Q: Hi,
Seems Anthropic is causing quite a few disruptions lately and today their COBOL tool has hit IBM and others. Do you see any reason to wait it out and hold if this could be used as a tax loss in a cash account? I am also concerned about yet another fairly large drop in the price on WSP. Is there any further news regarding it today? Unfortunately I hold that in a RSP account, so am not sure whether to sell or hold, and would welcome your thoughts on this as well. Many thanks for your continued good advice - it is always appreciated!
D
Seems Anthropic is causing quite a few disruptions lately and today their COBOL tool has hit IBM and others. Do you see any reason to wait it out and hold if this could be used as a tax loss in a cash account? I am also concerned about yet another fairly large drop in the price on WSP. Is there any further news regarding it today? Unfortunately I hold that in a RSP account, so am not sure whether to sell or hold, and would welcome your thoughts on this as well. Many thanks for your continued good advice - it is always appreciated!
D
5i Research Answer:
There is no company news on WSP; TD cut its target price from $335 to $311 today. We had comments posted yesterday.
IBM and analysts defended the company, saying its mainframes are not just cobol. The AI software scare though is taking no prisoners. IBM is cheap, and is working on AI and quantum itself. It is not our favourite in the space, but the reaction was likely too harsh. The last quarter was good, and even software grew at a better-than-expected 11%. We would be OK holding here and deciding on a tax loss as the year or stock progresses.