Kirkland Lake Gold

KL-T

Gold is hot now as interest rates decline. He's bullish in precious metals, and KL is a leader in this space, a go-to name in this gold rally. However, the valuation is a little inflated (the same can be said about the FAANGs).

They've done very well, especially from their Fosterville mine in Australia. Higher gold prices will be a tailwind. This is best of breed. (Analysts’ price target is $53.86)

(A Top Pick Mar 15/19, Up 15%) His fundamental analyst is calling for $60. He thinks a near term pause or retracement may occur, but not before getting towards $54-$56.

He is getting bullied up on the precious metal space. If the economy weakens, you will see central bank intervention. As debt to GDP ratios continue to go higher, he sees inflation returning. He thinks in about a year, you could see something like the 1970s stagflation period. This would be very good for precious metals -- not so good for equities. KL-T is a bit expensive and he would prefer others. He thinks silver prices could rise dramatically compared to gold if the stagflation scenario unfolds.

The best gold chart. He's bullish gold. The chart has stabilized and is now seeing higher highs and lows. $58 is his target. (Analysts’ price target is $51.52)

It has been a real winner as far as the gold sector has been concerned. It needs the underlying commodity to behave a little better. He would add on pullbacks. You could also consider other intermediate golds.

Up 21% since Dec. 28, but he expects 15% more upside. Pays only a 0.5% dividend. Sales in their last report were up 35%, earnings up 61%. Free cash flow of 5.6%. Earnings estimates have risen to 56% in 2019, giving a 35% ROE. He once owned it and wants to re-buy it. (Analysts’ price target is $51.86)

He loves gold as an asset class, and he expects a 20% swing upward in 6-12 months. KL has performed well, but he prefers diversification instead of a specific gold stock, like the ZGD-T ETF.

It has had such a big move over 18 months. It is still quite solid. Technical tools suggested about 10 days ago he should reduce gold holdings and this was one of those. If you are a long term investor then the ups and downs should not concern you. You could step into this one right now.

(A Top Pick Apr 30/18, Up 103%) Doesn't act like a gold stock. Took profits. Fantastically well run. Owns Franco-Nevada now.

This has been the best performer in the portfolio. He has taken some money off the table. He expects it to continue to move. Good reserves and good production. A solid name. Yield = 0.35% (Analysts’ price target is $51.22)

The operational performance has been extraordinary. You are paying up for quality now after the stock had a big run.

He does not trade gold stocks. They are a flight-to-safety stock. This would be the absolute champ if he wanted to buy a gold stock. It has cash flow and a good return on equity. It is not cheap but they beat recently.

(A Top Pick Mar 23/18, Up 112%) He took some profits and will redeploy money in the sector. This one has done its job for him. It will be a little volatile because it moved so hard so fast. He is bullish on gold, however.

The no. 1 performer on the TSX in 2018, up 85%. They have great mines in Ontario and Australia, both stable areas. They keep increasing production targets: produce 1 million ounces of gold a year by 2021. There's a place for precious metals in your portfolio when we hit the inevitable recession and return to quantitative easing. (Analysts’ price target is $42.04)