Should I sell my stock in AINV, (Apollo Investment Corp)?

I have not followed AINV, but I can give you some guidelines I try to use when when trying to decide if I want to sell.

1. The easiest test is to look at the stock as if you did not already own it and decide if you would want to buy it today at the current price. If the answer is no, it is time to sell it.

2. Another deciding factor is the amount of risk involved. For example, if I bought $5,000 worth of a stock that means that I was willing to risk $5,000 on the future of that company. If the stock price doubles, I would have $10,000 at risk on the future of that company. Even if I liked the company just as much, that might be more than I wanted to risk, so I might sell half of my position.

As well as the number of dollars at risk, the risk associated with the company may also change. For example, if I paid $5,000 for a stock that was making $1.00 per share per year and was growing 5% a year. and a few years later the stock was worth $2,500 while the company was making $0.85 a year and declining 5% a year, I likely would want to sell unless I saw a good reason to believe the company was going to turn around.

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