Saturday, October 11, 2008

Global Junk on Sale

Last Monday, Mr. Navellier published his 16 sells for Global Growth. As we reported here he set very precise sell above prices.

First of all it is strange to set sell above prices for stocks. It is exactly the opposite of stop loss orders. With sell above prices you either:
  • sell during a rally, or
  • keep junk in your portfolio during a bear market

As a matter of facts, none of the 16 stocks reached the sell above price this week. Most of them lost another good portion of their value.

As you can see in the table, not only none of these 16 stocks reached the sell above price, but their average loss increased from 36% on October 6th to 47% on October 10th.

1 comment:

Anonymous said...

I've been reading his "Little Book" book lately and I'm sure it's got some great advice for the investing novice like myself, but I've been so inundated in my inbox with hard the creepy ones where you MUST ACT NOW before YOU LOSE OUT...that you want to take a shower. Blech.

I'm going to see if I can separate the wheat from the chaff, but I have a knee-jerk desire to conclude that it's all a big sales pitch.