Dow High on Shaky Stocks


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The 57% gain in the market since March has come from 100% of the shakiest stocks. Doesn’t that make you nervous? —Louis Navellier

Louis Navellier (photo)

What is this market smoking?

Louis Navellier here, and frankly, I am alarmed.

And I am writing to you today because I believe you are at extraordinary risk.

Why? Look at the biggest gainers since the March 9 bottom.

They came from the worst stocks.

Worst yet, these terrible stocks are magnets for conservative money.

So investors who were frightened out of the market this time last year are now piling back in—and buying the blue chips most likely to take a dive next.

Look at this:

  • Dow Chemical is a bastion of conservative stocks. It is up 355% since March. Wow! That must be a great company, right? Not so fast: According to cash flow and return on equity measures published by Navellier Research, Dow is mediocre. And on measures of sales growth, expanding margins and earning growth, it is an outright flop. Check out the P/E of the stock: an eye-popping 81. The industry average, by the way, is… zero.

    Yet, Dow is rewarded with a 355% rise in stock price, largely on the basis of one-time spin-off sales.

I can point to scores, possibly hundreds of stocks like this—

—from banks (Sun Trust, Wells Fargo, Bank of America)

—to utilities (Duke, PPL, Entergy)
—and health care (Baxter, Medtronic)
—and household products (P&G)
—transports, software, telecom
—all with conservative-looking stocks up 110%, 197%, 288%

—where the underlying fundamentals are shockingly bad.

Riding For A Fall!

Let me be clear. Look at your portfolio. If you own even one of these vulnerable stocks, you could be in big trouble. A drop of 50% is entirely possible in 2010 or sooner.

It is a simple truth, after all: Fundamentals, like gravity, must ultimately be obeyed.107 Blue Chips Riding for a Fall - FREE UNTIL MIDNIGHT

To make it easy for you to identify these stocks, I have created a new report, called 107 Blue Chips Riding For A Fall.

And the best part is, you can receive this report available FREE until midnight.

Click here to download.

You Must Resolve
To Be Safe

Do you hold Microsoft or General Electric? Exxon or Johnson & Johnson? Lowe’s or Berkshire Hathaway?

All these stocks have risen on poor fundamentals since March 9.

They (and over 100 more) are riding for fall—NO MATTER WHAT ELSE HAPPENS TO THE MARKET.

I hope you understand this.

This is Job #1.

Your next step is equally important.

You must TRADE UP.

Let’s say you own Raytheon or Lockheed Martin—both vulnerable on a fundamental level as you’ll discover from 107 Blue Chips Riding For A Fall.

What is the best “trade-up”? Precision Castparts, as it happens.

Now it could take you all day to figure this out, OR you could consult the SECOND report I want to send you, called The One Minute Trade Up. This report is designed so that, 107 Blue Chips Riding for a Fall, The One Minute Trade Up - FREE UNTIL MIDNIGHTfor every fundamentally vulnerable stock, you can quickly trade up to a much better stock in the same category or sector.

This means you don’t have to worry about reweighting your portfolio. You want be in defense. But not in Lockheed Martin. Precision Castparts is the right answer.

And it’s FREE!

Cream of the Cream

You have escaped danger. You have traded up. Now you must top off your portfolio with the best stocks now.

Again, an example: Express Scripts. Sales growth, margin growth, earnings growth, ROI, whatever metric you throw at Express Scripts it ranks at or near the top. It is an amazing company, and the stock has just begun a hockey-stick rise this year. Grab it now.

Out of 5,000 stocks I rank and rate with every tick of the clock, how many stocks this good are there?

There are just 7.All 3 Free - UNTIL MIDNIGHT

My third report is called The Magnificent 7, and it is free, just like the other 2 reports I’ve just told you about.

Promise me, though, that you will save this report for last.

Join me at Blue Chip Growth today, and I will send you these 3 reports, 107 Blue Chips Riding for a Fall, The One Minute Trade Up, and The Magnificent 7, all FREE until midnight.

Get 6 Months

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Join me at Blue Chip Growth and also enjoy the service for 6 months absolutely RISK-FREE.

Blue Chip Growth continues to beat the market by over 6-to-one.

Our system gets you AWAY from danger, shows you how to trade up and put you IN to the best.

Join NowAnd if I don’t do the same for you, don’t pay a penny for Blue Chip Growth!

See order form for details.

signed- Louis Navellier

Louis Navellier

Free - UNTIL MIDNIGHTEditor, Blue Chip Growth

P.S. FOURTH FREE REPORT. This is a great time to use ETF funds, as I’m sure you’ve noticed. I feature the 5 best ETFs in my fourth report, 5 ETF Winners. It is also free, but I must hear from you by midnight. Go here now to get it.

.

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11/23/2009 6:06PM

 

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