Q: Hey guys HAPPY NEW YEAR hope all is well i currently have MDA IN MY RRSP ACCOUNT and am down close to40% i read your report on FTG looks interesting. Reading questions on mda most are selling for a tax loss im unable to do so in a rrsp. looking at a max 2yr hold would i be better selling mda and buying FTG .Im aware you dont do the buy or sell thing but feel that mda has a long way to go and i am looking for a viable alternative maybe cae or ftg . thanks as always
5i Research Answer:
FTG is much smaller, riskier, and also more expensive right now. FTG certainly has potential, and outperformed last year. The question alludes to this, and we think owning both would be a better strategy than a swap. If the goal is pure growth and one is comfortable with small caps, we would be fine with a switch if an investor only wants to own one. But we would not view MDA as a sell at current levels. A single contract win could move this stock significantly, we think.