Sell Decision

Three Equally Balanced Factors

Yield

• Yield on stock falls below the acceptable limit

Relative Valuation

• Relative price target has been achieved:
  • Expected upside now half the downside
• There are other stocks in our buy process which have better risk/reward prospects

Fundamental Catalyst

• The company is not performing as expected
  • Review fundamentals and valuation target
• The sector or country begins to look less favorable
  • Review fundamentals and valuation target

Decision

• If one of the three criteria is violated, the stock is sold