Sunday, October 5, 2008

BlueChip Disaster

Louis Navellier sent his October 2008 issue of Blue Chip Growth on September 15th.

Sorry for the delay but I was on holiday abroad. If we take the issue we will find 8 new sells for October:

To raise money for our new buys, this month I want you to sell eight stocks: Barrick Gold (ABX). Exelon (EXC), Foster Wheeler (FWLT), McDermott International (MDR), Noble Corporation (NBL), Noble Energy (NE), Schlumberger (SLB) and Smith International (SII).

Blue Chip paying subscribers bought ABX on March 2008 at $47.59. Not much to say except highlighting the 41% loss due to the $27.94 sell price.

Mr. Navellier told his subscribers to buy EXC on June 2007 at $78.45. EXC went up to $90 and as usual Mr. Navellier waited for it to go down before selling it at $66.60 for a 15% loss.

Bought on August 2007 at $59.64 FWLT brought Mr. Navellier a 30% temporary profit before losing 50% of its value and going down to $38.06. 36% loss for Mr. Navellier on this round.

On November 2007 Mr. Navellier also bought MDR at $54.35. Far far far from using any kind of stop loss to protect his (paying customers') investments Mr. Navellier waited to lose 49% before selling MDR at $27.61.

A quick trade for Mr. Navellier. He bought NBL on July 2008 at $98.31 and sold it less than 3 months later at $57.55 for a fast 41% loss.

A great piece of investment art here. Mr. Navellier bought NE on February 2008 at $45.41 and waited from June to mid September to turn a 40% gain into a 6% loss (sell price $42.42).

Buy date for SII was November 2007 and buy price was $63.63. Sell price is $60.15 for only a 5% loss.

SLB entered the Blue Chip Growth portfolio on October 2007 at $100.37. Sell price on September 15th was $82.95 for a 17% loss.

Average loss on these 8 dramatic trades was 26%.

You should understand now why Mr. Navellier marketing department is giving away BlueChip Growth subscription at 50% off...

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