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Value Investor
Wealth Building Opportunites for the Active Value Investor

Cabot Undervalued Stocks Advisor Special Bulletin

One stock moves from Strong Buy to Buy, one moves from Strong Buy to Hold, and one moves from Buy to Hold.

Today’s news: Baker Hughes, a GE Co. (BHGE) moves from Strong Buy to Buy, Blackstone Group LP (BX) moves from Strong Buy to Hold, and GameStop (GME) moves from Buy to Hold.

As a reminder, I am spending my days in a hospital on Long Island with my Dad. I might be delayed in answering emails. Thank you for your patience!

Baker Hughes, a GE Co. (BHGE – yield 2.0%) moves from Strong Buy to Buy as the stock nears short-term price resistance at 37, where it last traded in September 2017. Barring a disruption in the broader stock market, I expect BX to rest or have a pullback once it reaches 37, then to continue rising in a few weeks or months. Traders should consider whether to sell now or hold; everybody else should hold BHGE for additional capital gains this year. Buy.


Blackstone Group (BX – yield 6.7%) moves from Strong Buy to Hold today as the stock inches closer to 37 where it last traded in early 2015. I will likely sell near 37, but I want to reiterate that BX is still an undervalued growth & income stock with a fantastic dividend yield. Unless you’re focused almost entirely on capital gains, you should plan to keep BX in your portfolio. Everyone else should plan to sell near 37. Lastly, don’t wait for me to pull the trigger. Put in a sell order somewhere between 36 and 37 so that you can get the price you’re looking for before I issue a Sell Bulletin. Hold.


GameStop (GME – yield 7.6%) moved from Hold to Buy on November 13 due to the incredible dividend yield. (As share prices fall, current dividend yields rise, sometimes creating incredible buying opportunities.) The share price has since risen 25%, and the price chart suggests that the stock might cease rising in the short-term at about 20 or 20.5. I’m moving GME from Buy to Hold. Whether you like the stock for potential capital gains or for the dividend yield, I think that you’ll probably get a better purchase price on the stock in the coming weeks as GME has a natural pullback. If you bought GME in November for a short-term trade, it seems prudent to sell now. If you bought GME for the dividend yield, hold your shares, and consider buying more on a pullback. Hold.