Luis over at Economic Alpha (aka highgrade on Twitter) today published his thoughts on the deal struck between Kirkland Lake (KL) and Detour Gold (DGC.to) under the title “Kirkland Takes Detour” which are well worth reading because:
- Luis has been long KL since it was a U$6 stock (approx) and his track record of calling the stock and its catalysts over the last couple of years has been impressive.
- As we know, KL has taken a big hit this week (from U$49 to U$40 approx) as the deal was handed a very negative reception by the market.
- Luis has taken the hit on the chin and come up with a nuanced and carefully considered piece that uses his intimate knowledge of the stock as well as the public data.
It’s not for me to agree with every point he makes, but I think he nails the conclusion and gets the call right. But that’s me, go make up your own mind about it by clicking right here.