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Strategies & Market Trends : Value Investing

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To: Madharry who wrote (28427)10/6/2007 11:24:33 AM
From: Paul Senior  Read Replies (2) of 78717
 
Stubs. I've got no method or consistent approach to selling these things. Maybe when the stock stalls, but sometimes I'm not paying close enough attention to see this. Maybe when the stock drops precipitously on bad news, or if the stock is downgraded by an analyst and the reasoning makes some sense to me.

It's easier for me to hold a stub longer than a full position. With a stub, I've already got my main money out, and I figure anything up is gravy for me and anything down or doing nothing for months and months and months, well that's okay too, because I've previously sold most of my shares.

Here's an example: KNDL bought '03 @ $5.03/sh.

Message 18876375

Who would/could/should hold a full or half or quarter position at the then p/e, p/sales from the months from late '05 through maybe mid '07, when the stock just seemed to cycle around or stall and really do nothing after making a rapid ascent in '05. But with a stub, it's easy to just set and forget... And sometimes time works in your favor.

finance.yahoo.com

For me, I believe it's better to be in for a little, than be out with nothing.
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