Q: Hi 5i
I've taken quite a beating on LMN in a registered account - down approximately 60% on the $25K flyer I took on it back when it traded in the $50 range.
I can afford to carry it awaiting a recovery, but I also think if a recovery is not imminent, I would like to take my losses and put what remains of the 25K to work elsewhere - perhaps in CNQ, TVE or WCP where capital appreciation and income are both realistic over the next couple of years.
What do you think - and if the premise is good but you have better ideas that CNQ, TVE or WCP please advise.
Thanks, 5i,
Peter
I've taken quite a beating on LMN in a registered account - down approximately 60% on the $25K flyer I took on it back when it traded in the $50 range.
I can afford to carry it awaiting a recovery, but I also think if a recovery is not imminent, I would like to take my losses and put what remains of the 25K to work elsewhere - perhaps in CNQ, TVE or WCP where capital appreciation and income are both realistic over the next couple of years.
What do you think - and if the premise is good but you have better ideas that CNQ, TVE or WCP please advise.
Thanks, 5i,
Peter
5i Research Answer:
We would consider the energy choices fine, along with SU as well. This is essentially a sector call though. Energy has done well, but it is a cylical sector, and if it rolls over these stocks would get hit. LMN of course has already been hit, but we would note it has been hit on sentiment, and not yet on fundamentals. We would approach this question on a portfolio basis. If other tech stocks are owned and energy is underweight, a switch makes sense. We would, at the current beaten-up price, not consider LMN a SELL, however.