Q: I am down 40% with LMN, with the recent sell offs of both CSU and LMN, would you see this as good opportunity to 1. DCA aggressively with LMN as we're expecting a bounce back in the near future. 2. DCA LMN moderately and open a new position in CSU to then hold both CSU and LMN 3. DCA slightly with LMN and open a bigger position with CSU.
Would you see owning both CSU and LMN as a good decision? Is there one you would own over the other?
I am a long term investor and not necessarily worried about the short term downfall we've experienced.
Thanks!
Would you see owning both CSU and LMN as a good decision? Is there one you would own over the other?
I am a long term investor and not necessarily worried about the short term downfall we've experienced.
Thanks!
5i Research Answer:
We don't think a whole lot has really changed at these companies outside of a big shift in sentiment. We would be fine with owning both at these levels and would prefer option 2. The main issue is it is harder to know when sentiment will change and because of this we might take more of a slower approach vs being 'aggressive'. We would go with the moderate/slow DCA approach and just keep in mind the LMN and CSU will likely move similarly in the short term and both are likely to see at least a bit of year end selling pressure.