Q: Good Day .Down currently 20%. Would you consider selling for tax loss and buyback or is there another downer that is On sale for possible better alternative.Already have a disappointment going with PRL Thanks Larry
5i Research Answer:
Selling for a tax loss does have some timing implications in terms of repurchasing the name. We continue to like GLXY, and we feel that its data center story is slightly underappreciated by the markets. We think that if the markets find a bottom and begin to recover, that GLXY, having already a 35% drawdown, does have recovery potential in a snap-back rally.
PRL is being sold off for more structural and fundamental reasons, and we think that this name may take some time to recover. It can bounce back with the markets, but we think that it may take some time to fully recover.
If we had to choose one of the two, we would prefer selling PRL for tax loss purposes.