Q: I have had GSY in my TFSA for a number of years and am pleased with the performance. For this year’s TFSA contribution I am torn between adding to GSY or starting a new position in PRL. I’m concerned about PRL’s steep runup recently and the potential for a sharp decline once I buy (of course!). I actually don’t mind a short term decline as I am intending this as a longterm hold but I do have concerns about catching the PRL wave as it crests. Given the metrics between these two and the current buy price, what are your thoughts on these two - GSY for it’s stellar track record or PRL for outperformance in growth. Thanks for your thoughts!
5i Research Answer:
Perfect timing is rare in the market. We like both, and might lean towards GSY today as a single company. However, we would rather have diversification over a perfect entry price. We also like momentum and PRL has it in spades currently. We would be comfortable adding PRL to a GSY position today.