Message Font: Serif | Sans-Serif
No. of Recommendations: 0
OK, here's the deal. I've been investing for a little over a year and I've not really had to think about selling anything yet, so I'm inexperienced at making the decision. I've got my first double (woohoo!), COCO, which has doubled in a few months, and i'm wondering when it makes sense to sell (if at all). Taxes are not a consideration because its held in an IRA.

COCO is still trading at a discount to its larger peers (APOL, DV). All three firms have similar ROA, ROE, debt to equity and forecasted earnings growth. While COCO has a PE in the 24 or 25 range, APOL and DV are around 37 to 40. COCO has a ttm price to EBITDA of 12.8, while APOL is at 19.2 and DV is at 20.6. The wrinkle here is that PEG suggests that COCO is about farly valued now at $33/share, but the multiples that DV and APOL are getting suggest that COCO could be valued as high as $42 or $44 per share. So what should my target be? PEG-based? Peer valuation-based? Anything I'm missing?


Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.