Q: Currently down just over 30% on Magna in my TFSA.Mortgage due for renewal in July 2026.Was planning to pay mortgage off with magna and would need close to my book value of 94.50. Would you consider Magna a hold or advise on a better alternative? Much appreciate your input.Thanks Larry
5i Research Answer:
We think MG is a hold; it should do better as rates decline, which we would expect ny 2026. There are faster growing companies, but these would be more expensive and volatile. Generally though we would be cautious on a single company being targetted for a specific cash need within two years. Paying down debt is generally preferred, as it is a 'guaranteed' return through interest savings. If we were in a similar boat we might consider selling over time and moving the proceeds to a safer more diversified ETF as time gets closer.