What immediately caught my attention was in the Subject line:
“$6 Canadian Oil Stock to Hit $12 By Next Friday.”
Ok, Louis, what have you got up your sleeve?
I read on. The email-pump-piece took its sweet time getting to the point, detouring first to explain and embellish the opportunity:
“All thanks to its mammoth Colombian, Argentinean, and Peruvian reserves.
“Buy this one today and I guarantee you’ll thank me a thousand times by June 20th—or you won’t pay a dime.”
Global Growth is not a cheap service. However, in this promotional piece, the cost of a subscription is discounted to $699 for a 90-day trial.
“A Double in the Next 14 Days — Guaranteed”
The promotional offer is simply that if you take a trial subscription to Global Growth for $699 then Louis will give you the name of this stock and if the stock doesn’t double in the next 14 days, you get your money back. (That sounds better then it really is, since with all of Louis’ newsletters, satisfaction is guaranteed for at least a pro rata refund, if not the entire subscription cost.)
As for this unnamed company being touted, here are the underlying facts (and hints) given in the email in support of the recommendation:
(1) “Over the past decade, this company has quietly acquired the drilling rights to more than 6 million acres in Argentina, Peru, and Colombia—countries whose combined oil reserves are equal to half of Venezuela’s reserves.
(2) “In addition (and unlike our OPEC suppliers), Argentina, Peru, and Colombia all have stable democratic governments that are friendly with the United States—a huge plus in the world today.
(3) “What’s more, this company’s quarterly revenue is exploding twice as fast as the big oil companies’—at an amazing 373% year over year! So it’s no surprise the stock is up a shocking 478% over the past 12 months.
(4) “PLUS, with analysts now estimating the company’s sales growth to exceed 710% for the current quarter, you could easily expect a double in the next 14 days as the pension funds and oil and energy funds realign their holdings to improve their second-quarter performance.”
The bad news is that this stock is no longer a $6 stock. The good news is that it’s still a $7 stock.
So if this stock is going to double by June 20th, there is still about 70% to make if the stock’s price is to hit the “guaranteed” price level.
Ready for the pick?
One week before I got this promotional pump piece from Louis, he posted a glowing recommendation for this same stock in the public section of the Navellier Growth web site as the “Stock-Of-The-Week,” for June 9, 2008:
“Gran Tierra Energy (GTE). Any Investing 101 class will teach you that the best stocks are the ones with a bright future, not just a company with stock ratings that shine in the present. You get the best of both worlds with my stock pick of the week, Gran Tierra Energy, Inc. (GTE). Gran Tierra is a Canada-based oil and gas energy company that explores, develops and produces its products in Colombia, Argentina and Peru. GTE's strategy focuses on enhancing its production properties to provide a foundation for future growth. And with soaring crude oil prices, the potential for profitable investment is sky high!”
Full text of Louis Navellier Recommendation
So there you have it, straight from Louis’ own website, the “$6 Canadian Oil Stock to Hit $12 By Next Friday.”
Let’s all meet back here, Friday.