Navellier Growth: your source for market-beating growth stocks

 

Welcome to this week’s Top 5 Q&A. Louis Navellier here and below you’ll find the Top 5 questions I’ve been asked by individual investors this week. These questions come from attendees to my free seminars as well as from subscribers to any one of my four investing services. Subscribers are able to email me their most pressing questions anytime, and will find more detailed answers as well as service-related questions in the Q&A sections of their subscriber-only websites. The Top 5 Q&A below is a snapshot of what’s been on all investor minds this week.

• This question is about Raytheon (RTN). In spite of a recent good quarter and a relative recovery of the market, we are not seeing any movement in RTN. Other defense stocks are making good moves. Any thoughts on why RTN has stalled?
• Louis, thank you for your advice thus far, it has been very profitable for me. I’m wondering though, how can we reap the reward of a great gainer if we must scale it back to keep all of our stocks even?
• I bought Deere on your recommendation, and have been watching it go down daily. They report on May 8th. Does the market know something I don't? Should I sell before earnings? Thank you.
• I recently bought DCO and GPRO per your suggestion and am pleased with their movement. What is your goal with these stocks? When should I consider selling them in order to make the most profit? Thanks.
• What is going on with SIGM? It was up recently on no news that I can find. I’m thrilled, but slightly confused.

• Archive of Q&A

• 05.09.08: This question is about Raytheon (RTN). In spite of a recent good quarter and a relative recovery of the market, we are not seeing any movement in RTN. Other defense stocks are making good moves. Any thoughts on why RTN has stalled?

• Raytheon (RTN) is an A-rated in PortfolioGrader Pro.  Although Raytheon’s latest quarterly earnings were 11% better than analysts’ consensus expectations, the stock did not improve in the wake of its earnings announcement.  This is possible due to continuing delays in Boeing’s 787 plane and growing caution regarding aerospace and defense stocks.  Recently, the company was awarded a $203.3 million contract for precision guidance systems from the U.S. Army, so it is still getting defense business.  Historically, Raytheon has moved erratically, so I would not worry about it too much.

• Archive of Q&A on Specific Stocks

• 05.09.08: Louis, thank you for your advice thus far, it has been very profitable for me. I’m wondering though, how can we reap the reward of a great gainer if we must scale it back to keep all of our stocks even?

• The reason that I am encouraging you to take partial profits in winners is that as they get over-weighted, they typically also get more risky.  The best way to control risk is just to follow my 60%/30%/10% mix in Conservative, Moderately Aggressive and Aggressive stocks, respectively.  If your big winners are Conservative stocks you can hold onto them.  However, if they are now classified as more volatile stocks, I recommend that you trim them, especially if you are over-weighted in Moderately Aggressive and/or Aggressive stocks.

• Archive of Q&A on Investing the Navellier Growth Way

• 05.09.08: I bought Deere on your recommendation, and have been watching it go down daily. They report on May 8th. Does the market know something I don't? Should I sell before earnings? Thank you.

• Deere (DE) is also rated as an A-rated in PortfolioGrader Pro.  Deere has firmed up a bit.  The stock’s recent profit taking seemed to be associated with other agriculture stocks volatility, which has since ceased. 

  By the way in my Global Growth letter, I commented last week that Indian farmers are increasingly choosing camels over diesel-hungry tractors.  Market prices for camels, which previously crashed with the growing affordability of motorized vehicles, are rising again as oil prices soar.  A sturdy male camel with a life expectancy of 60 to 80 years now costs up to 40,000 rubles ($982), compared with just 5,000 to 10,000 rubles ($123 to $246) just three years ago.  Entry-level tractors cost around $4,000.   I keep thinking about “green” John Deere camels being sold in India.  Hopefully, tractors will prevail over camels in India.

• Archive of Q&A on Specific Stocks

• 05.09.08: I recently bought DCO and GPRO per your suggestion and am pleased with their movement. What is your goal with these stocks? When should I consider selling them in order to make the most profit? Thanks.

• Both Ducommon (DCO) and Gen-Probe (GPRO) are B-rated in PortfolioGrader Pro.  Ducommun has improved substantially after announcing its latest quarterly earnings.  Gen-Probe also improved in the wake of its latest quarterly earnings announcement and its higher guidance.  I will sell both of these stocks when their PortfolioGrader Pro ratings falter.  However, both stocks are “Buys” due to their B-ratings.  If you buy predominately A-rated stocks from PortfolioGrader Pro, you can earn more money, but you have to trade more and would like pay up to 35% short-term federal capital gains taxes.  I recommend A-rated stocks in pension accounts, then A and B-rated stocks in taxable accounts, so you can trade less and achieve better long-term capital gains while only paying 15% federal taxes.

• Archive of Q&A on Specific Stocks

• 05.09.08: What is going on with SIGM? It was up recently on no news that I can find. I’m thrilled, but slightly confused.

• Sigma Designs (SIGM) currently rated as a C in PortfolioGrader Pro.  The company makes all kinds of specialty chips used in digital cable boxes and HD television processors.  Although Sigma Designs was recently beaten by Broadcom for a major contract with Motorola, the company’s prospects remain strong and the company recently issued an upbeat forecast, so I expect that the Sigma Designs should continue to post strong sales and earnings growth.  The stock has been recovering and remains a HOLD.

• Archive of Q&A on Specific Stocks

Q&A Archive

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