The Wall Street Transcript Publishes Money
Manager Interview With Louis Navellier
NEW YORK, Feb. 10 /PRNewswire/ -- Louis Navellier, CEO of Navellier & Associates,
examines portfolio management strategies in this timely and deeply informative 4,200-word
report from The Wall Street Transcript (212-952-7433) or
twst.com.
In a valuable review of investing strategies, Navellier explains his approach to managing
money, his concerns about NASDAQ, whether the market is in a rotational correction,
seasonal trends, and offers specific stock recommendations.
The markets are at a crucial juncture; with concerns about the tight bid/asks spreads and NASDAQ becoming hypersensitive
to order flow as no capital is being committed.
Navellier explains his ''bottom-up approach'': ''We run our stocks through three filters. The first filter is something called
reward-risk. Mathematically, that's alpha divided by the stock's standard deviation or volatility. Our reward-risk analysis has
been absolutely crucial, especially in NASDAQ. The second step is to take our various products and build fundamental stock
selection models. Then the final step is to optimize the portfolio. Optimization tells us precisely how to diversify the portfolio,
whether I should have 12% in semiconductors or 4% in biotech, etc., and it literally tells me how to diversify not only the
industry groups but the stocks.''
The optimization criterion Navellier uses still loves telecom as he explains, ''I think the hardware end of the business is very
healthy right now. You know, the best way to make money in the Internet is not to buy the portal companies; it's to buy the
companies that are increasing the bandwidth and the speed of the Internet: BroadVision (Nasdaq: BVSN - news) and
Broadcom (Nasdaq: BRCM - news) are classic examples. Just like during the gold rush, it wasn't the miners who made all the
money; it was the people who sold shovels to the miners. So telecom is really hot right now.''
''I still love the semiconductor industry,'' Navellier continues, ''A stock like QLogic (Nasdaq: QLGC - news) would be a
classic example. But there is a lot more risk in that industry right now. There is a shortage of chips. That Taiwan quake helped
our portfolios tremendously: it allowed prices to be firmer. So I'm very, very happy with that sector.''
However, Navellier states that ''There are some other semiconductor stocks that have just gotten a little bit riskier here. And
even on QLogic, I've trimmed that, as much as I loved it. Though they're one of my better performers, I've trimmed back. It's
just been outrunning a lot of the other stocks. Another specialty chip company we like is Applied Micro Circuits (Nasdaq:
AMCC - news).''
''In the biotech arena, we still love Biogen (Nasdaq: BGEN - news),'' Navellier declares. ''But MedImmune (Nasdaq: MEDI -
news) is another good one that we like. Biogen is in our large cap portfolios; MedImmune is in our small and mid-cap
portfolios.''
About Amgen (Nasdaq: AMGN - news), Navellier says that '' It's a trickier stock to buy. One of the things that launched the
strength in biotech is when the pharmaceutical industry itself got a little slow. The big institutional managers had to have
exposure, so they sold the Pfizers (NYSE: PFE - news) and Mercks (NYSE: MRK - news) and they bought the Amgens and
Biogens of the world. But Amgen, we've already taken our money and run from it -- although it still looks okay for a large
growth right now.''
''Basically, we're very high tech right now,'' Navellier declares. ''But if you mix a medical tech stock with a semiconductor,
with a telecommunications, or even with a software company like an Adobe (Nasdaq: ADBE - news), one of our favorite
software stocks, it's not that risky being so heavy tech, as long as you mix the portfolios very carefully.''
''In the small cap area,'' Navellier states: ''Surprisingly, I found some retail stocks. I have one called Braun's Fashions
(Nasdaq: BFCI - news). I've got a bunch of little specialty companies, like a TriQuint Semiconductor (Nasdaq: TQNT - news)
and Three-Five Systems (NYSE: TFS - news). So a lot of it is still heavy tech, but I'm hoping to see some consumer-related
stocks show up. That's a good sign. I've been very heavy tech late in the year, and I want to see the market broaden out and
encompass new industries. That's how markets get staying power: the money doesn't leave the market again; it gets reshuffled.
Your biggest trick with small cap is that you have to make sure the NASDAQ volume remains very high.''
In large cap growth, Navellier cites Dell (Nasdaq: DELL - news) as a ''classic example'' as he states, ''I had Dell for four and
a half years, and its sales are still phenomenal, but their operating margins started to contract, so I sold it in early 1999. There's
nothing wrong with Dell! It's a fine company. It's just the business risk they took.''
Navellier continues, ''I did very well in large growth this year -- but if I didn't have the QUALCOMMs (Nasdaq: QCOM -
news) and Nokias (NYSE: NOK - news), I wouldn't have had as spectacular a return. I can just sense things in talking to
people who wonder why every stock doesn't go up. So it's a good market environment for our style because I think people are
going to chase performance and that's going to keep it going for a while. I feel really badly for the value investors, like poor
Warren Buffett -- they're beating him up in Barron's! But you know, Warren's a great investor and his time will come again.''
To obtain this insightful 4,200 word report call 212-952-7433 or see twst.com This is one of four
extensive money manager interviews published this week by TWST and included in the INVESTING STRATEGIES Sector of
TWST Online at twst.com.
The Wall Street Transcript is a premier weekly investment publication interviewing market professionals for serious investors
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SOURCE: Wall Street Transcript
More Quotes
and News:
Adobe Systems Inc (NasdaqNM:ADBE - news)
Amgen Inc (NasdaqNM:AMGN - news)
Applied Micro Circuits Corporation (NasdaqNM:AMCC - news)
Biogen Inc (NasdaqNM:BGEN - news)
Braun's Fashions Corp (NasdaqNM:BFCI - news)
Broadcom Corp (NasdaqNM:BRCM - news)
Broadvision Inc (NasdaqNM:BVSN - news)
Dell Computer Corp (NasdaqNM:DELL - news)
Medimmune Inc (NasdaqNM:MEDI - news)
Merck & Co Inc (NYSE:MRK - news)
Nokia AB Oyj (NYSE:NOK - news)
Q Logic Corp (NasdaqNM:QLGC - news)
Qualcomm Inc (NasdaqNM:QCOM - news)
Three-Five Systems Inc (NYSE:TFS - news)
Triquint Semiconductor Inc (NasdaqNM:TQNT - news) |
