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When to Sell?
Everyone has a different strategy for selling depending on their investing style.
A guide based Peter Lynch’s classification of stocks in the
Everyone has a different strategy for selling depending on their investing style.
A guide based Peter Lynch’s classification of stocks in the
Slow Growers
~Dividend yield not high even at low price
~Deteriorating fundamentals
~after 30-50% price rise if you have bought after recent correction
~no new products are coming
~loosing market share in last 2 years
~unrelated diversification
~costly acquisition
~Dividend yield not high even at low price
~Deteriorating fundamentals
~after 30-50% price rise if you have bought after recent correction
~no new products are coming
~loosing market share in last 2 years
~unrelated diversification
~costly acquisition
Stalwarts
~PE stretched too far from normal range
~New products not doing well
~No insider buying in last 1 year
~Sales Growth is slowing
~Profit increasing only by cost cutting, further cost cutting not possible
~PE stretched too far from normal range
~New products not doing well
~No insider buying in last 1 year
~Sales Growth is slowing
~Profit increasing only by cost cutting, further cost cutting not possible
Fast Growers
~Here the trick is not to loose a 10 bagger
~PE is > double the earnings growth projections for next 2 years
~new store results are disappointing
~Same store sells are down
~CXOs leave and join rival companies
~Institutional holding peaked to permit limits
~Here the trick is not to loose a 10 bagger
~PE is > double the earnings growth projections for next 2 years
~new store results are disappointing
~Same store sells are down
~CXOs leave and join rival companies
~Institutional holding peaked to permit limits
Cyclicals
~Cycle coming to an end
~Demand slowing
~New plant at higher cost rather than modernisation of olde one
~Cost cut but can’t complete with China
~Cycle coming to an end
~Demand slowing
~New plant at higher cost rather than modernisation of olde one
~Cost cut but can’t complete with China
Turnaround
~After it has turned around
~Declined debt rising again
~Inventories going up twice than sales
~PE is high relative to earnings projection
~Clients are not performing in their business
~After it has turned around
~Declined debt rising again
~Inventories going up twice than sales
~PE is high relative to earnings projection
~Clients are not performing in their business
