Navellier: Maximizing Returns

03/07/2003 12:00 am EST

Focus:

Louis Navellier

Editor, Blue Chip Growth and Emerging Growth

Louis Navellier epitomizes what an individual can accomplish in the financial field. For retail investors he publishes the MPT Review and the Blue Chip Growth Letter and through his Navellier & Associates manages over $5 Billion. He has long been one of the most popular speakers at Money Show events. And his long-term record of success clearly justifies his popularity.

"Once the Iraq situation clears, which will likely happen during March-April, the market has the potential to snap back extremely quickly.  The reason is that sellers are exhausted.  That's why we've been drifting lower on light volume despite the best earnings season in nearly two years. There wasn't any panic selling whatsoever. Once the buyers return, specifically the institutions, this market could easily rally by 10-20%, and that's just to get back to fair value.  Then, businesses would likely step up their purchases, which would pave the way for a more robust recovery. We recommend that investors take advantage of these prices right now. If you're gun shy, then at least do some dollar-cost averaging.  We also recommend that you stick to companies that have earnings.  Don't roll the dice on stocks that have weak balance sheets, especially in this climate.

"Some of my favorite stocks would be Stryker (SYK NYSE) which makes medical products, such as replacement hips. We love Forest Labs (FRX NYSE), a generic drug company which also has some proprietary, patented drugs. We also like Fox Entertainment Group (FOX NYSE) - and with shows like Joe Millionaire, their ratings have been very high. Another stock I like is Nissan Motor (NSANY NASDAQ). The company is capturing a lot of market share from Honda and Toyota. They currently offer a lot of high-horsepower vehicles that are attracting buyers. They have a big SUV coming out as well as a big pick-up, all manufacturing in the states. The stock trades for less than nine times earnings, but they should continue to capture market share and we're very pleased with their performance. And finally, on the more aggressive side we really like Qualcomm (QCOM NASDAQ). It's CDMA technology is spreading worldwide for cell phone use, and they are collecting royalties on that. The company is on a roll right now."

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