Q: I have a full position in TOY and am starting to lose patience as I’m now down 24% in a year and don’t really see any positive momentum building given trade tensions and indications of an economic slowdown. I’m considering selling half or all to move into a more positive growth story as things stand today. As an example, I recently sold a half position in SIS and bought LSPD with very positive results. I would possibly buy more LSPD with the understanding growth=risk. Security and diversity are covered in other parts of our portfolio; these growthy stocks are in our TFSAs where growth is our only consideration. Given the objectives of our TFSA accounts can you make a case for keeping, selling half or all of TOY at this time.
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Sylogist Ltd (SYZ)
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The Stars Group Inc. (TSGI)
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Enghouse Systems Limited (ENGH)
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Spin Master Corp. Subordinate Voting Shares (TOY)
Q: I am looking to raise some cash - what 1 or perhaps 2 of the above stocks would be most suitable?
Thanks once again
RAM
Q: I like TOY but am concerned about the following:
1) How vulnerable is TOY's business to low price "knock-offs" being marketed as TOY brands through on-line channels like Amazon, Alibaba, etc.?
2) Do retailers like Amazon & Walmart have the technology to restrict this type of thing, or would they unknowingly be expediting it (and benefitting from it)?
3) How effective is legal action initiated by a company like TOY in defending its intellectual property?
4) Is this vulnerability a "deal breaker" in deciding NOT to buy TOY?
Thank you for your thoughts.
Edward
