Navellier Growth: your source for market-beating growth stocks

I can't remember the last time I saw a market this crazy. Yesterday, the Dow plunged over 300 points only to finish the day 299 points higher. On Tuesday, it looked like the market was going to fall over 500 points, but Benny and the Feds surprised everyone with a 75-basis-point rate cut. Well, I wasn't surprised, and neither were my Quantum Growth investors, but I'll have more on that in a bit.  

What used to be week-to-week changes are now minute-by-minute changes! The VIX, which is the volatility index, has nearly doubled in the past month. Traders all over Wall Street are panicking. In fact, the panic is going international. One trader in France just got busted for losing $7 billion of his firm's money.

This Is No Time to Panic

Would you believe that Jim Cramer is panicking? Big surprise, I know. He just advised folks, "Don't Worry About This Unjust Market—Accept It."

Fine, Jim—you accept it, but I'm not going to. I never "accept" markets, and I'd fire any of my traders who said something like that. I work to beat markets. Markets have to accept me. If you're an investor, you should think the same way.

I have to admit that I'm thrilled that the Fed stepped in and slashed interest rates. In fact, that's exactly what I called for in last week's issue of Quantum Growth. Specifically, I wrote:

The Fed has to cut rates now, especially since business and consumer spending are in a tailspin. If the Fed waits until its next meeting, then frankly, it's too little too late.

Maybe Ben is a subscriber! I'm not sure, but I do have more advice for him and his buddies. The Fed's job isn't done just yet. They have to cut again at next week's meeting, plus they have to hint at more rate cuts in their post-meeting policy statement. The economy isn't in a recession just yet, but if recent patterns keep up, we'll be in one soon. That's not good for an election year, and this confusion is causing havoc in the markets.

What to Do Now

I've been telling my subscribers to focus on high-quality stocks. When in doubt, seek high quality. As long as a company continues to report solid earnings, its stock will do well. A perfect example landed in our laps this morning.  Nokia (NOK), the Finnish cell phone giant, reported blow-out earnings.

I'm particularly happy with Nokia's results because I just added it to both my Quantum Growth and Blue Chip Growth Buy Lists. Nokia has been on a roll lately. The company is simply devouring market share. That's exactly what I like to see in my stocks. Poor Motorola is having its lunch eaten by the folks at Nokia.

For the fourth quarter, Nokia reported that its earnings jumped 44% and its sales rose 34%. Note that earnings are growing faster than sales. This means profit margins are expanding. That's a very good sign because it means that the company is able to maintain its pricing even though it's gaining market share.  Too many novice traders only pay attention to market share.

Nokia now has a 40% share of the market. Operating margin expanded to 25% from 17.8% a year earlier. I'm really impressed by these numbers, and it helps explain why shares of Nokia was up over 12% today. The stock continues to be an excellent buy.

The Quantum Edge

Nokia wasn't the only big winner in Quantum today. My Quantum Growth stocks are soaring. On average, our Quantum stocks were up over 5.4% today, which is more than five times the rest of the market.

I have to warn you that Quantum is only for serious traders. The action gets pretty fast, but our gains also pile up fast. You can get a one-year subscription to Quantum for $5,000. Or, if you want to test-drive the service, you can get a three-month subscription for $1,395.

The next Quantum earnings report to look out for comes from Stanley, Inc. (SXE) one week from today. The company provides IT services to the government, which is a place that badly needs more efficiency. For last year's fourth quarter, Stanley made six cents a share. This year, I think Stanley will make over 30 cents a share. No, that's not a typo. That's how well this company is doing. It's not only a fivefold increase, but it's coming as the rest of the market is reporting falling earnings.

This is what I mean by refusing to accept this lousy market. There are plenty of good stocks out there, but they're no longer the ones everyone knows about. If you join us at Quantum Growth, you'll know about them before the crowd. I hope you join us today.

The big news next week will be the Fed's meeting. Look for another rate cut, but also keep a close eye on the Fed's policy statement (I'll post it to my blog site). This is an exciting market, but remember not to panic. I'll have the next issue of "What's Working on Wall Street Now" for you on Thursday, January 31.

Sincerely,

Louis Navellier

P.S. If you join us at Quantum Growth today, you can be part of our February 4 subscriber-only teleconference. We cover a lot of ground during these interactive one-hour events. The Fed will have just wrapped up their meeting, so I'll walk you through their latest decision and how they plan to turn the economy around. I'll also answer subscriber questions, one-on-one live. So please take a moment to reserve your seat today!