Friday, October 31, 2008

Blue Chip - What to say?

November 6th: UPDATED with APC and JEC
October 31st: UPDATED with FPL, OI and CAM
October 26th: UPDATED with ABB, NOV and RTN
October 24th: PDATED with APD sell

One single post is not enough to illustrate the disaster Mr. Navellier did with his Blue Chip Growth subscribers' money.

So I will post here a summary of the closed position for November and will come over them in more details in the next days.

First of all, Mr. Navellier's words:

I have two great new buys this month: [REMOVED]. I want you to sell 15 stocks: ABB Ltd. (ABB), Anadarko Petroleum (APC), Air Products & Chemicals (APD), Apple (AAPL), Cameron International (CAM), Deere & Company (DE), FMC Technologies (FTI), FPL Group (FPL), Jacobs Engineering (JEC), National Oilwell Varco (NOV), Owens-Illinois (OI), Range Resources (RRC), Raytheon International (RTN), Research in Motion (RIMM) and Vimple Communications (VIP).
  • Deere & Company (DE), Range Resources (RRC), Research in Motion (RIMM), and Vimple Communications (VIP) have either already reported earnings or have failed to set a firm report date. Sell these stocks immediately.

  • Apple (AAPL) reports earnings tomorrow—on Tuesday, Oct. 21. Sell the stock into strength on Wednesday, Oct. 22.

  • Air Products & Chemicals (APD) reports on Wednesday, Oct. 22. Sell this stock Thursday, Oct. 23.

  • ABB Ltd. (ABB), National Oilwell Varco (NOV) and Raytheon International (RTN) report earnings on Thursday, Oct. 23. I want you to sell all three stocks Friday, Oct. 24.

  • FPL Group (FPL) reports earnings Monday, Oct. 27. Sell the stock on Tuesday, October 28.

  • Owens-Illinois (OI) reports earnings on Wednesday, Oct. 29. Sell the stock on Thursday, October 30.

  • Cameron International (CAM) reports earnings Thursday, Oct. 30. Sell the stock on Friday, Oct. 31.

  • Anadarko Petroleum (APC) and Jacobs Engineering (JEC) report earnings Tuesday, Nov. 4. Sell both these stocks into strength Wednesday, Nov. 5.

  • FMC Technologies (FTI) reports earnings on Thursday, Nov. 6. Sell this stock Friday, Nov. 7

And now a performance summary, that will be updated in the next days according with the sell dates:
  1. DE: bought on February 2008 at $76.40 and sold on October 21st at around $37.39 (-51%)
  2. RRC: bought on March 2008 at $57.60 and sold on October 21st at around $35.40 (-38%)
  3. RIMM: bought on February 2007 at $41.45 and sold on October 21st at around $50.53 (+22% - it was at $145 in June 2008, that makes a 227% missed profit)
  4. VIP: bought on June 2007 at $19.94 and sold on October 21st at around $12.37 (-37%)
  5. AAPL: bought on December 2004 at $27.45 and sold on October 22nd at no more than $101.25 for a maximum 269%. Consider that AAPL was over $200 in December 2007 and the missed profit ($100) is bigger than the realized gain ($74).
  6. APD: bought on January 2008 at $101.39 and sold on October 23rd at no more than $55.85 (-44.9% in the best case)
  7. ABB: bought on June 2008 at $32.69 and sold on October 24th at no more than its maximum of $11.21 (-65.7% in the very best case)
  8. NOV: bought on September 2007 at $54.33 and sold at no more than $26.00 (-47.8%)
  9. RTN: bought on October 2006 at $47.23 and sold at no more than $45.75 (a modest -3%)
  10. FPL: bought on May 2007 at $62.25 and sold on October 27th at no more than $42.69 (-31%)
  11. OI: bought on March 2008 at $54.77 and sold on October 29th at no more than $20.55 (-62%)
  12. CAM: bought on September 2007 at $35.85 and sold on October 30th at no more than $24.48 (-31%)
  13. APC: bought on June 2008 at $78.15 and sold at no more than $36.77 (-52.9%)
  14. JEC: bought on December 2007 at $78.32 and sold at no more than $41.12(-47%)
  15. FTI: bought on November 2007 at $58.41 and currently $30.65 (down 47%)

Come back soon for updates on next closing positions and details on losses and missed profits...


Pete K said...

This Navellier guy is unbelievable. I bought the Navellier U.S. All Cap mutual fund back about 8 years ago and it has been an utter DISASTER - even before the fiasco we're going through now. I know I'm a fool for holding on to it for so long. Please, everybody stay away from Navellier!!! Run for your lives!!! Do not let him throw any more of our money down the tubes!!!

Anonymous said...

Here is the latest disaster from Navellier.

NTRS: First posted in the Oct 2008 Newsletter

"Northern Trust Corporation (NTRS) is the trick play in our playbook! I know I've been telling you to steer clear of financials, but I'm going to make a very rare exception for this great stock. Why? Because Northern Trust doesn't have any exposure to the problems that are sinking other banks and brokerages! The stock is a huge bargain right now, and we'll buy in before Wall Street figures out how strong NTRS is. Northern Trust is a leading personal trust manager in the U.S., $3.6 trillion of assets under its custody, and manages corporate pension plans for institutional clients. Since some of the largest firms have been beat up so badly by the mess in financials and NTRS has come through unscathed, the money is pouring in! In the second quarter, Northern Trust's earnings were 28.6% higher than analysts' consensus estimates, and its Return on Equity is an impressive 19.9%–yet it trades at barely 17 times forecasted earnings. Buy this Conservative stock below $93."

Today's newsletter (Dec 2008):
Sell NTRS (current price $42.16)

Net investement return: Over 40% decline in just under 2 months.

Thanks a lot Louis. I'm sure I could not have lost 40% in 2 months on my own!!!