Q: Sorry for another NVEI question.
In the responses on NVEI, 5i considers it a HOLD. I'm down 60% in a taxable account and will probably sell for tax reasons. My plan was to buy it back after 30 days.
What would it take for your recommendation to become a "buy" or "add to an existing position"? On the other hand at what point does it become a "sell"?
Are you considering the same "hold" status for the growth portfolio of will you be making changes with NVEI?
Thanks
In the responses on NVEI, 5i considers it a HOLD. I'm down 60% in a taxable account and will probably sell for tax reasons. My plan was to buy it back after 30 days.
What would it take for your recommendation to become a "buy" or "add to an existing position"? On the other hand at what point does it become a "sell"?
Are you considering the same "hold" status for the growth portfolio of will you be making changes with NVEI?
Thanks
5i Research Answer:
We can't telegraph future portfolio changes, though no one will be surprised that we are not happy with recent events. A stock can stay in the doghouse a while, and with the loss of a big customer investors will continue to worry. We would need to see better traction with new customers, improved execution, cost control and lower interest rates to get more comfortable. With the drop, the portfolio position of course declines, and we do not like to average down after such a miss. It will be below 2% now, and we will need to decide it we can better deploy capital elsewhere. Valuation is cheap, but it would become a sell on further deterioration in fundamentals, a weakening balance sheet, or more bad news or more customer issues.