Q: I hold this in my TFSA currently at a loss. Years ago when i purchased it was for the div but now I am looking at a more growth type strategy for the account. What is the likelyhood Magna moves up over the coming months? I fear these tariffs will delay upward movement. I also find it hard to swallow the loss in the TFSA but still looking at all options. My growth in that account are Google, Nvidia, AMD, Amazon
5i Research Answer:
MG has bounced off of its April lows, and remains very cheap at 8X earnings. Tariffs are still a concern. While we think the stock is in the process of bottoming, and next year should be much better, we would not consider it that great for overall growth. It is a highly cyclical company. We consider it a HOLD but for a TFSA we think we would prefer something more 'growthy', such as BN, TRI, PNG.