RE:do we begin to once again get those strong closes?? Patience is a virtue - Big money plays patient and plays smart. I bought in at 3.65 back in march.
What does history tell us about the behavior of KNT's share price?
1) March 2020 - Price bounces back up to $4 following the covid rebound - Bad news re:Porgera, stock becomes a lagger where prices stagnant until July 2020 - bouncing up and down swings of ~25% never getting over the $4 barrier.
2) News catalyst (drill results @ Kora) hits in July 2020, followed by strong earnings. Prices soar 100% in 2 months.
3) This type of pattern has happened every year prior - I was saying this back in march, and what do you know it happened again this year and I reaped an 80% gain on my investment.
How is the companies actual performance?
This is a growth company in the gold sector, drill results have consistently been good. They are still expanding their operations, and they are meeting their debt obligations in the process. Drill results having been showing that there are consistent high grade veins (10+ g/t) within their land. Their business plan was to triple output - and theyve been delivering.
What is the gold sector looking like?
1) There's still a larger gold rally going on - Gold is up 28% YTD, KNT is up 170% YTD.
2) Gold is inversely related to the real US interest rate curve - its still negative.
3) Debt hasn't magically disappeared, US Fed inflated some of it away by buying a metric ton of junk bonds pushing up national debt. Gold is known as an inflation hedge.
4) Gold responds well to uncertainty, Covid isn't over just because vaccines got some news. Companies in specific sectors are still on a financial ledge.
Does this seem like the kind of environment that would lead to a bearish gold market? In my opinion, no. Does that mean that some money wont rotate out taking profits? No. Welcome to price consolodation.
So then, piecing it together, whats the outlook?
GL guessing the day by day - what matters is the long term trend. Is the broader market sector healthy? Does the company have a track record for delivery? Is the company still growing? Since the answer to all three of those is currently yes. Good investment? Yes. It's just up to the individual to decide what's their right price. This is my DD, but DYODD.