Q: BIR has been moving up YTD, more than TOU. Would you take this opportunity to take a loss and switch to TOU?
You said Yes to a similar question in June, but could BIR be a takeover target, how probable? Thanks
You said Yes to a similar question in June, but could BIR be a takeover target, how probable? Thanks
5i Research Answer:
We are usually fine with tax loss harvesting if one wants to capture a loss and stay within the sector. TOU is 10X as big as BIR. BIR is outperforming, but only by a small amount (4.7% for the year vs 2.92%). We would consider TOU a better company overall, and would be fine with a switch. BIR actually has been up for sale in the past (several years ago). We would consider it a target but would not base a decision just on this possibility.