Q: Hello, Can you please share your thought on below scenario. LMN/PRL are my favorite. if you have any comments or suggestions please let me know
1. is it too late to sell LMN for Tax loss selling? take some loss for the tax? and switch to PRL ?and buy back after 30days?
2 just sell 50% of LMN? and switch to PRL ? and buy back after 30days?
3.do not go into switching game. just stay with investment
Thank you!
1. is it too late to sell LMN for Tax loss selling? take some loss for the tax? and switch to PRL ?and buy back after 30days?
2 just sell 50% of LMN? and switch to PRL ? and buy back after 30days?
3.do not go into switching game. just stay with investment
Thank you!
5i Research Answer:
Both LMN and PRL are (in our view) not likely to 'spike' higher in a 30 day period. We would be comfortable with a tax loss/re-buy strategy on LMN. We continue to like it long term. PRL has good bounce potential, but it is significantly smaller, and its business is less diverse, and also more economically and rate-sensitive. Because of the risk difference, we would prefer not a switch here, and would be OK selling LMN with a view to buy it back after 30 days.