When should an investor be greedy?

When is the right time to not be satisfied with a 12% return year to date? How do you know when to sell for an acceptable profit versus holding a good position because the stock still has attractive value?

Greedy may be a strong or taboo word on Wall Street, so let’s reposition the concept. What we are about to discuss and prove is a simple truth understood only by those who succeed as investors on the grandest scales.

One of the cardinal rules of profitable investing is holding the winners, but too often we do the opposite. We hope our losers reverse and we are afraid our profits will disappear.

Today you will learn when to hold the winners and how to find a good company that offers this opportunity. You will also discover how to recognize when a company with declining net income can be an attractively valued stock to purchase.

Why Institutional Investors Buy Stocks

The Big Money looks for value. They determine “If we accumulate a position, does this company offer a potential reward?”  Notice they are considering the future value, not the current short-term price action.

This is how to think and become a profitable investor. Think like an institution and determine value. Think forward, not backwards. Investors need to separate from this noise and focus on the right information.

If this is new to you, the New Constructs stock reports do the hard work for you. Today’s lesson will give you a good idea of the benefits of subscribing.

When Smart Opinions Differ

Today our friends at The Street suggested Stryker (SYK) has runs its course with a 12% advance and investors should look for other opportunities. We believe differently.

Continue reading to discover why and how you can benefit each month from the same tools we use.

Stock Picking Lessons: When Net Income Can be Deceiving

Stryker (SYK) is a rarity in the current market: a strong business with a stock that is still attractively valued. A leading supplier of medical implants,  surgical tools, and neurosurgical equipment in 100 countries, Stryker has grown revenue and profits every single year since 2000 and earns a top-quintile return on invested capital (ROIC). Based on Stryker’s long history of strong profit growth and key tailwinds in the medical device industry, we think the stock is undervalued at ~$84/share.

Finding value is the key to long-term investing success. A monthly subscription to New Constructs investment research can help you make smarter decisions. Get started today.

All New Constructs subscribers can download the full report here — after logging in at staging.newconstructs.com.

Non-subscribers can purchase the report a la carte by going to our reports page and searching for “Strike While the Iron is Hot: Stryker (SYK)″.

André Rouillard contributed to this report.

Disclosure: David Trainer owns SYK. David Trainer and André Rouillard receive no compensation to write about any specific stock, sector or theme.

Photo Credit: William Franklin (Flickr)

Andre Rouillard
Andre Rouillard

Investment Analyst at New Constructs

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