Whitney Tilson professionally explained why sometimes value investors should not hurry to liqidate a position which reaches its intrinsic value. From time to time, when a value stock captures investors' enthusiasm, the momentum can push it way above the intrinsic value. A patient investor can be better rewarded to ride the momentum for a while.
I have seen this in my personal experiences of EBAY, AMZN and S. Now RJR is apparently exhibiting the pattern too, breaking 52-week highs almost every other day. I'm going to keep RJR for a while (but no later than March 2004 when it becomes long-term capital gains) and see how far it will go. (Although I also plan to cover my base by selling covered calls.)