Let's start with Global Growth. The closed trades are BLX, TMX and TNE.
BLX
BLX was bought on December 29th 2008 at $12.97
December 29th 2008
Among our new buys, Panama's Banco Latinoamericano de Exportaciones (BLX) specializes in financing foreign trade for some [...].
BLX is a great buy because it is a benchmark for Latin American growth. [...] The Panama Canal widening project, the largest infrastructure project in Latin America (at a cost of $5.2 billion) is boosting Panama's economy, and it is especially good for Banco Latinoamericano. And as the rest of South America begins to gear up in the first half of 2009, BLX will have a large role in financing the growth of the region.
BLX is a great buy because it is a benchmark for Latin American growth. [...] The Panama Canal widening project, the largest infrastructure project in Latin America (at a cost of $5.2 billion) is boosting Panama's economy, and it is especially good for Banco Latinoamericano. And as the rest of South America begins to gear up in the first half of 2009, BLX will have a large role in financing the growth of the region.
Buy Below $13.95
January 5th 2009: buy below $15.62
January 12th 2009: buy below $12.91
January 20th 2009: This week I recommend selling Panama's Banco Latinoamericano de Exportaciones (BLX). Price: $9.52
Performance on BLX: -26.5%
TMX
TMX was bought on January 5th 2009 at $20.93 (as you can see here Mr. Navellier already lost 32% with TMX between August 11th and November 24, when he sold at $17.17 - yes, he sold in November at $17.17 and bought back in January at $20.93...)
January 5th
Another great Mexican stock I want you to buy is Telefonos de Mexico (TMX). Also known as Telmex, this company is Mexico's #1 provider of fixed-line telecom services, with more than 18 million lines in service. The company also provides cable TV, voice, data, and Internet access services to customers in other countries in Central and South America through subsidiaries in Argentina, Brazil, Chile and Peru. Telmex has become increasingly dominant in Brazil, which is now its biggest market. Carso Global Telecom, a holding company controlled by Mexican billionaire Carlos Slim, owns a 71% voting stake. Mr. Slim has announced that he plans to invest nearly $950 million this year, upgrading Telmex's facilities in Mexico and Latin America. Telmex is effectively a legal monopoly.
Buy below $22.26
January 12th: Buy below $20.10
January 20th: sell TMX. Price: $17.29.
Performance on TMX: -17% (and another -17% for selling it in November and uying back in January)
TNE
TNE was also bought on January 5th 2009 at $14.33
January 5th
Our third buy is Brazil's Tele Norte Leste Participacoes (TNE). Tele Norte markets its services [...]. The company recently received approval to acquire Brasil Telecom, the country's #3 fixed-line telephone company. That acquisition would create a fixed-line company capable of competing against leading foreign players, especially Spain's Telefonica SA and Mexico's America Movil.
Please Note: The company is in the midst of a secondary stock offering, so the stock may not appreciate significantly until this secondary offering is completed. However, this stock has explosive growth potential, and I do not want you to be left out of the profits once it surges. We will move in now, but we will have to be a bit more patient with TNE. I will keep you posted on this stock as news unfolds.
Please Note: The company is in the midst of a secondary stock offering, so the stock may not appreciate significantly until this secondary offering is completed. However, this stock has explosive growth potential, and I do not want you to be left out of the profits once it surges. We will move in now, but we will have to be a bit more patient with TNE. I will keep you posted on this stock as news unfolds.
January 12th: buy below $13.59
January 20th: sell TNE. Price: $11.23
Performance on TNE: -21%
This week we also have two Quantum Growth sells: CMP and IIIN.
CMP
In his previous CMP trade Mr. Navellier bought this stock on November 17th at $54.21 and sold it one week later at $51.95 for a quick, small 4% loss.
Then he waited until January 5th to buy it again at $63.12, for a missed profit of 21%.
January 5th
Compass Minerals International (CMP) is hoping for snow this winter since it’s one of the largest salt producers in North America. The company’s salt products include rock, evaporated and solar salt and are used for applications such as water softening, road deicing and food preparation. Compass Minerals operates through [...].
This winter is shaping up to be one of the worst ever, so the demand and price of road salt has risen as the temperature plummets. In fact, the high cost of road salt is hurting many municipalities. [...]. This is a big windfall for Compass Minerals and the stock is an excellent buy.
This winter is shaping up to be one of the worst ever, so the demand and price of road salt has risen as the temperature plummets. In fact, the high cost of road salt is hurting many municipalities. [...]. This is a big windfall for Compass Minerals and the stock is an excellent buy.
Buy below $67.40
January 12th: Buy below $63.03
January 20th: I have two sells this week. First, Compass Minerals (CMP) was stopped out. Price: $46.51.
Performance: -26% (in addition to 4% loss and 21% missed profit makes a compound loss of 43%)
IIIN
This year Mr. Navellier already traded IIIN. The first time was between October 20th and 27th (17% loss).
On December 22nd Mr. Navellier decided that it was time to buy IIIN once more, at $9.75.
Insteel Industries (IIIN) manufactures welded wire reinforcement[...]
The company recently announced that it expects to report a fiscal first-quarter loss because of sharply lower orders. Insteel said orders have declined at “severely depressed levels” during the three-month period ending December 27 because of tighter credit markets, a weaker economic outlook and inventory de-stocking by customers. In the first two months of the quarter shipments dropped 39%, and plants operated at reduced levels that will continue for the remainder of the quarter. [so, why to buy now?]
Looking beyond the current quarter, Insteel’s CEO said, “Margins are to recover during the second half of fiscal 2009 following the actions we have taken to reduce operating costs and as selling prices and raw material costs stabilize.” The CEO added that order levels are expected to rebound “as the realignment of customer inventories is completed and demand for our products begins to reflect the actual underlying rates of consumption.” He also stressed that a proposed federal economic stimulus package by President-elect Obama that calls for huge infrastructure spending “should favorably impact demand for concrete reinforcing products, although the timing and magnitude remain uncertain.”
Insteel Industries and other specialty steel stocks are grossly undervalued. The stock is a good buy.
Looking beyond the current quarter, Insteel’s CEO said, “Margins are to recover during the second half of fiscal 2009 following the actions we have taken to reduce operating costs and as selling prices and raw material costs stabilize.” The CEO added that order levels are expected to rebound “as the realignment of customer inventories is completed and demand for our products begins to reflect the actual underlying rates of consumption.” He also stressed that a proposed federal economic stimulus package by President-elect Obama that calls for huge infrastructure spending “should favorably impact demand for concrete reinforcing products, although the timing and magnitude remain uncertain.”
Insteel Industries and other specialty steel stocks are grossly undervalued. The stock is a good buy.
Buy below $10.43
December 29th: Buy below $11.47
January 5th
Speaking of earnings, Insteel Industries (IIIN) will report its fourth-quarter earnings next Tuesday, January 13. The consensus on Wall Street is that Insteel will report a loss of 26 cents per share compared with a gain of 23 cents per share last year; however, I’m very optimistic that the company will beat expectations.
Buy below $12.93
January 12th
Insteel Industries (IIIN) reports its earnings before the opening bell tomorrow. The company has already said that it expects to report a loss due to lower orders. The current consensus on Wall Street is for an earnings loss of 23 cents a share. Still, I like this stock, and I think it will benefit from Washington's higher spending on infrastructure. Insteel is a very good buy.
Buy below $11.66
January 20th
I also want you to sell Insteel Industries (IIIN). Insteel's earnings report beat the Street, but I was looking for better guidance so now is our time to exit the position.
Price: $8.65
Performance: turned a potential 25% gain (IIN was $12.20) to an 11% loss.
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