Monday, October 6, 2008

The 6 ways Spam

Mr. Louis Navellier's marketing department is working hard these days trying to get new customers. Maybe because current customers are not happy of Mr. N. performances?

The latest spam arrived in my mailbox was titled 6 Ways to Beat the Fallout‏.

Here Mr. Navellier presents his latest buys as the only way to avoid recession.

RECESSION-BEATER #1: ENTERTAINMENT. Video games are to this Recession what movies were to the Great Depression. A video game takes about 100 hours to master (well, it takes me a lot longer, I admit), which is a great return for a one-time $60 outlay.
This is a $7 billion business, growing 27% in 2008. The fastest growing demographic is the 50-plus group. And now women gamers out number boys under 17.
Here at Quantum Growth, we’re loading up on a software publisher with a track record of creating blockbuster games. Quarterly revenue growth is up 110%. That puts this gamer in a very unusual territory! If you want a stock for tough times begin here now.

RECESSION-BEATER #2: BEYOND ENTERTAINMENT. Video games are also an integral part of what I call the New China.
Think about this: as many people are online this afternoon in China as lived in the U.S. at the end of World War II!
A lot of them playing multi-player role-playing games but switching back and forth to send emails, catch up on news, buy stock and write a new blog entry. One portal supplies all these services and is our top buy in Quantum Growth today.
Will China be thrown into a recession by our slow down? Well, even if China’s growth were to be cut in half, its economy will still trot ahead at 5%. Consumer demand is still growing at a phenomenal rate—and that will give investors in this internet company great comfort in 2009.
We’ll also benefit from the weakening dollar with this stock. A substantial devaluation of the dollar is HARD-WIRED into the coming recession by this bailout package. A global stock could easily give you a 20% - 30% extra profit-boost in the next 6-9 months—just from the dollar drop!
Details here.

RECESSION-BEATER #3: VODKA IS GOOD. Combine the dollar’s drop with the escapism trend that comes with recession and you’ve got a double-winner.
I’ve found a Polish vodka distributer growing at a crazy rate. Partly, this is because the company has been buying up scores of local distributors at bargain prices. It now controls 40% of the vodka trade in Poland.
Entertainment, China and the dollar: Three ways to beat the coming recession. What’s next?

RECESSION-BEATER #4: PENNY PINCHERS. As layoffs and unemployment hit home, corporations scramble to cut costs and stay in the game. Technology companies can often help.
A time-saver like Concur, for example, helps big companies like J.C. Penney and Texas Instruments manage travel expenses. The stock has soared 30% since the summer, even as the Dow lost 5%.
Here at Quantum Growth, we’ve found a cost-saver that enables wireless data to be transferred securely. This $12 stock recently jumped 29% in a single session after blowout earnings were announced. In 20 days, the company announces again. You should be in this recession beater well before that date.
Find out more here.

RECESSION-BEATER #5: HEALTHCARE’S HOT. Our top healthcare stock goes up when the Dow goes down, and the reason is: healthcare’s a CLASSIC recession-beater. Dividends have increased by 50% in many healthcare stocks. Our $12 heart pump stock became a $26 stock in the time it took for the Dow to shed 10% if its value, recent earnings were up 800%.
Especially now, medical devices are a great buy because they almost never create unforeseen side effects and because they set up a reliable stream of royalty income. The market thirsts for this type of certainty now.
Details here.

RECESSION BEATER #6: CEREAL PROFITS. We’re also loading up on food basics here at Quantum Growth. We’ve taken lots of profits in Terra, CF, Mosaic and Potash this year. Now it is time to cash in on the packaged goods end of the food business.
Details here.
Food, escapism, China’s domestic consumer demand, vodka and medical devices: 6 stocks you should buy today to profit mightily from the one thing we can be sure of: a recession is coming in the wake of this bailout.
Pretty good deal, wouldn’t you say?

I cannot tell you what these 6 stocks are (we will know once Mr. Navellier closes these positions) but there is a sentence that is completely FALSE here: We’ve taken lots of profits in Terra, CF, Mosaic and Potash this year.

Why don't we check?

As already posted here Mr. Navellier bought TRA on August 4th at $45.94. On September 8th he wrote to his $5.000/year paying subscribers that TRA was the #3 Top buy of the week. Only one week later, on September 15th he told his paying readers to sell TRA at $39.21 for a -14%.

Three trades this year for CF Industries.
  1. Buy on April 21st at $156.10 and sold on April 28th (one week later) at $139.75 for a 10% loss.
  2. Bought again on June 9th at $151.12 and sold on July 28 at $145.68 for a 3.5% loss.
  3. Bought on September 8th at $119.48 and sold on September 29th at $83.93 for a 44% loss.

You might remember Mr. Navellier appearance on Bloomberg TV. Compound loss on CF is 51%.

MOS was bought on August 4th at $109.29 and sold on September 29th at $63.75 for a 41.67% loss.

Two trades for POT.
  1. Bought on June 2nd at $203.18 and sold on July 7th at $209.98 for a 3.3% gain.
  2. Bought on August 18th at $170.04 and sold on September 29th at $131.71 for a 22.5% loss.
Compound performance on POT was a 20% loss.

Remember the sentence: We’ve taken lots of profits in Terra, CF, Mosaic and Potash this year.

In the European Union, where I live, there are laws punishing those who report bullshit false information like this in their marketing and commercial material.

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