Lightspeed

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with the stock price of lightspeed plummeting & the class actions from the US, would you hold the stock or get rid & take the loss?

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Asked on December 30, 2021 12:33 pm
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We've actually been in a crazy amount of discussion about this over the last couple months on the Discord.

I have not only not sold Lightspeed, but I have added to my position. The company and Nuvei were targeted by some horrible and nonsensical short-reports by a firm that knows they can get away with them in Canada because we have less stringent rules against this type of stuff. They've done so with other Canadian companies. Canadian Tire, Dollarama etc.

The class actions are also a very common strategy with short-and-distorts, and you'll see this pop up everywhere after a company has been shorted and suffered heavy losses in its share price. For one, most of them require you to have lost a significant amount of capital ($50,000+) to even be able to get into the class action. And secondly, these lawyers simply want more clients for a bigger payday. 99% of the time they end up being completely meaningless.

I've owned Lightspeed since 2019. This is actually the fourth time I've witnessed it go through significant volatility. This is not the first, and very likely not the last time we see the company undergo a significant correction in price. This large correction however should give investors and indication of how volatile this company is, and how important it is to keep allocations small. For example, Lightspeed only makes up around 2.5% of my total portfolio.

Any other questions, feel free to reply!

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Posted by Dan Kent
Answered on December 30, 2021 12:54 pm