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Hi Ernie et al,Approximately 75% of the picks in Ernie's portfolio have hit the 15% gain mark and have been sold. Wow! I see a problem arise when the portfolio fills up with stocks that no longer behave as momentum stocks. If a lot the slots in the portfolio (14) are taken up with non momentum stocks, there is reduced chance for new stocks to be added - because the ones currently in the portfolio aren't being sold.I asked Ernie about this in August:<<<<< me: I agree that your model protects against real lemons, but occasionally a mo stock hits a rough patch. How long will you hang onto a sideways performer? How long will you hang onto a downside performer? What criteria do you use to decide to cut bait if necessary?Ernie: Since a key criteria to my selection process is earnings and revenue growth, if a stock price is not responding I will hold the stock as long as it is performing on an earnings and revenue growth basis. As a result, stocks that do not move up as quickly as I had projected will realize lower and lower P/E's making them better values. I have no problem holding low P/E stocks long term, it is kind of a forced diversification that lowers my overall risk.If something fundamental changes in the company, then I have no problem dumping it...hope this helps.$$$MR. MARKET$$$ >>>>>If there is no ongoing systematic analysis of the companies whose stock is in the portfolio there is a risk that a bunch of non momentum stocks are taking up the limited number of seats in the momentum bus. I don't know how often you perform DD on the stocks in the portfolio (or when you would find the time!) Ernie, but I am curious to why WGOV, USPH, PLB, KCS, ANF, AMSG are still in the portfolio?Steve
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