Q: How would you know when CSU's price action has "settled" and that it is safe to add in? What indicators would you look for?
Price today is $3321.04. Morningstar gives CSU a fair value of $3,744.01. And it is a rare event in its history that CSU's price falls below its fair value.
Would you add to it today?
Price today is $3321.04. Morningstar gives CSU a fair value of $3,744.01. And it is a rare event in its history that CSU's price falls below its fair value.
Would you add to it today?
5i Research Answer:
We would be fine 'accumulating' CSU slowly. It could still see some year-end volatility, and many investors are now a bit more worried about than they ever have been (it has only declined once, annually, in its entire history). Generally, we look at volume to try and determine when tax-loss selling is done. But there is also portfolio year-end portfolio positioning going on as well. We note that last week's volume in the rally was more than this week's volume in its decline. This is a bit of a positive sign. But we haven't seen the typical 'puke out' volume that sometimes comes with tax-loss selling. We doubt we will in this case.