Monday, September 29, 2008

Louis Navellier and ABB

Original post date: September 4th 2008
Removed copyright content and reposted

Another example from Louis Navellier of how buying at a maximum can void your previous gains...
September 4th 2007
Company: ABB Ltd (ABB)
Buy Below: $25.50
Close price was $24.73

October 29th 2007
Buy below $30.93

November 5th 2007
Buy below $31.86

November 12th 2007
Buy below $29.43

December 10th 2007
Sell ABB ($29.77). ABB is up 19.3% since we bought it. (unless you bought it in October or November at $29-$31...)

May 27th 2008
Price was $32.50, the highest price of ABB in this millennium.

July 28th 2008
Sell ABB at $26.06.

The first trade generated a +19% and the second trade generated a -19%. This is what I call "constant returns". In absolute value...

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