Q: Considering taking a 12% hit on TELLUS for tax loss and considering I also own BELL so am considering NTR as a replacement for hopfully more growth all bet less income. Or would you consider buying back after 30 be fine? Any thought on a better alternative .Retirement portfolio including HDIF,CIG447,PMIF,WCP,and ENB.BCE. Thanks Larry
5i Research Answer:
We think the move to sell some of the telco holdings (BCE and T) to capture tax loss is a decent move. Suppose an investor still wants to get exposure to the telecom industry. In that case, we think investors can consider buying back shares of BCE (the main Canadian telco we like) after 30 days, as BCE’s long-term prospects are still attractive for stability and income investors. We think putting some proceeds into NTR at the current price is also an attractive risk/reward move as NTR is currently likely at the trough of the industry cycle. The setup is quite positive for capital appreciation if the company manages to return to growth.