Timing is Key When Following Our Portfolio
10/15/03
Triad Hospitals rose 269% when it was in our Primary Stock Portfolio.
We sent out a sell signal on 8/12/2002. Since then, the stock
has fallen 22% and so far today the stock is down over 10%.
That's just one example of why it's important to sell when
our stock-picking system signals a stock is no longer under-valued.
One of our best stock recommendations was
buying Lucent Technologies. While it was in our portfolio,
the stock rose 542%, beating the market by 440 percentage
points. In less than three years after we recommended selling
it, the stock price plunged from $74.81 to a low of $0.69.
That shows the importance of following our buy and sell signals
religiously.
An individual stock isn't going to outperform
the market indefinitely. There always comes a time when a
stock we have recommended becomes fairly valued (or even over-valued)
and better investment opportunities will arise that will necessitate
the sale of the stock.
That is why it's critical to follow our
buy and sell recommendations completely. Because the average
holding period of a stock in our Primary Stock Portfolio
is a shade less than three years, our buy and sell signals
aren't so frequent that a subscriber can't easily follow them.
So don't get emotionally attached to a stock
and hold onto it when we signal that it's time to sell.
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