Cabot Prime Pro Week Ending November 9, 2018
Cabot Weekly Review (Video)
In this week’s stock market video, Paul Goodwin talks about the November bounce that has followed the October flop of the markets. While the rally is welcome, it’s still not enough to create a decisively positive condition in the markets. Cabot’s market timing indicators are still medium- and long-term negative, and will remain so until the major indexes can get decisively back atop their moving averages. So it’s still a time for holding a heavy cash position and keeping new buying at a minimum. Paul points out a few stocks that have created nice bases and a couple that have broken out to the upside and might be considered for small buying if you have plenty of cash on the sidelines.
Cabot Growth Investor
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.
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.
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 9: While volatility remains extreme, the market had another constructive week. Individual stocks have done well, too, thanks to a combination of buoyant earnings reactions and Wednesday’s booming advance. That said, the intermediate-term trend remains down but all indexes we track have popped back their 25-day moving averages. Today’s buy ideas are Amarin (AMRN), Eli Lilly (LLY), Ulta Beauty (ULTA) and Xilinx (XLNX). Mike has only one sell idea with Endo Pharmaceuticals (ENDP) which imploded on earnings.
Weekly Issue November 5: The good news is that this week’s list has many recent earnings winners that could do well once a new uptrend gets underway. Mike’s Top Pick is Exact Sciences (EXAS), a name he’s high on and that remains perched near its highs after another excellent quarterly report. He’s leaving the Market Monitor at a level 3.
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 Stocks on Watch November 9: The market is having its second down day in a row as the S&P 500 is lower by 1% and the Nasdaq is down 1.8%. And while the market is weak today, option order flow is fairly bullish with several trades targeting recent earnings winners. Jacob has his eyes on PayPal (PYPL), Dropbox (DBX), Tableau Software (DATA), Square (SQ) and eBay (EBAY).
Cabot Options Trader Position Update November 8: Yesterday afternoon Xilinx (XLNX) pulled back on a news report that the company may buy Mellanox (MLNX), which is another semiconductor company. Jacob is going to continue to hold his position.
Cabot Options Trader Market Update November 7: The VIX is trading at 17 today, which is lower, though certainly not screaming “all clear.” And along the same lines, Jacob’s daily option order flow list is tilted slightly bearish in early trade today. He attributes the slightly elevated VIX and marginally bearish option order flow to traders’ recent memory of the market malaise.
Cabot Options Trader Pro Position Update November 7: The Nasdaq ETF (QQQ) is surging higher this morning, trading at 174. Jacob is going to continue to hold the position as time decay is on our side with only eight trading days until the position expires.
Cabot Options Trader Stocks on Watch November 6: This morning a trader/traders bought big put positions in two leading growth stocks. Buyer of 10,000 Splunk (SPLK) March 90 Puts for $7.60 — Stock at 97.3 (bought with SPLK down 3% following a downgrade) and Buyer of 10,000 Tableau Data (DATA) January 100 Puts for $6.10 — Stock at 107 (earnings 11/6)
Cabot Options Trader Alert November 6: Adjust Existing Position: Sell your QQQ December 170 Puts and Buy the March 165 Puts (exp. 3/15/2019).
Cabot Options Trader Pro Alert November 6: Adjust Existing Position: Sell your QQQ December 170 Puts and Buy the March 165/155 Bear Put Spreads (exp. 3/15/2019).
Cabot Options Trader Market Update November 5: As we all know, tomorrow is the mid-term elections. So, what is the options market pricing in for a potential move following Tuesday’s results? When pricing a binary event like the mid-terms, we can look to the options market to see what the big market players are pricing in terms of risk.
Cabot Options Trader Weekly Market Update November 5: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week at 19.5, or lower by 19%. Jacob expects the 18-20 range in the VIX to be sticky for the next couple of days as traders continue to wrestle with the volatile market environment, as well as tomorrow’s mid-term elections.
Cabot Options Trader Pro Weekly Market Update November 5: 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 8: Delek U.S. Holdings (DK), D.R. Horton (DHI), Supernus Pharmaceuticals (SUPN) and TiVo (TIVO) reported quarterly results. Delek and D.R. Horton remain at Hold and Supernus and TiVo stay at Strong Buy.
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.
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.
Cabot Stock of the Week
Weekly Issue November 6: Today’s recommendation, MiX Telematics (MIXT), is a small South African software firm that not only enjoys good growth but also pays a small dividend. The stock was originally recommended by Paul Goodwin in Cabot Emerging Markets Investor. Here are tonight’s Portfolio changes: Altair Engineering (ALTR) moves from Buy to Hold, Green Dot (GDOT) from Buy to Hold, MedMen (MMNFF) from Buy to Hold and STAG Industrial (STAG) from Buy to Hold.
Cabot Emerging Markets Investor
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.
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.
Cabot Small-Cap Confidential
Weekly Update November 9: The market’s volatility is a relatively normal correction. Tyler’s plan is to keep making incremental moves to try to limit risk and pursue opportunities. Hopefully that will mean a number of positions move back to buy in November but the one exception is Bottomline Technologies which remains a BUY.
Special Bulletin November 7: Rapid7 (RPD) reported last night and results beat expectations, sending the stock up by around 10% today. Tyler is going to keep at Hold. However, if he sees more improvement in the broad market Rapid7 will likely move back to buy. Also, Q2 Holdings (QTWO) reported last night and results were more-or-less in line with expectations. For now, continue to Hold.
Special Bulletin November 6: Goosehead Insurance (GSHD) reported last night and the stock has pulled back a little throughout today’s trading session. This is not concerning to Tyler. He is keeping at buy and suggest continuing to average in as he believes we remain in the early innings of a unique, long-term growth story in the personal lines insurance market. Everbridge (EVBG) beat on both the top and bottom line last night and shares have advanced slowly throughout the day. Just keep holding.
Special Bulletin November 6: Yesterday Altair Engineering (ALTR) announced it would acquire Datawatch (DWCH), a company Tyler is somewhat familiar with as he held it in the Cabot Small-Cap Confidential portfolio for a short time. Altair moves to Hold after yesterday’s drop. It’s doing a little better today. Management will report on Thursday and we’ll get more info on the deal then, along with an update on the rest of the business. IntriCon (IIN) reported last night and revenue growth of 20.2% to $30.1 million missed by a fraction ($40,000) while EPS of $0.22 beat by $0.02. For now, keep Holding. Tyler will update you again on Friday.
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 7: The market has rallied since Chloe’s last update; all sectors except for utilities are higher over the last five days. Materials, energy, financial and consumer discretionary stocks have led the rebound. Chloe is not putting anything back on Buy today, although our portfolio contains plenty of good candidates for the honor—once the market convinces us this is the real thing.
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 8: The question Tim has been wrestling with is whether it’s time to redeploy some more of the cash that we took out of marijuana stocks on October 16, the day before Canadian legalization. He will now take half our cash and split it equally among Aphria (APHA), Aurora Cannabis (ACB), Canopy Growth (CGC), Cronos Group (CRON) and Tilray (TLRY).
Update November 5: Tim gives an analyses of each stock in the portfolio—and a refresher on strategy. Tomorrow, he will sell a third of the position in MedMen (MMNFF), because it has grown overweight, and will reinvest some of the cash in HEXO Corp. (HYYDF) and Organigram (OGRMF).
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 9: Sell: Fidelity Event Driven Opportunities (FARNX), Fidelity Emerging Asia (FSEAX) and Fidelity Low-Priced Stock (FLPSX) from Fidelity Monitor & Insight
Daily Alert November 9: Fidelity Blue Chip Growth (FBGRX) from Fidelity Monitor & Insight
Daily Alert November 8: Invesco S&P SmallCap Health Care ETF (PSCH), SPDR S&P Health Care Equipment ETF (XHE), the iShares U.S. Healthcare Providers ETF (IHF), the iShares U.S. Medical Devices ETF (IHI) and Invesco DWA Healthcare Momentum ETF (PTH) from Contrarian Outlook
Daily Alert November 7: Sell: Grubhub Inc. (GRUB) from Cabot Growth Investor
Daily Alert November 7: eBay Inc. (EBAY) from Wall Street Stock Forecaster
Daily Alert November 6: iShares Gold Trust (IAU) from Gold & Silver Stock Report
Daily Alert November 5: Atkore International Group Inc. (ATKR) from Upside
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 9: Sell: Las Vegas Sands Corp. (LVS) from Forbes Dividend Investor
Daily Alert November 9: Conagra Brands, Inc. (CAG) from Forbes Dividend Investor
Daily Alert November 8: Emerson Electric Co. (EMR) from Directinvesting.com
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.
Daily Alert November 7: General Dynamics Corporation (GD) from New Century Report
Daily Alert November 6: Sell: American Railcar Industries, Inc. (ARII) from The Prudent Speculator
Daily Alert November 6: Ford Motor Company (F) from The Turnaround Letter
Daily Alert November 5: Southern Copper Corporation (SCCO) from The Personal Capitalist
Ask the Experts
Cabot Emerging Markets Investor
Question: What do I do about BABA?
Paul: That’s a tough one. If my mom had bought at 102 as the portfolio did, I’d probably tell her to hold on. The stock’s action since October 30 looks like a real attempt at putting in a bottom somewhere between 140 and 150. Any drop back to the low 130s would probably cause a sell. BABA and the rest of the fundamentally sound Chinese stocks are being held back both by macroeconomic realities (damage to the Chinese economy from the trade war) and by general risk avoidance on the part of investors. It looks to me like Chinese stocks have absorbed enough punishment to be adequately discounted for current conditions. But I wouldn’t bet a nickel on that intuition. I’ll let the charts tell me what to do.
Cabot Marijuana Investor
Question: Tim, I was not near my computer on November 5, so I was not able to buy any HYYDF nor OGRMF when you recommended them. They were both selling around $4.00 per share and they are now $5.30 and $5.00 respectively. Is it too late to buy those stocks at those prices? Thanks.
Tim: Thanks for asking, but there’s no simple answer. At all times, we need to evaluate the short-term potential of each stock, both up and down. Back when those stocks were trading near 4, the bounce was young and the odds of it continuing were good. Now, with both stocks higher, short-term upside potential is a bit smaller while short-term downside potential is a little larger—and with stocks at these those low price levels, that could mean a 25% haircut in just a few days. So, my short answer is to invest now, because the trends are up, but to manage your risk by starting with modest position sizes. Also, don’t buy both stocks on the same day. Diversify your buying across time.
Cabot Top Ten Trader
Question: I know you are a fan of buying some upside earnings gaps, but how does that play in a market that is coming back but not yet in an uptrend?
Mike: Good question. There’s no doubt that powerful earnings gaps, especially from stocks that are at or close to new highs, is something to watch for. But you’re right -- in a market that is still trending down, many breakouts or earnings gaps will tend to back-and-fill afterwards (while some fail outright), with relatively few that just “gap and go.” That doesn’t mean you can’t nibble on a gap here or there, but until the market confirms a new uptrend, realize the odds favor most of these earnings gaps encountering some selling pressure in the days and even weeks after.
Cabot’s 10 Best Canadian Small-Cap StocksSpecial Report
August 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 IncomeSpecial Report
August 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 NowSpecial Report
July 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 StocksSpecial Report
Updated 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 NowSpecial Report
Updated 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.