Monday, October 27, 2008

Louis Navellier and AAPL

This is the chart of AAPL from December 2004 to October 2008.

Apple innovated and from 2004 it put on market many new iconic products: the new PowerMac G5 line, the brand new Airport Express and many other.

Apple stocks, which collapsed from $30 to $7 after the new economy bubble of 2001 and moved sideway for some 3 years, started to gain value and Mr. Navellier jumped in at $27.45 between November and December 2004.

In the first 4 months of 2003 AAPL was even under $7. That means that from April 2003 to December 2004 AAPL gained some 300%.

Usually jumping in after a 300% gain in 18-20 months is dangerous, but this time things went well for Mr. Navellier and his subscribers.

AAPL went to $85 at the beginning of 2006 for a 200% gain for Mr. Navellier and followers. Then it didn't move much in 2006 and started climbing again in 2007, surpassing $200 at the end of December 2007.

At this time, Mr. Navellier's gains were around 620% in 3 years. that is a 93% annual gain.

The reason why Mr. Navellier uses buy belows and sell above prices instead of buy and sell stops is unknown to me.

Looking at what happened inJanuary: AAPL dropped from $200 to $120 in a matter of days. With no stop loss protection, investors saw their shares losing 40% of their value.

AAPL went back to $180 in mid 2008 and then down under $100 in these days.

Mr. Navellier told his BlueChip Growth subscribers to sell on October 22nd, after earning announcement. $101.25 was the high price of that day.

Although Mr. Navellier did an annual 36% this trade could have been a disaster for mayny of his followers.

Just look at what Mr. navellier was saying in March 2008 here: The stock is up 354% since I first recommended it.

Look also at the Portfolio Grader Pro score for AAPL:

In fact, in December 2007 Mr. Navellier was writing that AAPL was a Strong Buy at $200 (his buy below price was $208).

Those who followed him at that time made a 50% loss in 10 months.

Mr. Navellier himself made a profit of $75 per share and missed another $100 per share.

1 comment:

Timothy Bryce said...

LOL, really dig your Blog. This guy is a serious a$$ clown.