Q: Hammond Power has been drifting lower everyday and It looks like that the stock could soon break below, $98 support level, with US Tariffs confirmed making company's products exported to US, more expensive, increasing the risk of losing market share to its US based or competitors.
Is it prudent to be proactive and sell all holdings ( as of now we have about $15 gains ) or reduce by at least 50%, to avoid such scenario and revisit later, when there is more clarity/visibility ?
The proceeds may be held in cash, or could be used for 5i favorites like Terravest, Propel or Kneat.com, companies with strong momentum and none to minimal tariff issues. ( I am aware that these business are in a different sector altogether ). Thoughts ?
Thank You
Is it prudent to be proactive and sell all holdings ( as of now we have about $15 gains ) or reduce by at least 50%, to avoid such scenario and revisit later, when there is more clarity/visibility ?
The proceeds may be held in cash, or could be used for 5i favorites like Terravest, Propel or Kneat.com, companies with strong momentum and none to minimal tariff issues. ( I am aware that these business are in a different sector altogether ). Thoughts ?
Thank You
5i Research Answer:
HPS.A has taken a bit hit on Monday. While we would be fine with a general theme of diversification and like the other stocks noted, we would not consider HPS.A as a sell into this tariff panic.