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:
- “On January 14, 2013, the FDA approved its colitis treatment—pushing share prices 11% higher.
- 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.
- 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.
- 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.
- 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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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.
So, do I…………….
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……………
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?
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 as to be a specialty pharma house. I am glad certain people made money owning Santarus when the no-one-saw-it-coming acquistion was announced, but I am also glad not to be an owner of these shares, as they are just not a long-term buy and hold strategy. They are all about salessalessales, not science.
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 it, you’re not actually all that convinced of its qualifications! But if Navallier recommends it then it’s gold! …because he vets his stock picks with a “mechanical system”.
Please! I spend both research time and time in the time honored technical analysis for about 300 hours and watch performance up to a year before recommending a stock..as any professional should! You are being irresponsible with other people’s money just to build an email list.
Mr. Ezra Walker
Is you comment directed at Gumshoe??? If so, it is grossly misdirected!!!!!!!!
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 humble opinion, either clarify your comments or retract/apologize (after doing the necessary research, of course).
You should spend 300 hours and one year on this site before posting comments like this.
that made me laugh!
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?
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
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?
He hasn’t spent 300 hours at Stock Gumshoe yet. I hope nobody is holding their breath waiting for his apology.
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!
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 is OUR money we are investing.
Plus he always asks us to share our views. Which is a good thing, because quite often one or more of the members has some additional knowledge about the company or about the author of the tease.
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.
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.
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.
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.
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.
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.
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.
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. Give me a break! There is NO ROLE for this drug in treating DM-II, as its effects would represent only a trivial increment in therapeutic efficacy over metformin and sulfonylureas. Santarus’s other drug….extended release metformin??? Help us! This drug has been around for decades, and has such a long half-life that there in no need for an XR form.
Santarus is a slimy, marketing-oriented pharma house selling drugs that the smart money and big pharma houses will not waste time on. And it is NOT a “biotech” company. Its representatives are abusive, in-your-face thugs that I have banned from my clinic. All of its meds are marketed with the attitude of “Let’s just try to get 5 per cent market share in a huge market.”
If this is the calber of Navellier’s recommendations, then one should stay the heck away from Navellier! One of two things is true: either Navellier honestly believes that this is a good company, in which case he is dumb. Or he honestly recognizes the company for what it is…a company trying to squeeze a few dollars of profit to be a very short-term growth story, but with no avenue for long-term growth and success. And in the case of the latter, Navellier is either being dishonest, or has been duped by Investor Relations at Santarus.
I recommend holding Santarus between thumb and forefinger and at arm’s length. What a horrible recommendation!
Thanks for the feedback, definitely something you wouldn’t learn from a look at the income statement and the price momentum.
karma swim swami
Many thanks for the “inside info”. Well said.
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?
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, Zegerid and budesonide are jokes! Bromocriptine for DM-II…this is crazy! This drug will NEVER catch on. Metformin XL? Give me a break….this is old wine in new skins. Metformin is long-acting and does not need an XL format, which just drives up the price. Only an idiot would waste time with a stock for a company this low in the food chain.
Thanks for the inside info. No reason to research any further.
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?
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. This is one enantiomeric isolate of omeprazole, and is catabolized, broken down, at about half the rate of omeprazole and so lasts much longer though it isn’t more potent.
Zegeric is 20 mg omeprazole plus a thimblefull of bicarb, but at several times the cost of omeprazole, and I have doubts about how much longer third party payers will cover it, if they cover it at all.
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.
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 “Ezra Walker”, which are probably, as a previous poster points out, the rantings of someone who has mixed Johnny Walker, with Ezra Brooks, with disastrous results. Thanks, again, Doctor.
Glad to help, Fred.
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.
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.
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.
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 prophylaxis against falling for touted stocks, and this forum for discussion is quite useful.
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.
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.
Interestingly, another reader just sent in a note that another newsletter pundit made this stock a “strong buy” today, albeit in a free article:
http://strategictechinvestor.com/2013/10/i-just-got-a-strong-buy-signal/
Interestingly enough, just finished reading the above from Michael Robinson a few hrs. ago and must say he has a pretty good track record in the technology and biosciences sector. Certainly has drawn out a wide range of opinions, Ezra being the odd man out, no need for me to weigh in, other Gumshoe fans have covered just about every other possible angle.
Personally having no interest in drug stocks the only reason for my taking notes was for further evaluation of Michael Robinson’s proficiency at stock picking, and he may be right about this one, even though my impression of Louis Navellier is mostly negative and I try to keep him off my board, but he keeps sneaking back in. He seems to have an obsession that everybody out there simply has to listen to him.
Let’s digress from poor misguieded Ezra for a moment and get on to Louis N.
In a paper done in 2013 of guru stock pickers, Louie came in 6th and of those 5 above him, he had many more predictions. His average was 59.9, whereas the #1 stock picker, a David Nassar, had a winning ratio of 68.2%. Some other notables were S. SJuggerud at 58.5%, Laszlo Birinyi at 51.9%, James Dines and Ben Zacks at 50%, Bernie Schaeffer at 48.8%, Marc Faber at 47%, Gary Shilling at 37.5%, etc. So I would not put Louie down though I don’t use his system since I have trouble buying high, no matter where the stock goes.
PS Travis is the best
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 their kids thru school or pay for that nice new deck. Any thoughts?
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 …)
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 steal on Wall Street at every opportunity.
The list could be very long. Add your own benefits provided by our government (of, by and for the people).
Ahhh….A deifinite aroma of sanity mixed with common sense.
How refreshing!
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 the currency needed to build all infrastructure as a credit against our natural resources that belong to the people INTEREST FREE! Also required, as per Ron Paul, abolishing the Fed and legislation that would require bankers to label what they produce (out of thin air) as DEBT, which would be the honest label rather than credit. Maybe if people understood the enslaving nature of debt they would not be so quick to borrow at initially cheap rates.
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 diabetes??? How laughable. This is a company not with the times. Santarus is a pharma equivalent of a salvage house, marketing the junk no one else wants to sell. My sense is that their only MO is short-term gains so that insiders can bail out and sell their shares.
I once gave a seminar in a public place that had been used earlier that week by Santarus’ marketing team, and found left behind a photocopied syllabus of selling strategies that I was not supposed to see. It outlines ultra-aggressive brutarian tactics for trying to intimidate MDs into prescribing their drugs—Santarus is accustomed to dealing with MDs that are po’d and annoyed by their brassknuckle methodology. I have thought about forwarding this syllabus to the FDA: no doubt it would create all kinds of hotwater for Santarus because their techniques are not respectable. The FDA is quite interested these days in how companies market drugs, and is censuring companies left and right for uncouth practices.
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 kind of Slime Index to flag companies like Santarus
if and when it became clear that they were of questionable morality. It would pose an
interesting choice for us, if we also knew that they made money for their investors and could do so for us. But my comment sure generated some interesting replies from both
ends of the political spectrum and showed what a diverse bunch we Travis fans are.
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 a trader. Anybody who puts money in Santarus is buying into a musical chairs game in which they are ill able to sleep at night and need to be constantly checking the stock price with an eye toward selling. For Santarus, the music WILL stop soon, and it may be sooner than you think. It’s a company with no strategy except “How can we grunt and scrounge our way to a few percentage points gain in sales this month?” As I noted earlier, it’s quite satisfied to muscle into a crowded field, such as drugs for reflux, and get 5% of the marker. This is small-minded and nugatory, and not a good place to park money.
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.
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 respect you in the forum, but lately haven’t been able to stay on top of the forum due to the overwhelming amount of school and work I do have.
Berto (robertostockinvestor@gmail.com) -@robertovelez87 (Twitter)
Irregulars do not let someone else do your due diligence, Travis and the Thinkolater are for us all to enjoy!
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>
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 base & rising quick in big volume, you should be able to make a little money. My point, buying a stock like that can be tricky, but selling it is harder. I’m not buying but if i did i’d want to get at least $2800 or $5600 (still paying $14 round trip expense) and i’d probably sell when i saw 5% profit. But if i saw even a 1 or 2% loss i’d dump it. Obviously i’m not good at selling, but for now i’ll learn by doing it on paper.
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!
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
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.
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
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.
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.
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 there when I retire. Don’t put ANY of your eggs in someone else’s basket. remeber if they were so good at stock picking what would the be needing to peddle newsletters at all?IF I were that good as they claim they are I’d stay home and do nothing but generate the money they claim they can. THAT is just common sense. The best investment mind I can think of Peter Lynch QUIT his day job and did just that. lol I’d listen to him.
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?
Good for you Deborah, wisdom comes with age and experience.