In many ways, Nuance Communications has a bright future. But in this video, Andrew Tonner gives three reasons you may want to sell:

  • Competition from the likes of IBM, Google, and Microsoft.
  • Growth by acquisition, which can erode book value.
  • The continuing need to make more costly acquisitions.

Nuance is doing some great things, but as Andrew argues, it's not a risk-free investment. Check out the video for more details.

Andrew Tonner has no position in any stocks mentioned. The Motley Fool recommends Google and Nuance Communications and owns shares of Google, IBM, Microsoft, and Nuance Communications. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.