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Cabot Prime Pro Week Ending December 3, 2021

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 market’s maelstrom of the past two weeks, with the broad market coming under massive pressure and taking the vast majority of stocks along with it. Mike’s not ruling out this being a news-driven shakeout of a few weeks (virus fears, etc.), but as always he’s going with the evidence, which has turned bearish.


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Advisory Services

Cabot Growth Investor

Bi-weekly Issue December 2: Growth stocks had been wobbly since early November, and the one-two punch of the new virus variant and hawkish words from the Federal Reserve have sent them (and the broad market) reeling. Of course, we’re less interested in the “why” than the “what,” but the action has led us to pare back and raise cash in the past two weeks.

Special Bulletin December 2: The relentless selling continued yesterday—while the major indexes were up, growth stocks continued to decline as the broad market remained weak. In the Model Portfolio, we’re doing more selling today: We’ll sell one-third of our remaining shares of Cloudflare (NET), and we’ll cut bait with our half-sized stake of Dexcom (DXCM). That will put our cash position in the high 50% range.

Special Bulletin November 30: The market is taking another big hit today, causing our Cabot Tides to turn negative and cracking more stocks. In the Model Portfolio, we came into the week with 45% in cash, but we’re raising more today—we’re selling our half-sized stake in ZoomInfo (ZI), which has fallen apart with growth stocks and the market.

Bi-weekly Update November 24: For growth stocks and indexes, there’s clearly been a lot of damage this week. Funds like ARK Innovation (ARKK) have hit new six-month lows, while broader indexes like the Next Generation Nasdaq (QQQJ) and Russell 2000 Growth (IWM) have slid all the way to their 50-day lines and given up big chunks of their October rallies.

Cabot Top Ten Trader

Movers & Shakers December 3: The big-cap indexes continue to hang in there, with this morning’s bounce bringing both the S&P and Nasdaq up to around breakeven on the week. That said, there’s little doubt the damage to the broader market has been severe—indexes like the S&P 600, S&P 400 and NYSE Composite are not just down on the week but sitting below their 50-day lines. All in all, then, the intermediate-term trend is down.

Weekly Issue November 29: The news of a new virus variant came out of left field late last week, whacking the major indexes on Friday … though today brought a so-so rally as some think the economic impact of omicron won’t be as bad as feared. Mike’s Top Pick is Trade Desk (TTD), which has held up well and already went through the wringer much of this year. Try to buy on further 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 Pro Trade Alert December 3: Adjust Existing Position: Against CSCO January 55 Calls, Sell the January 60 Calls (exp. 1/21/2022) for $0.55 or more.

Cabot Options Trader Basic & Pro Market Update December 3: Growth stocks are getting crushed again today, with the headliners being DOCUdown 40% and ASAN lower by 26% following earnings from both. But those are just two of the countless stock meltdowns we are seeing as the poster boy for growth ARKK Innovation ETF (ARKK) is down 6%, and making a new multi-month low. It’s flat out UGLY for growth stocks.

Cabot Options Trader Basic & Pro Earnings Update December 3: Yesterday afternoon Marvell (MRVL) reported earnings that crushed expectations. In pre-market trade this morning MRVL stock is trading higher by 20% at 85. Though of note, pre-market indications are not a great indicator of where the stock may open, especially in this wild market.

Cabot Options Trader Basic & Pro Market Update December 2: I’m not going to sugarcoat it, the market, and many of our stocks, have gone through the ringer the last three weeks. It hasn’t been particularly fun, but if there isn’t a bit of risk, there can’t be a big reward.

Cabot Options Trader Basic Trade Alert November 30: Sell Existing Position: Sell your MS January 100 Calls for $2.25 or more.

Cabot Options Trader Pro Trade Alert November 30: Sell your MS January 100 Call, and Buy Back your December 110 Call for $2.15 or more.

Cabot Options Trader Pro Trade Alert November 29: Against your Marvell (MRVL) February 67.5 Calls, Sell the February 90 Calls (exp. 2/18) for $1.10 or more.

Cabot Options Trader Pro Weekly Review November 29: Long positions: CSCO, CGC, DVN, FCX, JETS, MRVL, MS, UBER, XLV. Bearish Positions: None

Cabot Options Trader Basic Weekly Review November 29: The holiday-shortened week started out fairly mundane, but ended with fireworks, as news of a new Covid-19 strain, Omicron, hit the stock market. The thinly traded equity markets didn’t take kindly to the news as the market saw its worst one-day loss in several months.

Cabot Undervalued Stocks Advisor

Monthly Issue December 1: A week ago, we wrote how the stock market appeared to be shifting to a post-Covid economy. This economy would feature slower/normalized/sustainable growth following the bulge from the pandemic stimulus programs and pent-up demand, along with the effects of higher interest rates and a relenting of supply-chain issues. The emergence of the Covid Omicron variant has temporarily upended this view, for now.

Special Bulletin November 24: Today we are moving General Motors (GM) from Buy to Sell. General Motors has made a remarkable transition from bankruptcy in 2009 to a highly-profitable and innovative contender in the rapidly changing global auto industry, driven by CEO Mary Barra. However, with the shares at about $62, we think the risk/reward trade-off has moved into unfavorable territory, and are thus moving the shares to Sell.

Weekly Update November 24: The stock market is shifting to a post-Covid environment that features slower post-bulge spending, higher interest rates and a relenting of supply chain issues. While nearly all stocks have surged in the bull market, we find that Citigroup (C) shares have been overlooked, and recommend them as a Buy. We also include comments on other recommended stocks.

Cabot Stock of the Week

Weekly Issue November 29: Tim’s featured stock Coinbase (COIN), is one of the leading exchanges for cryptocurrencies. The company is young, rapidly evolving, growing at a blistering pace and plays in a market (crypto) not well understood by the masses. To put it mildly, a wide range of share price performance outcomes are possible.

Cabot Explorer

Bi-weekly Update December 2: The market has entered a rough patch, especially for tech and stocks that have not been demonstrating relative strength. Explorer stocks are all over the map, with Coupa (COUP) and Cloudflare (NET) showing some weakness, many positions holding steady, and Novonix (NVNXF) up 25% in the last week.

Bi-weekly Issue November 23: Carl’s new recommendation Ford (F), has more than 160,000 nonbinding orders for its electric F-150 Lightning pickup truck, which is scheduled to go on sale this spring. Ford plans to produce 80,000 F-150s a year. Big picture, Ford plans to sell 600,000 EVs annually by 2023. By 2030, Ford expects to generate 40% of its revenue from electric vehicles (EVs).

Cabot Small-Cap Confidential

Special Bulletin December 3: Suffice to say it’s been a tough week. As we head into a weekend that can’t come quickly enough, the main market indices are down over 2.5% and many, many stocks are 20%, 30% or 40% off their highs (some are better, some are worse).

Special Bulletin December 3: JOANN (JOAN) reported Q3 fiscal 2022 results after the close yesterday. This quarter was for the period ending on October 30. Revenue missed expectations slightly but adjusted EBITDA and adjusted EPS surpassed expectations. The high-level take away is that supply-chain challenges persist (no surprise there) but JOANN is doing what it can and appears to have the pricing power necessary to maintain a strong underlying business and pursue the growth strategy it has embarked upon to extend its lead in the arts and crafts retail market.

Monthly Issue December 2: Tyler’s new recommendation SiTime Corporation (SITM), is a fabless semiconductor company that provides MEMS (micro-electro-mechanical systems) and silicon-based timing systems. The product portfolio encompasses oscillators, clock ICs and resonators. The company is winning business hand over fist because of its expertise designing MEMS resonators and analog mixed-signal circuits and putting the technologies together into an advanced system-level solution that solves customers’ complex timing problems.

Special Bulletin December 2: Shares of Fiverr (FVRR) continue to slide, despite a beat-and-raise Q3 report and the threat of Omicron, which in theory should be good for some work-from-home (WFH) stocks. But the selling pressure is just too strong, and FVRR just broke below support near 150. We only have a quarter position left so we’ll take the roughly 300% gain on this chunk and move on to the next opportunity. Sell.

Special Bulletin December 1: The tough part with a lot of attractive names is that we could see a big rally (or fall), depending on what we learn. With a lot of growthy stocks down 20% to 30% off highs (some more, some less) we are in a range where we “usually” start thinking about deals. That’s likely why the market was up over 1% early this morning.

Weekly Update November 24: We’ve made a few moves recently to reduce our downside risk during a market retreat and we’ve added some names that I think can do very well in the face of rising interest rates. Recent sells, including Accolade (ACCD) and Cerence (CRNC) speak to the former, while recent additions, Rani Therapeutics (RANI), Shutterstock (SSTK), and Thunderbird Entertainment (TBRD.CA, THBRF) speak to the latter.

Cabot Dividend Investor

Weekly Update December 1: Not only does the new virus strain add a wildcard to the market, but it also directly counters the narrative that had been unfolding. Inflation is gaining momentum as a force and a market theme. The Fed this week officially retired the “transitory” phrase because inflation is clearly a bigger problem than initially perceived. The Chairman also said the central bank could curtail its stimulus at a faster pace to fight inflation.

Monthly Issue November 10: Tom’s featured stock Valero Energy (VLO), is the largest petroleum refiner in the U.S. It has 15 petroleum refineries and markets products in 43 states, Canada and the U.K. It is also one of the largest producers of ethanol and has a rapidly growing renewable diesel business.

Cabot Marijuana Investor

Update December 1: As we enter the final month of the year, market volatility has increased, and with it, investor anxiety. But the main trend of the market remains up, so I remain confident that intelligent investors who follow proven investing disciples can make money—which brings me to an email I received from a reader just today.

Monthly Issue November 17: The chatter at the moment is centered on South Carolina Republican Representative Nancy Mace, who this week introduced the States Reform Act, which would remove marijuana from the Controlled Substances Act while ensuring that businesses in states where marijuana is currently legal can continue to operate unimpeded by changing federal rules, and would establish a federal tax rate of 3%, down from 3.75% in an earlier version, and significantly lower than competing Democratic proposals.

Cabot Early Opportunities

Special Bulletin December 3: The basic premise of the rolling crash is that it – no surprise – rolls through the market hitting different groups of stocks at different times. It’s very unpredictable, and only comes into focus after the process is well underway, as is the case now.

Special Bulletin December 1: This is a tricky situation as it really comes down to this new variant and what the vaccine effectiveness against it is. There just doesn’t appear to be much of a bid for so many stocks so they all keep sliding (except for AAPL - only partially joking). We just need to get some credible report on the variant situation.

Special Bulletin November 23: As we’ve learned from past corrections like this, they’re painful and emotionally draining. And like a lot of things, they come on much more rapidly than in the past. But they pass in due time, and they open up a lot of great buying opportunities. The trick is to make sure you have both the stomach and the capital to take advantage of those opportunities.

Monthly Issue November 17: Same as last month, we’re leaning bullish but keeping an ear to the ground as there are plenty of potholes out there that could trip up the market. Our efforts to manage our portfolio size are working as we’ve been able lock in several profitable positions over the last month, while keeping most of our strongest performers. Tyler’s top pick is Coinbase (COIN).

Cabot Profit Booster

Weekly Issue November 30: The holiday-shortened week started out fairly mundane, but ended with fireworks, as news of a new Covid-19 strain, Omicron, hit the stock market. The thinly traded equity markets didn’t take kindly to the news as the market saw its worst one-day loss in several months. Jacob’s new stock recommendation is Camping World Holdings (CWH).

Update November 22: On Friday the Marathon Oil (MRO) November 16.5 Call that we sold for $1.01 expired worthless, as oil stocks came under pressure. Today, MRO stock is up 2% along with its oil stock peers. We are going to take advantage of today’s stock gains to exit this stock position for a small loss, so we can move this capital into a fresher idea next week.

Cabot Micro-Cap Insider

Weekly Update December 1: Market volatility has picked up, but the new COVID variant doesn’t seem too concerning to me. From early data, it looks like symptoms are very mild (although it does spread quickly).

Monthly Issue November 10: Rich’s new recommendation Esquire Financial Holdings (ESQ) is a niche bank focused on lawyers and the litigation industry. Due to its specialty and expertise, it has been able to grow very well. Lawyers are low credit risk, and consequently losses have been low. Despite strong growth, the stock trades at a very cheap valuation. Looking out a couple of years, Esquire should be trading significantly higher.

Cabot Income Advisor

Weekly Update December 1: Everything was going so well. And then things turned sour on a dime. The party pooper virus is up to its old tricks again. The market had one of the worst days of the year on the Friday after Thanksgiving as news spread that a new strain of the coronavirus (called Omicron) has emerged in Africa. Fears of more lockdowns sent the market, and cyclical stocks in particular, reeling.

Monthly Issue November 24: This great and epoch market recovery might be finally running out of gas. The S&P 500 is up over 100% since the bottom in March 2020. That means the market has gained as much value since that bottom as it had accumulated from the beginning of time until March of last year. It’s also up about 40% from the high before the pandemic and 10% just since early October. Such returns simply cannot continue.

Cabot Turnaround Letter

Weekly Update December 3: The Friday note and podcast highlights the monthly letter’s articles on “Year-end Selling: Turning Other’s Losses into Gains” and on four worthwhile contrarian ideas found in 13F filings, along with our feature BUY recommendation of The Western Union Company (WU). The Catalyst Report is included in our Friday note, along with updates on our names. Dril-Quip (DRQ) is an intriguing deep-value situation at the current price. Also: the Ohio State-Michigan football game and why we don’t “talk our book”.

Monthly Issue December 1: Our featured recommendation this month is The Western Union Company (WU). Shares of this global money transfer company have remained unchanged (actually, down 10%) since their spin-off in 2006. The company has sizeable challenges as it faces strong fintech competitors, but it continues to have stable/rising revenues, generate sizeable free cash flow and is backed by a healthy balance sheet.

Ask the Experts

Cabot Growth Investor

Question: Oil prices seem (to be) bottoming out. Do you think we can now increase the position in Devon Energy (DVN) given the market volatility moving price?

Mike: Thanks for writing. Hmm, not sure I see them bottoming out yet. Actually, I am impressed with the resilience of DVN and some other energy names given the huge oil price declines, and I do think that could bode well. But no, if you already own some, we’d just hang on here and see how it plays out. This market correction is getting broader and deeper and until it ends it’ll be hard for anything to really make much progress. Hold if you own some, but I wouldn’t add on.

Quarterly Cabot Analyst Meeting

The recording of the Cabot Prime Members Meeting with the Analysts from October 13, 2021 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.