Q: Hi Peter and Team,
With the intent of better opportunities elsewhere, would YOU be a seller of BCE held in a registered account? (A significant loss, given the time we've held BCE)
Or, would YOU consider it a hold?
If a seller, would YOU add to our current holdings in Telus?
Or would YOU not stay in the sector for the time being due to all the headwinds it’s experiencing?
Thanks for your help.
With the intent of better opportunities elsewhere, would YOU be a seller of BCE held in a registered account? (A significant loss, given the time we've held BCE)
Or, would YOU consider it a hold?
If a seller, would YOU add to our current holdings in Telus?
Or would YOU not stay in the sector for the time being due to all the headwinds it’s experiencing?
Thanks for your help.
5i Research Answer:
We would focus less on the loss, and more on the position size. We would be OK continuing to hold a small position in BCE. Telus does look much better if one only wants one position within the sector. We do not think the sector needs to be completely ignored. Valuation and sentiment are so low that potential has actually improved. We might see this as similar to TD recently. Just months ago everyone hated it; now, it is up 11% YTD.