Friday, October 3, 2008

Louis Navellier and DRYS

Original post date: August 7th
Removed copyright information and reposted

In his $5.000 Quantum Growth newsletter Mr. Navellier gave advices to his paying subscribers about DryShips (DRYS).

DRYS is a Greek company in the Maritime Transportation industry and articles talking about it were titled "And the World's Scariest Stock Is ...", "The Time Bomb in Your Portfolio", "Monday's Worst Stocks in the World" and so on.

What Mr. Navellier suggested to his paying readers was the following:

Nov 26 2007 Buy at $69.67
Dec 17 2007 Sell at $72.18
Realized Gain/Loss: 3.6%

Jan 22 2008 Buy at $53.86
Apr 14 2008 Sell at $60.01
Realized Gain/Loss: 11.4%

May 19 2008 Buy at $105.00
Jun 16 2008 Sell at $75.95
Realized Gain/Loss: -27.7%

Compound Realized Gain/Loss on DRYS: -16.5%

Mr. Navellier also suggested his $1.000 paying reader of Emerging Growth to buy DRYS on June 2008 at around $90. His readers are down some 26% at the moment.

The question that comes to my mind is: is it better to pay $1.000 to lose 26% or to pay $5.000 to lose 16.5%?

Now DRYS has good fundamentals: PE less than 5, average financial strength, good growth and good profitability. After a technical signal it could be time to buy.

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