Tuesday, September 30, 2008

Louis Navellier and CROX

Original post date:August 15th 2008
Removed copyright content and reposted

Mr. Navellier fell in the CROX trap too. And more than once.

On December 17th 2007 his $5.000/year Quantum Growth subscribers were invited by Louis to buy CROX with the following words:

The stock is now poised (at $39.78) to resurge higher and is an outstanding buy.

Just a few weeks later, on January 7th 2008, Louis wrote his usual two words: sell CROX. That day CROX closed at $28.14.

In only 3 weeks, Mr. Navellier's subscribers lost some 29%.

I do not have all the issues of Quantum Growth (and I don't care about having all of them) but I found that Louis pushed his $5.000/year paying readers to buy CROX also before December 2007.

In fact, in his teleconference of August 6th 2007 he said:

Things like Crocs — that had been very resilient — got hit with profit-taking (but you didn't take profit at all Louis, did you?)

I don't want you to worry about this [REMOVED]

So, please don't worry about that [REMOVED]
[...] Crocs will bounce back [...]

[...] Crocs is a phenomenal buy now (at $50).
[...] I'm not worried about Crocs. I'm just not worried about it.


OK, Louis was not worried about CROX, we got it. but his paying subscribers should have been...

For those who don't remember (those who did not buy CROX) here's what happened after August:

September 4th: buy CROX below $64.02
September 17th: buy CROX below $61.13
October 1st: buy CROX below $71.62
October 15th: buy CROX below $75.55
October 29th: buy CROX below $77.60

And finally on November 5th with CROX closing at $41.45:

Thanks Louis, your readers will be happy.

Now I don't know what Mr. Navellier did with this trade, but the readers who followed him between September and October 2007 brought home a loss between 30% and 45%. But Louis was not worried about it.

As a very last point I would like to compare the chart of CROX in the last year with the score it got in Louis Navellier's Portfolio Grader Pro, the companion website for his booklet (humorously titled "The Little Book That Makes You Rich").

First, this is the CROX chart:

This is the score CROX got in PGPro every month. A stands for Strong Buy, B for Buy, C for Hold, D for Sell and F for Strong Sell.

Let's also see the average price per month, just as an indicator.

Anything strange? I think you got it. Mr. Navellier's PGPro tells to buy on high prices and to sell on low prices.

That shouldn't be the way to get rich, should it?

1 comment:

Anonymous said...

I found something suspicios on the way he guves buy/sell signals. I tried one time his Blue Chip Grow and currently held a loss of 6000$$$

He gives bad advice and worst of all no stop loss in there

I started thinking to make the contrary or to take the service just to pick some stock

At the end i didn't renewed my subscription and tried some myself trading system from info collected around ...

and surprisingly i was able to have some gains!

My final idea is that he has good marketing and really enjoy subscription fees ;)