Navellier’s “Magnetic Marvel Tech Stock: A Stealth Buy for Less Than $14”

What's being teased by Emerging Growth?

By Travis Johnson, Stock Gumshoe, June 22, 2017

I’m running out of time today, so you get a quickie: Louis Navellier’s latest “stealth buy” promo, solved for your pleasure… but without any real analysis from me.

The ad is for Navellier’s Emerging Growth ($995/yr), and it pushes the possibilities of small caps and the particular appeal of one small “secret” $14 stock that has advanced photonics on which the military relies.

Here’s the opening pitch from Louis:

“Next-Gen photonic systems developed by this tiny tech company are indispensable to the high tech weaponry and sensor systems included in Trump’s $21 billion defense spending increase. But it gets even better…

“This ingenious outfit also produces thin-film processing technologies vital to the Internet of Things, solar power, and cloud computing. Over 60% of the world’s magnetic media is produced using their systems.

“Sales are expected to soar 109.2% and earnings by 116.2% year-over-year. This bargain share-price can’t last. Fast action is vital to claim your share of the profits…”

And while he talks up many of the company’s products and technologies, he focuses particularly on a “night vision” product:

“… this tiny company’s technology just hit the bullseye on one of the military’s greatest concerns. It’s why I call these tech geniuses…

The Masters of the Night

“This company has ripped the cover of darkness off our enemies—a staggering blow to furtive, merciless terrorists like ISIS and Al Qaeda.

“For their revolutionary accomplishment, the DoD named them the sole technology provider of one the key segments of military offense and defense, namely:

“Nighttime surveillance, detection and destruction of not only conventional enemy forces, but also today’s elusive terrorist fighters.

“Yet, this technological achievement is not even hinted at by their current share price.

“It’s still trading below $14 a share.”

So… hoodat? Thinkolator sez this is Intevac (IVAC), a tech supplier that’s been around for decades, with a focus on thin film technology and processing — their two main product lines appear to be equipment that’s sold to hard disk drive makers for magnetic media processing (they do say that 60% of the world’s magnetic media is produced on Intevac systems); and digital-optical sensors for the military, used for night vision and other products. Navellier’s Portfolio Grader page on IVAC is available here if you’re curious.

They had a big stock price jump over the past six months, and are in the midst of growing earnings dramatically, albeit from a very low base (they’ve had pretty stagnant revenue for years, and have lost money every year since 2011, presumably because of softness in the hard disk drive market with desktop sales weak and solid state drives rising in popularity). They are still very small, with a $250 million market cap, and seem to be in some significant transition now, with analyst estimates improving, but I have no idea why or what the story is. The stock peaked out just below $14 a few weeks ago, and has since dropped 10-15% and trades in the $11s now.

And, well, I said I’d keep it short — so I’ll hand it over to you. What do you think? See excitement ahead for Intevac, or is this a one-time pop that won’t be sustained? Let us know with a comment below.

P.S. Gumshoe readers want to know what you think! If you’ve ever subscribed to Navellier’s Emerging Growth, please click here to rate it for your fellow investors. Thanks!

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Michael Fuerst
Michael Fuerst
June 22, 2017 4:32 pm

“Sales are expected to soar 109.2% and earnings by 116.2% year-over-year. ” Any claims of expected sales and/or earnings to the tenths of a percent are nonesense, and thus probably the stock, ar enon sense

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June 22, 2017 10:21 pm

Baffles me that people buy these persons subscriptions of high $ prices. Go to the menu click investors, etc. Here is there web site.
Change: +0.10 / +0.85%
High: 11.95 / Low: 11.45
4:00 PM ET – Jun 22, 2017

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👍 -191
June 22, 2017 11:47 pm

The stock is at a P/E of nearly 600 after doubling from abuot $6 to $12 this year. Too many Navellier pitches I followed seem to come to the masses at the end of a great run. I sometimes feel that the idea is to prop up the end of such a run a bit longer at the expense of investors drawn to a well that has already been pumped dry. It will be interesting to follow what this pick actually does.

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👍 26
June 23, 2017 9:18 am
Reply to  Ed

So…. just another pumper and dumper.