Monday, December 8, 2008

5 trades closed by Louis Navellier

Our Five Sells For December
Since our Emerging Growth requirements are very strict, this month we’re going to pare down our Buy List by selling five stocks that have been downgraded in PortfolioGrader. I’d like you to sell Darling International (DAR), Dolby Laboratories (DLB), Enersys (ENS), Pioneer Natural Resources (PXD) and W&T Offshore (WTI).

Let's start from DAR. First of all you can check what Mr. Navellier was writing about DAR here.
DAR entered the Emerging Growth portfolio on August 2007 at $8.03.

Between June and July 2008 DAR went over $16 for an imaginary 100% profit. As he did many other times, Mr. Navellier did not sell at $16, nor at $12, not even at $8 (at least to get his money back).
He waited until December 8th 2008, with DAR closing at $3.80, before telling his subscribers to sell.
From $8.03 to $3.80 is more than 50% loss. From 100% profit to 50% loss. Nice trade Louis.
But let's see what Mr. Navellier was writing around June/July.

May 2008 issue: DAR was trading at $15.42 and buy below was $17
June 2008 issue: DAR was trading at $14.59 and buy below was $16
July 2008 issue: Just look at some of the big returns we’ve enjoyed this year, like Darling International (DAR), up 47% since January 1st. DAR was trading at $16.67 and buy below was $18

If somebody followed Mr. Navellier's advice and bought at $16 then the loss is over 75%. Well done.

Time to move on to DLB now.

DLB was bought on December 2007 at $50.24 (its highest price ever was $53.63 - only 6% far).

Nothing special to say. From its highest price ever, DLB started to decline and it never stopped until today's $28.32, giving Mr. Navellier's subscribers a 43% loss.

Next is ENS. ENS was even used by Navellier's marketing department in many spams. You can quickly check here for some of them.
ENS was bought on July 2008 at $33.02. It just closed at $9.71 for a remarkable 70% loss.

PXD started its downtrend in July 2008 and Mr. Navellier decided to buy it in August 2008 at $60.15. He was writing: Now, as I’ve said, going forward I’ll only be adding “Super A-rated” stocks to our Buy List that have at least 25% sales growth and at least 50% earnings growth. That means we’ll continuously pinpoint the fastest-moving stocks in the sweet spot of their earnings cycle. This month I’m adding three such qualifying stocks to our Buy List: Pioneer Natural Resources (PXD) [...]

This super-A stock just closed at $17.00 for over 70% loss.

And, finally, there is WTI, about which you can read here.
WTI's highest price was in June 2008 and Mr. Navellier suggested to buy it in his June 2008 issue. Buy price for him was $54.30.

Also in this case, the cart for couold be used to explain what a downtrend is. I have no words to explain what I think about an expert that does not get rid of such a dog until he has lost 78% (today's close price is $11.90).

Just to recap:
  1. DAR: around -50%
  2. DLB: around -43%
  3. ENS: around -70%
  4. PXD: around -70%
  5. WTI: around -78%
Average loss: around 62%


Anonymous said...

Bravo ... Your absolutely right .. it's not like Louis invests in these things or anything. he sells the dream and delivers the nightmare
Right ...

Anonymous said...

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Anonymous said...

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