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  5. WED: Many updates since the last review of this company. [The Westaim Corporation]
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Investment Q&A

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Q: Many updates since the last review of this company. With new shares being issued at $4.75 I would hope this provides a level of support, but not sure I should be holding hoping to see results vs selling now after a nice run and waiting for the results first and then reinvesting.
Asked by Jim on November 13, 2024
5i Research Answer:

The sector has had a good run, but WED's valuation is now very much on its historical 'expensive' side of things. Its balance sheet strong but it is still not a well-owned stock. There is only one analyst. The CC/Arena deal will likely attract more investor interest over time, and we think looks good overall. So it is a tough call. The market cap may see the company 'graduate' from an unknown small cap to a larger, well-capitalized player that could attract more interest. We are not fond of a sell now/buy later plan unless there is a tax loss. If there is a taxable gain, we are even less enamoured by such a plan. With no taxes, it makes more sense, but one has to be 'right' here. Generally, we would let winners run until something has changed for the negative or a position size becomes too big. With WED, we would consider the changes in October to be positive.