It's time to sell Harvard Apparatus Regenerative Technology (OTC:BSTG). My Special Situations portfolio acquired shares in the speculative research and development company before it was spun off from Harvard Bioscience (NASDAQ:HBIO) last year.

Why sell?
In January 2013, my portfolio originally acquired shares of Harvard Apparatus as part of Harvard Bioscience's plan to spin off its research and development arm into a full-fledged public company. I sold the parent's stock in March, since I was unimpressed with the company's performance following the spin. I wasn't seeing the cost savings that I had anticipated.

Now it's time to sell Harvard Apparatus. The company's technology addresses a real need in the marketplace with its ability to grow tracheas from a patient's own cells. I've seen similar developments for other organs, and the process makes great sense from a biological standpoint. I think the company has reasonable prospects going forward, and it's a fantastic sign that the parent company's top management moved to the spin-off. The upside could be tremendous, if it all works out. But in the end, I don't care for the speculative nature of the stock. And that's why I'm selling.

The returns from my original stake in the pre-split company have been solid -- up nearly 27% in less than two years. But it's unclear how much the portfolio is paying for the company's prospects today, and with a cheap, very high-yield stock on my radar, I think the capital is best put to work somewhere else. If you'd like to know what this high-yield stock is, follow me on Twitter: @TMFRoyal. And check out my dedicated discussion board.

Foolish takeaway
On the next market day, my Special Situations portfolio will sell its position in Harvard Apparatus. Soon after I'll put that money to work in a high-yield stock with substantial upside that is far less speculative than Harvard Apparatus.