The share price fell 7% yesterday on news that the company would buy Covance Inc. (NYSE:CVD). That made it the biggest loser for the day on the S&P 500. With Covance shares jumping 25%, three guesses as to who the winners were.
Unfortunately, we only added the company to our Active Team (Growth Strategy) on Friday with yesterday's close making for a quick 3% loss already made on the investment. We won't be selling, though, until a Sell alert is generated for the stock. That could be in the next few days or in several months if the price reverses upward from here.
We just don't care what's been announced, or what value people put on a company, we simply make our buy and sell decisions based on what the share price is doing. We stop losses early and never sell a stock with a rising share price - no matter what the value is.