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Exchange Income Corporation (EIF $72.23)
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WELL Health Technologies Corp. (WELL $4.76)
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Galaxy Digital Inc. Class A common stock (GLXY $33.77)
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Lumine Group Inc. (LMN $49.00)
Q: These are my 4 roughly equal weighted stocks in my TFSA which represent approximately 2% of total reg.and non reg. accounts. I have taken a barbell approach to this portfolio with EIF and GLXY anchoring the ends.
I have held WELL for several years waiting for that sustained breakout expected ( any day now ? ) and am down 20%. How much more time do I give it ? They seem to be getting all the pieces together and management is respected but I am getting itchy to sell and move on. Wait another quarter ? What will make it move higher without retreating ? What would YOU do if your portfolio ? Finally please provide 3 growth alternatives ( with reasons )should I decide to pull the plug .
Thanks. Derek
I have held WELL for several years waiting for that sustained breakout expected ( any day now ? ) and am down 20%. How much more time do I give it ? They seem to be getting all the pieces together and management is respected but I am getting itchy to sell and move on. Wait another quarter ? What will make it move higher without retreating ? What would YOU do if your portfolio ? Finally please provide 3 growth alternatives ( with reasons )should I decide to pull the plug .
Thanks. Derek
5i Research Answer:
WELL has been disappointing, but is priced right and still has potential. Essentially, it needs to work its way from its accounting issues this year with strong execution and EPS growth. Catalysts could be a new acquisition or a split of the company. We would be OK giving it a few more quarters. At 11X earnings, it is very cheap. We would be OK keeping, and would consider the other three fairly solid for a basket approach of small/mid caps. EIF we like but it is more income-focused than the others, which we think have very strong long term potential. Alternatives: VHI (we have a report), PNG (comments here), SHOP (growth, management, balance sheet, duopolistic industry).