Firm Capital Apartment (FCA-u-x) I bought at 10.00. Should I take a loss/sell?

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Sorry, I should never type on my phone.

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Asked on July 4, 2021 2:59 pm
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Ok that helps...assuming you mean FCA.UN because .U is the USD version has has never reached $10.00 per share.

Furthermore, we can't exactly make that decision for you. When these types of questions come up, I always circle back to - why did you buy it at $10.00 in the first place? And outside of the share price which is currently at $9.36 (only a 6.4% loss), has anything fundamentally changed with the company? I ask this question because many don't even know why they bought stock in the first place, so they can't answer why they should keep or sell it.

In terms of the actual stock, FCA is not what I would call a star performer. It really hasn't done a whole lot since it first listed and volume is pretty low which adds an additional layer of risk. It also isn't a traditional REIT in that it holds both properties and mortgage debt investments. So that adds yet another level of risk. I do like the fact that is is focused on residential properties in the US which is a good place to be. It hasn't however, performed all that well.

To answer your question, you need to understand why you bought in the first place. Also, it seems like you are sitting on a 6.4% loss which while disappointing, ins't actually that bad for REITs in this environment. It has rebounded quite well since cratering like most REITs at the height of the pandemic.

Mat

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Posted by Mathieu Litalien
Answered on July 4, 2021 3:29 pm