Q: I have owned this for a few years currently down 22% on USD side of my TFSA. I am wondering your opinion going forward Hold or Sell? With no tax loss advantage it does pain me to sell all or some but hard to know what opportunity cost I am leaving on the table is, which might be more than the loss on the stock.
What would you do? And what is the opinion of MGA overall as a business given the current climate. Thanks
What would you do? And what is the opinion of MGA overall as a business given the current climate. Thanks
5i Research Answer:
MG is now up 13% YTD, and is up 50% from its low in April and close to its 52-week high. It has very strong earnings leverage to any change in conditions (tariffs, rates, the economy). As rates fall, and tariff questions get resolved, we think it has the potential to do much better. It is a cyclical stock, but we think selling now is not the best move. We would be comfortable keeping it for at least several more quarters, considering its dividend, potential and very low current valuation.