Sold Too Soon

In April 2004 I purchased 200 shares of LifeCell at $9.04. In January 2006, I listened as a television stock guru berated the stock, and I sold it at $19.10. That was a bad decision, since the stock went on to top $48 and was recently in the low $40s. According to some estimates I've read, the stock has room to move into the $45 to $70 range in the next three- to fiveyear period.

- Gary Christensen, Branchburg, N.J.

The Fool Responds: Let your investment decisions ultimately be your own. If you hear bad things about a holding, take the time to review it closely before selling. Was the market for LifeCell's reconstructive tissue products shrinking? Were competitors horning in? Was the balance sheet deteriorating, with debt growing and cash vaporizing? Had the share price gotten ahead of itself? Examining these kinds of questions can help you hold on more confidently or decide to sell with conviction. A compromise, if you're torn, is to just sell some of your shares.