However, it's probably one of the most important things to learn. Otherwise, you may tolerate a worrying situation until a point where your stock loses 65% of it's value on a single day (like Home Capital Group yesterday). You may very well think about Valeant and Concordia too. And many others.
So, for the benefit of humanity, I invite you to share some sentences in public releases or events concerning management that should push to sell a stock. This list indicates things that should be interpreted as dead rats hidden in the walls of the business.
So, let's grow together after having lost lots of money in Valeant, Concordia, Home Capital Group, PHM, Avigilon and many other stocks runned by strange people:
You should think about selling when:
- When numbers are or are becoming worrying or opaque (lots of debts, utilization of adapted ratios);
- When the CEO of the CFO or other executives are fired or leave abruptly;
- When the management blames weather quarter after quarter;
- When a management sells big chunk of stocks after some news that were supposed to be very positive;
- When a management says things in public and doesn't apply it (like Mark Thomson, ex-CEO of Concordia saying on BNN that he would buy CXR stocks and didn't do it);
- When the word "fraud" becomes associated with your stock...
Please, help your fellow investors to become better and complete the list in comment section.