Q: Hi 5i
I own GXE in a TFSA and in the midst of today's bloodbath the value of my holding is down 45% from when I bought quite some time ago. There's not an overly significant amount of money involved and I can ride it out if that's the thing to do, but I would like to minimize my losses as effectively as possible.
With that in mind, what would you recommend I do - sell, hold or buy some more at the current depressed price, and why?
Thanks 5i, I look forward to your thoughts.
Peter
I own GXE in a TFSA and in the midst of today's bloodbath the value of my holding is down 45% from when I bought quite some time ago. There's not an overly significant amount of money involved and I can ride it out if that's the thing to do, but I would like to minimize my losses as effectively as possible.
With that in mind, what would you recommend I do - sell, hold or buy some more at the current depressed price, and why?
Thanks 5i, I look forward to your thoughts.
Peter
5i Research Answer:
Production in the quarter was flat, so the main problems were lower prices and higher costs. The balance sheet is solid, and with the dividend yielding 13% before the cut was (largely) expected. Management may be playing extra conservative here until prices recover. We don't like averaging down, and do not like any dividend cut. But with the stock hit already in place, its low valuation, balance sheet and (now) 6.8% dividend, we think shareholders can hold here. We would not be interested in buying more.