KINROSS GOLD CORP (KGC: NYSE): Up 35% in 2 months

We bought Kinross Gold on 23 June for $10.08 it is now $13.61 a fantastic run to gain 35.02% in just 2 months. The question is what to do now?

Decisions, decisions, but what a smashing position to be in. Do we stick or do we turn? Lets have a look:

From the chart below we can see the that the stock price has bounced off the 200 day moving average and put in a terrific run to present us with a handsome profit. There is now clear blue sky between the stock price and the 200-day moving average, a rise that we have enjoyed enormously. However, at this point, with such a good gain, we could cash in and take some money off the table. Who could blame us for taking such an action to lock in our profit?

After all the RSI is close to 70 and the MACD is up there too. The stockastics are also in the Sell zone.

On the other hand when we were researching this gold mining stock we came to the conclusion that as an investment Kinross Gold Corporation is capable of doubling its stock price from the $10.0 level to $20.0 or thereabouts and that is why we made this investment. Should gold move higher as we are predicting, then this gold miner will be a sort after stock.

So the choice is yours, take a quick profit and move on to the sidelines. Another entry level may well present itself to you enabling you to reinvest at cheaper gold prices.

We have discussed it, argued, roll played it, analysed it, etc, and decided to stay with it. This may mean enduring a short-term pull back and a fair amount of turbulence, but that is the nature of the beast.

Good luck if you decide to sell now; it’s your money after all.

27 August 2006