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  5. NEO: Hi 5i, What is your opinion of the sale and should one continue to hold NEO ? [Neo Performance Materials Inc.]
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Investment Q&A

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Q: Hi 5i,
What is your opinion of the sale and should one continue to hold NEO ?
And do you have further thought on TOI?
Also if you sell in a margin account can you buy back in a TFSA (if cash) without waiting 30 days?
connie
Asked by Constance on August 22, 2024
5i Research Answer:

At $30M it is not a huge transaction for NEO ($340M market cap) but it will add to its already-strong balance sheet. Many investors discount any China operations, so it could improve NEO's valuation over time. We would consider it the right move but would not expect miracle moves here on this news alone. We continue to see TOI as a quality VMS software company. It will grow primarily via acquisitions and follow the CSU template. The European economy is not great but this can also provide more M&A opportunities. We would be quite comfortable owning it. We would be fine buying/owning. A TFSA is considered an associated account and the superficial loss rule applies, so the answer to the last question is NO, if one is claiming a loss in the non-registered account.