Trade Alert: Take Profits on Vanda Pharmaceuticals

I’m writing to let you know that we’re going to sell Vanda Pharmaceuticals Inc. (Nasdaq: VNDA) out of our portfolio today for a 5.64% profit.

I’ve decided to sell Vanda because the company reported that in its last quarter, sales of its Hetlioz drug dropped by 1%. That’s a huge disappointment for such a high-growth drug, and doesn’t line up with the potential I laid out for you when I first told you about Vanda.

This slow growth is also a sign of lost ValueAbility, meaning that Vanda is no longer in control of a fast-growing business.

Because of this stagnation, I now expect Vanda’s stock to fall in the future instead of rise. And if that’s the case, we don’t want to remain invested.

Action to take: Sell Vanda Pharmaceuticals Inc. (Nasdaq: VNDA) at the market.

I still believe in the potential of Vanda’s Hetlioz drug, so if the company stages a comeback down the line, I will consider putting it back into our portfolio. As I’ve told you before, sometimes the best stock to buy is one that we’ve already sold.

Moving on, I also want to remind you that we sold Quantenna Communications (Nasdaq: QTNA) out of our portfolio yesterday.

As I told you in that trade alert, I decided to sell Quantenna because the company told investors its business was slowing and that its results would be lower than expected because of it.

To further the problem, Quantenna’s management team couldn’t explain why their company’s sales were falling while similar equipment makers were seeing strength and making money. To me, this shows a clear lack of ManageAbility and internal problems beginning to rise to the surface.

So, if you haven’t already done so, please take the following action:

Action to take: Sell Quantenna Communications (Nasdaq: QTNA) at the market.

I know it’s never a good feeling to take any kind of loss on one of our stocks, or to sell out of a position that has such great potential. However, the reason we follow a trading system in the first place is to take the guesswork out of investing.

It’s been my personal experience that should one of our stocks no longer meet my GoingUpness criteria, it will go on to hand investors huge losses. That’s why we need to have the fortitude to follow our strategy and get out of a stock when it’s time to sell.

Doing so will also free up our capital and allow us to invest in more stocks that are going up. Right now, I’ve got my eyes trained on several new investment opportunities that I believe will more than make up for our losses.

One of the stocks on my radar is the leader of business AI, which focuses on other company’s revenue management. Huge blue-chip companies like Merck, Intel and Johnson & Johnson all use this company because it has special knowledge that no one else currently possesses, and because of that, it’s going to have massive growth potential in the years ahead.

I’m working on the details of this trade with my team and when the time is right, we’ll let you know when to buy the stock. So please, don’t be discouraged: Great things are still ahead.


Paul Mampilly
Editor, Extreme Fortunes