Q: Over the last year MEG is up 27% and TVE is down 20%. I am down 26% on TVE. Is a switch from TVE to MEG a good trade to recover my current loss on TVE? Thank you
5i Research Answer:
MEG certainly has better momentum, and looks fine, but they are quite different. MEG focuses on heavy oil, with no dividend. TVE's assets are different, and it offers a 4.4% dividend that has shown good growth. MEG will likely pay a dividend in the future, however. We are always cautious when investors try to 'recover' a loss by making a switch. We do not view TVE as a SELL today, but it has clearly been a disappointment, so far. If a tax loss applies we would be OK with such a switch. If not, we might prefer owning both.