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Author: brewer12345 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 6752  
Subject: When to sell? Date: 7/12/2000 12:19 PM
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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?


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