Navellier Growth: your source for market-beating growth stocks

 

How do you identify stocks that need to be sold because they are losers?

For me, there are two reasons the sell: The first would be if a stock’s fundamentals (any of the eight variables I’ve covered earlier) have deteriorated. One example would be eroding profit margins. This could indicate that the company no longer dominates its industry like it used to. The other reason we would sell a stock would be if we notice an increase in volatility. This is exactly what happened when we recommended Enron in my Blue Chip Growth letter. I think I’m one of the few people left who admits he recommended it. But I noticed that the stock’s fluctuations were becoming larger and larger each day. I didn’t like what I saw so I issued a sell recommendation. Fortunately, we made over 30% profits in Enron.

Since I know it can often be difficult for folks to interpret reams of data, I’ve simplified identifying any given stock to sell by rating it a letter grade of F. If this brings back memories of bad high school report cards, my apologies, but as you recall a F is a sign of failing—no ifs, ands or buts.   This week I have a list of 20 Wall Street Stocks to Sell Now.  The names on this list are the absolute worst stocks to own right now.  You can access this list in my stock-rating tool, PortfolioGrader Pro, absolutely free, online now. If you own any of the stocks on this list, my advice is to sell them right away.

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