Sell: Sharps Compliance (SMED)
From Positive Patterns
Sharps Compliance (SMED) is a company involved in the Medical Waste/Disposal business. We initially recommended the stock in our newsletter on 9/3/2015 at $7.46. After that, the stock had a decent rally up to $10 area, and we were very happy about that.
Unfortunately, that was it and after that the stock went/into a steady decline, and we were forced to sell it for bad behavior.
The stock has been weak, and the chart looks pretty bad.
So, this one was a mistake, and that’s something we all have to deal with. With tiny/very risky stocks, we can’t afford to get ‘married’ to them, so when it comes to these types of stocks, we prefer a small loss to a big loss.
We don’t want “dead-money” in our portfolio. The best plan of action is to admit you’re wrong (and we were) and move on. In fact, ‘culling’ your portfolio is one of the most important parts of portfolio management. Selling losers in a timely fashion and getting that money to a better place is one of your most important “moves” for portfolio success. Weed out the bottom end of your portfolio, and put that money in a winning place. It will make a big difference in your long term-returns.
Bob Howard, Positive Patterns, P.O. Box 310, Turners, MO 65765, 417-887- 4486, July 6, 2016