The Long-term View - When to Sell

Lynch 並不讚成依據巿况賣買股票，他提出可以跟據公司分類的不同情况賣出股票；

SLOW GROWER
1. When there's been a 30-50 percent appreciation.
2. When the fundamentals have deteriorated.
3. Lost market share for two consecutive years
4. No new products

STALWART
1. If the p/e strays too far beyound the normal range
2. No officers or directors have bought shares in the last year
3. A major division that contributes 25 percent of earnings is vulnerable to an economic slump tha's taking place.
4. The company's growth rate has been slowing down, and though it's been maintaining profits by cutting costs, future cost-cutting opportunities are limited.

CYCLICAL
1. Other than at the end of the cycle (who knows), the best time to sell a cyclical is when something has actually started to go wrong. Costs has started to rise. Existing plants are operating at full capacity. Inventories are building up.
2. Final demand for the product is slowing down.
3. The company has doubled its capital spending to build a fancy new plant.
4. p/e gets smaller near the end.

FAST GROWER
1. The trick is not to lose the potential tenbagger.
2. p/e gets bigger near the end.
3. Same store sales are down 3 percent in the last quarter.
4. New store results are disappointing.
5. Two top executives and serveral key employees leave to join a rival firm.

TURNAROUND
1. Debt rose significantly.
2. Inventories are rising twice the rate of sales growth.
3. The company's leading customer is suffering from a slowdown in its own sales
4. Sell after it's turned around or reclassify the stock.

ASSET PLAY
1. The best idea is to wait for the raider as long as the company isn't reducing the value of the assets.
2. The company will issue 10 percent more shares to help finance a diversification program.
3. Dvision that was expected to be sold for $20 million only brings $12 million in the actual sale.