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Magna International Inc. (MG)
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Corby Spirit and Wine Limited Unlimited Non Voting Class B Common Shrs (CSW.B)
Q: Good day. I’ve been holding my stocks for just over 3 years without much adding subtracting and balancing. I have a few stocks that have declined quite a bit over that time. I think it’s time to sell a few of my losers and reinvest in better companies. The two equities in question are in a RRIF account. Magna is down 53% and CSW.B is down 31%. Each represents about 1% of my portfolio. Do these companies have a hope over the next 12 months or should I sell and move on. Can you recommend a replacement equity to purchase with the proceeds. Thanks
5i Research Answer:
We would be OK keeping MG a little longer, to see how the stock fares with lower interest rates. There is some tariff risk, but sentiment is very negative and valuation very low. It would not take much good news to move the stock. We would be fine selling CSW.B for CLS or BN. The business has changed and it has a very low growth profile these days.