Q: Hi 5i,
Two questions if that's OK, and please deduct accordingly.
In October you counseled me to not sell ATZ when it had reached $50 and I was tempted. I'm glad I listened to your advice then and held on as it's now up a another $8 and my gain is about 90%. Your advice then might still hold - don't sell the stock just because it's up. But the economic backdrop is considerably different now than it was in October and I wonder if you would still counsel holding on, especially since a lot of what otherwise might be discretionary income could be going to servicing debt going forward, and consumers might just generally feel like reining in the spending.
Also - CURA has not been so kind to me and I'm down 50%, meaning I need a 100% gain from here to get back to square one. My understanding is that it is a good company but the regulatory framework in the US hasn't changed as was needed/expected, and the stock is therefore wallowing. So, sell and put the money to work elsewhere, or ride it out for a while, bearing in mind it needs to do very well to even begin to heal the wound it caused?
Both are in a TFSA.
Thanks!
Peter
We can't accurately predict ATZ's direction, but we do know that the last quarter was fabulous and the guidance was very solid. It continues to be well-run and business is very good. We would be comfortable holding. CURA we agree is one of the better companies within its sector. We might be reluctant to sell after a 20% YTD decline, but we do think there are better growth names to own within a TFSA and we might 'target' it for a switch on the assumption that markets settle down a bit and stages a recovery of some form.