Recent Sell – KL

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My first sale of 2019. Sales are always hard, especially when times are good and everything seems to be going well for the investment in question. Personally, I have a harder time timing the sales than timing the purchases. When things are rosy, we tend to feel that the good times will continue forever.

Human psyche & investing seem to always fight each other on this front. We buy/invest when we feel good and sell when we are depressed about our investment picks. This sale has been especially hard for me as it has been my best investment to date.

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Recent Sell – Index funds & HIVE

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Here’s a quick update on a few sales in my portfolio. Sales are always hard, especially when times are good and investors are riding the coattails of one of the best performing bull markets in modern times. When things are rosy, we tend to feel that the good times will continue forever. The world has been awash in liquidity for a decade investors have been awarded for taking more risk.

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Recent Buy – KL

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A quick update on a a recent purchase in my portfolio.

Hard to ignore some crazy cheap valuations in the precious metals mining sector. Last week, I nibbled a bit and added more to my already largest position in portfolio. I added 100 shares of Kirkland Lake Gold (KL.TO) @ CAD$23.00. I have been buying KL (and its pre-merger Newmarket Gold) for a while now. The company has been one of the best performing stocks in TSX (and my portfolio) and executing even better than expected. Management continues to make fantastic progress with their revenue and earnings quarter after quarter, started issuing dividends last year (and has tripled them since!), news flow has been stellar every few months where higher/better/richer resources discovered in their existing mines. It’s hard to find a fault with this company.

Lately, the company has come under selling pressure and was a head scratcher for everyone. Finally, it was revealed last week that Van Eck (the ETF company) was dropping KL from its junior index (GDXJ) and promoting it to the senior index (GDX). GDXJ’s top holding was KL and this explained why there was so much selling over the past few weeks. It was also announced that Sep 21 would be the final day of selling out from GDXJ. When the market provides you fat pitches, you have to swing! I decided to wait until this window was closing and added to my position on the last day of selling. It has also been noted that insiders have started buying below CAD$25.00, so I think it provides good valuation at the current price. Current yield is close to 0.5% and with this purchase, I add $12 to my forward dividend income.

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








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.