Goldtent TA Paradise

KGC Breakout…

1. Cashcosts says:

   April 1, 2016 - 8:25 am at 8:25 am

   These gold stocks are funny. Some companies get zero respect and then just “wake up” out of nowhere. When I began buying gold names in mid 2015 I couldn’t understand why KGC kept going down and was so undervalued. I had a large lot of Jan 2017 leaps that I sold for a double and a half awhile ago (probably will prove to be an awful awful sale in 8 months time) and haven’t been involved since. If we indeed did put in the bottom in gold, I think that Kinross is poised to outperform because they bought some North American assets from Barrick, are expanding Tasiast (which is just a monster monster mine) all at the bottom of the cycle. I did find it bizarre that they did a 3$ secondary just recently, but now it makes sense with the Tasiast expansion. The big concern was over their Russian assets, but they have done exactly what they said they would do by increasing North American production thru the acquisition of Barrick’s leftovers lol.

   All this being said, my favorite fundamental name is Newmont. It is my largest position by many multiples. I struggle sometimes because if gold goes into a mega rally, the best positioned names from a fundamental perspective aren’t the best performers. The ones that were left for dead (and I never eve understood why it was left for dead) like KGC are.

2. EagleSeagle says:

   April 1, 2016 - 9:30 am at 9:30 am

   Thanks for your detailed feedback, all I know FWIW Raymond James upgraded the stock yesterday-lol…