“Unmistakable Signal is Flashing ‘Buy'” (David Gardner’s Motley Fool pick)

De-teasifying the latest pitch from the Motley Fool Stock Advisor

By Travis Johnson, Stock Gumshoe, August 15, 2012

“The ‘unmistakable signal’ that could lead YOU to profits of 246%, 631%, even 1,425%

“Only one in a thousand investors has even heard of it. But it’s delivered them an average return of 140% for more than ten years running.

“And the signal just started flashing AGAIN — pointing them to a surging stock that could be their biggest winner yet.”

That’s how the latest teaser ad for the Motley Fool’s Stock Advisor newsletter gets us started — this time the teaser letter is actually signed by a subscriber to the newsletter, a guy named Danny Vena, but the basic idea of the “unmistakable signal” is one they’ve used in ads several times over the years.

Basically, what they’re saying is that every time David or Tom Gardner re-recommends a stock, it does much better than the market… so that re-recommendation itself is the “signal” that a pick is extraordinary.

And there are plenty of examples they provide to back this up — both the Gardner brothers have re-recommended several stocks over the years, and many of them have been their best picks, stocks like Marvel (now owned by Disney, DIS), Quality Systems (QSII), Priceline.com (PCLN), Intuitive Surgical (ISRG) and Whole Foods Markets (WFMI). Of course, they’ve also occasionally re-pounded the table on stinkers, like Netflix when it was well over $200 a share (they also picked it cheap and got in very early, to be fair — they teased it at $17 a share in 2007, so folks who bought then are probably still happy if they hold the shares at $63 … it’s just that they kept saying it was a good buy at $200+ before the 70% collapse that started about a year ago), so the “signal” may not be entirely infallible.

Here’s how the ad puts it:

“Nearly all of Stock Advisor‘s biggest winners share one defining and extremely telling characteristic…

“They’re all stocks that David Gardner has re-recommended. Allow me to explain…

“Every month David recommends one stock to his Motley Fool Stock Advisor members.

“And, occasionally, when he thinks a stock he’s already recommended once makes for an incredibly compelling investment opportunity — either because of a temporary pullback in share price, or a new growth catalyst, or simply because he thinks it’s the very best company you can possibly buy at that given moment — he will actually double down and re-recommend it…

“That’s why I wasn’t surprised to see that David Gardner’s latest Stock Advisor re-recommendation is already up 20.8%… even though the S&P 500 has delivered just 2.4% in this same short period.

“If you’re worried this means you’ve missed your chance again… you shouldn’t be. Because what really fuels this stock’s growth (other than its 1,000 disruptive technology patents — both current