2 Recent Buys – KL, AQN

BuySell

A quick update on a couple of purchases in my portfolio adding to my existing positions.

  • Last week saw some tumultuous time in the resource sector and almost all gold miners took ย a hit. The fundamentals havent changed for most of these companies and have in fact improved significantly for some. A 5% drop in share prices provided me with a decent valuation to add to my already largest stock position in my portfolio. I added 100 shares in Kirkland Lake Gold (KL.TO) @ C$11.30. For people who arent familiar with the space, KL is the newly merged company and is on track to become a heavyweight in the mid-tier space of the gold mining business. The company is headed by none other than the legendary Eric Sprott and is sitting on some amazing resources. The Fosterville project has proven to be a literal goldmine as better results keep coming month after month improving the prospects. KL has been on a tear this year and the YTD performance has been approx 65%. Nevertheless, I am so bullish on this company that I do not intend to sell and take profits but looking to add to my position on any pullbacks. KL also recently initiated issuing dividends and announced a buyback program.
  • Yesterday, I also made a purchase adding to one of my long term dividend growth stock holding. I added 100 shares in Algonquin Power & Utilities Corp (AQN.TO) @ C$13.00. I have owned shares in AQN for a few years now and have been extremely pleased with the performance. The company yields approx 4.7% and adds US$46.6 annually (dividends are paid in US$). I am a big fan of this business, which owns assets in all three major subsectors – electric, gas and water…which as far as I am aware, is the only utility company that provides exposure in all three subsectors. AQN also has a renewable energy division, which is a nice growth area to gain exposure in.

Full Disclosure: Long AQN.TO, KL.TO. Our full list of holdings is available here.

6 thoughts on “2 Recent Buys – KL, AQN

  1. Nice buys intresting about the gold mine headed by sprott! I have been debating algonquin but hoping the intrest rate hike will knock it down some more. Glad to hear u bought it that boosts my confidence in algonquin.

    • AQN has come under quite a bit of pressure and looks a bit oversold. Was waiting for a decent opportunity to add more shares. This seems as good as any ๐Ÿ™‚

      Yeah…Sprott is heading KL in a fantastic manner. The company is attracting investors from all over. I had predicted that KL will be the top holding in the GDXJ. After the GDXJ debacle last couple of months, and after all the rebalancing has finished, sure enough – KL is the largest position.

      R2R

    • AQN although a Canada-based company, has most of its operations in the US. Last year, they also bought Empire District, which cemented the exposure. Slow growers are fine with me ๐Ÿ™‚

      Thanks for stopping by
      R2R

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