Q: Hello, I own AQN in an RRSP account and would like to sell it. It will be a loss since I paid over 2 times what it is currently trading at.
I can sell it now or wait a few months. Does this stock typically increase during the fall as the seasons change? I am also wondering whether to wait for the next dividend payment. I understand that AQN may be selling off assets, presumably to raise cash, given it's high debt levels.
Any input on AQN would be helpful. Thank you.
I can sell it now or wait a few months. Does this stock typically increase during the fall as the seasons change? I am also wondering whether to wait for the next dividend payment. I understand that AQN may be selling off assets, presumably to raise cash, given it's high debt levels.
Any input on AQN would be helpful. Thank you.
5i Research Answer:
We think as long as investors don’t have faith in the company’s long-term prospects, the proper course of action is to sell immediately and reinvest the proceeds into something else rather than waiting to get back to cost or dividend payment or hope for a hiccup so that investors could recoup the loss. It is better to be rational in taking a loss. AQN has a very high debt level, and the company has plans to pay down debt and improve EBITDA, but the process could be long. It did announce an asset sale today but this was widely expected and would not change a thesis here. We certainly would not consider it a 'must own' name in the sector.