Q: I know you hold this company in the Model Growth Portfolio. I have a small holding and it is down around 70%. My plan was to continue to hold and hope it improves as the macroenvironment improves. With the stock price so low now, I hope it has hit bottom. On the other hand, I do need some losses this year to offset gains. I assume by tendering my shares via the auction, I can avoid any broker fees? What are your thoughts on continuing to hold versus tendering shares via their auction?
Thanks.
Thanks.
5i Research Answer:
Yes; there are no commissions on a Dutch Auction. We would still see it as a HOLD, but need to see improvement. We would not suggest tendering: reducing the share count will result in more earnings per share leverage. We think any tax decision can be deferred until closer to year end. It 'could' be bottoming: certainly sentiment is very negative.