Kirkland Lake: Obliterated after Acquisition; Why I hate Seniors
After an incredible "cup" that has formed technically with Kirkland Lake over the last while giving it incredible momentum, one only had to think: where is the "handle" and when will it happen? Well, we found it and boy did we ever!
Kirkland Lake although one of the more promising seniors in the entire Gold industry sold fiercely off as investors worry the recent acquisition will hurt operation costs tremendously (whether this is the case or not is up for debate).
I am targeting a bottom near the $46-48 range with the most likelihood of a slow reversal around the $48 range. As long as Goldspot remains relatively suppressed, KL will have a harder time reversing.
For this reason, this is why I do not ever recommend seniors for investment - incredible short interest lurking in the woods for an opportunity to send the stock plummeting. The only time you want to be in seniors is if they happen to be incredibly undervalued at the time. For example, Barrick is undervalued right now, however, there are MANY seniors that are overvalued given the price of Gold.
For the safest growth Gold stocks you want to be in royalty streaming companies like Franco-Nevada or Sandstorm as their downside and "mining risks" are extremely mitigated.
- zSplit
Kirkland Lake although one of the more promising seniors in the entire Gold industry sold fiercely off as investors worry the recent acquisition will hurt operation costs tremendously (whether this is the case or not is up for debate).
I am targeting a bottom near the $46-48 range with the most likelihood of a slow reversal around the $48 range. As long as Goldspot remains relatively suppressed, KL will have a harder time reversing.
For this reason, this is why I do not ever recommend seniors for investment - incredible short interest lurking in the woods for an opportunity to send the stock plummeting. The only time you want to be in seniors is if they happen to be incredibly undervalued at the time. For example, Barrick is undervalued right now, however, there are MANY seniors that are overvalued given the price of Gold.
For the safest growth Gold stocks you want to be in royalty streaming companies like Franco-Nevada or Sandstorm as their downside and "mining risks" are extremely mitigated.
- zSplit