TL;DR Will re-buy in 35-45 days though. Since I started to document my investing journey on Blossom for nearly 3 years now, I’ve always been very transparent about my losses and gains, so I thought I would share a little more about my tax-loss harvesting plan with you! As you know, I thought that space stocks crashing 30% crash in early June was basically the greatest deal ever with some companies trading at more juicy metrics in a long time, so I bought even more (on margin, but not much) The thing is that space stocks kept falling double digits, so as my TFSA shrinks, so the collateral available on my margin. Plus the collateral decreased further as my $LUNR position shrank inside my margin too. I was getting more and more in the over-leveraged territory, but somehow, and for those wondering, I managed to never get the special call from Wealthsimple, but I was not far away 😅 My $LUNR position in my margin account ended up down around 60%. Small caps and space stocks have been hit hard by the SpaceX IPO, macro uncertainty, fears of rate hikes, etc. Meanwhile, $LUNR now trades at roughly a 3.5x forward P/S, while many other space stocks trade at significantly higher multiples around 75x ($RKLB) to 150x ($ASTS) and even 420x (hey $SPCE) $LUNR is also expecting positive adjusted EBITDA and roughly 4x revenue growth for full-year 2026. Btw, the stock has a $1.8B backlog which is more than half their market cap 🤦♂️ So yes, I still think $LUNR is insanely undervalued, which is exactly why I didn’t want to sell! This was for context. Earnings are still about 60 days away, I don’t really see the macro environment improving much before November and I currently have a couple of grands in losses I can potentially use for tax-loss harvesting. So here’s the strategy I chose: 1. I (temporarily) sold the $LUNR position in my margin account that was down around 60% to harvest the loss. 2. Since I can’t repurchase the same position within 30 days without risking the superficial loss rule, I’ll probably wait around 35–40 days just to be safe. 3. The risk is obviously that $LUNR surges higher during that period and I lose the chance to buy back at these levels. But if the stock falls I can potentially rebuild the position at an even lower price. Time will tell! 4. In the meantime, I continue to hold 400 shares of $LUNR in my TFSA. If $LUNR increases, so the collateral in my margin. Finally taking a decision on this feels like a relief. Sometimes you just have to take advantage of the opportunities you have to realize losses when it makes sense 🫡 Looking forward to re-increase my $LUNR in 35-40 days before earnings.
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9 Comments
Mirlan @mikatrades · 4h
Amazing 👏
Julie @livingmylife · 4hEdited
Space is risky my friend. I know you do a lot of research but we are in unusual times. You are up to date and have all the latest information and I enjoy reading your posts. It takes courage to share. I think you already know that as much as you love space it should be a satilite position. Take profits when you can. Store dry powder in your Wealthsimple checking that is getting some interest. October is historically a turbulent month. Thinking of you.
Clantosa @clantosa · 4h
Gotta learn how to exit if you're going to play with single names. A clue was when it was trading at its ATH when it hadn't done so in over 4 years
Michael Noël@therev · 4h
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