Investment Q&A

Q: Well I still own Maxar and getting whacked—down 80% on 300 shares. I know you are no longer covering and advised to sell but with their US domicile now and tax loss selling do you see a recovery in the new year.Business does not seem that bad. Would they be an attractive takeover at this price. Lots of debt I guess is not good. For sure as soon as I Decide to bail the stock will rise ! Lol

Q: Hi: The above three seem to be dead money or major losers. Is there any hope for them? If not, is it time to sell them or wait longer for a possible bounce?

Q: Hello Peter and Team,
I hold these three securities in my RIF account with over 20% loss.
I am thinking of selling specially MAXR and PHO to replace them with two other securities with more potential upside when and if the market recover.
Please give your opinion and potential replacements.
Raouf

Q: The market seemingly loved the results at the open, but then ended the day down 6.5% on what appears to be significant volume. It looked like the contract extension addressed the important parts of the short report, but apparently not, given its performance today.

Is it time to move on, or continue to hold?

Q: MAXR at low of $17.68 yesterday. Is it worthwhile purchasing a few shares like 1000. ?? for a recovery ? RAK

Q: With today's price drop of 37%, I am now down by about 60% on MAXR. Should I buy or hold?
Cheers,

Q: Time to buy or one to watch over the coming months? Currently have no position in it.

Q: Received today a Management Information Circular and Notice of Special Meeting of Securityholders whereby Maxar is "proposing" U.S. domestication. In other words, security holders of Maxar Canada would need to surrender their shares against a new entity in the U.S. (with all its future tax implications).
In your opinion, how would this affect the performance of the stock in the coming months? Under which parameters we would need to think to sell (or buy more) giving this US domestication?
Many thanks.

Q: Looking at Q3 earning and revenue missed, Spruce Point's short term target price should be hit shortly, the last nail in the coffin. Do you see any positive in today Maxar statements?
Thanks

Q: Please clarify your answer you gave to my question on MAXR.
You included in your response the following statement .“We would not see any need to add to a losing position." BUT I was not asking about adding. Did you mean “hold”? as in sell in January?



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5i Research Answer:
We would not say we are highly confident in MAXR, but the large price adjustment (down 48% this year) does change the risk/reward scenario. With expectations low, a good contract or positive earnings surprise could still result in good stock gains from current levels. We would expect tax loss selling, which may be happening already. Either now, or in early January, would likely get a better price if one was selling. On valuation MAXR is very cheap, but the debt adds some concerns. We would still put it into the higher risk 'hold' category. The worst should be over and the short sellers will eventuallly move on. We would not see any need to add to a losing position.

Q: MAXR is no longer a company you like much. You did before and your view of MAXR went from positive to negative and you seemed just as disgusted as others at the company. I am down some 35% from cost. This is a request asking you to confirm (or deny) that you have in fact given up on them (?). If however you have regained confidence in the company’s prospects, I would appreciate your updated thinking and the reasons. MAXR’s results are lumpy and contracts can be wildly profitable or go horribly wrong. But do you believe the outlook is better now?

At first glance, it may appear my question below concerns ‘market timing’. No, it isn’t that except in a very limited or narrow sense. I can’t use the tax loss and I want to increase the Canadian content of investments (I have only 5% of assets in Canada and want to increase same to 25%.

QUESTION : Since we are now in tax loss harvesting season, am I better to sell AFTER the tax loss season ? Is there ANY logic to the thinking that , all else being equal, I am more likely than not to get a less depressed price AFTER the tax loss selling stampede? I am not looking for a definitive answer (that’s not available). I am looking for your insight BEYOND first level numbers and data. ( I did buy companies from 5i model portfolios and ones I bought are all down but at least most seem to have possibilities. If you think there is now hope for MAXR, please advise reasons your opinion has evolved to conclude there might be chance MAXR is worth holding.

Q: just wondering which 2 out of the group would you suggest for tax loss selling?

Q: Having read the report from Sprucepoint about MAXR, one of the concerns they raise in addition to the aggressive debt level, is their management, specifically their CEO Lance. Have you looked at this, and is this factored into your opinion about MAXR?

Q: ray.a is your top pick on BNN but is not in any of your portfolio, why ? At current price between mfc and slf which is a better buy ? After the recent news of the awards of contracts is maxr an attractive buy ?

Q: 16% of my portfolio is made up of the above listed stocks.
All are relatively volatile compared to the rest (84%) of my holdings
Do you consider these holdings and their weights to represent excessive risk to a portfolio?
Which of these stocks would you keep and which would you sell to reduce the risk?
Many thanks
John

Q: The Maxar sell-off looks overdone. What do you think off it's prospects over the next 5 years?

Q: Looking to enter a long hold (25+ years) with this company. At these levels would you consider it a buy? And if not, at what level, or are there other companies in this sector you would recommend for a buy-and-hold, DRIP plan?

Thanks!

Q: Just a comment. I know we don’t predict bottoms but I see this disaster, which I currently don’t own, easily shedding another 20-30% before year end. It may be interesting then.

Q: Do you have any updates on Maxar? I heard someone mention accounting irregularities on BNN (perhaps the person is shorting the stock?). The stock price doesn't seem to want to stop going down. However, with my luck, once I sell MAXR the stock price will jump higher.

Q: Hi Team,
I am currently down about 30% on MAXR, your advice please on if I should sell and use the money else where, or hold.
Thanks