Dilemma in choosing a stock to sell

Last week i bought XMH holdings, and realised that i ran out of cash because for the past few days i was constantly purchasing stocks.

There was a dilemma in choosing what stocks to sell since most of my purchases are for long time holding. Then i started reading financial statements on some of my stocks which i recently purchase to fund my XMH holdings.

I read MTQ corp financial statements and realized that they are on average debt levels with $73M debts and $40M cash holding, about 1.8 times.

Swissco Holdings, although have some good future growth prospects but their debts was bad at about 6 times their cash holding. They are in a riskier position as they do not hold enough cash to pay back the debts when the need arises. And furthermore, they reported weaker earnings in their latest results.

Ezion was bad with debts with about $706M in debs and $148.5M in cash, which is 4.75 times their cash holding.

Companies with higher debts reflect that they need much more money to generate better revenues or better profit margins which may put the company in a riskier environment in an event of unforeseen circumstances. And furthermore, debts reduces shareholder value as the shares contain more debt than assets.

I arrived at a conclusion and sold both Ezion and Swissco Holdings.