Thursday, October 23, 2008

Louis Navellier and MDR

Original post date: August 13th 2008
Removed copyright content and reposted

The chip Blue Chip Growth newsletter from Louis Navellier makes no exception compared to Global Growth, Quantum Growth or Emerging Growth.

The input for this short post came from the -13% scored by McDermott International (MDR) yesterday.

I remembered I saw MDR somewhere in one of the [REMOVED] gurus' portfolios, I made a quick search and... Blue Chip Growth came out.

Mr. Navellier (and his subscribers) bought MDR on November 2007 at $54.35.

As usual, Mr. Navellier increased the buy below limit every time MDR went up.

In June 2008 he was saying buy below $70.
In July 2008 he was saying buy below $74.

Somebody may have followed his guideline and bought MDR around $65 in June.

From end of June MDR started to sink and in some 6 weeks it got to yesterday's $36.21 (that is -44%).

In this timeframe Mr. Navellier didn't write a single line about MDR. I would be quite angry if I were one of his paying subscribers. He turned a potential 20% gain into a -33% to -44% loss.

Update: MDR was one of the 8 sells for October. it was sold around September 15th at around $27.61 for a 50% loss if bought at $54, and a 57% loss if bought in June at $65.

No comments: