Q: I have held WELL for 3 years and am down 38%. They are down 13% in one day today. Is there any rationale for their inability to sustain any positive momentum ?
I am starting to think there are better opportunities in a small cap area given the positive data we have been receiving re: inflation / interest rates.
If one were to throw in the towel on WELL do you have a few suggested replacements?
I am not a fan of dollar cost averaging on a stock heading down and currently feel I should cut and move to a better performing stock.
thanks
I am starting to think there are better opportunities in a small cap area given the positive data we have been receiving re: inflation / interest rates.
If one were to throw in the towel on WELL do you have a few suggested replacements?
I am not a fan of dollar cost averaging on a stock heading down and currently feel I should cut and move to a better performing stock.
thanks
5i Research Answer:
We have comments posted on Wednesday's decline. It is 'still' up 33% this year and 25% over 52 weeks. But certainly it has declined over two years. It is cheap, and growing, and well-managed. The healthcare sector has struggled this year, but this will not always be the case. We would still consider it one of the better growth-focused small caps in Canada. We also do not like averaging down. In a bull market, there could be some better growth ideas. We would suggest: DCBO, GLXY, HPS.A, TVK. Keep in mind small caps usually bounce in January, so if exiting it may be worthwhile to wait a little bit.