In recent weeks we have taken the opportunity to use this section to revisit some of the previously featured stocks that were dropped some time ago based on technical weakness and fundamental concerns.  Studying what happened afterwards should hopefully allow investors to get a better understanding of the importance of having a sell discipline. Limiting losses while they are small is critically important to your success, and this investment system's rule is to always sell a losing stock after it falls more than 7-8% from your buy price.  These well-known, high-profile companies serve now as perfect examples that will hopefully allow investors in the future to recognize the warning signs and technical sell signals so they will know when it is time to lock in profits or minimize losses per the investment system's sell rules.

Verifone Holdings Inc (PAY +$0.52 or +11.61% to $5.03) posted a big gain today, but it now faces a tremendous amount of resistance due to overhead supply, making it unlikely to be a market leader in the near term. Serious concerns were raised and noted in CANSLIM.net's 12/03/07 After Market Update (read here) as PAY was one of those unfortunate examples where investors are blindsided.  It had gapped down for a considerable loss after the company said it would restate its earnings for the prior three quarters, with the added warning that revelations of deeper problems may follow. Based on the disappointing fundamental news and very weak technical action, it was noted while dropped from the Featured Stocks list. It has traded as much as -91.14% lower since its close on the day it was dropped from the Featured Stocks list.

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