Q: I’d appreciate your advice regarding my Constellation Software holdings. I currently hold shares in my RRIF with an average cost $3,800 and in my TFSA $4,300.
Given the recent news, market sentiment, and the recent price movement, would you recommend averaging down at current levels, holding as is, or waiting for more clarity?
I’m focused primarily on long-term growth but want to be mindful of concentration risk and overall portfolio balance.
Thanks very much for your guidance.
Rick
Given the recent news, market sentiment, and the recent price movement, would you recommend averaging down at current levels, holding as is, or waiting for more clarity?
I’m focused primarily on long-term growth but want to be mindful of concentration risk and overall portfolio balance.
Thanks very much for your guidance.
Rick
5i Research Answer:
For investors already holding, we would suggest a do-nothing approach for now, other than monitoring position size. We think it has good recovery potential, but risks are higher if sentiment remains weak. It is not quite the buy-and-forget stock it has been for the past 20 years. We do think fundamentals are still better than the stock price indicates. But it is impossible to analyze or predict "sentiment". CSU reports March 09 and is holding a conference call (rare for the company). It has also recently made announcements regarding its AI initiatives.