by Travis Johnson, Stock Gumshoe | June 22, 2008 7:48 pm
I won’t be able to give this one the full Gumshoe treatment today, but it seems to me that every adult American received Louis Navellier[1]’s latest advertising email over the last day or two … so I thought you’d like to know the company he’s teasing.
The ad is for a company that works to expand Compressed Natural Gas (CNG) usage in the transportation sector, as a cleaner replacement fuel. Well, to be clear, the ad is for Navellier’s Quantum Growth[2] newsletter, but the stock he’s teasing is related to CNG.
And he promises that the stock will double in the next two weeks, or your money back.
“All thanks to this company’s breakthrough fuel injection systems that convert $4-a-gallon gas guzzlers into 63-cent-a-gallon clean air machines.
“Buy this one stock today and I guarantee you’ll thank me a thousand times on July 7th —or you won’t pay a dime.”
Now, I think I’ve made clear that I’ll make no such promises about a stock doubling. But I will tell you what this one is, for the low, low, price of nothin’.
If you want to know how Navellier’s last short-term prediction played out, you can oil[3]-stock-to-12-by-friday.html">read my writeup from a couple weeks back — that stock was going to double, too … hasn’t quite gotten there yet, but it actually did have a nice run last week. We’ll see how it does now if Navellier’s readers get shaken out by the passage of his June 20th deadline.
And as I noted in that writeup, Navellier loses nothing if his “guarantee” doesn’t play out — he, like most publishers, offers money-back guarantees during a trial period anyway, so this is just a fancier way of saying the same thing. And it certainly got the attention of a lot more people, if my mailbox is any indication. He’s putting his reputation on the line in a limited way, I suppose, but if any of these big publishers are worried about ruining their investing reputation due to aggressive email marketing, I’m afraid that ship sailed long ago.
So anyway, here’s how Navellier teases this one:
“There’s a fuel conversion revolution at hand, and there’s simply no stopping it.
“The biggest profit taker of all will be a little known fuel conversion company that converts American gas guzzlers into clean burning compressed natural gas[4] (CNG) vehicles—in the time it takes to service your car.
“Please add it to your holdings today.
“Our research indicates that when the company’s 2ND quarter earnings are released, the company’s past 511% earnings growth will not only go supersonic but also make the company’s past 90-day 200% gains look like a drop in the bucket.”
So … I can’t go deep into this company’s books at the moment due to lack of time, but I didn’t want to delay in telling you that the name of this firm is …
Fuel Systems Solutions (FSYS)
This one is smaller than the average Navellier pick, so it may well get a boost from his recommendation if he keeps emailing everyone over and over about it — it’s about a $500 million company. They are involved in alternative fuel systems, primarily in natural gas, and they are profitable but expensively valued. Other than the fact that the shares have already tripled in the last couple months, I know precious little about them.
So … no great insight here, but at least you’ve got the name … go forth, researchify, and share with us what you think. I would not be surprised to see this one keep running with Navellier’s mighty promotional machine behind it, like GTE did for a little while, but I have no idea why the company’s stock has tripled — or whether that nice mountain on the stock chart might soon crumble, so be careful.
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Whew — wild morning in this one, up 10%+ on more than 500X normal volume. You, too, can have massive returns if you’re able to email 400 quazillion potential investors at once!
Or wait, maybe it’s the untold thousands of loyal Gumshoe readers?
Who knows, maybe a few of you readers checked the site on Sunday evening when this first went up, and enjoyed a nice run from the $37 pre-market to the current $40. If so, I hope you figure out why Navellier loves it so … other than the fact that it’s going up (which is certainly enough for some folks).
Interesting start to the week — enjoy, everyone, and keep your eyes peeled for the next bit of Gumshoe goodness!
interesting solution wich is not new we have it in europe for over 40 year and it is working with nlg i had it in the seventies it is a non poluting system the only bad thing you have a big heavy tank containing liquid gas pressurised at 140kg/cm² .
Hi Travis,
Been reading your Gumshoe editorial for about a month now. Very enlightening.
What would you consider to be the best top 5 news letters for someone who has retired and wanting to learn more and get some decent advice as to which stocks to invest in. Specifically, looking for good dividends, but in reliable companies. PF suscks as do other newsletters I’ve tried to date. I’m a novice and to date have lost about $100k on these so called experts. I do have some stocks I picked on my own through resources on TD Ameritrade and am doing very well, even in this market.
Sincerely,
Dennis
Hi, I’m new to investing and I stumbled upon this site and I love it. It appears to be the only site with honest people. The script in some of those teasers is pathetic. Nice to see a free site with honest discussion to sift through the screwballs. Ty Travis.
My question is: what actually makes the price of a stock go up or down? I thought that it was the value/revenue of the company but it looks like the the price can go up or down based on a newsletter push. Does this mean supply and demand affects the price too? Can somebody give me some insight on this or refer me to a website so I can read up on it? Ty.
Maui Jim
this one has some good technicals, keep an eye on it. /Doug.
I bought FSYS at 14.25 and rode it up to 27.50, I lost it due to a tight stop. I waited awhile and bought it last week again for $32.45 and sold my 250 shares for $36.10, when it started to turn south. The company blew away the numbers by about 500%. Now, thanks to the Gumshoe, I know why it gapped way up this morning. Good work, Travis!
sorry if my reply pops up twice – I think I messed up my first try somehow. This is for Jim’s question about what determines the movement of stock price – check out http://investophoria.blogspot.com, read through some of the posts if you have time.
Good tease by Navellier to get the last few bucks out of this for his traders before they all dump in splendid style. JMHO but I think he is playing on the fact that the mighty Gummy and friends are easily working out the teasers and has set the bait first with GTE which they ran up very nicely and then with this one. We shall see how it pans out but I for one am not touching it after such a massive run up over the last few months. I am sure
Navellier is aware of this site and just might be using it to his advantage. Take care and keep up the good work.
Den
$28.33 today definitely a pump and dump. Don’t say you were not warned. Hope none of you risked the family silver.
Den
Bought FSYS in mid-June at $30 and sold half in mid/late August at $61. Just bought half back at $50. If only all my “finds” could be so sweet…
Well, here we go: FSYS finally made a big move upward! Admittedly, after an even bigger move downward first…