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It’s important to understand the risks within an investing thesis for a company. If one of the potential red flags comes to fruition, then it’s time to review the investment. The stock might not necessarily be worth selling just yet, but equally it might be rash to continue adding to the position.
“When recommending [this stock] in the past, product safety has been highlighted as a risk factor, as it can lead to damages, reputational risk and reduced sales. As the company has ticked this red flag, I’m moving it to Hold for now.”
Mark Stones, Share Advisor
