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Louis Navellier, the founder of Navellier & Associates, is the editor of four investment newsletters and the author of a Business Week best seller, “The Little Book That Makes You Rich.” Navellier focuses on growth investments and employs a stock-grading system to make investment decisions. Navellier likes fast growing companies as he believes that these are healthy and thriving. He uses technical indicators to measure buying pressures of the growing companies to time entry points for these stocks. According to his calculations, the A-graded stocks using his stock picking formula generated 1267.9% return versus 61% for SPY in the past 13 years.

We compiled the list of stocks Louis Navellier sold during the third quarter. Some of these stocks may be good short candidates.

Company Name

Ticker

Value

DR PEPPER SNAPPLE GROUP INC

DPS

48711

NETAPP INC

NTAP

43787

ISHARES TRUST

EFA

42329

ADVANCE AUTO PARTS INC

AAP

35821

ISHARES HIGH YIELD CORP BOND

HYG

26205

SECTOR SPDR CONSUMER DISC

XLY

16897

SECTOR SPDR INDUSTRIAL

XLI

16290

SECTOR SPDR ENERGY

XLE

16267

SECTOR SPDR MATERIALS

XLB

15895

SECTOR SPDR TECHNOLOGY

XLK

15540

SECTOR SPDR FINANCIAL

XLF

14955

SPDR S & P 500 ETF TRUST

SPY

13311

TIM PARTICIPACOES S A

TSU

2202

MEDIDATA SOLUTIONS INC

MDSO

1778

COHERENT INC

COHR

1551

CYBERONICS INC

CYBX

1218

OPENTABLE INC

OPEN

1069

JAZZ PHARMACEUTICALS INC

JAZZ

816

The largest position sold out by Navellier over the third quarter was Dr Pepper Napple Group Inc. His fund had $48.7 million invested in this stock at the end of June. According to the latest 13F of Navellier & Associates, it did not own any shares of DPS at the end of September. Since the end of the third quarter, DPS lost 5.39%, versus a positive return of 10.35% for SPY. Joel Greenblatt’s Gotham Asset Management also sold out its stakes in DPS during the third quarter.

Navellier also sold out $43.8 million worth of NetApp Inc and $42.3 million of iSHares Trust. These two positions also both underperformed the market since the end of the third quarter. NTAP returned 7.69% and EFA returned 6.3% so far in the fourth quarter. George Soros’ Soros Fund Management also sold out its stakes in NTAP during the third quarter. In addition to EFA, Navellier sold out a few other ETF stocks during the third quarter, including Consumer Discretionary SPDR, Technology SPDR, Financial Select Sector SPDR, and SPDR S&P 500 ETF Trust.

Other positions (over $1 million) sold out by Navellier include Advance Auto Parts Inc, Touchstone High Yield Fund, Tim Participacoes Sa, Medidata Solutions Inc, Coherent Inc., Cyberonics Inc. and Opentable Inc. Navellier took a defensive posture at the end of the third quarter. He also trimmed most of his holdings by around 3-5%. He cut IBM by 5%, McDonalds (MCD) by 3%, Apple (AAPL) by 3%, and Amazon (AMZN) by 4%. It is clear that Navellier reduced his sector bets and smaller positions and increased the cash he has. The large individual stock positions he sold underperformed the market on the average. He initiated brand new positions in Mastercard (MA), and Starbucks (SBUX). Both stocks outperformed the market.

Overall, Navellier’s portfolio moves were profitable. DPS seems to be the best candidate in this list to avoid. We also don’t like high growth stocks like OPEN even though the stock isn’t trading above $100 anymore.

Disclosure: I am long SPY.

Source: Louis Navellier Isn't Bullish About These Stocks Anymore