Friday, November 7, 2008

Louis Navellier and ELN

Original Post Date: August 7th
Removed copyright content and reposted



Let's have a look at how the icon among growth stock investors performed recently with a stock I would not have wanted even if someone gave it to me free: ELN.


Just one reason: EPS: -$0.70! If you want me to take this stock, you have to pay me more than 70 cents per share. Period.

Back in January (28th) 2008 Mr. Navellier was writing to his $5.000/year paying Global Growth readers:

Company: Elan Corporation PLC (ELN)
Country: Ireland
Industry: Pharmaceuticals: Other
Buy Below: $24.83
Ireland's Elan Corporation PLC (ELN) is focused on the [REMOVED].
Price was $23.17.

On February 4th the buy below price was $28.47 and the market price was $26.70

On February 11th the buy below price was $27.04 and the market price was $25.36

On February 19th the market price was $25.33 and Mr. Navellier wrote:
Ireland's Elan Corp. PLC (ELN) reported a loss [REMOVED]. But for 2007 as a whole, Elan's net loss was $405 million, [REMOVED].

On February 25th the buy below price was $25.60 and the market price was $24.01

On March 3rd Mr. Navellier lowered the buy below price to $23.70 and the market lowered ELN price to $22.14

On March 10 Mr. Navellier told his paying subscribers to sell this peace of junk at $18.40 and take home a 20% loss.

But Mr. Navellier was so convinced that an EPS of -70 cents is nothing that after a few months he told his $5.000/year Global Growth subscribers to buy ELN again at around $34.02.

Let's take a pause here. If we decided to buy on March 10th when Mr. N. was selling and to sell on July 14th when Mr. N. was buying we would have realized a gain of:

($34.02 - $18.40) / $18.40 - 1 = 84% (missed profit for Mr. Navellier)


Let's go on. Here is what Mr. Navellier was writing on July 14th 2008:

Ireland's Elan (ELN) specializes in the [REMOVED].
The buy below price was $36.73

Quite similar scenario to the one of January 28th... would you expect anything substantially different?

On July 21st the buy below price was $37.79 and the market price was $35.00

On July 28th the buy below price was $34.44 and the market price was $31.90

On August 4th Mr. Navellier wrote his $5.000/year subscribers to sell ELN, that day trading between $10.65 and $11.74.

Buying at $34.02 and selling at around $11 neans a -67%. Not bad for a 3 weeks trade.

$10.000 invested twice in ELN, according to the icon among growth stock investors became $2.640.

Let's recap with the help of a chart:


  1. 20% loss
  2. 84% missed profit
  3. 67% loss


Any comment?

1 comment:

dracon said...

nice entry points :)