BUY: Kirkland Lake Gold Ltd. (KL)
From Jack Adamo’s Insiders Plus
Today, we are recommending a gold company and selling two ETFs.
The term rock star seems to apply not just to musicians, but to a miner in this case. Kirkland Lake Gold Ltd. (KL) pulled a lot of gold out of relatively little rock in the first quarter. Rather than convert the stats into prose, I’ll just have you take a look at this table.
The column on the far right is the growth percentage.
With a 57% increase in gold produced and a 53% increase in ore grade to an outstanding 17.6 grams of gold per ton mined, it’s not surprising that EPS rose 126%. What is surprising, is that the stock did not go through the roof after this earnings report.
If you annualize the quarterly results, the stock’s P/E is slightly less than 16-times earnings. Not too bad for a stock that just delivered a 126% year-over-year increase in EPS. I’m not counting on that growth rate continuing, but the company was upbeat about the coming year, and there are still a lot of fields that have not been touched yet, so I suspect growth will continue at a decent pace, and at this price, even a little growth would be adequate to make the shares a great value.
Kirkland Lake Gold is a buy up to $36 for this additional 2% position.
Jack Adamo, Jack Adamo’s Insiders Plus, www.jackadamo.com, May 11, 2019