Friday, December 5, 2008

Louis Navellier and XTLB

This is the worst trade I have ever seen in my short career.

Mr. Navellier told his $5.000/year Global Growth subscribers to buy XTLB on August 11th 2008.

Israel's XTL Biopharmaceuticals (XTLB) is a biopharmaceutical company that [...].
The stock is a good buy but it is thinly traded. Please place limit orders 10 cents above the previous closing price. Otherwise, you could inadvertently send it soaring, hurting yourself and other investors.



Close price that day was $3.70.

Before looking at what Mr. navellier was saying about XTLB the following weeks, I would like to bring to your attention some figures about the company performance.

In 2006 XTLB had assets for $26.9 mil. and lost $15.1 mil. That make a return on assets of -56%.

In 2007 XTLB had assets for $14.1 mil. and lost $24.9 mil. That makes a return on assets of -176.60%.

For the first 6 months of 2008 the assets were $9.1 mil. and the loss was $7.1 for a -78% ROA.

Having said that, if you had $5.000 would you:
  1. Buy stocks of XTLB?
  2. Go to Las Vegas and play Slot Machines?
  3. Subscribe to Global Growth for 1 year?

Mr. Navellier decided you should have bought XTLB.

August 18th: buy below $4.28

August 25th: Newcomers to the list fared particularly well. XTL Biopharmaceuticals (XTLB), which I told you to buy just two weeks ago, finished the week up almost 9%. Buy below $4.85

September 2nd: [...] don't think our portfolio is one-dimensional–one of our recent health care buys, XTL Biopharmaceuticals (XTLB), jumped almost 10% last week, giving us a total return of almost 22% since I recommended this stock on August 11! [...] Buy below $5.16

September 8th: Just look at XTLB up nearly 20% in less than a month! [...] Top Three Stocks [...] and Israel's XTL Biopharmaceuticals (XTLB) moves up to the #3 spot. XTLB has posted gains of almost 20% in less than a month! Buy below $4.74

September 15th: buy below $4.11

September 22nd: buy below $4.14

September 29th: buy below $3.79

October 6th: buy below $3.42

October 13th: buy below $2.65

October 20th: buy below $3.05

October 27th: buy below $2.90

November 3rd: buy below $3.00

November 10th: buy below $3.06

November 17th: buy below $3.00

November 24th: I'll get to the details in just a bit, but while we're on the subject of our Buy List, we did have one unfortunate surprise last week. On Tuesday, XTL Biopharmaceuticals (XTLB) saw its stock price drop from $2.10 to 13 cents after the company announced that its diabetic pain treatment drug failed crucial tests. In this week's issue, I'll tell you what to do now with this stock.

This week, I recommend selling [...] and Israel's XTL Biopharmaceuticals (XTLB). I referenced earlier in the issue that XTLB fell 94% on Tuesday after the company said its diabetic-pain treatment missed its primary and secondary benchmarks in a clinical trial. In my blog, I initially said to wait to hear from the CEO before rushing to sell. Well, it's been almost a week now, and we haven't heard a thing. With the failure of XTLB's lead candidate, the company is now too far behind to have any real chance of generating revenue, so this leaves us no choice but to sell shares now for a year-end tax loss.

Sell price: around 8 cents.


Loss: 97.8% (NEW RECORD!!!)

2 comments:

Anonymous said...

IF YOU ARE ONE OF THE THOUSANDS WHO INVESTED, FOLLOWING LOUIS NAVELLIER'S RECOMMENDATIONS, AND HAVE LOST MONEY FROM DOING SO, PLEASE CONTACT ME AT: navellierlosers.com THERE MAY BE A WAY TO RECOVER OUR LOSSES.

LM

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