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I think selling involves more than just your opinion on the companies current valuation. Some of us have fixed capital to work with. When I find a company that I am interested in investing in, I review my current stocks and will sell one even if I expect future positive returns if the new find appears to offer much better prospects.

My current dilema is CGA. I've got over a triple, bringing it to 30% of my portfolio. So now the stock looks expensive with a trailing PE of 18. They just finished an upgrade half way through their just ended FY, bringing their capacity from 10 to 15 thousand tons. The sales for the trailing PE are based on <15 thousand tons. 40 thousand additional tons coming on stream this month. If they can sell the new capacity out in 3 years at the same margin, and drop to a PE of 12, it ends up a 30 dollar stock, 2 1/2 times todays price. This may be a "best case" situation, but I'm having trouble finding any other companies with better prospects, so I can reduce my exposure. Nice dilema to have for a change.
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