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Why does not Stock Advisor have a maximum buying price for recommendations?

The stock price may continue to increase backed by the rising earnings and it may never be a sell recommendation, tells Dhirendra Kumar

I am a subscriber of Value Research Stock Advisor and I find it very helpful. Can you also recommend the maximum buying price so that we do not end up overpaying for it?
- Vittal

When the stock price of a company goes to a level where we think it is unsustainable, it has disconnected with the fundamentals or has become very expensive, we will recommend a sell recommendation.

Mostly, we recommend the stocks on the basis that its price will go up, given that they are relatively attractive and have a good, growing and well-managed business. We do these validations very rigorously. But we don't get hyperactive on issuing sell recommendation. Suppose if the stock price is Rs 100 and goes to Rs 120, we may not recommend selling it. Because rising earnings can justify a higher price. The stock price may keep moving up backed by rising earnings and it may never be a sell. If you look at all the great stocks, which have been able to sustain their earnings over a long period of time, their earnings went up, so did their stock price and it kept going up. So, price going up may not be a reason to sell a stock.

But at the same time, many investors have been asking to give a price range. We are not working on it very actively but will see if we can devise something for it.

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