I’ve now heard from two equity analysts who say KL is significantly over valued in relation to peers. Great company, but over valued. What’s more, one gentleman informs that there could be institutional inputs from the gold sector old boyz network. My mind goes back to Klondex, the last great gold mining super stock. That did not end well. I took plenty of profits on it before the implosion, but bought it back lower and then got dinged a bit as all the hype unwound and the company failed to deliver on its promise.
The thing has just been so reliable, so steady while so many other gold miners act like the crap they are. As noted in the Trade Log…
Finally, after much consternation, take sizable profit in KL. Now the job is to find the next KL.
Consternation: noun, feelings of anxiety or dismay
It’s funny how the market can make you feel like a rookie at any time and that is how I felt today.
I also did not allow NEM to hurt me and took a minor loss (as noted would be the case in NFTRH if it broke from a little bear flag), as buying the pain in the gold sector can be a grinding affair. Evidently the bugs had/have more puking to do. That’s fine. That’s when you buy. But the question is at what levels? Patience is a thing I work on constantly because it does not come naturally.
So in preparing to buy more of the sector – for a trade at least – I thought I’d better take the bird in hand that is the latest KL profit and then evaluate. 40%+ off of the February/March consolidation in my largest gold stock holding is nothing to sneeze at. It’s downright amateurish to think otherwise, no matter how it may run away higher or (hopefully) not. I’d consider buying it back around 20, sector willing. Meanwhile, I hold some smaller little crappers dragging the portfolio and a couple good, solid smaller producers at pretty good profits. But steady Eddie here is gone, and that gives me a level of dismay.
Okay, it’s gone. I am going to stop bellyaching about it now.
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