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Aritzia Inc. Subordinate Voting Shares (ATZ)
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Converge Technology Solutions Corp. (CTS)
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Dye & Durham Limited (DND)
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Nuvei Corporation Subordinate Voting Shares (NVEI)
Q: If one believed that now was a good time to start picking away at beaten up stocks, how much should the fear of tax loss selling in the next 6 weeks weigh on the decision of whether or not to buy now or wait? Probably not a great way to invest pitting the fear of short term loss against fomo. Could you also highlight 10 or 12 Cdn stocks that in your opinion are the most vulnerable to taking a big tax loss selling hit this year. Thank you.
5i Research Answer:
We will be doing another tax loss screener blog soon as we have done in other years. Tax loss season is hard to time. For buyers, we might wait a few weeks, but one can also simply deploy cash at intervals instead of all at once, to avoid the timing issue. If 3Q earnings are OK, we would expect the market to stablize somewhat. For small caps, we think buyers can wait until the 2nd or 3rd week of November. There are, unfortunately or not depending on whether one is selling or buying, lots of stocks to choose from this year. We think some more vulnerable stocks might be: DND, ATZ, NVEI, CTS, STC, BEP.UN, TIXT, TSU, GOOS, ECN