Our Stock of the Week is Kirkland Lake Gold, LTD (KL). KL is a Canadian company engaged in mining and mineral exploration in Canada and Australia.
Gold miners will mostly move in tandem with gold so we sought to identify one with good growth that may earn a premium from investors. KL had eps growth of 53% last quarter to $0.30 from $0.10 in the year-ago quarter. The company is looking at 53% eps growth in 2018 and 27% in 2019. It sells with a trailing PE of 21x.
On October 9, the company preannounced its gold production: Kirkland Lake Gold announced record quarterly gold production of 180,155 ounces for Q3. Production in Q3 exceeded target levels for the quarter driven by record quarterly production from Fosterville of 90,618 ounces as well as from the company’s Canadian operations, with Macassa, Holt, and Taylor collectively producing 89,537 ounces. The company completed Q3 well positioned to achieve the improved FY18 consolidated production guidance of over 635,000 ounces
Technically, the stock has made a higher high and is facing overhead resistance up to $22. If gold stays strong, we are looking for a test of the early August highs.
As always we would not chase a move on Monday morning but would look for strong action on increased volume for an entry point or addition.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength, and will buy or sell at any time for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees and affiliates of Shark Investing, Inc. and/or principals, employees and affiliates of Shark Asset Management, Inc. (“SAMI”), directly or indirectly, controlled investment and/or trading accounts containing positions in KL. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.