Navellier’s “Next Biotech Doubler”

Sniffing out an Emerging Growth teaser pick

By Travis Johnson, Stock Gumshoe, February 25, 2014

Louis Navellier likely had a good year last year, since the kinds of stocks he typically likes did very well (generally growth stocks, those with rapid earnings growth that beat estimates and grow at increasing rates … and often look expensive, with high PEs) — and he’s out now with a new ad about biotech stocks that he thinks will get you triple-digit gains.

Biotech teasers are on the rise these days, since we’ve been in a blistering biotech bull market for a couple years now — over the last year even the biotech index funds are up by 60-80% or so, and there have been dozens of huge winners that are up several hundred percent … mostly smaller stocks, of course, but even the biggies have done very well (Gilead (GILD) and Biogen-Idec (BIIB) come to mind, both are very large companies at or near $100 billion in market capitalization, and both have doubled over the last twelve months).

Just chasing growth in that sector would have put you in good stead over the last year, even if you had no skill or luck in choosing the best specific stocks — and an aging population in the highest-health-spending country helps to buttress future hopes for growth.

So we’ve now got pretty much an ideal backdrop for pitching biotech stocks, which — like mining stocks — have big individual boom and bust moves that attract speculators and traders, and lend themselves to good storytelling (curing disease, ending misery, huge secret discoveries by “lone wolf” scientists or prospectors, shocking gains, etc. etc.). I expect we’ll continue to see lots of overheated promises about the next hot biotech stock — and while I’ll often not be able to tell you much about the science or the real prospects, I can at least ID some stocks for you.

So what, then is Louis Navellier telling his subscribers to buy? He’s flogging his Emerging Growth newsletter in this particular pitch, and that’s about $1,000 a year, so I’m assuming you don’t much feel like subscribing just to find the stocks, right? Don’t worry, that’s why we’re here — his spiel touts three specific stocks that he’s recommending, let’s look for the first one now, the one he calls the “Next Biotech Doubler”:

“The Next Biotech Doubler…

“It’s NOT in the U.S. … or Europe … or even Japan…

“It’s in China, and it has the catbird seat for the next Avian Flu epidemic….”

Interestingly, some “plays on the bird flu outbreak” were also among the top performers on the Gumshoe tracking spreadsheets in 2013 — so is Navellier touting one of those stocks? We’ll find out shortly (That tout was from Tony Sagami, FYI, you can see it here — the top performer in that list was one he mentioned for free, not a teaser, and was BioCryst Pharmaceuticals (BCRX) with a gain of more than 500%).

Here’s what gives Navellier’s pitch some urgency, the possibility of global pandemic flu mutating from Avian Influenza:

“Avian Influenza. Bird Flu. H5N1.

“It’s a virus that boasts a mortality rate above 60%. In China, it kills two out of three infected.

“And for the first time ever, the highly-virulent H5N1 has crossed into the Americas.

“One week ago, the first human infection of H5N1 was reported in Canada. But it won’t be the last.

“I don’t want to scare you, because we’re not at pandemic levels—yet. H5N1 still can’t easily spread from person-to-person. And until that happens, we’re mostly safe here in the U.S.

“But in the meantime, this virus is endemic in China. Tens of millions of birds have been slaughtered and disposed of to limit the spread of bird flu, but human cases there continue to surge because of the virus’ fast-mutation ability.”

And, of course, “one company” holds the key to solving the problem.

Isn’t it always thus?

“… there is just one company that has the technology and the know-how, not to mention the full support of the Chinese government to fight this potential epidemic.

“Buy Shares Today, Enjoy Double-Digit Gains In Six Months…

“…And Triple-Digit Profits in a Year

“Already, this stock is up 10% since the latest H5N1 case in Canada was released, and this is just the beginning of an explosive move higher for these shares.

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