Kinaxis and Enghouse. Hold, Buy or Sell

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I have a quick question for this morning for capital loss purposes. Today is the last day.
I bought both Enghouse and Kinaxis at their highs and am underwater on each.
What is your outlook on each of these companies.
Yesterday I noticed Enghouse on your growth list but not Kinaxis.

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Asked on December 29, 2021 10:30 am
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Hey there! Again as we communicated via e-mail, I'm sorry for the delay in answering!

I'm a big fan of Enghouse in the long term. In fact, I own a reasonably sized position (about 2.5% of total portfolio). Enghouse will remain on our Bull List moving forward. In terms of Kinaxis, depending on when you bought I don't think you'd be underwater too much. I do like both these companies.

With companies I like, I really do not like to deploy a tax loss strategy. That is, selling them now with the intentions of trying to buy them back after the 30 day period. This is just pure speculation on price movements. And with companies like Enghouse and Kinaxis, they can definitely move high enough over a 30 day lockout period where you can't buy to the point where your benefit from a capital loss is wiped out.

Tax loss harvesting in my mind is an excellent strategy, don't get me wrong. Sell your losers and get a tax benefit. But, it should be utilized on stocks you'd like to sell and simply move on from IMO. Not stocks you'd like to sell with the hopes of buying back. For this reason, if I was underwater on both of these, considering I'm still a fan of both companies, I'd be holding.

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Posted by Dan Kent
Answered on December 30, 2021 9:00 am