When to Sell?
(1) When the Revenue Drops significantly for 1 to 2 Quarters, will divest all my shares.
(2) When the Profit Drops significantly inline with the Gross Profit Margin & Net Profit Margin.
(3) When the Ratio of Share price growing rate to Business growing rate is too high (<2.4x).
(4) When i have found another company with much better offer with Element 1.
Does this mean u ignore if say the share price goes up a lot aka best world sunningdale etc even when the chart looks like will reverse?
ReplyDeleteI do not trust chart and will never do that.
ReplyDeleteIt doesn't matter when the price fall after the report is out and it doesn't perform good. I will sell it if it meets my selling criteria above.
I see. Btw when u say share price growing rate vs biz growth rate.. Are u referring to the PEG ratio?
ReplyDeleteThanks for taking the time to reply
ReplyDeleteHi Sean,
ReplyDeleteI am still learning and i might not be correct eventhough i am doing my best to be correct. Only time can tell if i am right :P
I set my own exit criteria, and one of the most important criteria is point number 3: Share price growing rate Ratio to Business growing rate. And yes it is referring to PEG ratio.
Hi BI,
ReplyDeleteThank you for your sharing! Just trying to learn from those who are successful to date so I can try to utilize the things that work in my own investing