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  5. BEP.UN: What advice can you offer when considering the purchase of a stock that has declined to attractive levels, but in so doing has become vulnerable to tax loss selling given the time of year? [Brookfield Renewable Partners L.P.]
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Q: What advice can you offer when considering the purchase of a stock that has declined to attractive levels, but in so doing has become vulnerable to tax loss selling given the time of year? Kinaxis, Brookfield Renewable and Telus come to mind, but there are others.
Asked by Rupert on October 19, 2023
5i Research Answer:

Tax loss season is hard to time, but for buyers we think one can wait a couple of weeks. Small caps will likely get hit harder than usual this year, and we might wait to the third week of November. One can also take a staggered approach to avoid the timing issue. The stocks mentioned should have some support, even if only from the dividends (except KXS with no dividend). Investors do not seem 'angry' at these, which can amplify aggressive selling for tax losses. BEP's decline is likely more interest rate related than company-specific issues. T has some issues, but the dividend should help. KXS is well down from its high, but 'only' down 8% for the year. Its large cash cushion could also limit its decline in a tax sell off.  We think BEP.UN and KXS are more attractive than T going into year end.