The shaky minority government has put my portfolio spring-cleaning efforts on hold. In May, the federal budget (Bill C-43) passed the second reading narrowly and avoided the fall of the government. When the budget bill is finally passed into law, I plan to sell the following losers in my portfolio:
- JDS-Uniphase (TSX: JDU) – Very small portion of portfolio. Better to sell at a loss and move on. Even if the stock quadruples from here, the effect on the portfolio would be really small.
- Nortel (TSX: NT) – The Nortel saga provides entertainment value in the business section and little else. Again, it is such a small part of the portfolio that it is better to sell.
- Millenium Pharmaceuticals (NASDAQ: MLNM) – An excellent example of buying money losing, pie-in-the-sky companies being speculation, not investing. I am planning to sell this stock only because I just don’t have the time to follow the company closely anymore.
- Labour-Sponsored Mutual Fund – I believe these mutual funds are a bad idea for most investors. They invest in small, illiquid start-up companies and charge outrageous fees for the privilege. Unfortunately, these funds have a mandatory eight-year holding period, so I will be stuck with this loser for a while.