Q: Hi, these are my two stocks that are down the most . I think I will keep GSY through this downturn as I have more confidence in it during rough times? Could you talk about TVE and reasons why I should keep it , sell to half position or just sell for tax loss. We seem to be swimming against the current with government and environmentalists with oil and gas companies. Is it worth keeping at least into the new year when these companies seem to do better?
Thanks
Thanks
5i Research Answer:
There is still negative sentiment towards oil and gas, but this largely reflected in valuations. TVE has been a disappointment, but it remains one of the cheapest in the sector, with a a reasonably-secure 4.7% dividend. The balance sheet is OK and very good growth is expected in 2024. Free cash flow is growing and it is buying back stock. There has also been some insider buying. It is still going to move with the sector, of course, but if we owned it we would delay a sale decision until closer to year end.