Q: I am becoming bored with PNP and perhaps a bit nervous related to its performance recently. I realize it is a completely different sector but could it make sense to sell PNP and purchase LunR. I’m down considerably on PNP but can’t claim a capitol loss as it is in a registered account. It is a very small position in my portfolio.
Thanks for your guiding hand,
Doug
Thanks for your guiding hand,
Doug
5i Research Answer:
LUNR looks fine for the sector and of course its stock has massively outperformed PNP recently. We do not think PNP is so bad, but its size hurts investor interest, and it has been hit a bit with the softeware-tech sell off. The stock is cheap but has no analysts and trading is thin. Boredom is not always a good reason to sell, but LUNR is much larger, the sector is likely to stay strong, and positive momentum is attractive. We would be fine with the switch proposed if it matches an investors goals and sector allocation needs.