MILLBURN, N.J. ( Stockpickr) -- Has this ever happened to you? You perform a great deal of research into investing into a stock. Your research results in taking an investment position in the stock. The company performs quite well, generating positive earnings on a consistent basis and growing it business.
But the stock does not perform well.
This is a fairly common occurrence in the stock market. Both professional and amateur investors both have experienced the frustration of good companies with stocks that don't perform up to expectations. Unfortunately, this frustration may lead to prematurely selling a stock. Then you know what happens? Once you sell that stock, its price will catch up to its fundamental performance.