Sell Kinross Gold (KGC)
posted on November 12, 2009 at 8:30 am
A rising tide lifts all ships, true. But not all to the same extent.
The huge rally in gold to new historic highs day after day has largely left Kinross Gold (KGC) behind. True, the stock is up 9% as of the close on November 11 from its recent low at $18. But in that same period shares of Goldcorp (GG), a Jubak’s Pick on November 5, is up 22%. (For my buy on Goldcorp see my post http://jubakpicks.com/2009/11/05/buy-goldcorp-gg-2/ )
Unfortunately, I don’t think the problems at Kinross Gold that have led to this under performance are easily fixed. So I’m going to take the gain from the rising tide, sell Kinross at an overall loss with this column, and look for a ship that’s better able to float with the tide.
