What’s Navellier’s “$22 Biotech Stock to Hit $44?”

"Buy Before Friday" sez latest Emerging Growth Teaser

By Travis Johnson, Stock Gumshoe, October 8, 2013

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The latest hyperbole making the rounds is vintage Louis Navellier — he’s pitching a fast-growing biotech stock that he says has already netted his readers 392% gains …

… but that you have to buy it before Friday because it’s going to double again!

So what is it?

Well, he shares plenty of clues with us so the Thinkolator ought to be able to make quick work of this one … what’s the pitch?

Here’s a little excerpt:

“The greatest biotech revolution the world has ever seen has triggered a mad dash by institutional investors, money managers, and broker houses into a number of developmental-stage biotechnology companies….

“The chain reaction is about to hand my Emerging Growth readers another 100% profit in this top biotech play in the next 90 days….

“The reason is simple:

“This company’s treatments for colitis, angioedema, and travelers’ diarrhea could triple—that’s right, triple—the company’s 2012 revenue.”

It has certainly been a hot year for biotech, with even the broad biotech indices up by 50% or so since January — so what’s the $22 biotech stock that Louis thinks is about to double again?

Well, he’s saying he’ll tell you for $295, a price that will jump to $995 after midnight! OK, that’s just a misdirection — in his promos in recent years they pretty much always sell this one for $295 a quarter and $995 a year.

How about those who want some answers that are a bit more, well, free? I guess that’s why you’re here, no? Don’t worry, we’ll get you an answer in a moment.

Some more specific clues for you:

  1. “On January 14, 2013, the FDA approved its colitis treatment—pushing share prices 11% higher.
  2. In the five months since the company’s colitis treatment was launched, the company has seen sales jump $22 million, and we expect revenues to double again by year’s end.
  3. What’s more, the company’s new acid reflux product has one key advantage over its competitors: It offers the longest lasting acid control in the market—nearly 19 hours. The results will drive millions more in annual sales and earnings, not just for the next 90 days but for years to come.
  4. In addition, the company’s anti-diabetes agent just received a huge endorsement from the AACE (American Academy of Clinical Endocrinologists), whose guidelines doctors use in prescribing. With the annual diabetes market estimated at $35 billion, that’s like winning a $100 million lottery every year as tens of thousands of doctors begin to prescribe this company’s new treatments over the competition.
  5. As if that weren’t exciting enough, the company’s angioedema treatment just received orphan drug status from the FDA. As a result, the company will now receive millions of dollars in tax incentives, plus enhanced patented production and marketing rights—not to mention subsidies for its clinical research.”


And he says its up 392% since he recommended it in March, 2012 — which sure ain’t bad so far. So who is this mysterious company?

Well, frankly, with that many clues Mr. Navellier had to know that we aren’t exactly pushing the limits of the Thinkolator’s mighty powers (OK, fine, I’m sure he never thinks about us at all — but let me have my feelings of grandeur) … this stock is … Santarus (SNTS)

And it has indeed had a remarkable couple of years of stock performance — so it could easily be a 400% gainer since Spring 2012 as Navellier teases, even after coming back down a bit from the $28 area where it topped out over the Summer. It is just under $22 a share, thanks to a dip today as a lot of higher-risk and Nasdaq stocks are getting hit. Whether it’s going to hit $44 in short order, as Navellier thinks, I dunno … but it is the perfect match for his clues.

This is a specialty pharmaceutical company with most of its products approved and fairly early in the sales ramp-up that they anticipate, which is why the earnings are growing abruptly. They are in-licensers — meaning that they buy drugs that are discovered or developed by others, and get approvals for those drugs, sometimes drugs that are already approved in other countries, and sell them, so they don’t have a really deep pipeline of “hidden assets” but they can always buy into promising new drugs for that growth in the out years (and they’re not blowing tons of money on early stage science). They are trying to leverage drugs that they can sell into relatively small groups of physician specialists (like gastroenterologists, for example), not big general drugs that they would have to market with TV ads.

Navellier uses a mechanical screening process to identify stocks, and his system loves earnings and estimates momentum — when earnings are jumping faster and faster each quarter, and when estimates are jumping to keep up. So the risk of these kinds of picks is if you keep buying them but the huge growth numbers fail to repeat. I don’t know that to be the case with this particular company, to be clear, and it may well be that their continued rollout of new drugs and their pipeline of additional compounds and label expansions will let them keep growth rolling — just wanted to point out that when heavily teased Navellier stocks have been unsuccessful in the past it’s been because the company just finished a big growth spurt due to big new orders or contracts and wasn’t able to grow past that plateau for whatever reason (I’ve owned a couple of those stocks, too).

The drugs described in the teaser are exactly what Santarus is working on, and the Colitis drug has brought some nice revenue growth this year. At the moment about half of sales are from their two gastroenterology drugs and half from their two Diabetes drugs, you can see the full details here in last month’s presentation to an investing conference.

They have blown away analyst earnings estimates in the last few quarters, but expectations have risen as a result and the analysts are now predicting 70% revenue growth this quarter and 33 cents per share in earnings, with expectations now that they’ll earn a bit more than $1.50 per share next year — which for a $22 stock is still pretty cheap if you think the earnings are going to continue to grow. I don’t know much about the company, I had never heard of them before when I started typing this note an hour or two ago, but my initial impression is that analysts are skeptical that the growth can continue — their two gastroenterology drugs face patent expiration in 2016 and 2020, the prescription growth trends don’t look dramatically awesome in their investor presentation, and a big portion of their net income this year ($55 million) came from a tax credit.

Still, they have been growing actual operating earnings nicely too — and they should have net income of about $75 million for 2013 (that’s the midpoint of their guidance, minus the $55 million tax benefit), so you’ve got a growing company with a market cap of about $1.4 billion and perhaps some promising drugs (they estimate annual sales potential for their approved drugs as being $600-700 million), so that means you’re paying a reasonable 19X estimated 2013 real earnings at this price (1.4 billion divided by 75 million). Reasonable, that is, if they can keep the growth up — revenue was less than $300 million over the last 12 months, so if they’re right about the sales potential of their approved drugs it might work out well … but it’s your money, so only you can make that call. Check it out, put on your thinking cap, and let us know what you decide with a comment below.


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90 Comments on "What’s Navellier’s “$22 Biotech Stock to Hit $44?”"

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upchucked
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upchucked
October 8, 2013 3:57 pm

I have a problem when someone dumps one superlative after another on a stock that I have never heard of, and that has its case built on future performance, but….. after reading you post and after doing some more digging, I decided to jump in for this one.

Sam
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Sam
October 8, 2013 8:48 pm

So, do I…………….

Sam
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Sam
November 3, 2013 4:14 pm

I did the same; but I bought the 2015, Jan. CALL. So far it has given me 33% up. So, by the time the options expire, I think my investment will at least double. I don’t know whether Navelier is touting the stock price double or the double on options!
Good Luck……………

Sam
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Sam
November 29, 2013 9:21 am

This company is now bought at $32.00. Can anybody explain, why the stock is above the bought price; and there is too much volume. Are they all expecting that the decision of buying the company would be reverted by the Stock Holders?

Dr. KSS MD PhD
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0
karma swim swami
November 29, 2013 11:19 am
Sam: I am not certain what you are referring to…according to charts, it has basically stayed flat at $32 since the Salix acquisition was announced, and closed last at $32.17. Since that deal was announced, there has been no news about Santarus except for mentions that certain attorneys are pushing for shareholders to file a class action suit against the merger. Salix and Santarus are fairly similar companies: take also-ran GI drugs, repurpose them or find new indications or marketing strategies, sell with extreme aggressiveness. Salix did this with rifaximin. If they combine, they may dump Santarus’ non-GI drugs so… Read more »
Ezra Walker
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Ezra Walker
October 8, 2013 4:39 pm
I’ve never actually seen so much B.S. Back-paddling in a short article trying to sell a very high priced e-newsletter then this one!!! You must be kidding me if you think that was an enticement to actually spend 1% of what I put into investments per year???you’re so far off base that you don’t grasp the concept. So what, if I may recap, you are telling us is: it is the most exciting stock you’ve seen, with the most potential you have heard of in a long time..but now that you’ve spent all of an “hour or two” thinking about… Read more »
catfish
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catfish
October 8, 2013 4:45 pm

Is you comment directed at Gumshoe??? If so, it is grossly misdirected!!!!!!!!

Alford Plea
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Alford Plea
October 8, 2013 5:13 pm
To the above person castigating Mr. Shoe– methinks you are unclear on the concept of ‘The Stock Gumshoe’–yous see, people send in teasers like the one reviewed/revealed in this issue, oddly enough to an email address called “Ilovestockspam.com”. Then, for our collective benefit, (and savings), Mr. Shoe reveals the name of the company/stock, etc., with some general impressions and specific caveats to said impressions–he is not a stock tout, any more than anyone else would be generally. On the other hand Ezra, perhaps (according to your apparently confused comments), we should really be listening to you! You should, in my… Read more »
dick
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dick
October 8, 2013 6:10 pm

You should spend 300 hours and one year on this site before posting comments like this.

joshsorensen
Member
0
November 3, 2013 6:49 pm

that made me laugh!

Sam
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Sam
November 10, 2013 9:43 am

How can we verify whether he actually recommended this stock in March, 2012 and at what target? Anyway, the company is being bought now around $32 by SALX. Normally, the company who buys another stock, it goes down; but this time it has gone up almost by same percentage. What this means?

Sam
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Sam
November 10, 2013 12:52 pm

I would appreciate a response from Gumshoe on my above response. I forgot to say that in my reply, therefore I am adding this.

Thanks

Ed Clutter
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Ed Clutter
October 8, 2013 6:44 pm

Mr. Esra Walker: You spend how much research time in research and technical analysis and a whole year watching performance on a stock that you may want to purchase, yet you can’t understand Stock Gumshoe? What am I missing?

jim leavenworth
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jim leavenworth
October 9, 2013 6:36 am

He hasn’t spent 300 hours at Stock Gumshoe yet. I hope nobody is holding their breath waiting for his apology.

april39
Irregular
7
October 17, 2013 9:00 pm

As a former bourbon drinker I’ve naturally tried all grades of Johnny Walker and the less known but very good Ezra Brooks. Could it be—– Ah,forget it,,Nuts pop up everywhere not just at Republican conventions!

hipockets
Irregular
1001
October 8, 2013 6:51 pm
To “Mr.” Ezra Walker- I re-read today’s article just to see if I could find any reason for your comments. Couldn’t do it. I suspect that this was your first visit to Stock Gumshoe and that you quickly scanned the article instead of really reading it. If you will read the article again, and stop by in the future to read more articles, you might come to the conclusion that Travis is very honest when giving us his thinking about both the pros and the cons of a stock, and always reminds us to do our own thinking because it… Read more »
Goldbug
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Goldbug
October 8, 2013 6:59 pm

What on earth are you even talking about Mr. Ezra Walker? The provided information is free, and you are certainly under no obligation to purchase any stock that is uncovered by the fabulous Gumshoe. I think you need to learn basic reading comprehension before posting your absurd comments. Good day to you sir.

Jerry
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Jerry
October 8, 2013 7:26 pm

Ezra you misread the article. If you can bring yourself to actually read the words in order, then go back and concentrate on gumshoe’s words, and you will understand that you simply did not fully “get” or understand what he said.

tanglewood
Irregular
170
October 11, 2013 10:51 pm

Ezra,
You have flunked Gumshoe 101!
Navellier has published an advertising ‘teaser’ to try and entice investors to purchase his newsletter. He does not reveal the name of the stock but does give clues.
Travis (Gumshoe) looks at the clues and gives an educated guess as to which stock Navellier is recommending.
The grayed out areas are excerpts from the newsletter. The regular font is Travis (Gumshoe)’s un-biased analysis of the subject stock. He is not pumping either the Navellier newsletter or the stock, Santarus.

Bob
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Bob
November 4, 2013 9:43 pm

No matter how much you might study (and it is quite admirable), your tone he, is certainly not. Gumshoe didn’t not write anything to warrant that kind of outrage.

catfish
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catfish
October 8, 2013 4:42 pm

The big question for me is: What’l it do for an encore?? If you make a 20-25% gain, get out. The x-earnings ratio is ok if they keep it up. But with investors as touchy as they are (and will be for the years ahead) any little disappointment could bring the stock price down fast.

Robert
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Robert
October 9, 2013 10:46 pm

Thanks for taking you valuable time to make investors aware of this rip-off. You’re
right on target about Navellier’s “Smoke & Mirrors” advice. Its worthless.

hblytt
Member
9
hblytt
November 10, 2013 11:28 am

Catfish, I agree with you, ring the cash register at 20%, maybe even 25%. My opinion is insignificant, but people who know these things, like William O’Neill and Booyah Cramer, agree with you.

Dr. KSS MD PhD
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0
karma swim swami
October 8, 2013 5:02 pm
As a gastroenterologist and an investor, I cannot imagine a more bogus investment than Santarus. Santarus’s budesonide for ulcerative colitis is hardly a new or novel drug, and it will NEVER make big inroads in UC treatment. It is a niche item, with realtively few indications. Zegerid is a monumental rip-off drug….omeprazole plus bicarbonate at 5 times the price. Its sales are an illusion….they are driven by ABSURDLY aggressive markeeting, when in fact this drug represents no therapeutic improvement over omeprazole alone. Competent MDs are refusing to prescirbe it, and I will not touch it for patients. Bromocriptine for DM-II.… Read more »
David
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David
October 9, 2013 2:39 am

karma swim swami
Many thanks for the “inside info”. Well said.

Gary W
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Gary W
October 9, 2013 5:01 am

So this company has no long-term future – but it may have some spurt left in it, depending on how many doctors are upset with the company. The question for us traders is whether the momentum will continue for a few more months. By the way, I am surprised at the vehemence of your attack on the company. Are you sure you don’t like a competitor?

Dr. KSS MD PhD
Guest
0
karma swim swami
November 3, 2013 9:52 am
Unfortunate that you feel the need to go ad hominem. There is no competitor I like. This is a despicable bottom-feeding company touting also-ran drugs that no other pharma company can be troubled to deal with, and what money they make is not by virtue of good products but because of maddeningly zealous, thug-like, intimidatory marketing to physicians. Santarus representatives are the ONLY drug reps I have ever thrown out of my office with the caveat that I would call the police if they ever came back! They are abusive a**holes, menacing, cheap , crude and very unprofessional. To gastroenterologists,… Read more »
bluemoney
Irregular
1
bluemoney
October 9, 2013 8:40 am

Thanks for the inside info. No reason to research any further.

bosley
Irregular
66
October 9, 2013 4:18 pm

Don’t know about the stock, but Zegrid is the only thing that works for my wife. She’s tried omeprazole. Maybe its just the bicarbonate?

Dr. KSS MD PhD
Guest
0
karma swim swami
November 5, 2013 12:02 pm
Brad: I suspect it is just the bicarb. Because of this Zegerid is a sizeable sodium load. I guess a lot depends on how the Zegerid is paid for/covered, but compared with its ingredients, it is astoundingly expensive. Most people who take a PPI in the am and get rebound reflux at night get relief by taking either a second PPI dose or by taking a H2RA such as Zantac. In really well done clinical studies, Zegerid is totally me-too alongside the PPI’s (Nexium, Protonix, Prilosec, Prevacid, Dexilant). If there is a “most effective” med, it is likely Nexium, esomeprazole.… Read more »
hblytt
Member
9
hblytt
November 10, 2013 12:48 pm

My gastroenterologist has me on daily 20-mg extended-release omeprazole, which is reasonable in price (i assume, because my insurance co would punish me if it were expensive. I had big symptoms, including Barrett’s esophagus, and now I’m fine.

Fred
Guest
0
Fred
October 31, 2013 9:26 am
Thanks, karma swim swami, for taking the time to clear up Mr. Navellier’s obfuscation. I normally delete anything that comes from Louie, but every once in a while, I succumb to the temptation of quick profits over reasoned investing. Thank goodness for Travis “Gumshoe” and the various posters, such as yourself, who attempt to shine the light on the phototropic roaches who victimize unwary investors, to sell their overpriced advisories. Shine the light! Watch ’em scatter! Reading good, solid information, such as yours, makes it worth the effort it takes to slog through the inane postings, such as those of… Read more »
Dr. KSS MD PhD
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karma swim swami
November 3, 2013 9:53 am

Glad to help, Fred.

P B
Guest
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P B
October 8, 2013 5:09 pm

RE: Your slanted comments on the (SNTS) stock recommended in the Navellier Emerging Growth letter should have indicated a need to do your own research prior to spending your hard earned money. I purchased shares of this stock in March of 2013 and to-date have a 31% gain. I also have a 21% gain YTD on my total portfolio based on Navellier’s recommendations. I am selective on the stocks purchased.

T.L.
Guest
0
T.L.
October 8, 2013 5:28 pm

travis, I thank you for pointing this out. I am surprised at Ezra’s comments as you always leave the choice up to us. I think this stock is a little iffy, but there are no sure things in life. I would hope that the company has more drugs coming out that will lift earnings.

Bob Desrochers
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0
Bob Desrochers
October 8, 2013 5:53 pm

Ezra, You’ve obviously not only missed the point of Travis’ comments, you’ve also missed the jist of his article. Since you do such lengthy and in depth research on stocks before you buy them, maybe you can help all of us out by giving us a few of your gems. PS I like Doc Swami’s comments—-sounds reasonable to me.

Dr. KSS MD PhD
Guest
0
karma swim swami
October 8, 2013 7:15 pm
Thanks Bob. Santarus is really a bottom-feeding company. Anyone who has made money in it needs to exit. I am warning everyone that physicians just do not like the company and will really go out of their way not to prescribe their drugs. They will never achieve really organic top-line growth because their goal is to sell me-too drugs and nudge into crowded markets. I can assure you that if you knew of their knee-capping marketing techniques, you would avoid them. To me the very existence of Zegerid is scandalous. People really should not bash Travis. His meta-newsletter is great… Read more »
john
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0
john
October 8, 2013 6:28 pm

Travis is not on here to get you to buy any stocks.. He is providing a service of research and letting you draw your own conclusions.. He has proved many man y valuable essays on touted companies.. He’s only giving you the information about a stock and he does a great job doing that.. enough of this poor choice stuff.

Cutting
Guest
0
Cutting
October 8, 2013 6:57 pm

Hey EZRA,
Did you stumbled upon Gumshoe by chance. If so get a life and stop whining about your Guru Navellier like a cry baby. Gumshoe never rip off people like your Gurus and he never will. So, pour some concrete in your block head and jump in a lake.

plattdujour
Member
0
October 8, 2013 11:40 pm
Well, Karma Swim Swami, this brings up an interesting point, doesn’t it? They’re a slimeball company – I’m sure you’re right about that as an insider – but they do make money for their investors. So it’s a moral issue. Travis occasionally tiptoes into moral issues like this, but the main thrust is always ‘will they make money?’ Should there maybe be a Slime Index on Gumshoe, to help us not no invest with really evil doers? It would be an interesting list for sure, but frankly I think most readers would invest in Hitler Inc. if it would put… Read more »
Scrutinizer
Guest
0
Scrutinizer
November 3, 2013 8:18 am

Well, not me.
I’m a very ethical investor.
This means I never buy government bonds because the government does noethig productive. The money with which it pays the interest ultimately always comes from taxing its victims or counterfeiting and thus fraudulently robbing the people of their purchasing power. (I say ultimately because of course the government can roll over debt and pay back with more borrowed money …)

Malcolm Jensen
Guest
0
Malcolm Jensen
November 3, 2013 10:32 am
Scrutinizer is not very bright if he really believes that the “government does nothing productive.” Consider just a few things: Research the results of which not only enrich our lives but also those investing in companies who use those results in their businesses. The CDC. Most of us appreciate the benefits of a disease watchdog guarding us. The FBI. If you don’t appreciate the FBI, maybe it’s because you have something to hide. The SEC. Imperfect though they are, how well would you expect to do without any policing of the criminal big banks and others who lie, cheat and… Read more »
hipockets
Irregular
1001
November 3, 2013 9:42 pm

Ahhh….A deifinite aroma of sanity mixed with common sense.

How refreshing!

Myron Martin
Author
208
November 3, 2013 12:06 pm
Good Scrutiny: If only people by the millions came to understand the negative nature of government and their unholy alliance with the scum balls operating the “Mother of all Ponzi schemes” our fractional reserve banking system created as a MONOPOLY with the passing of the Federal Reserve Act in 1913. What we now have is a “legalized counterfeiting” system that keeps the politicians in clover while destroying the middle class through un-payable debt. The door to “borrowing your way out of debt” is rapidly closing, the crunch is coming. An HONEST approach to CREDIT would be if the government issued… Read more »
Dr. KSS MD PhD
Guest
0
karma swim swami
November 3, 2013 10:05 am
I would not invest in Hitler, Inc., and am alarmed to hear that you would. You seem to have missed my point. Any gains by Santarus are an illusion. This company is all about savagely aggressive marketing of drugs that no one else cares about, me-too drugs, re-purposed drugs. They do not have a long term strategy. Zegerid is a nonsense drug—-omeprazole plus a little bicarb at 5 times the price of those….sensible GI MDs do not rx it. In the era of biologicals for inflammatory bowel disease, budesonide is a fool’s errand. XL metformin and bromocriptine for type II… Read more »
Alan platt
Guest
0
Alan platt
November 4, 2013 11:17 pm
Oh, Swim Swami please re-read my comment. You’ve got the wrong end of several sticks and seem to have performed an irony-ectomy on yourself, being a medical person. I certainly would not invest in Hitler Inc. I merely said that many of our fellow investors might if it meant putting their kids thru school. It was not a serious suggestion, of course. You’re possibly the only one who took it as such. My point (after thanking you for your excellent insider viewpoint) was that it might be ‘interesting’ if our wonderful sanity guide Gum (Mr. Shoe to you) initiated some… Read more »
Dr. KSS MD PhD
Guest
0
karma swim swami
November 5, 2013 12:15 pm
Alan, I took it as I did because it was directed at me, but appreciate your clarification. I do think that in business, impure ways tend to catch up to their practitioners. In medicine, it is a truism and a fact that good drugs really sell themselves. The lousy ones need thugs, like Santarus’s marketing force, to push them. Gains in Santarus are illusory and misleading. It is focused only on next quarter’s results and last quarter’s, not next year’s or the results in five years. Its share price may rise for a time, but I am an INVESTOR, not… Read more »
bosley
Irregular
66
November 10, 2013 7:17 pm
As a person who works in a Medical building with dozens of different doctors, I don’t want the laypeople who read these comments to think their doctor is prescribing drugs because of intimidation tactics of the drug companies. In my experience nothing could be further from the truth. In the old days drug companies might try to bribe doctors, but rules from the FDA have pretty much curtailed that. Now a free lunch MIGHT buy them 5 minutes with the Dr. But most of the doctors in our building don’t even bother to talk to the reps at all.
Roberto v
Guest
0
Roberto v
October 9, 2013 12:31 am
I am a member of Investor Business Daily and they have been promoting this stock many times even reaching their IBD 50 list. It’s got great reviews from IBD such as institutional buying, high composite rating. Well idk about all of y’all, but I’m staying on the sidelines with cash till I can finally see a relief rally, and the market changes back to uptrend before I buy anything, thank you Travis. Travis idk if you heard but we created a group based on Gumshoe, Sgfollowers@yahoogroups.com, I hope you read this and let me know what you think, we all… Read more »
baygreen
Member
32
October 9, 2013 1:25 am

Irregulars do not let someone else do your due diligence, Travis and the Thinkolater are for us all to enjoy!

dealerdeb1
Irregular
22
October 12, 2013 11:23 am

I used to have a full service broker now I can do[with our fearless gumshoe dissecting the teases] it myself for the most part . I started with an online brokerage and made two portfolios. One a “ghost” of his calls and one of my own after doing hours of research. my portfolio returned 3-4 times more than his and I didn’t lose money because I had tight stops. You really CAN do it yourself. For heaven’s sake I started with $4000 and Money magazine LOL>

hblytt
Member
9
hblytt
November 10, 2013 11:55 am
Good for you, Ms Flynn. Paper trading, paper investing, don’t cost you one red cent. You’ll get experience, & knowledge. For instance: Let’s say a body decided to buy SNTS. Let’s say that body is putting up $1400 and paying $7 commission. That’s $14, or 1%, expense for the round trip. Doc Swami says it’s gonna crash, but a body thinks they can make a little money before it does. Catfish says, maybe you can get to 20 or 25% before it turns south. IBD says they all crash sooner or later, but if it’s coming off a good first-stage… Read more »
Beejay
Guest
0
Beejay
October 9, 2013 4:23 am

I used Navellier as my personal Money Manager and he lost 50% of my portfolio in 1 years time! Ever since then I say buyer be way!

Antonio
Guest
0
Antonio
October 9, 2013 7:32 am

Today I´ll get some titles from Santarum Inc., due to the fact that yersterday I received news from a pundit to get in to it now that the stock is down about 20% and a rebound is due anytime now. This pundit doesn´t charge any thing for his advise and the two previous stocks he recomended I made some money.
Antonio

Myron Martin
Author
208
October 9, 2013 3:40 pm

If a person really believes strongly that Santarum being down 22% is “due for a bounce” the cheapest way to play it would probably be with cheap Nov. call options.

Bob
Guest
0
Bob
October 10, 2013 2:58 am

You know, whether It is Louis Navalier,( or others who have news letters, and even though they all probably know a great deal about stocks with their staffs to help them), it is very prudent to think, & rethink, if you want them as your “Financial Guru”. Even if you do take
them, you have to continually check things as carefully as you, can,rather than just go blindly into the night.-Bob

Myron Martin
Author
208
October 10, 2013 11:06 am

BOB: You have stated things just about as succinctly as possible. Far too many retail investors are all to willing to take analysts recommendations at face value and fail to do their own due diligence. Most of the big newsletter publishers do NOT ALLOW their analysts to invest in stocks they write about, you should have far more confidence in writers who have skin in the game by investing their own money.

Raymond
Guest
0
Raymond
October 10, 2013 2:19 pm

My total, was a loss of well over $150,000 in the summer of 2007. Trusting advice from listening to Louis Navellier, and his $1,000 per year newsletter. I followed his advice on stocks for three months. Louis is a stock guesser and there is nothing magical about his newsletter’s. I suggest people should avoid him like the plague.

dealerdeb1
Irregular
22
October 12, 2013 11:29 am
No offense please I mean that but who would give a total stranger on the internet $1000? I’m old and could be a victim IF I never found Travis. They all sound so good but when they pitched the price I almost died! I;d have nothing to invest IF I had fallen for Mesh and Navalier SO I started to Google things and got some names. Then I started as a paid subsciber to Travisp[ He’s cheap compared to the other for the best answers] then I now have a very happy portfolio that generates passive income and will be… Read more »
David
Guest
0
David
October 13, 2013 12:43 am

Well said! Why would they bother with a newsletter? Unless it is big enough to push the price/volume up.

They find a good stock in a thin market and buy some and then tell 500,000 people to also buy some and then bail. Might work.

But if they can make huge % returns, why have a newsletter? Or a book, etc?

Myron Martin
Author
208
October 12, 2013 11:42 am

Good for you Deborah, wisdom comes with age and experience.

Eyedoc2
Guest
0
October 12, 2013 3:51 pm
I bought shares of United Therapeutics (UTHR) in Feb 2012 @$50 (probably influenced by Value Line – available at our public library) and two days later Stock Gumshoe published the reveal of the same stock from a Navalier tease saying he (Navalier) expected it to double when earnings reported a week later. It collapsed after that report and I bought more in April 2012 for $42 and held on. (Not what Navalier would expect you to do when he’s wrong.) I sold some for $69 in July 2013 to lock in some gains. (pigs get slaughtered says the Mad Money… Read more »
Myron Martin
Author
208
October 12, 2013 6:54 pm
Your experience is not at all unusual, “pigs do indeed get slaughtered” which is why I continue to advise taking profits based on two crucial factors: 1) your degree of due diligence and resulting faith in the fundamentals of the company and its management, balanced against market sentiment at the time. Nobody gets it right 100% of the time, indeed I have had junior stocks (high volatility) drop 50% after I bought them and still deliver a 50% or better profit after a year to 18 months, sometimes PATIENCE can be a stronger ally than knee jerk emotion based reactions… Read more »
Harold
Guest
0
October 19, 2013 12:27 pm
Mr.Walker. I suggest that you go to the out house and Sit for awhile and think about what you just said. Your cheap enough to Walz In on a free parade and then you complain about it! Your still looking at the old Sears catalogue out in your relief hole! Maybe you can find something better to complain about out there. These people that you have disrespected are people that try to help You. These people know the market inside and out. So I suggest you apologize or stay away. Your not going to help your Portfolio any, and believe… Read more »
Ben Gunnarson
Guest
0
Ben Gunnarson
October 31, 2013 1:19 pm

I find the response from investors interesting…

Mick
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Mick
November 3, 2013 8:31 am

If you’re buying SNTS….hold for a least 12 to 18 months to see positive results.

Slick Rick
Guest
0
Slick Rick
November 3, 2013 9:59 am
Bio Pharma stocks have many pitfalls like burning through cash fast , and perhaps the worst an FDA denial, which can send the stock down sometimes 50% or more. Prehaps it is better to concentrate on the firms that supply the “Picks and Shovels” to the biopharma industry. Which would be the tools those companies need for doing their research. One such company which stands head and shoulders above the crowd is NeoGenomics NEO. The company is profitable and going forward could be extremely beneficial to your portfolio! Here is a chart of NEO http://finviz.com/quote.ashx?t=neo&ty=c&ta=1&p=d
Dennis
Guest
0
Dennis
November 3, 2013 10:27 am

All things aside …what I find a red flag on this stock is when a newsletter says you must buy before earnings after CEO and other insiders have recently sold shares. I would throw caution to the wind and either hedge your position with puts or sell day before earnings then reevaluate after earning call. Why would insiders sell if earnings were going to be good ?

Dennis
Guest
0
Dennis
November 3, 2013 10:45 am

I am going to revise my last post after just looking at the insider transactions for last 6 months. There have been 49 insider sells of 6.099 mil shrs to only 1 insider buy of 185k shrs. With that in mind scratch hedging position with puts …. If i were in this one i would liquidate position before earnings as shorting this stock before earnings would make more sense based solely on insiders dumping last 6 months

Myron Martin
Author
208
November 3, 2013 12:20 pm

Sound observations from Dennis, insiders usually know more about a stock than any mediocre analyst will find. The stories are usually so “dressed up” like putting “lipstick on a pig” that mostly novice investors are fooled. Even management of some mediocre companies are not above “dressing up” their companies fundamentals.

Dr. KSS MD PhD
Guest
0
karma swim swami
November 3, 2013 12:59 pm
Myron and Dennis: I just cannot emphasize enough. From a GI MD’s perspective, this company should be held between thumb and forefinger. Lousy portfolio of products that no one else wants to sell, charlatan marketing techniques, absence of long-term strategy. I have said for quite some time that all of its supposedly positive earnings news are just window-dressing to allow insiders to dump shares for a profit. Zegerid is utter nonsense, and rational GIs never rx it. There is no market for budesonide, bromocriptine and XL metformin. I cannot believe anyone would be dumb enough to buy Santarus shares: this… Read more »
Myron Martin
Author
208
November 3, 2013 2:49 pm
Well KSS, no danger of my buying this stock even, if I was fooled into thinking there is a lot of money to be made. It is an ethical issue with me. I simply do not believe that chemicals in the form of drugs (injected or swallowed) are the answer to building good health. Our waiting rooms at doctors offices and hospitals are FILLED with people having “lifestyle diseases” which are almost 100% preventable by a change in lifestyle. People universally do not seem to understand that what they breathe, drink and eat, anything they put into their body either… Read more »
Just Joan
Guest
0
Just Joan
November 4, 2013 1:34 pm

karma swim swami: Thank you for your input on Santarus! I failed to do enough research and; yes, I had some of the stock; until today; just sold. Extremely glad you posted your comments here.

Just Joan
Guest
0
Just Joan
November 3, 2013 3:19 pm
karma swim swami: Thank you for your input on Santarus! I failed to do enough research and; yes, I have some of the stock; until Monday when it will be sold. Extremely glad you posted your comments here. Deborah G Flynn: You go girl!! I took full control of my investments in August, after doing tons of research, even met with a few investment managers; decided to do it myself. Up 6% to date. Thanks to Stock Gumshoe, I get access to valuable “real” investor info to compare to online newsletters. Travis: You are one of my favorites! I appreciate… Read more »
Dr. KSS MD PhD
Guest
0
karma swim swami
November 4, 2013 3:28 pm
To Travis and to other SG readers with a pharma interest: Those of you interested in speculation and with risk tolerance might really be intrigued by a small company I have stumbled onto, about which I have done my homework. It’s an Australian biotech company called Benitec (in the US it trades as BNIKF). Benitec is just now starting a phase I/II study at only two sites in the world (Duke and UCSD) of a really novel agent that may represent a single-dose cure for hepatitis C. The agent doesn’t yet have a name, but is an engineered adenovirus to… Read more »
hipockets
Irregular
1001
November 4, 2013 7:24 pm

Thank you for your post, k.s.s. Your karma is defintely growing! :>)

It will be interesting to see how many newsletter writers start teasing Benitec becasue of your post. It might cause the stock to pop a little.

herbalix
Irregular
101
November 29, 2013 5:44 am

Hi Karma Swim Swami,
Do you have any idea why Benitec (BLT.AX) in Australia dropped from a few thousand dollars back from before the year 2000 to about $0.5 ??? I know there were some splits the last one back in July 2013 which explains the drop from about 10 Dollars to about 0.4 cents. However the other splits and drops I do not understand. Thanks!
Herbalix

Dr. KSS MD PhD
Guest
0
karma swim swami
November 29, 2013 10:29 am
Hi Herbalix: I really don’t have a good answer for that. I do have a close friend in Australia who is a stock analyst. She doesn’t cover biotech and pharma companies, but she actually did look over Benitec and sink a lot of personal money into it, feeling that is now very oversold and with very promising technology. She was aware of that high price it had years ago, and feels that much of that was sector exuberance in Australia. The company was not in a better fiscal position then. Some of the low shares prices it has faced in… Read more »
Dr. KSS MD PhD
Guest
0
karma swim swami
November 29, 2013 12:54 pm

I wrote “Pifzer may be interested.” That’s Pfizer. Sorry.

Chuck
Guest
0
Chuck
November 8, 2013 10:47 pm

Well karma swim swami, looks like Santarus wasn’t such a bad buy after all! The company is being bought out at $32 a share, about a 50% premium to what I bought the stock at last month, $21. Gotta love it, hope you didn’t short it.

Dr. KSS MD PhD
Guest
0
karma swim swami
November 9, 2013 9:35 am
$32 is far short of the $44 Navellier predicted, which was part of my point. Evidently you consider a 50% gain to be a big deal, but I really don’t. It’s still unclear if the acquisition will clear regulatory hurdles, but it doesn’t change my formulation of Santarus. It was acquired by Salix, a very like-minded company that also dabbles in me-too drugs that are marketed with extreme aggressiveness. I suspect Santarus was desperate to be acquired because it knew it had no future. That you made money doesn’t invalidate my precis, which is that touts often really don’t understand… Read more »
java106
Irregular
3
November 9, 2013 10:44 am

Travis, Thanks to your excellent research on SNTS. Your write-up on SNTS was very balanced and to the point. Based on your article I jumped in and I am really glad that I did.

Regards,
Javaid

namadi1
Irregular
0
namadi1
November 10, 2013 8:34 am

Incredible – it is the first issue I purchased from the information on this site and it was on the morning of the announcement . 350 shares at $23.00 a share. This has more paid for my life time membership to the stock gumshoe. Thanks!

qtasha
Member
0
qtasha
February 17, 2014 12:51 pm

which bio company is Navalier pushing now?

Sam
Guest
0
Sam
February 17, 2014 6:26 pm

It is “SNTS”. Please read the article. Anyway it was bought out around $30. So if you had read the article and bought it at $22, you would have made around 36% profit in a few months.

rahess
Member
0
rahess
February 19, 2014 4:09 pm

Louis Navellier is now “teasing” with, “I’m making this our No. 1 top holding…currently valued at less than $10 billion…The stock is already up more than 150% — this year”
This certainly sounds like Salix Pharm. (the company that bought Santarus) !!
The future earnings estimates for SLXP are enticing !

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