from Cabot Benjamin Graham Value Investor, recommended at $45 in Investment Digest issue 745, dated June 19, 2013.
AutoNation (AN) exceeded its Minimum Sell Price of 50.74 today. AutoNation was first recommended in the Low PEG Special Feature in December 2012 at 38.60 and has advanced 31.5% during the past nine months compared to a gain of 17.8% for the Standard & Poor’s 500 Index.
AutoNation reported strong second-quarter results, but the stock’s current 18.5 price-to-earnings ratio is substantially higher than its 10-year average P/E of 11.5. I have learned that selling stocks when they reach their Min Sell Prices delivers the best results.
I advise selling your AN shares now.
J. Royden Ward, Cabot Benjamin Graham Value Investor, www.cabot.net, 978-745-5532, September 9, 2013