight Stock, CACI International Inc (CACI) a provider of technology, primarily to the U.S. Defense Department. This company is right on the cutting-edge of advanced technologies—the future of defense. In Nancy’s Feature article, she discusses the coming technologies and CACI’s potential to harness and profit from them.
Ask the Experts
Cabot Top Ten Trader
Question:I was just curious what your thoughts were on specific stocks that may benefit from delivery of the vaccine; whether it be storage vials, containers, transportation, logistics, etc?
Mike: So, I’m a growth guy, so I’m not totally up on all the cyclicals that could benefit, but I think there are a few options. Some stuff like NSC (rail) and TKR (aerial work platforms, materials handling stuff) look good. I also think some growth-y retails like FIVE (earnings in early December FYI) could benefit and still have a growth story. Or you can simply consider the overall market itself (we own SSO) or sector ETFs (IYT = Dow Transports; XLI = industrials; XME =materials). I personally won’t be going heavy into these names but after a couple years in the doghouse I’m totally open to them doing well going forward.
Cabot Early Opportunities
Question: Regarding Cryoport (CRYX): we saw a big drop on Monday 11/16/20 - are you holding?
Tyler: For now, yes. As far as reasons behind the drop this morning [Monday] it may be because Moderna (MDNA) says it can ship its vaccine in regular freezers and doesn’t need the same extreme cold storage that Pfizer says it does. I think a 12% down reaction to that news is a bit of an overreaction though - at this stage we’re not even certain if and what contracts CYRX has for Covid vaccine distribution. I’m keeping at buy as I think factoring in everything that nothing has changed lately. CYRX is in the middle of its trading range (roughly 40-60) since late August.
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts from October 21, 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.
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|
|IIPR||See Advisory||Hold 2/3|
|JUSHF||See Advisory||Hold 2/3|
|ROKU||Buy Another 1/2|