Chart courtesy of Stockcharts
The de-leveraging that occurred last fall was largely attributed to the hedge funds running for cover however, not all the hedge funds have disappeared as John Paulson demonstrated by taking a 4.5% stake in Kinross Gold Corporation (KGC).
The billionaire manager also has a large stake in Anglogold Ashanti, Gold Fields, Market Vectors Gold Miners ETF and SPDR Gold EFT in which he has 31.5 million shares or 8.6%. ETFs are not our cup of tea but the point is that this hedge fund has put a large amount cash into this sector of the market. At the end of March, SPDR Gold, the biggest gold-related exchange-traded fund, was the biggest U.S. holding that Paulson has publicly disclosed, according to FactSet Research Systems Inc. Now, should the other surviving hedge funds decide to follow Paulson & Company and make acquisitions in the gold sector then gold producers such as Kinross Gold could find themselves the center of attention. Hedge-fund manager John Paulson made the news with his well-timed moves against the sub-prime housing market. You can read more on MarketWatch in an article by Moming Zhou.
Taking a quick look at the above chart we can see that the MACD black line is close to crossing over the red line in an upward movement which would be positive for the stock and is sometimes referred to as the golden crossover. We can also see just how much Kinross has oscillated over the last few months. In a way this sort of movement bodes well for shareholders as the upside movement should be excellent once our mistress Gold decides to take out $1000/oz barrier and head for record highs.
Kinross Gold Corporation trades on the Toronto stock Exchange under the symbol of ‘K’ and on the New York Exchange under the symbol of ‘KGC’ Kinross has a market capitalization of $12.70 billion, with average turnover of 6.21 million shares and closed today at $18.28.
Have a good one.
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