Monday, September 29, 2008

Louis Navellier and GTE

Original post date: August 9th 2009
Removed copyright content and reposted

Months ago I created an email address on HotMail to use only for stock spam messages. I get offers, promotions, forecast.

Sometimes I like to go through the old messages and check how the forecasts were accurate.

Today it is Louis Navellier's (and his $5.000-year Global Growth) turn. Here is what Mr. Navellier was writing on June 26th (if it is too long just read the bold sentences and skip to the end of italic text):

Up 24% in two weeks, Now Set to Double by Next Friday‏
Grab it Before it Hits $12 by Next Friday

“All thanks to historic oil prices and the company’s mammoth Colombian, Argentinean, and Peruvian reserves."

“Buy this one today and I guarantee you’ll thank me a thousand times by July 11th—or you won’t pay a dime.”

Fellow Investor:

If you didn't move on the Canadian oil play I told you about two weeks ago, it’s not too late for you to profit.

While the stock is up 24% since my June 6th recommendations, my updated research calls for a double in the next two weeks with the possibility of a 10-bagger by this time next year.

Here’s why:

The highest oil prices in history have triggered a mad dash to find new oil reserves as worries deepen over world supplies.
This is why oil hit $140 a barrel last week…

… why the brain trust at Goldman Sachs proclaimed oil could easily fetch $150 barrel this summer…

… and why the lightning rise in this Canadian oil play will be driven by three mammoth forces:

  • The falling dollar, which makes oil more expensive for Americans
  • Rising demand from emerging countries like China and India
  • Saudi Arabia’s pledge to pump more oil having no effect on prices

Adding to the explosiveness of this fast-moving situation are OPEC’s mixed review on pumping more oil, Venezuela’s continuing threats to stop US oil deliveries, and ongoing attacks by Nigerian rebels on that country’s oil infrastructure.

When you add everything up, we are facing a supply/demand squeeze of epic proportions—leaving the world with only two—and I repeat—only two choices:

  1. Develop alternative fuels fast, or
  2. Find more sources of oil IMMEDIATELY.

To be sure, developing alternative fuels is a great solution for the long term.

But finding new oil sources is the only short-term solution that makes sense now.

The reason is simple:

Unlike alternative energy sources that are still on the drawing boards, the oil exploration, production, refining, and distribution infrastructure is already in place.

So while solar sounds nice, ethanol is interesting, and wind power has some possibilities—they’re all future solutions and not those that will help you pay your bills TODAY.

For these reasons, and four more, I’m telling my reader to expect…

A Double in the Next 14 Days—Guaranteed

Here’s why:

  1. Over the past decade, this company has quietly acquired the drilling rights to more than 6 million acres in Argentina, Peru, and Colombia—countries whose combined oil reserves are equal to half of Venezuela’s reserves.
  2. In addition (and unlike our OPEC suppliers), Argentina, Peru, and Colombia all have stable democratic governments that are friendly with the United States—a huge plus in the world today.
  3. What’s more, this company’s quarterly revenue is exploding twice as fast as the big oil companies’—at an amazing 373% year over year! So it’s no surprise the stock is up a shocking 478% over the past 12 months.
  4. PLUS, with analysts now estimating the company’s sales growth to exceed 710% for the current quarter, you could easily expect a double in the next 14 days as the pension funds and oil and energy funds realign their holdings to improve their second-quarter performance.

When you consider the stock is up 60% in the last 30 days and has already doubled investors’ money over the past 90 days…

…you can understand why I not only see the next big move coming in the next 14 days but also have no problem offering you a no-questions-asked money-back guarantee if my Canadian oil stock—or any of my recommendations for that matter—doesn’t deliver as promised.

After all, over the past 10 years, my eight-point stock-picking system not only has beaten the S&P 500 by $10 to $1 but has delivered 1,408% returns, thanks to great trades like these:

[usual bullshit here]

Grab my Canadian oil stock today. I guarantee today’s trade will be your most profitable investing decision for 2008—or you won’t pay a dime.

The stock Mr. Navellier was pushing is GTE. What about a chart now?

GTE was $7.60 on June 26th and it looks to me it failed to double by June 11th (when it was at $7.13 / -6%).

Today (August 7th) GTE closed at $5.18, some 31% below the entry price and much much lower than the promised $12 for next Friday.


GTE is trading at around $3.75 (-50% from the pre-double day)


Jen Katz said...

I've been playing detective with Nevellier's email alerts, and having a good time doing it! His emails *do* sound tempting, but I decided to watch his picks for some time to see if the returns he boasts are indeed true. Have been watching Gran Tierra like a hawk. So far, not much. Today's earnings report should be interesting.

Did you figure out the commercial real estate company poised to rake in a bazillion percent by next Friday?

Thanks, Jen Katz

PS -- another call of his, GSI, was suppossed to skyrocket. So far that has been up and down as well.

Anonymous said...

Thanks a lot for your comment and please come back to these pages from time to time.

The commercial real estate company should be NRF, that Mr. navellier bought on June 9th 2008 at $10. Last Friday it closed at $8.69. I might write a post about it...

Jen Katz said...

Knew it! I'm getting good at this...

PS... to be fair, GTE did report stellar earnings this morning. Yet it still continues to sink.