Q: I presume a 331 Million dollar charge-off seriously threatens the prospects for growth : I believe the company is only worth $550 Million. `
Still, 5i gives it a C+ . dunno why .
Although I have previously lost 100% in an investment before (GTAT) , this is the worst hit dollar wise that I have ever incurred .
By the chart, I presume some investors had an advance hint of this and 50% of my holdings were in my TFSA .
I expect GSY's price to be plunging down again tomorrow ... Is it advisable to sell one's entire position ?
Still, 5i gives it a C+ . dunno why .
Although I have previously lost 100% in an investment before (GTAT) , this is the worst hit dollar wise that I have ever incurred .
By the chart, I presume some investors had an advance hint of this and 50% of my holdings were in my TFSA .
I expect GSY's price to be plunging down again tomorrow ... Is it advisable to sell one's entire position ?
5i Research Answer:
The rating reflects the possibility of a bounce, sentiment change, or improvement. But also GSY is likely a takeover target: its locations and brand still have value. In situations like this, could someone "have known in advance?" Yes. It is possible. But the degree of the deterioration and stock plunge certainly implies it was a shock to most. But even with a lower price risk is likely higher now. We sold out of the Growth Portfolio and exiting is best unless one is an aggressive contrarian investor.