As long as the stock is below the "Overvalued At..." price listed for that company in the tables included in each issue, we consider it reasonable for most investors to hold. The only sell recommendations that we make are those specifically designated in the Sale of Stocks section of the newsletter.

Often, in the News of Companies section, we may indicate our leanings regarding the future prospects of a company, which may be somewhat less than optimistic for some companies. In those cases, where the risk and reward trade-off is less certain, some subscribers may wish to consider those companies as replacement candidates. When faced with uncertainty, you might wish to upgrade your portfolio by replacing a stock with one with higher projected returns.

Of course, your own circumstances might dictate selling or holding any security. For a stock held in a taxable portfolio, the possible impact of capital gains or losses might suggest an advantage to holding until a lower capital gains period is reached. If your stock is dangerously overweighted in a particular sector or security, selling to reduce your exposure could be a prudent move.

In general, upgrading to improve the quality or return of your portfolio is a good thing, but we don't like to sell winners as long as their prospects are strong -- we want to let those winners ride!