<<If one looks to trade a stock, then one can probably find selling as well as buying opportunities. This is not really an option for a value oriented investor -- until a major change in the fundamentals (e.g., a newer technology or a sudden loss in management competency) forces one to change from a buy to a sell>>
art, i must respectfully disagree with that comment. IMO, selling certainly IS an option for a value oriented investor, based on price in relation to all of the fundamentals you mentioned. the same fundamentals that lead you to purchase a stock should, on the flip side, force you into selling a stock. if you're a value investor, i'd suggest you set those target fundamentals for selling.
these thought revert to the old theory that "a good company doesn't necessarily make a good stock". since i'm in atlanta, i've been called a heritic for not owning KO stock over the last couple of years.... you can argue their fundamentals may have changed, somewhat, but the reason i initially sold was their price got way out of whack with their fundamentals...eventually, some of the fundamentals started to erode and they couldn't support the stock price... great company for the long-term. bad stock for the last couple of years.
greg |
