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

To: E_K_S who wrote (2007)	7/22/2012 5:02:41 PM
From: Sergio H	Read Replies (1) \| Respond to of 4719

When I evaluate when to sell, losing positions get closed out at 15%. There's plenty of other stocks and maybe I'll find the one I sold at another time. For when to take profits, I look at the individual stock performance and valuation in comparison to its sector and its historical valuation and the sector historical valuation and performance in comparison to the general market. I go with the premise that my stock swims within its school of fish and among other schools of fish. Looking at ATO, its a little expensive relative to its historic valuation, it trades at a premium to its sector in most metrics except for book value and the sector itself has outperformed the market and is a little toppy. But on the plus side is ATO's history of continuously increasing dividends and that investors are looking for safety and dividends that they get from the utilities. I have learned after a few expensive losses to diversify my portfolio and not to hold too much in one investment or in similar investment ideas. It can really hurt when you do and you're wrong. Good point about not letting any position get to be too large a percentage of your portfolio. Thanks for your vote on SE. I know that you have done a lot of work on NG stocks. Good example of risk reward in comparing MHR and SE. On the bonds, looking for distressed debt, I am going to pass on making any suggestions. I have never selected a bond to buy without a professional's assistance, so I can't really offer much of an opinion. But I do see that Junk bonds are soaring.