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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (39610)	10/11/2010 9:46:12 PM
From: E_K_S	Read Replies (1) \| Respond to of 78702

Hi Paul - When to Sell? Does SUPERVALU Inc. (SVU) fit in with any of your criteria? Stock has had more rumors that the company will go private. Huge volume last few days. 4) When a stock hasn't moved and business or book value doesn't seem to have improved after a 2-year holding. I still like the value proposition. I think $17.00 to $20.00 is a reasonable "value" target. If the private guys like it, they must see intrinsic value too. EKS

To: Paul Senior who wrote (39610)	10/11/2010 9:53:30 PM
From: Madharry	1 Recommendation Read Replies (1) \| Respond to of 78702

So you are saying that when the materialized event occurs if the stock doesnt move after two quarters you go ahead and sell the stock. I dont understand why you would do that if the stock is still a good value play. I had a friend who owned amgen and held it for 3 years before selling it. after that it went up about 30 times in the ensuing 5 years. a long time ago i owned a stock called subaru of america the stock i think was selling for about $6 the company was projecting enormous growth in subaru shipments to the united states. I think i owned the stock for two years, the projections were being met but the response in share price was somewhat muted eventually i sold the shares. within two years after i sold it the stock went from 7 or 8 and change to over $120. The lesson I hope I learned from that is that as long as a company is performing to expectation it makes sense to act like and owner rather than a speculator. I thought you would list as reasons for selling something like the stock appreciation had come to far too fast and that it was overvalued by your criteria or that it had become too much of your portfolio. As it seems to me when you do peel off shares that is the reason most of the time.