Q: Given all the interest in tax loss selling for BCE. What do you think of the reverse trade (buy BCE before end of year)? Or is this another Nortel?
5i Research Answer:
BCE certainly has bounce potential in January, assuming it does not actually cut the dividend. We do not see it as a Nortel situation. Buyers today (and volume is high this week) are not buying with the expectation to lose money. We would be OK chipping away on the buy side into the decline, for patient investors who understand the situation well.