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Weekly Summary September 13, 2019

Cabot Prime Pro Week Ending September 13, 2019

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, gives you the lowdown on this week’s dramatic rotation and how he’s playing it — he sees some red flags for some of the big winners of the past couple of years, but also sees some opportunities in other growth stocks that have been consolidating for many months. He shares some of the top ideas on his watch list and talks about what he’s looking for to put a chunk of money to work.


FREE WEBINAR: Wednesday, October 23

How to Make Money in the Age of U.S.-China Rivalry + 3 Global Stocks to Buy Now

By Carl Delfeld, Chief Analyst of Cabot Global Stocks Explorer | Space is limited so sign up now for FREE.

Also, Carl will be speaking at the MoneyShow in Philadelphia on September 26-28. Attendees get in free. Click here for more information.

Advisory Services

Cabot Growth Investor

Bi-weekly Issue September 12: Mike is taking things on a stock-by-stock basis. Since last week, he’s sold the rest of our Okta (OKTA) and taken partial profits in both Coupa (COUP) and Chipotle (CMG). But tonight he’s adding a half position in DocuSign (DOCU), which looks like a new leader. Our cash position will now be around 39%.

Special Bulletin September 10: Mike is taking partial profits in Chipotle (CMG), which will raise our cash position to around 44%. He’s also moving Inphi (IPHI) to Hold, though he’s placing ProShares S&P 500 Fund (SSO) back on Buy as our Cabot Tides have turned green.

Special Bulletin September 9: Today, Mike writes, both Coupa (COUP) and Okta (OKTA) are under pressure, along with everything else in the group. While he doesn’t advise reacting to a bad day here or there, we’ve now seen many weeks of distribution and sloppy action in the group, with the recent selling pressure a red flag, at least in the intermediate-term. So he’s going to take the rest of our profit in Okta (OKTA) and he’s also going to sell one-third of our shares in Coupa (COUP), which is one of the best looking names in the entire sector.

Bi-weekly Update September 5: Remain cautious, but stay open minded. Mike is encouraged by the recent action from the market, including some of the power and breadth of the rally. However, our Cabot Tides are not yet positive and growth stocks have been hit or miss, with investors rotating into beaten-down areas. He’s optimistic, but still advises being choosy until he sees more positive evidence. Tonight, though, he’s doing a little buying—he’ll add a half position in Inphi (IPHI), which will leave us with around 31% in cash.

Other Stocks of Interest August 30: Follow ups to stocks featured April 11, 2019 (issue 1417) to August 29, 2019 (issue 1427). 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. Feel free to email me directly ( with any questions/comments you have.

Cabot Top Ten Trader

Movers & Shakers September 13: Mike thinks it’s best to go slow for the moment. Oftentimes, when there is this much volatility and this many crosscurrents under the surface, you’ll see vicious re-rotation (money sloshing back and forth based on the news of the day), which makes it difficult to get sustained advances out of individual stocks. Plus, of course, there’s always a chance that the selling in the leaders spreads to the rest of the market. Today’s buy ideas are: Casey’s General Stores (CASY), (JD) and Teradyne (TER). There are 10 outright sells today.

Weekly Issue September 9: Many leading growth titles have actually been flashing abnormal intermediate-term action, especially in the software and cybersecurity areas, and Mike advises taking action when need be. (He has a number of sells on page 12.) That said, many recently strong names, especially turnarounds and some more cyclical-oriented stocks, are acting just fine. All told, it’s a very mixed environment with lots of crosscurrents, so the goal is to ditch stocks that are acting abnormally, and on the buy side, being picky, looking for stocks showing recent power that are near decent entry points. This week’s list reflects what he’s seeing in the market, with some fresher growth-oriented names as well as some turnarounds with big projected growth. Mike’s Top Pick is ASML Inc. (ASML), which looks to be leading a group upmove in the chip equipment space.

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 Alert September 13: Hedge: Buy the S&P 500 ETF (SPY) March 298 Puts (exp. 3/20/2020) for $12.50 or less.

Cabot Options Trader Stocks on Watch September 11: Based on the questions Jacob has received the last several days he can tell that many of you are looking to play a bounce in many of these hyper growth stocks. He give a couple of options trades made in two of these stocks that have fallen in recent weeks.

Cabot Options Trader Market Update September 10: As Jacob has been highlighting the last two weeks in his Monday Weekly Update, there were signs that “hyper growth” stocks were beginning to crack, and that money may be rotating into other sectors. And yesterday those cracks turned into an earthquake as momentum stocks fell dramatically and value stocks ripped higher.

Cabot Options Trader Alert September 10: Close Existing Position: Sell your Microsoft (MSFT) October 115 Calls for $20 or more.

Cabot Options Trader Pro Alert September 10: Close Existing Position: Sell your Microsoft (MSFT) October 115/135 Bull Call Spreads for $15.65 or more.

Cabot Options Trader Pro Alert September 9: Close Half of Existing Position: Close Half your (CRM) October Iron Condor for $0.53 or less.

Cabot Options Trader Pro Weekly Update September 9: Jacob has 10 Long positions: DIS, KO JD, LSCC, MDT, MSFT, RF, SNAP, TGT and XME and two positions not making an impact on his decision making: LVS and CRM.

Cabot Options Trader Weekly Update September 9: The Chicago Board of Options Exchange Volatility Index (VIX) closed the week at 15, or lower by 21%. Interestingly this is the lowest close for the VIX since early August and a fairly deep retreat from the 19-20 level that had been sticky for the last month. I would expect the 14-15 area to be a floor for the VIX unless the market makes new all-time highs, or the trade war is resolved.

Cabot Undervalued Stocks Advisor

Special Bulletin September 12: Crista is moving Sanmina (SANM) from Buy to Retired. And she has news stories on Apple (AAPL), Baker Hughes (BHGE), Blackstone Group (BX), DaVita (DVA) and The Mosaic Company (MOS).

Weekly Update September 10: Crista is adding a new stock today to the Special Situations Portfolio, Bristol-Myers Squibb (BMY). Other portfolio changes today are: Guess? (GES) moves from Buy to Strong Buy, Royal Caribbean Cruises (RCL) moves from Hold to Buy and Total SA (TOT) moves from Hold to Buy.

Monthly Issue September 3: Wall Street is back to work this week. You’ll notice that management at many of your portfolio companies are giving presentations at analyst meetings this week. Crista encourages you to visit their websites in the coming days and listen to the webcasts of the meetings. You’ll gain lots of specific and sometimes interesting knowledge on business trends, tariffs, plans for their use of excess cash, etc. Featured stocks this month are: DaVita Inc. (DVA), which joins the Growth Portfolio, Commercial Metals Company (CMC) and Designer Brands Inc. (DBI). There are three portfolio changes today: Abercrombie & Fitch (ANF) moves from Buy to Hold, DaVita Inc. (DVA) joins the Growth Portfolio as a Strong Buy and Marathon Petroleum (MPC) moves from Hold to Buy.

Cabot Stock of the Week

Weekly Issue September 10: All of Cabot’s market timing indicators are once again positive, as uptrends have resumed, but that doesn’t mean you can buy just anything. In fact, there’s been some real weakness in leading growth stocks in recent days, as rotation brings new leaders to the fore. One of these new leaders is a stock that has spent six long years trying to break out above resistance and recently succeeded—and that’s Tim’s recommendation today: Meritage Homes (MTH), was recently recommended by Mike Cintolo in Cabot Top Ten Trader Here are today’s portfolio changes: Bandwidth (BAND) Buy to Hold, Brookfield Infrastructure Partners (BIP) Buy to Hold, Coupa Software (COUP) Buy to Hold, Exact Sciences (EXAS) Buy to Sell, Luckin Coffee (LK) Hold to Buy and Match Group (MTCH) Hold to Sell.

Cabot Global Stocks Explorer

Bi-weekly Update September 12: It was a pretty quiet week with most of our stocks up in the 3% -5% range. Carl writes that global and emerging stocks continued to move ahead as President Trump offered a “goodwill gesture” to China, suggesting potential progress in October talks. There are no changes to the portfolio.

Bi-weekly Issue September 5: Our Emerging Markets Timer has raced higher in recent days, putting it within striking distance of a new buy signal. Carl’s recommendation today is Yandex (YNDX), is overlooked by even sophisticated investors and even then, is primarily viewed as only a search engine play that has cornered 57% of the Russian market. It’s rated Buy a Half. There is one portfolio change today: LexinFintech (LX) Moves from Hold to Buy.

Cabot Small-Cap Confidential

Weekly Update September 13: Tyler has mentioned several times this year that the huge outperformance of a relatively small subset of stocks—many of which we own—wouldn’t go on forever. This market action is that statement playing out. And as has become somewhat more evident in recent years these rotations—or shakeouts, or corrections, or whatever you want to call them—are happening very quickly. Tyler made many incremental moves this week, locking in partial profits on stocks in which we have sizeable gains. He’s just pumping the brakes a little and taking a little money off the table. Today he’s moving Repligen (RGEN) from Hold to Buy.

Special Bulletin September 10: Normally Tyler advises buying on pullbacks in growth stocks. But there are pullbacks, and there are corrections. This feels more like the latter. He hates to be reactionary, and it’s a little early to make a definitive call as to where we’re going (the broad market is looking just fine). But we’ve been riding a strong wave for a while and with things getting a little choppy it’s time to take modest measures to protect our gains. With that in mind he’s going to make a few incremental moves today by selling partial positions. AppFolio (APPF) Sell 1/4 hold the rest, Rapid7 (RPD) Sell 1/4 hold the rest, EverQuote (EVER) Sell 1/4 hold the rest, Quanterix (QTRX) Sell 1/2 hold the rest, and Avalara (AVLR) Sell 1/4 hold the rest.Repligen (RGEN) and Everbridge (EVBG) move from Buy to Hold.

Monthly Issue September 6: Today’s recommendation, Cardlytics (CDLX),is an $810 million market cap company that has developed a purchase intelligence platform that is in the early innings of being adopted by major financial institutions (FIs) in North America (88% of revenue) and the U.K. (12% of revenue). There are no portfolio changes today, but Tyler is watching Domo Inc (DOMO) closely.

Cabot Dividend Investor

Weekly Update September 11: The overall market appears to be largely pricing in a continued trade war with China and a slowing global economy. It’s also pricing in a rate cut this month and more to follow. The indexes appear to want to forge higher provided trade frictions don’t get worse, the global economy doesn’t crash and the Fed comes through on the rate cuts. There are no portfolio changes today.

Monthly Issue August 28: Tom says this is one of those times in the market where investors are fearful instead of greedy. It is a market where safe stocks shine. The market has fallen every week for four straight weeks and is down 5% over the past month. And, right now, there doesn’t appear to be a catalyst out of the current woes, unless there is a trade deal. In this issue Tom highlights Alexandria Real Estate Equities (ARE), one of the very best defensive dividend stocks on the market. It has rock solid earnings in any environment and the stock should perform well in just about any market.

Cabot Marijuana Investor

Update September 12: The portfolio comes into today roughly 24% in cash, but by putting money back into the stocks that deserve it, Tim will now take that cash level down to about 13%. The portfolio will now sell half of its position in Turning Point Brands (TPB) but average up in Cronos (CRON), Curaleaf (CURLF) and OrganiGram (OGI).

Monthly Issue August 29: Going into today, the portfolio is 20% in cash, 80% invested, and most heavily invested in Aphria (APHA) and Curaleaf (CURLF), the current largest revenue producers in Canada and the U.S. Tim hopes to use our cash to do some new buying soon, both in current holdings and new additions, but he needs to see a little more sector strength first. In the meantime, he’s paring back more on some of our weakest stocks, selling half of Aurora (ACB), half of Innovative Industrial Properties (IIPR), all of KushCo (KSHB) and taking our position in Canopy Growth (CGC) down to 1%. After these actions, the portfolio will be about 31% in cash.

Wall Street’s Best Investments

Daily Alert September 13: The Boston Beer Company, Inc. (SAM) Weiss Stock Ratings Heat Maps
Daily Alert September 12: Chubb Limited (CB)
Daily Alert September 11: Cenovus Energy Inc. (CVE) Energy Investor
Daily Alert September 10: Loews Corporation (L) Adrian Day’s Global Analyst
Daily Alert September 9: BMC Stock Holdings, Inc. (BMCH) Upside

Monthly Issue August 7: Tech stocks have had a big year so far in 2019, and technology continues to rapidly evolve, making companies more efficient and providing cost savings along the way. And that is exactly what our Spotlight Stock, Asure Software, Inc. (ASUR), does. This cutting-edge tech company is making big waves in the human resource and workspace arenas, offering products that serve the changing demographic landscape. Nancy’s feature article delves a bit deeper into the company’s strategy and market potential.

Wall Streets Best Dividend Stocks

Monthly Issue September 11: Nancy’s issue this month begins with her Spotlight Stock, which is actually two stocks who used to reside in the same company, split up, and are now reuniting. They are CBS Corporation (CBS) and Viacom (VIAB), scaling up to battle some fierce competition. Her Feature article further explores what the new company may look like.

Daily Alert September 11: Kronos Worldwide, Inc. (KRO) Forbes Dividend Investor
Daily Alert September 10: Physicians Realty Trust (DOC) Small Cap Informer
Daily Alert September 9: Wells Fargo & Company (WFC-PL) Jack Adamo’s Insiders Plus

Ask the Experts

Cabot Options Trader

Question: Is VEEV caught in the general downdraft of hyper-growth stocks, or is something else going on? The stock rose after earnings and has sine dropped $20 into the mid-140s. I am holding the stock and trying to decide what to do. While I can’t be 100% sure, I am 99.9% sure that VEEV is falling into the same category as all of the growth stock stars that are now falling.

Jacob: Two ways you could handle this if you want to continue to hold your stock.1. Sell a covered call against your stock holding. That would lower your exposure as you collect a premium. However, if the stock explodes higher, you might have your stock called away from you. Something like the December 170 calls for $3.50.2. Buy a put to protect just in case the stock falls further. The “downside” to this position is that you would be paying an insurance premium of sorts. Upside is you get to participate if the stock explodes higher. Something like the October 140 Puts for $5.50 would protect for the next month (but not much more)

Cabot Undervalued Stocks Advisor

Question: It looks like PPG Industries (PPG) is on the verge of a multi-year breakout. Should I wait to enter on a pullback within its trading range?

Crista: Looking at the price chart for PPG Industries (PPG), I agree that we could see an imminent long-term breakout above 119. In the coming days, the stock could pull back to 115 before advancing again. Whether you wait to buy on the breakout, or gamble that you’ll get a chance to buy at 115, I’m thinking that either opportunity could benefit you. The fundamentals are decent: projections for rising revenue and approx. 11% EPS growth next year; moderate dividend; moderate debt levels; fair P/E. Importantly, the market seems to be rotating from growth to value stocks, and PPG is in the sweet spot for that investment style.

Premium Reports

Cabot Prime Quarterly Report

Special Report

July, 2019: After a straight-up first quarter, the second quarter was a good one, though proved far trickier. April was solid, though we saw the broad market stall out. May brought a very sharp correction (10% on the Nasdaq!). And then June was a big winner, with the major indexes and many leading stocks ripping back to their highs. Despite the ongoing worries and uncertainties in the world (U.S.-China trade, what the Fed will do, Iran, politics, you name it), you should listen to the message of the market—and that message remains bullish.

Cabot’s 10 Best REIT’s to Buy Now

Special Report

May 2, 2019: REITs are a way for investors to have a diversified portfolio of real estate-related investments even if you don’t have millions of dollars, much like mutual funds did for stocks. And REITs are traded on the market, just like stocks. In this new, exclusive report, you’ll discover how to profit in REITs, even when interest rates are rising.

Cabot’s Ten Best Canadian Small-Cap Stocks

Special Report

Updated March 6, 2019: 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 relative performance of ex-U.S. markets is showing that’s no longer the case. There are market-beating returns available to those investors willing to step abroad. And one of the easiest steps to take is just over the border with our neighbor to the north, Canada. For the modestly adventurous investor, I think there are quite a few Canadian stocks worth a look right now.

Cabot’s Best Safe Investments for Uncertain Times

Special Report

December 21: This report gives you some suggestions of the safest, productive places to put your money when the market gets bumpy.

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.

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.

StockCabot Small-Cap ConfidentialCabot Global Stocks ExplorerCabot Growth InvestorCabot Marijuana InvestorCabot Stock of the WeekCabot Undervalued Stocks AdvisorCabot Dividend Investor
AAPLBuyStrong Buy
ACBSee Advisory
ALKBuyStrong Buy
APHASee Advisory
APPFSell 1/4
AVLRSell 1/4
AXPHold 1/2
BHGEStrong Buy
BMYStrong Buy
BSCJBuy 1/2
BSCLBuy 1/2
CBuyStrong Buy
CFStrong Buy
CGStrong Buy
CGCSee Advisory
CHCTHold 2/3
CMGSell 1/3
CRLBFSee Advisory
CRONSee Advisory
CTVAStrong Buy
CURLFSee Advisory
CVNABuy 1/2Buy
CWBHFSee Advisory
DBIStrong Buy
DBSDYBuy 1/2
DOCUBuy 1/2
DVAStrong Buy
EVERSell 1/4
GESStrong Buy
IBNBuy 1/2
IFNNYBuy 1/2
IIPRSee Advisory
LKBuy 1/2Buy
LQSIFSee Advisory
MKCHold 1/2
MMNFFSee Advisory
MMYTBuy 1/2Hold
OGISee Advisory
PGXBuy 1/2
QTRXSell 1/2
RKUNYBuy 1/2
RPDSell 1/4
SEHold 1/2
TCEHYBuy 1/2
TPBSee Advisory
UEICStrong Buy
VFFSee Advisory
VOYAStrong Buy
XELHold 2/3
YNDXBuy 1/2
ZTOHold 1/2