Message-ID: <11490791.1075840331185.JavaMail.evans@thyme> Date: Mon, 21 Jan 2002 15:34:05 -0800 (PST) From: navellier@investorplace.com To: don.baughman@enron.com Subject: Is Cisco the Next Enron??? Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: "Louis Navellier@InvestorPlace.com"@ENRON X-To: Baughman Jr., Don X-cc: X-bcc: X-Folder: \ExMerge - Baughman Jr., Don\Deleted Items X-Origin: BAUGHMAN-D X-FileName: don baughman 6-25-02.PST Dear Investor, Did you check out the January 21st cover story of BusinessWeek? If not, it's a MUST-READ for any investor in this age of misinformation. You see, the Enron debacle is just the tip of the iceberg waiting to tear a huge hole in your retirement dreams. That's because super- aggressive accounting techniques -- even when, strictly speaking, not illegal -- have in many cases drastically overstated how well certain companies have really done. And particularly now -- in a tough economic test that most businesses are failing -- the temptation to use SMOKE-AND-MIRROR accounting is stronger than ever before. THAT'S WHY YOU must be very, very fussy about the stocks you own today. And in just a moment, I'll introduce you to my time-tested strategy that identifies the true EARNINGS MONSTERS with laser-like focus...and helps you avoid all the earnings dogs. Enron, after all, was a huge disaster -- one with many legal issues still to be decided. But there are many more "earnings traps" set to snare unwary investors. TAKE CISCO, for example. The BusinessWeek article quotes Michael Porter of Harvard Business School as saying, "We will likely find that even during its so- called heyday, Cisco wasn't nearly as profitable...as many believed." Today, Cisco CEO John Chambers is still saying, "I believe the best years are in front of us." But that's a bet I wouldn't make. Cisco isn't going to disappear like Enron. But with analysts beginning to take a harder look at REAL EARNINGS, it's very doubtful that Cisco can grow fast enough to justify its huge market cap. And once traders take an ax to the stock, you could lose 30%, 40%, 50% virtually overnight. FRANKLY, I had concerns about Cisco's future two years ago. That's why I told clients of my Blue Chip Growth advisory to sell and lock in our 201% gains. And since we sold, the stock has already dropped 59% Of course, Cisco isn't the only high-flyer we dumped before Wall Street caught on to the growing earnings problem. We dumped EMC in the year 2000 and pocketed 466% gains. We BANKED 189% GAINS from Home Depot; 179% in Amgen; 113% in Wal-Mart; 196% in Vodafone Airtouch; and 316% in Nokia. 156% in Lucent. We owned them all while they were STILL EARNINGS MONSTERS -- and sold them before they collapsed. That's why I urge you to invest the way we do at Blue Chip Growth. It's simply the SAFEST WAY to HUNT FOR PROFITS -- in any kind of market. AS YOU'LL SEE, we don't own companies that might do okay when the economy recovers. We only own companies that are EARNINGS MONSTERS right now: *Our Forest Labs recently hit its all-time high. Since then, it has pulled back slightly, but this generic drug-maker has RISEN 64% since late March. That's just what the doctor ordered! *I've been pounding the table about Peoplesoft for months now. It's up a STUNNING 96% since October! That's the kind of big SHORT-TERM profits I love best. *Conservative General Mills is a fantastic cornerstone stock today. Why? GREAT EARNINGS. On December 20th -- the day after reporting earnings -- this stock closed UP 19% in 2-months' time. *Retailer Lowe's is one great example of the stocks we own at Blue Chip Growth. No razzle-dazzle. Just strong earnings growth. The stock POPPED 109% in 2001! *Tenet Healthcare is a great little company to own in times like these. It's a top-player in a virtually recession-proof business. We're up more than 60% so far! *What manufacturing recession? Chopper king Harley Davidson is hogging all the profits. The company -- named company of the year by Forbes magazine -- announced chart-topping earnings after-the-bell on October 9th, and its stock is UP 26% since. *If you like HOME RUNS, our stock in Emulex has SOARED over 300% since the beginning of October. Why? Because it's one of very few tech stocks that's still an EARNINGS MONSTER! We own all these stocks -- and some twenty more like them -- at Blue Chip Growth. And those are the sort of profits YOU'RE MISSING OUT on by not investing in the EARNINGS MONSTERS I write about in my advisory. And this isn't some short-term success story. Since I started my Blue Chip Growth advisory in late 1997, our portfolio has beaten the S&P better than 2- to-1. And the advisory I started in the mid-1980s, MPT Review, has GAINED 3,850% in the last sixteen years, according to The Hulbert Financial Digest. WHY. Because I'm a very demanding guy. When a company slips -- no matter how great it has been -- I dump it. So which companies qualify as EARNINGS MONSTERS now? FIND OUT by trying my Blue Chip Growth advisory RISK- FREE. You'll make money -- or it won't cost you a dime. I'll give you six months to try the service risk-free -- set the bar as high as you want. Sign up now. I'll introduce you to the EARNINGS MONSTERS that are your best bet for 50% gains -- or more -- over the next 6 months. Go here now: http://www.ppi-orders.com/index.htm?promo_code=1AJ313 Sincerely, Louis Navellier Blue Chip Growth P.S. I just added a new stock to my MUST-BUY list of earnings monsters. Actually, it's not entirely new -- it's an old favorite that rewarded us with 320% GAINS last time around. That was sweet! We dumped it because earnings took a turn for the worse. But now business is booming again for this tech juggernaut, and it's time to pile back in for our next round of BIG fortune-building gains. Don't miss out this time. Click here to join me now: http://www.ppi-orders.com/index.htm?promo_code=1AJ313 Don't take chances, and you won't get "Enroned." Stick with the true EARNINGS MONSTERS we own at Blue Chip Growth. Click here now: http://www.ppi-orders.com/index.htm?promo_code=1AJ313 ------------------------------------------------------ ACCOUNT MANAGEMENT We hope this free digest of investing advice is valuable to you. If you'd like to change your e-mail address (DON.BAUGHMAN@ENRON.COM), or unsubscribe, please do so by going to the following address: http://www.investorplace.com/unsubscribe.php Your name will be removed from our list within 7-10 working days. ------------------------------------------------------ Monday Jan 21, 2002 18:34:04