Thursday, October 2, 2008

Louis Navellier and KNDI

Original post date: August 28th 2008
Removed copyright content and reposted

On June 9th 2008 Louis Navellier rewarded his $5.000/year paying readers of Global Growth with a single, great advice: Buy KNDI.

China's Kandi Technologies Corporation (KNDI) [removed] place a limit order within 10 cents of the stock's previous closing price. [removed] Buy this stock below $5.44.

On that day KNDI traded between $4.09 and $4.90 and it closed at $4.30.

So, should Mr. Navellier's readers buy below $5.44 or below $4.40 (previous close + 10cts)? Let's keep as good the rule of previous close + 10cts.

The day after, June 10th KNDI did not go under $4.55, so no buy. It closed at $4.97, so the new buy limit is $4.97 + 10cts = $5.07.

On June 11th KNDI went as down as $4.67 and let's say Louis' subscribers bought it at this price (minimum of the day).

On June 16th Louis raised the buy below limit to $6.43 and I really hope nobody followed him.

Unfortunately, things did not go as Louis thought...

On July 14th (after the market closed) Louis told his readers to sell KNDI.

Those who were so lucky to sell the following day at the highest price were able to get $3.95 per share. The others, between $3.26 and $3.95.

In the very best case this trade generated a 15% loss.

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