Good buying opportunity!
Hotline
March 28, 2000
Louis Navellier Blue Chip Growth Hotline Special Update for Tuesday, March 28.
Well, the stock market had a little bit of a pull back today with the NASDAQ stocks settling back down. I would not worry about this. The NASDAQ had a good run last week, and every time it goes up 10% it has to pull back anywhere from 3% to 6%. So, usually, every time you run up, you have to give back one-third to two-thirds. So, do not let the pull back in the market bother you. It is normal consolidation.
Now, the big news today is one of my top five stocks, Emulex (EMLX), was down sharply today because Morgan Keegan, a regional brokerage firm, downgraded the stock due to price appreciation. Please, please do not let that bother you. This happens all the time. They have not cut their earnings estimate, they just downgraded the stock due to price appreciation.
They are going to put their full report on Emulex on the Dow Jones Newswire but as I speak to you, it has not been released.
Another thing I want it reiterate, is that if you read the newswires, it says that online brokers are no longer extending margin credit on Emulex. This is very common with a lot of the high-flying NASDAQ stocks. The online brokerage firms are trying to curtail speculation. This is nothing personal on Emulex, it is just the stock has been running up quite a bit and they want to eliminate any speculation.
I should add that Emulex did this a few months ago. I do not know if you remember, it swung 50 points in a day and then pulled back up. All the institutional investors came out of the woods and bought it with reckless abandon. This is an incredible buying opportunity on this stock or any of our stocks that pull back sharply.
So, I highly recommend that you use any pull back in the market to buy Emulex and a lot of our other favorite stocks right now. Believe it or not, this is normal market action right now. As long as you have a diversified portfolio you can hold up here just fine.
I'll update the hotline when the NASDAQ swings more than 100 points, or the Dow more than 200 points. |
