Investment Q&A

Q: I have two questions re: tax loss selling. I have a three year old gain that I can offset by selling the above holdings.

1. First please help me with the math. If I buy a stock for $100, sell it for $90, I have a loss of $10 which would mean I can expect a $2.50 tax loss at a 25% rate. Does this mean that if I wanted to buy the stock back after 30 days, I would only be better off if I buy it back at less than 92.50 per share? Do you have a threshold whereby you must be down by a certain amount to justify a tax loss sale? e.g. 20%? Unless of course you are walking away from a company.

2. Which of the companies listed would you consider buying back after 30 days? I have too many holdings as it is so may just let them all go unless something is particularly interesting. I am overweight technology, underweight everything else but otherwise have a broad mix of funds and stocks.

Q: I have approximately $70k cash in my TFSA account that I would like to invest before the end of the year. I currently have the above stocks in my TFSA. My investments in Lightspeed and Unity have taken a big hit (70 to 80% loss) since purchasing these stocks. I understand that I cannot claim losses on investments in my TFSA account. Would you suggest selling off my investments in Lightspeed and Unity and reinvesting these funds? As noted above, I have cash in my TFSA to be invested. Please rank my current TFSA holdings for additional investment considering a 5 to 10 year hold. Thank you for your expertise and best wishes for the Holiday Season.

Q: Hi 5i
Lspd announced layoffs this morning. Says this wont affect or impact the strategic review. Share price down 5%.... Is this action a negative for the company....if so why...
Would 5i continue to hold after this announcement...

thx

Q: my public service announcement

re: saeed's question on averaging down


ugh, how many times have i done this only to regret it

i share this only to help others with this predicament

here's my figuring

as noted you own 1 share at $51 and are prepared to average down to $30 in order to 'not lose money'

therefore you will need to buy 6 new shares at the current price of $26 in order to bring your acb to +/- $30

6 x $26 + $51 = $207 (@ 7 = $29.57 ACB)

then, if the price increases to $30, you break even



the question is " you are already wrong on this company, so do you really want to triple your investment ($26x6 = $156)

trust me, i have done this many, many times (way in the past) and this is the epitome of throwing good money after bad

most often it is best to take your lumps and as peter says, move on and find something in an uptrend

good luck

Q: Good Day Team,

I am down 50% on LSPD at an average cost of 51CAD/share.

I figure if LSPD is sold today even at $30CAD/share, I would lose about 40% of the original investment which is about 2.25% of the total portfolio.

I can average down with enough funds to break even if the company is sold at $30 CAD. My hesitation is what if the company is NOT sold. I am sure the price will halve from where it is now. I am pretty sure you would hold and would suggest not to throw good money after bad.

Yet, I would like to ask for a high risk investor, would this be too risky a move?

Thanks as always!

Q: Hi 5i,
Now that the cancelled Analyst Day has long past and LSPD share price continues to creep up, has there been any news on your radar that might give a hint or clue as to whats happening with the name?

Is 5i able to comment insider trading activities?

Would 5i continue to hold at current price?

Thx

Q: Another Canadian company (KUT.v) taken private.

Looking in to your crystal ball, over the next 1-3 years what are some other Canadian companies that you consider prime candidates to be acquired?

Q: Hi 5I,
If lspd is able to take itself private at what price would you expect a deal to be successful?
What is the Capital Analyst day? I read that this event was postponed. Do you know if is this correct and if it is correct what would you expect the reason would be?
thx

Q: Hi 5i,

What is your opinion on LSPD latest earnings. their SP had a nice uptick today....What is their outlook now going forward, Would you continue to hold on and is there any current news on the search for a potential buyer?
thx

Q: I'm looking at selling my lightspeed and purchasing propel. What say you?

Q: I still have my LSPD stock (at quite a loss) and just wondering with the current announcement of the companying possibly selling or taking it private, if this is the time to sell now or hold on to see what materializes? Is it conceivable that the Company could sell and if so, what might the stock price go to? Your thoughts please...
Thank you!

Q: My losing stocks are LSPD (-65%), MG (-45%), CELH (-53%), and NXT (-40%) in my portfolio. I am contemplating an annual cleaning to weed out the poor performers before year end and invest the proceeds elsewhere.
Please recommend if any of the above mentioned stocks are still worth keeping for recovery in the recent interest rate cut environment ? if not, please rank the order of wipe out sequence. Thank you for your excellent service. Bill.

Q: I'm under water in lightspeed. I'm thinking of selling and putting the proceeds into propel. What do you think?

Q: I am a long term investor who is very patient and has a high risk tolerance, but must pull a few weeds. Have held the above for a decent amount of time, but wonder about 5I's opinion on whether to hold for longer or pull. Thank you for all your help.

Q: What is your take on LSPD's latest quarter? Thanks

Q: Have these stocks, which are all down, in a TFSA. Are they worth holding for the next 6-12 months or would you sell and move on?

Q: I am contemplating to sell the LSPD (1.1%, -63%), MG (1.2%, -43%), TD (0.3%, -15%) and BCE (0.2%, -57%) from my portfolio and deploying the proceeds elsewhere. Please rate and recommend the selling preference order. Thank you very much. Bill.

Q: Hi ,
Can you please give me your opinion for the longer run...2+ years
Buy ,Hold or Sale

Thank you

Q: Hi 5i - how would you rank the following tech companies at todays prices for new positions:

LSPD, LMN, KXS, SHOP, CSU, GOOG, DSG

Thanks, Neil

Q: Sold both for tax loss.
Wondering about proxies for both. Could you suggest a couple? If the proxy goes up in the 30 days, I presume you would keep the proxy until it changed direction. What is the thinking on this process. What if it goes down?
Thanks on your thoughts
John