Here’s how Louis Navellier pitches his next uber-hot idea for a stock that gives you three phone numbers on one phone and 10-bagger profits:
“Last May I told you about a new wireless juggernaut whose 3-in-one proprietary technology and earnings growth matched Envirodyne, which handed us a monster 1,700% gain a few years back.
“Since then, this company has not only handed my readers 205% profits on 2,999% earnings growth but is now on track to break out again come February 28.
“If you missed the first wave of profits, you’re getting a valuable second chance to grab the next 205% gain before it declares earnings again—but only if you act now.”
Navellier is teasing this idea in order to get you to subscribe to his Emerging Growth newsletter, which generally looks at smaller stocks (and costs more — it’ll run you almost $1,000 even on the “family plan discount”). He also says that he’s been “beating the market by $3-to-$1 since 1985” — I don’t know if that’s true, but I have my doubts if their claim means what it seems to mean, which is that Emerging Growth’s portfolio has returned 3X more money over 25 years than has the broader market.
Hulbert, which tracks actual portfolios of newsletters, lists the annual return of this newsletter since 1985 and there are only a few years in which the performance has doubled the market’s returns, and a couple in which it has done substantially better than that — with the very best years being mostly in the late 1980s and early 1990s. Hulbert’s data says that over the past 15 years Emerging Growth has trailed the market (roughly 6% annualized returns versus 7% for the broad market). I don’t cite this data just to poke Navellier, I would do this with everyone if I could but most of the more heavily hyped newsletters are not tracked by Hulbert (or, as far as I know, by anyone else who actually monitors the specific portfolio performance). So Navellier gets some extra scrutiny since there’s an observer who’s been tracking him for 25 years.
But anyway, whether he’s beaten the market or not over time he certainly comes up with high-growth stocks for our consideration, and his picks often outperform, particularly in a bull market. So let’s find out which stock he’s touting today, shall we?
He again makes a promise, as he always seems to in his high-pitched teaseriffic emails, that it the stock doesn’t jump another 50% shortly after it releases earnings (which are coming out in about a month, on February 28), then “you won’t pay a dime” (meaning, you can get a refund for your subscription — not that they’ll make good if it turns out the CEO of this teased firm stole the company’s checkbook and is hiding out in the Cayman Islands … so in practice quite similar to the refund guarantees of most big newsletter publishers, though thankfully without the “10% refund fee” that many have imposed recently).
So it’s some kind of tech stock that’s releasing earnings on February 28, which is a lovely hint, and Navellier tells us that it must be a chip company of some kind, because their technology allows for cell phones to carry three different phone numbers … here’s how he describes that:
“Unlike the cell phone in your pocket that limits you to one carrier and one number, this company’s chips will allow YOU three phone numbers from three potentially different carriers.
“The result will allow you to quickly change phone carriers to grab cheaper call prices and better network coverage when you’re on the move—all while retaining your contacts and without your having to buy a new cell phone!
“Talk about a dream come true!
“This is why this company’s chips are selling like hotcakes all over the world and particularly in China where this 3-in-1 feature is hugely popular.”
So … that’s two hints. Do we learn any more about them?
I’m so glad you asked! Indeed:
“the company’s earnings jumped 2,999% last quarter…. the stock’s price jumped 205% profits in eight months… “
And we also get a bit of a hint about the stock price — he says that this is a “$19 wireless juggernaut” and, naturally, that since he thinks it “could have already hit $27