3 Recent Buys – KL, CBW, ABCN

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Here’s an update on some recent purchases in my portfolio. For this round, I have one purchase adding to my largest position in the portfolio and two new positions and a new endeavor in a new sector.

First purchase: I added to my position in Kirkland Lake Gold (KL.TO) after the continued pressure. The gold market is seeing headwinds in the last few days and KL got beaten down on no news. In fact, the cards are all in favor of KL outperforming and leading the pack in the mid-tier sector as the amazing news keeps flowing. The financials are stellar, the flagship mines are running smoothly, grades are also improving on a regular basis, new discoveries provide added tailwinds, new partnerships are being formed securing future production. It is really hard not to like this company. Its already the single largest exposure I have in my portfolio and I continue to average UP — something that most investors do not do. I added 100 shares of Kirkland Lake Gold @ CAD$15.25.

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2 Recent Buys – KL, FIH.U

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A quick update on a couple of purchases in our portfolio.

First purchase: I added to my position with in Fairfax India Holdings (FIH.U.TO). I added 100 shares @ $17.50, bringing down my average cost basis slightly lower. This is a company that I initiated a position in early September and provides me with an exposure to the Indian market. I wont repeat and will simply point to the other post for details.

Second purchase: Last week’s move down also gave me an opportunity to add more shares in one of the strongest performers in my portfolio and my largest holding overall. I added 100 shares in Kirkland Lake Gold (KL.TO) at C$16.75. So far, this stock has been on fire and I have more than doubled my initial investment, which I started about a year ago. Although I am tempted to sell and take some profits off the table, the good news just keeps rolling and I cant help but just buy more on this promising company. Some highlights on why I continue to buy Kirkland Lake Gold

  • Chaired by none other than Eric Sprott, KL has top notch leadership. The company is now well on its way to become the top mid-tier company in gold producing space
  • The Fosterville project has turned into a behemoth and the grades just keep improving. In addition, the Macassa mine also continues to deliver some great results
  • The strategic investments keep coming — buying equity interest in companies like Novo Resources (NVO.V). Novo is a company that slipped through my fingers and has seen some explosive returns lately, but atleast I can take refuge in knowing that as KL shareholder, I am still seeing some benefits from Novo’s move and resources in Western Australia.
  • Eric Sprott still continues to buy shares in KL hand over fist. His last purchase was 200K shares at $15.71. So, more great news on the way? I bet it is.
  • The company is also maturing and shareholder friendly with dividends (this purchase adds $4 in annual dividends — nothing to write home about) and share repurchases. CEO Tony Makuch has continued to reiterate over and over in every presentation that the management and board firmly believes that even at these prices the stock is severely undervalued.

What do you think about these purchases? Share your thoughts below.

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

Recent Buy – Hive Blockchain Technologies

And now…for something completely different 🙂

The world of blockchain and cryptocurrencies has caught my attention. I recently had two posts on this topic discussing my experience so far. As I mentioned earlier this week, I bought a small amount of cryptocurrencies (ETH and LTC) in order to get my feet wet. Since this is an emerging tech, its really hard to figure out who the winners and losers will be. Add the fact that companies are now built on an open source platform and in a completely decentralized way, that makes it harder to pick. To add to the complications, most companies in the space have resorted to having direct token sales and ICOs instead of going to the capital markets…this makes it even harder to get access to good equity unless you are willing to risk a lot more than usual. I have read some of the pitches from some companies raising funds via token and ICO sales — and they were complete nonsense. I wouldn’t touch such companies with a 10-ft pole.

Back to the point of this recent purchase. I initiated a position in a blockchain company. There are plenty to invest in if you go the token/ERC20/ICO route, but the number of companies available in the “traditional” capital markets are very limited.

Last week, I purchased 1,000 shares in Hive Blockchain Technologies Inc (HIVE.V) at CAD$1.08.

What does Hive Blockchain Technologies all about? Digital mining! It is almost fitting that I have investing so much of my capital in precious metal and base metal miners over the last year…why not digital miners? 🙂

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2 Recent Buys – AQN, FIH.U

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Last week I added to one existing position and initiated a new position.

For the first purchase: I added to my position in Algonquin Power & Utilities Corp (AQN.TO). The stock price has come under a bit of pressure lately, and I managed to add more shares to my sizable position. I added 100 shares @ C$13.00 adding an extra US$46.6 in annual dividends, a yield of 4.38%. I have already detailed various reasons on why I am bullish on this stock, so I will simply point to previous posts on this stock.

Second purchase: I initiated a new position in my portfolio with Fairfax India Holdings Inc (FIH.U.TO). The stock provides exposure to the Indian market, where the economic growth is phenomenal, as India is expected to carry the bastion for global economic growth from China. While the size of Indian economy is not quite the size of China’s there is plenty to like about the Indian economy. Instead of going with an index fund, I decided to choose this as I have been watching this holding company since inception. The holding company is headed by Prem Watsa, touted as Canada’s Warren Buffett, and follows the Berkshire Hathaway model.

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2 Recent Buys – NSU, WPM

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Another quick update on a few recent purchases. This market is giving some great buying opportunities in the resource sector and I continue buying and adding more to my portfolio.

  • I added to my position in Nevsun Resources (NSU). For this particular transaction, I put my US$ to work as I had more US$ cash in my investment accounts, but for all reporting purposes, I will simply include the TSX-listed entity in my portfolio page. I bought 1,000 shares of Nevsun Resources (NSU) @ US$2.13. Nevsun is a top tier copper producer and has interest in two massive mines, one in Serbia (Timok) and the other in Eritrea (Bisha). The latest earnings release painted a bleaker picture for Bisha than expected, and timelines have been revised to later dates for Timok. The company also has a new CEO and it is clear that the previous leadership was sitting on these problems for too long hoping to sweep things under the rug. The new CEO has decided to rip the bandaid off and set things in motion by taking the right steps. The company still pays a paltry dividend, but I expect that to get cut in the coming days. Better to save the cash and put it to better use than distribute it to shareholders. The shock sent the stock price down 20%, and it was the perfect opportunity for me to load up. As is the case with the resource sector, the mines and resources are still there, and investors are being too shortsighted for a project the scale of Timok, which is a fantastic tier-1 resource.

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